meaning of Pagdi system Rooms

Pagdi system room is like ownership kind of property deal, we can say Semi-ownership room.

in terms of legal language, there is nothing called Pagdi in transfer of property act. this is absolutely local system vide which the person (Landlord , the first owner) in possession of any immovable property gets certain agreed amount prior to transferring the possession of that property in favour of transferee (second owner).

Second owner can sell this (Pagdi system) property at his cost.

Such transferee (second owner) if wants to further transfer (or sell) in the name of some other person (after selling the new person become a second owner) then he also demands increased amount in the name of Pagdi.

most of the time old possessors of such properties if return the property to landlord even then they charge amount from him called pagdi.

As already told this system has no value before eyes of law. It is an informal deposit system and honored by most of the parties. But the convention is that when the same is transferred to some other person on pagdi basis, the profit is shared 50:50 between the land lord and the pagdi tenant.



landlord mr. Kishor is selling his building’s room at cost of Rs.5,00,000.

now second owner Mr. Ritesh buy at Rs.5,00,000.
Two years later, second owner (pagdi tenant, Mr. Ritesh) have sold at Rs.9,00,000.
it means Mr. Ritesh’s profit is Rs.4,00,000

Profit will shared in among of landlord and pagdi tenant. i.e. Rs.2,00,000 for landlord and second owner.

pls note some of information taking from internet to explain “pagdi system” thank you “Swetha TR”

8 प्रतिसाद

  1. Thanks for sharing these most important things and way of language is pretty good to understand with examples.

  2. the best explained

  3. we have room as a pagdi system area 86.00 sq ft now ownwer devlop land into building as a a tenanat how mauch area we will got plz reply

  4. Pls help us

    Me Dombivli west la 1bhk room ghetli aahe
    Pan tya Sathi builder kadun kon konte certificate ghyache, aani konti kaalji ghyavi. Aani tya room chi bhade Kase tharvle jaate, aani tax kasa prakare bharava prattek room la kiti tax yeiel . Bldg 5th FLR chi aahe prattek FLR la 4 room aahe, 2room 1bhk 550sqft aani 2room 1rk, 300sqft ,
    Paise ajun baaki aahe dyayche pan atta aamhi rahato tya bldg madhe.

    Which Most important documents required for builder sides

    • Hello Mr. Kishor, thanks for reading post and question.

      Pagdi room, mhanje KDMC approved room nahi, its kind of illegal construction.
      Yache konte hi mudrank registration hot nahi kiva plan pass hot nahi.
      Pagdi room is not good for investment purpose, it good when you stay there.
      Room rent, building owner decide karto, (navin tax pramane) per sq. ft.
      paise baki aahet tar, fer vichar kara.

      My recommendation, NOT to buy in Pagdi, if you can afford ownership room. its headache in future if you are earning good, go for ownership with housing loan.

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