Pagdi system flats - Safe or unsafe

Nisar Ali (Querist) 03 May 2011 This query is : Resolved
Hello,

I just wanted to know what is pagdi system flat.

Accordingly to the property law, is it safe to buy these kinds of flats/ houses etc.

Request your all suggestions.

Nisar

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Raj Kumar Makkad (Expert) 03 May 2011
There is no legal word like pagdi in property transfer act. This is a local system (illegal) vide which the person in possession of any immovable property gets certain agreed amount prior to transferring the possession of that property in favour of transferee. Such transferee if wants to further transfer in the name of some other persons then he also demands increased amount in the name of pagdi. Some time old possessors of such properties if retrun the property to landlord even then they charge amount from him called pagdi. As already told this system has no value before eyes of law. Now depends upon person to person whether he deems it fruitful or not.

Guest (Expert) 04 May 2011
That depends upon the honesty and fairness of the landlord and the perfectness of the agreement between both the owner-tenant.

However, it is an informal deposit system and honored by most of the parties. But the convention is that when the same is transferred to some other person on pagdi basis, the profit is shared 50:50 between the land lord and the pagdi tenant.

Nisar Ali (Querist) 04 May 2011
Thanks Experts.

More advices and suggestions are welcome!

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