Maha govt to introduce regulations to make Mumbai 'Pagadi' free: Dy CM Eknath Shinde

Nagpur, Dec 11 Maharashtra Deputy Chief Minister and Urban Development Minister Eknath Shinde, on Thursday, ahead of the elections to the BrihanMumbai Municipal Corporation (BMC), announced in the state Assembly that a separate set of regulations will be introduced for the proper and fair redevelopment of 'Pagadi' buildings, thereby making Mumbai city 'Pagadi' free.

He also said that the rights of both tenants and landlords will be protected in the state.

Deputy Chief Minister Shinde said that more than 19,000 cessed buildings are commonly known as 'Pagadi' buildings.

These structures predate the year 1960.

While some such buildings have been redeveloped, others have dilapidated and collapsed.

At present, more than 13,000 buildings await redevelopment.

"Tenants in these buildings are protected under the Maharashtra Rent Control Act. The structures, tenancies, and agreements are legal, and the state government introduced the Rent Control Act to safeguard the tenants' interests. However, landlords often complain that due to the tenants' rights to rehabilitation, the owners do not receive appropriate compensation for their property rights. This has resulted in numerous cases between tenants and landlords being pending in the Small Causes Court, leading to a poor response for the redevelopment of 'Pagadi' buildings," Deputy CM shinde added.

He emphasised the need for fair and proper redevelopment, which also necessitates safeguarding the rights of both tenants and landlords.

He stressed that merely providing FSI (floor space index) is not enough for Economically Weaker Sections (EWS) and Low-Income Groups (LIG); provisions must also be made for the cost of their free-of-cost reconstruction.

A separate set of regulations will be prepared for this purpose, he said.

"The proposed provisions will include FSI which will be payable equivalent to the carpet area currently in the possession of the tenants. Original FSI will be payable to the owners for their land ownership. Incentive FSI will be provided to 'Pagadi' holders (EWS/LIG) to cover the cost of their free-of-cost reconstruction. If the full utilisation of these three types of FSI is not possible due to restrictions like height limits or other constraints, the remaining FSI will be made available in the form of Transferable Development Rights (TDR)," Deputy CM Shinde added.

"These regulations are expected to pave the way for the redevelopment of old 'Pagadi' system buildings, preventing their collapse and the resulting loss of life and property. Existing options for redevelopment, such as 33(7) and 33(9) schemes, will continue to be available, providing a new alternative for buildings that have not yet benefited from them," he said.

"In addition, around 28,000 pending cases between tenants and landlords in these buildings have trapped many families in legal processes for decades. To accelerate redevelopment, these disputes must be resolved. Sufficient additional Fast-Track Courts will be established with the prior permission of the High Court. The expectation is that all cases will be settled within the next three years," Deputy CM Shinde added.

He said that this scheme will provide ownership-based, rightful homes to lakhs of Mumbaikars living under the 'Pagadi' system.

Crucially, Deputy CM Shinde affirmed that neither the tenants nor the owners will face any injustice, and the state government is committed to overcoming any further hurdles in this process.

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