Umesh Shirodkar 30 July 2024

Pagadi system

I just want to know what should be the rate to purchase extra property if developer ask tenants to purchase in pagadi system.

I.e if the area is 240 carpet and if he has to give 300 carpet flat for ownership what should be the purchase rate for the extra area.

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T. Kalaiselvan, Advocate (Advocate) 31 July 2024

Purchse rate cannot be advised by anyone from this forum, it depends on the builder and prevailing circumstance, hence you may talk to the builder directly and negotiate accordingly.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 31 July 2024

The "Pagadi System" is a local term used in some parts of India, particularly in Maharashtra, to describe a type of property transaction where a developer offers existing tenants an option to purchase the property at a negotiated rate. Regarding your query, the purchase rate for the extra area (60 square feet in this case) would depend on various factors, including: 1. _Agreement terms_: Check the agreement between the developer and the tenant for any stipulated rates or formulas for calculating the purchase price of additional area. 2. _Market rates_: Research the current market rates for similar properties in the same area to determine a fair price per square foot. 3. _Developer's offer_: Consider the developer's offer and negotiate a reasonable rate for the extra area, keeping in mind the market rates and the terms of the agreement. 4. _Calculation formula_: If there's no stipulated formula, a common approach is to calculate the rate per square foot based on the total area (300 sqft) and apply that rate to the extra area (60 sqft). For example: - Total area (300 sqft) purchase price: ₹X - Rate per sqft: ₹X / 300 - Extra area (60 sqft) purchase price: (₹X / 300) x 60 transaction.

Pagadi system

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