Maharashtra Govt Announces New Rules for Redeveloping Mumbai’s Pagadi Buildings

Maharashtra Deputy Chief Minister Eknath Shinde has announced that the state government will introduce a new set of rules to redevelop Mumbai’s old ‘pagadi’ (rent-controlled) buildings. The move aims to ensure fair and proper redevelopment while protecting the rights of both tenants and building owners.

In an official statement, Shinde said that around 19,000 buildings in Mumbai, mostly constructed before 1960, are identified as pagadi buildings. Some have already been redeveloped, some have collapsed, and nearly 13,000 buildings are awaiting redevelopment. Tenants in these buildings are protected under the Maharashtra Rent Control Act, and many legal disputes between landlords and tenants remain pending in courts.

The current legal and financial issues prevent building owners from receiving fair compensation, and redevelopment is slow. A proper and just redevelopment system is needed while keeping the rights of tenants and owners intact, Shinde said.

He added that for economically weaker sections and very low-income groups, redevelopment should not rely only on Floor Space Index (FSI) incentives; the cost of reconstruction should also be provided free of charge.

Key provisions of new rules: - Tenants will be given FSI equivalent to the area they currently occupy. - Owners will receive FSI for the land they own. - Economically weaker and very low-income tenants will receive additional FSI incentives for free reconstruction. - If FSI cannot be fully utilised due to height restrictions or other limitations, the remaining FSI will be provided in the form of Transferable Development Rights (TDR).

Shinde stated that these rules will unlock redevelopment of old pagadi buildings, prevent further structural collapses, and avoid financial and human losses. Existing redevelopment schemes under sections 33(7) and 33(9) will continue, and this will provide a new option for buildings that have not benefited from earlier schemes.

To speed up redevelopment, the government will also set up fast-track courts to resolve around 28,000 pending legal cases between tenants and building owners, many of which have been unresolved for decades. The aim is to resolve these disputes within three years, ensuring that thousands of Mumbai residents living under the pagadi system receive homes with full ownership rights.

Shinde stated that no injustice will be done to tenants or owners, and the government is committed to resolving any challenges that arise during the process.