December 12, 2025: Maharashtra Deputy Chief Minister Eknath Shinde has announced a sweeping new regulatory framework to redevelop Mumbai’s ageing Pagdi buildings, calling it a “historic decision” and a crucial step toward phasing out the decades-old tenancy system. The announcement, made during the legislative assembly on Thursday, outlines measures intended to resolve legal disputes, ensure fair compensation and accelerate redevelopment across the city.
Shinde noted that most of the roughly 19,000 Pagdi buildings were constructed before 1960. While some have already undergone redevelopment, many structures have deteriorated over the years, with several collapsing and nearly 13,000 still awaiting reconstruction. He acknowledged that the existing Pagdi tenancy model grants extensive rights to tenants, which has often discouraged landlords and slowed redevelopment due to prolonged legal hurdles.
The newly proposed framework seeks to correct these imbalances through a set of targeted reforms. One of the key features is the introduction of Floor Space Index (FSI) incentives for low-income tenants, which officials say will make redevelopment proposals more viable and appealing. The framework also aims to establish a more equitable distribution of rights between tenants and landlords, reducing disputes and promoting cooperative participation in redevelopment projects.
To further speed up progress, the government will set up dedicated fast-track courts to address more than 28,000 pending cases related to Pagdi properties. Authorities believe that quicker legal resolutions will help unlock stalled projects, improve living conditions and enhance structural safety across Mumbai’s older neighbourhoods.
With this policy overhaul, the state hopes to modernise thousands of dilapidated buildings, providing safer homes while also reshaping the urban landscape. The move marks one of the most significant interventions in Mumbai’s rental and redevelopment ecosystem in recent years.
Source: Devdiscourse
