‘Tenants in non-cessed bldgs to become owners‘

MUMBAI: Pagdi living in non-cessed buildings before June 13, 1996, are eligible for new flats whenever their building is redeveloped, according to new guidelines introduced by the . Also, if a tenant has transferred the pagdi system flat in the name of another person after completing the required legal formalities, the new occupant will have equal rights and will be eligible to get accommodation after .
The (DCPR) encourage redevelopment of pagdi system buildings by offering attractive incentives to landlords on basis of the total area required to rehabilitate the existing occupants. After redevelopment, the tenants become .

Most of such non-cessed buildings are located in the suburbs and many of them are in dilapidated condition.

Under the pagdi system, the landlord is the owner of the property, but possession of the property lies with tenants, who pay minimal rent as the properties are covered under the Rent Control Act.

Civic officials said that it is necessary to identify the eligible tenants to protect their rights and to ensure that they vacate the premises without fear when the building goes in for redevelopment. The new guidelines also stipulate that the landowner should not manipulate the scheme by introducing new tenements to add to his FSI incentive, they added.

According to the new DCPR, whatever the total area the landowner needs to rehabilitate the existing tenants, he will get half of that area in form of additional construction rights to recover the construction cost and his profit. The rules further state that the tenants are entitled to get more area than they currently occupy—minimum area will be 300 sq ft and maximum 1,292 sq ft—free of cost. If their area crosses the maximum cap, the tenant will have to pay construction cost of the additional area to the landowner.

The rules also state that if two to five tenanted buildings are amalgamated for joint redevelopment, the developer will get 60% incentive FSI of the total area required to rehabilitate the existing tenants, in form of additional construction rights. If more than five such plots are merged, the incentive FSI will be 70%, said civic officials. The landowner requires consent of 51% of the total residents to go for redevelopment and must rehabilitate all the existing tenants in the new structure.

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