Pagdi Buildings in Mumbai: Where the Redevelopment Reform Stands for Tenants and Landlords

Maharashtra announced a new framework for Mumbai's 19,000+ pagdi buildings in December 2025. What was proposed, what is still pending, and what to do now.

Heritage buildings in Fort, South Mumbai

Pagdi is one of Mumbai's oldest housing arrangements. A tenant pays a large one-time premium, the pagdi, for the right to occupy, then pays a low monthly rent for life. The landlord owns the building. When the tenancy is transferred, the pagdi is usually shared between the landlord and the outgoing tenant.

The result, decades later, is thousands of old buildings where rents are too low to fund repairs and neither side can agree on redevelopment.

What was announced

In December 2025, Deputy Chief Minister Eknath Shinde announced a new framework for redeveloping pagdi buildings in the state legislative assembly.
Reports cited more than 19,000 pagdi buildings in Mumbai, with about 13,500 not yet redeveloped. Many were built before 1960.
Reports said a separate, detailed set of rules would be drafted. Existing routes under DCPR Regulations 33(7) and 33(9) were to continue.

Proposed provisions, as reported

Who	Proposed entitlement
Tenants	FSI equal to the area they occupy now, and continued protection under the Maharashtra Rent Control Act
Low-income and EWS tenants	Extra incentive FSI, with reconstruction of their existing homes covered
Landlords	FSI matching their land share; TDR where FSI can't be used on site
Disputes	More small-cause courts proposed to clear about 28,000 pending cases within three years

Until the final rules are notified, existing redevelopment routes and tenant protections continue.

Where it stands

The reports we reviewed describe the rules as proposed and being drafted. We have not seen a final notification. Before you act on any of the entitlements above, check whether the rules have been notified and what they actually say.

If you're a pagdi tenant

Keep your rent receipts and tenancy papers safe. They prove your tenancy and occupied area.
Get your area measured and recorded if there's any dispute.
Don't sign a redevelopment consent without understanding the area and terms offered. Take independent legal advice.

If you're a landlord

Check your building's BMC structural category. C1 buildings must be vacated.
Get your title and tenant records in order. Redevelopment needs both.
Watch for the final rules before negotiating with developers.

If you're buying

Buying a pagdi right or a flat in a pagdi building is different from buying ownership property. Read our guide to cessed buildings in South Mumbai first.

Frequently asked questions

Has the pagdi system been abolished?

Not as far as the reports we reviewed show. A framework was announced and rules were being drafted.

Will tenants become owners?

The proposal gives tenants FSI equal to their current area. Final terms depend on the notified rules.

Own or rent in an old South Mumbai building? Book a video call.

Sources

General information, not legal advice.

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