December 15, 2025: The Maharashtra government’s indication of a fresh regulatory framework for the redevelopment of pagdi system buildings is being viewed as a potential turning point for one of Mumbai’s most stagnant housing segments. If implemented effectively, the proposed changes could unlock redevelopment opportunities in several densely populated and centrally located neighbourhoods where redevelopment has remained stalled for decades.
Pagdi or tenancy-system buildings, largely constructed before independence, are spread across South and Central Mumbai. These properties are governed by complex rent-control laws that grant tenants permanent occupancy rights at nominal rents, while limiting the redevelopment rights of landlords and developers. As a result, thousands of buildings have deteriorated structurally, posing safety risks, yet remain trapped in legal and regulatory deadlock.
Industry experts believe a revised framework could help balance the interests of tenants, landlords, and developers by offering clearer consent mechanisms, improved rehabilitation terms, and financial viability for redevelopment. Many pagdi buildings occupy prime land parcels in areas such as Girgaon, Byculla, Dadar, Parel, and parts of the island city, where land scarcity has severely constrained new housing supply.
A structured policy approach could also contribute to urban renewal by replacing unsafe structures with modern, compliant buildings, improving living conditions while optimising land use. From a planning perspective, redevelopment of pagdi properties could support Mumbai’s broader goals of increasing housing stock, improving infrastructure, and enhancing resilience against disasters such as fires and building collapses.
However, stakeholders caution that successful execution will depend on transparent guidelines, safeguards for tenant rights, and time-bound approvals. Past attempts to address pagdi redevelopment have faced resistance due to fears of displacement, disputes over consent thresholds, and uncertainty around compensation and alternate accommodation.
Source: The Economic Times
