We have a Property given on rent on Pagdi System at Brabuorne Road, Kolkatta and would like to know if a Landlord sells the property to another landlord, with the tenancy rights, does the new landlord have any grounds to ask the tenant to vacate the premise? Also would like to know the general rights of the landlord in a Pagdi system??
The landlord needs their property for own occupation or for any family member then he can issue tenant eviction notice
2) if tenant has carried out any structural alterations without landlord consent or has failed to pay rentals eviction suit can be filed against tenant
3) if tenant has sublet the premises it is ground for eviction
Dear Client,
Property can be sell to any but tenancy will subsists. No effect on tenant. Same grounds will available to new owner which old owner could have raised. In pagdi system, getting property vacated is big deal.
In Pagdi system, can the landlord ask the tenant to vacate if the landlord wants the shop/property for his own personal use??
He can ask but eviction can be through court only.
The new landlord cannot require the tenant to vacate the premises unless there is a breach of tenancy by tenant
Also no tenant can be evicted from his premises without following the due process of law i e by filing a proper eviction suit on valid grounds available in law in the competent court
If the tenant is regularly paying the rent and observing all the tenancy terms, then any eviction action by landlord will fail miserably
General rights of landlord include, to demand pro rata charges from tenants towards municipal and other taxes, to demand pro rata charges for maintenance and upkeep of building and common areas, to increase the rent as per law, to terminate tenancy if tenant indulges in subletting or breaches any tenancy terms, to require tenant not to carry on any structural repairs to the premises without permission, to require tenant not to sublet or give on leave and licence the tenanted premises, to ask tenant to keep premises in good condition and carry on tenantable repairs as and when required, to require tenant not to cause any nuisance or annoyance to neighbours and other occupants in the building, to vacate the premises for purpose of redevelopment or repair works of building, etc
1. In pagdi system there is no separate law to govern the landlord and tenant and the existing state rent Act and the T P Act will apply.
2. So no tenant without the written consent of the owner can transfer the tenancy and if he does then the same s a ground for eviction.
3. Sub tenancy is a ground for eviction.
Landlord can ask tenant to vacate property if he requires same for his own personal use
See the legal right of landlord under pagdi system is as of owner and as to.collect rent of the premises. In case the tenant fails to give rent of the premises as decided or use premises for other use then given in pagdi then the landlord can seek eviction.
Further the land lord has right to transfer tenancy give rent receipts.
Landlord can seek eviction for own personal use though he has to follow proper procedure and has to file a suit for eviction.
Mostly if you pay rent he will not evict you. But If he needs to develop he may give you some good offer
If landlord demanding to vacate Immediately serve him legal notice. Rent receipts are very good evidence for your property that you have on tenancy basis.You may also move to the competent court.
1. In the matter as described, the NEW landlord will take over all assets & liabilities (including Tenancy rights) of the Property, from the old OLD Landlord.
2. SUBJECT to following due procedure of law, the NEW landlord can give notice for eviction, citing proper reasons /grounds. However, the Tenants can dispute the same in a civil court and linger the matter for many years or may settle amicably.
Keep Smiling .... Hemant Agarwal
The Section 56 of the Rent Control Act, 1999 legalised the pagdi system when it said that the tenant or any person acting or purporting to act on behalf of the tenant to claim or receive any sum or any consideration, as a condition of the relinquishment, transfer or assignment of his tenancy of any premises.
If the rental agreement has not expired then the new owner cannot evict you till the expiration of the original rental agreement period.
Yes, but the tenancy rights will play a major role in this if the landlord forcibly tries to evict you.
Dear Sir,
The following information may kindly be read;
Pagdi System of Renting Properties – Everything you wanted to know about it!
We have noted that there is always reference to Pagdi system when redevelopment is concerned, especially in olden parts of the country. According to Section 56 of Rent Control Act, 1999, this consideration paid to the landlord as a fine, premium or consideration (pagdi) was legalized. The act provides authorization for a tenant to receive any amount in consideration of the abandonment or transfer of his tenancy.
Let’s dwell into this kind of tenancy a little deeper!
What is Pagdi system?
Pagdi system is alike any other renting system that is prevalent across the world. This “pagdi-kirayadar” system was launched before independence in order to avoid paying excessive taxes to the British. Under this system, verbal agreements played a major role in property transfers where in the tenants were given a slip of rent payment and further tenants made payments in full to the landlord.
Simply put, the system akin to any other renting system that is prevalent across the world i.e. landlord and a tenant. In this system the only deviating factor is that the tenant becomes a part owner of the house and not of the land. This tenant continues to pay rent to the owner as long as he is not sub-renting the premises. Additionally, the tenant has the option to sell the said property while giving a percentage of the gross amount to the owner. This percentage varies from anywhere between 30-50%.
In case of sub renting, the old tenant (now a landlord) and the owner of the property shall share the rental amount between them, typically at 35:65 ratio. This gives provision for the owner to make some money off his asset while avoiding taxes. The old tenant benefited, the new tenant rented a premises with low rent.
To understand the system better, we provide you with an example: In Pagdi system, if an existing tenant wants to sell his home for Rs 10 lakh, he is compelled to pay anywhere between 3 to 5 lakh to the owner. Furthermore, the purchaser of the land is said to be a tenant. Needless to say, he enjoys limited rights because landlord collects minimal rent and provides the receipts accordingly.
Redevelopment of the property
There are three parties involved when redevelopment of the property is considered – owner, tenant and builder/developer. As the landlord holds the records of the property, he possesses complete ownership to sell the property. Once the property is redeveloped by the builders/developers, the landlord takes the profit out of the property at once and permanently. Once the profits are withdrawn, the landlord has no authority over the property. The tenants who are in possession of the said flat/property after the redevelopment becomes the sole owner of the property.
What’s State Government currently proposing in Maharashtra and why the protests?
Very recently state government proposed to make amendments to Maharashtra Rent Control Act, 1999 – aimed at residential and commercial tenants who reside on properties above 847 sqft and 547 sqft where rent across several Mumbai buildings are controlled by the Pagdi system. This proposal was also put forth in a bid to phase out a “first generation” rent control system introduced in 1947 because even today in South Mumbai’s several rent controlled flats, tenants often pay as little as Rs 300-Rs 500 as a rent even when the market rate is as high as Rs 20,000-Rs 60,000.
These rent controlled buildings are disheveled and decrepit because these nominal rents are absolutely failing to motivate landlords to spend on maintenance.
Though most owners and landlords agree that this system is unfair, then tenants who have occupied large flats in Mumbai are against this State government-proposed latest plans of phasing out the old system and moving towards Model Tenancy Act proposed by the Central Government. If the amendment is passed and implemented, then tenants occupying the properties above 847 sqft and 547 sqft will have to pay rents based on the current market rates which is more than 200 times the rents that they are paying currently.
Keep yourself updated about the latest news of real estate industry by reading our posts at PORTIQO. We bring to you all the current information to help you make an informed decision while renting out your property.
