‘Pagdi’ buildings may be brought under RERA
The government is planning to bring tenanted or cessed buildings and tenants of such buildings under the Real Estate (Regulation & Development) Act, 2016 (RERA), providing for the first time the same protection to these consumers as those available to other home buyers.
The tenanted or cessed buildings that dot the landscape of many cities, especially Mumbai, house people who have been living for several decades and paying cheap and artificially depressed prices. Known as the Pagdi system in Mumbai, tenants are not covered under the authority.
The Pagdi system, which has been in existence since pre-independence era across many parts of the country, is a rental model. While it is similar to most of the lease models, there is one crucial differentiating factor that makes the tenant a part owner of the house, excluding the land.