Mumbai denies the luxury of buying a new property through exorbitantly priced real estate. Most of the population living in Mumbai either lives by houses that were bought long before prices rose high or were rented or in the Pagadi system. The Pagadi system is an ancient rent system that has followed in Mumbai since the Second World War. This is very similar to the rental system prevailing throughout the world, but the only difference is that the tenant also becomes a member of the land!
The system protects the tenant more than the traditional rental system. The landlord will not be able to easily evict residents, and the tenant has the right to sell the house! The tenant has the right to the house, but not to the land. The house can be sold to a new tenant for a percentage of the cost of capital, and a percentage of the money made is sent to the tenant, and the majority is returned to the owner. The tenant pays a nominal amount in the form of rent to the land owner! It is clear that banks do not support this system of renting or buying a home!
This system causes many legal problems, especially for the landlord, who must go through a long, painfully cumbersome process if he decides to evict the tenant. In addition, the Rental Control Act protected tenants who pay a fixed rent, as well as their right to property leased by the Pagadi system, is inherited!
However, the state of Maharashtra has now decided that it will no longer include residential properties of less than 500 square meters. Feet and commercial real estate area of less than 800 square meters. Feet in accordance with the Rental Control Act. This will directly affect Pagadi residents in Mumbai, who have been living in rented houses for many years! Nariman Point and Marine Drive, two of the most expensive real estate properties in Mumbai, are dotted with Pagadi properties. It is estimated that a total of 52,000 people still live under Pagadi!
This happens as good news for landlords, who will now have the power to provide rent based on the cost of capital and taxes. It will also enable landowners to oust people if they cannot pay property taxes that the government wants to levy.
Although in some sense it seems that the unfair balance against the landlords came to an end, it should be noted that many of these Pagadi residents also paid huge amounts of money to their landowners already and are asking for them for a more dense place. The solution would be for landlords to take the remaining money and register property on behalf of tenants.
Residents of South Mumbai will be most affected by changes in the rule of law, since many of the objects are under the Pagadi system.
