Mumbai: Tenants of Pagdi buildings get respite, no rent hike

— By Sagar Pillai | May 27, 2017 08:00 am

Mumbai: In a major respite to the tenants of buildings that are under the Pagdi system, the state government has put on hold the decision to increase rents. This is the third time in the last two years that the government has delayed the decision on rent hike.

Earlier in 2015 and 2016, the state government had also put the decision of increasing the rent on hold.

In March this year, the state housing department had proposed the rent hike by amending the Maharashtra Rent Control Act, 1999, which regulates rental housing in the city. According to the amendment, the landlord will be allowed to increase the rent by 25 per cent. The move was strongly opposed by the tenants.

The rent paid by these tenants are very less compared to the current property rates in the city and a 25 per cent increase will not be a big difference, a senior MHADA official, requesting anonymity, said.

Tenants, on the other hand, argued that they pay cess to Maharashtra Housing and Development Authority’s (MHADA) repair and reconstruction board, and questioned the need of landlords to carry out repairs.

“Why do the landlords need to carry out any repair in the structures when we are paying taxes to the repair board. This is just to fleece more money from our pockets,” Unmesh Patil, one of the tenants of the Pagdi system, said.

The Pagdi system is an old system of the city wherein the tenant partially owns the house and enjoys the rights of the land. In case a tenant wants to sell his land then he or she is bound to pay a premium of 33 per cent of the total selling price to the landlord.

In January this year, the state government had decided to introduce a proposal to bring an amendment in the Act but received criticism from opposition parties.

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