ABHAY THACKER 20 February 2019

Pagdi system

Hello Sir,

I have a query regarding a shop which was leased under Pagdi system and during few years landlord of the property insisting us to sale the property , but that shop is only source of income to us and landlord is far more wealthy, now he is insisting us to pay the fair market value of the property and ownership will be transfered in our name.

My query is , if i has to pay the whole 100% of fair market value or 35-40% only as i have also rights on the same property, because i have paid handsome amount at the time of Pagdi contract.

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1 Replies

Sharma Twinkle Manojkumar (Student) 16 March 2019

In the recent years, the pagdi system has created some uproar across the country and especially in Delhi and Maharashtra. Here most pagdi kirayadars have the nominal rent agreement with them and no proof of the hefty amount that they had paid long back. For example, the pagdi would have been for Rs 1 lakh, 30 years ago, but the agreement mentions say, Rs 500, which is the rent per month that needed to be paid thereafter

*In May 2017, shopkeepers who were pagdi tenants in Delhi's Chandni Chowk area were being evicted. As many as 10,000 such shops were affected with more than 50,000 out of job and many more under the radar. These shopkeepers demanded amendments in the Delhi Rent Control Act.

You may also seek relief under such act.