By Arosh John – Founder, John Real Estate (MahaRERA Reg. No. A51700001835) & Editor-in-Chief, Thane Real Estate News (TREN)
Thane–MMR | December 2025
The Government of Maharashtra has initiated a landmark reform that will formally end the century-old pagdi system in Mumbai and introduce a modern regulatory framework to accelerate redevelopment. Deputy Chief Minister Eknath Shinde, speaking in the Maharashtra Legislative Assembly, confirmed that the State is preparing a dedicated law to resolve long-standing pagdi disputes and unlock redevelopment across thousands of old and dilapidated buildings.
Why the Pagdi System Needed Reform
The pagdi tenancy model—concentrated mainly in South and Central Mumbai—allowed tenants to occupy properties by paying a one-time premium while continuing to pay nominal rent. Over the years, this structure created several critical challenges:
- Redevelopment stalled due to frequent landlord–tenant disputes.
- Many pre-1960 buildings became structurally unsafe.
- Legacy rent-control economics made redevelopment financially unviable.
- Thousands of civil disputes accumulated with no clear resolution framework.
Official estimates indicate that over 28,000 tenancy-related disputes are currently pending, severely limiting progress on redevelopment.
Key Elements of the New Framework
As per Deputy Chief Minister Eknath Shinde’s statement in the Assembly, the State’s proposed law will:
- Dismantle the traditional pagdi structure and replace it with a transparent redevelopment mechanism.
- Ensure tenants receive FSI equivalent to their occupied area, safeguarding their entitlement.
- Provide landowners with FSI benefits proportional to their property rights.
- Offer incentive FSI and TDR to improve redevelopment feasibility.
- Establish fast-track courts to clear long-pending disputes within a defined timeframe.
The policy aims to balance rights, reduce litigation and enable efficient redevelopment across Mumbai.
Impact on Mumbai’s Redevelopment Landscape
The reform is expected to unlock redevelopment in:
- Cess buildings
- Pagdi-controlled structures
- Old rent-controlled tenancies
Key expected outcomes include:
- Faster progress on stalled and unsafe buildings.
- Improved project viability for developers with clearer FSI/TDR norms.
- Safer, modern housing stock replacing ageing structures.
- Reduced friction between tenants, landlords and developers.
- Increased new housing supply in South and Central Mumbai, where redevelopment potential is highest.
For a city dependent on redevelopment for fresh housing stock, this reform marks a substantial shift.
Who Stands to Benefit
Tenants: Security of area, clarity on rights and access to safer rebuilt homes.
Landowners: Transparent entitlement structures and faster dispute resolution.
Developers: Predictable planning, improved feasibility and fewer legal uncertainties.
City Administration: Safer neighbourhoods and improved urban density planning.
Also READ: Shri Eknath Shinde Unveils Comprehensive Development Plan for Thane District
Conclusion
Maharashtra’s decision represents the beginning of a structural overhaul of Mumbai’s old tenancy and redevelopment ecosystem. By aligning tenant protection with redevelopment incentives, the State aims to modernise thousands of ageing buildings and improve safety and housing standards in one of India’s most densely populated real estate markets.
About the Author
Arosh John is a leading real estate consultant in Thane, specialising in residential advisory, premium resales, luxury villas, redevelopment consulting and NRI transactions. He is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and the Editor-in-Chief of Thane Real Estate News (TREN), a digital platform delivering factual, research-driven coverage of the Mumbai Metropolitan Region’s property landscape.
Active in the Thane real estate market since 2014, Arosh brings deep micro-market expertise across Ghodbunder Road, Majiwada, Kolshet, Balkum, Kapurbawdi, Waghbil–Kasarvadavali, Upper Thane and emerging villa corridors. His advisory approach blends regulatory understanding, market analytics and transaction experience—making him a trusted partner for homebuyers, investors, developers and NRIs. Recognised for his hyper-local insights and data-backed reporting, he is regarded as one of the most respected voices in Thane’s real estate advisory and market intelligence.
Disclaimer
This article is based on officially reported statements from the Government of Maharashtra and Deputy Chief Minister Eknath Shinde, as published by credible news outlets. Thane Real Estate News does not provide legal advice. Readers should refer to official notifications and seek professional guidance for transaction-specific matters.
