what is pagdi system for property

Status
Not open for further replies.
M

mhafizji

Inactive
Contributor
i wanna know what is a pagdi system for properties i dint get it, if u hv paid the amount why do u gv rent plzzzz give me full details
thanks
 
MAGNeT said:
How does the pagdi (rent) system in Mumbai work? Specifically who has the right to sell & make the first move? - Yahoo! Answers India
Click to expand...
Answer at Yahoo, not 100% accurate. You are 67% owner of Room or shop rented under pagdi system & rest 33% belong to Landlord. Even under rent control act building build before xx/xx/xxx (I forget the actual date) & if you are tenet of same building (room/shop) than pay 100 months rent in ONE SUM & you will be the owner of same premises.... IIRC
 
AFAIK, I'm not sure how exactly it works in Mumbai, but its like a security deposit or advance(but take it as not for securing the unpaid rent but your property itself),offcourse their will agreement and other stuff. For the people in business, its like a double profit, take the monthly rent and as well invest the pagdi amount(which is usually higher then the 50% of the cost of the property itself).
 
Pagdi system was introduced in Mumbai in the olden days of black money.

To hide income from Income Tax departments, Land lords would give their properties on rent at a nominal rent & also take a hefty sum in Black money as Pagdi.

There is no documentation for the Pagdi portion of the deal but you get a monthly receipt as tenant which gave you the right to stay as a tenant forever on paying the nominal rent under the Rent control act.

In case you want to move out of the premises, you have to convince the landlord to transfer the rent receipt in the name of the new tenant for which he may charge you 1/3 to 1/2 of the pagdi you are getting from the new tenant.
 
Status
Not open for further replies.
Back
Top