Redevelopment of pagdi properties in Mumbai
Jun 01, 2014
Source : The Times of India


MUMBAI: For redevelopment of tenancy properties, there are three parties between which the agreement for redevelopment is done
(1) Owner;
(2) Tenant;
(3) Builder/developer and all other processes are the same as the redevelopment of a co-operative housing society.

Here, the landlord of the property has full right over the sale of the land because of the records of the property i.e. 7/12 extracts and property papers, so the landlord makes the deal with the developer/builder accordingly and the landlord takes the profit out of the property on a permanent basis and the tenants who are in possession of the said room/flat after redevelopment, become the sole owners of the said room/flat. The rights of the landlord ceases, no rent or any kind of receipt is claimed by the landlord or any other agencies.


A landlord is any person who receives or is entitled to receive rent, in respect of any premises, either on his own account or for the benefit of some other person.

A tenant who has further let out a premises (who is called as a subtenant), is also deemed to be a landlord for the purpose of such a type of sub-tenancy.


Owner means a person who receives the rent of the said premises, which was let out and includes ¬

- (i) An agent of trustee who receives such a rent on account of the owner.

- (ii) An agent of trustee who receives the rent of or is entrusted with or concerned for any premises, devoted to religious or charitable purposes. (Section 3 (m), Mumbai Municipal Corporation Act 1888)

For a tenancy property, a tenant is defined under section 7(15) of the Rent Control Act 1999, which is as follows: Sec.7(15) `tenant’ means any person by whom or on whose account, the rent is payable for any premises and includes

(a) Such person ¬

- (i) Who is a tenant, or

- (ii) Who is a deemed tenant, or

- (iii) Who is a sub-tenant as permitted under a contract or by the permission or consent of the landlord, or

- (iv) Who has derived a title under a tenant, or

- (v) To whom, interest in premises has been assigned or transferred as permitted.

(b) A person who is deemed to be a tenant under Section 25.

(c) A person to whom interest in premises has been assigned or transferred as permitted under Section 26.

(d) In relation to any premises, when the tenant dies, whether the death occurred before or after the commencement of this Act, any member of the tenant’s family who

- (i) Where they are let for residence, is residing or

- (ii) Where they are let for education, business, trade or storage, is using the premises for any such purpose, with the tenant at the time of his death or, in the absence of such member, any heir of the deceased tenant as may be decided, in the absence of agreement, by the court.

The provisions of this clause for transmission of tenancy shall not be restricted to the death of the original tenant, but shall apply even on the death of any subsequent tenant, who becomes a tenant under these provisions on the death of the last proceeding tenant.

For deemed tenant, Section 25 of the Rent Control Act, 1999, provides as follows:

When the interest of a tenant of any premises is determined for any reason, any sub-tenant to whom the premises or any part thereof, have been lawfully sublet and such sub-tenancy is subsisting on the date of commencement of this Act or where sub-tenancy is permitted by a contract between a landlord and a tenant, such subtenant shall, subject to provisions of this Act, be deemed to become the tenant of his landlord on the same terms and condition as he would have held from the tenant.

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