Property inheritance in India is governed by both modern laws and traditional systems. The Pagdi system in India is a traditional rental system where the tenant gets certain ownership rights over the rented property. The Pagdi system allows tenants to transfer rental rights to family members. If the tenant passes away, the ownership is transferred to the legal heir. The Pagdi system co-exists with the Hindu Succession Act of 1956 and the Transfer of Property Act of 1882. Together they ensure equal property rights for sons and daughters.
How does the Pagdi system work?
The Pagdi system is prevalent in Mumbai, Kolkata and Delhi. Under the Pagdi system, the tenant pays a fee or consideration to the landlord as a lump sum. The property rent is unchanged, which may be lower than the market rates. Moreover, the tenant has the right to sublet or sell the property.
Who are the legal heirs in the Pagdi system?
Section 7(15)(D) of the Maharashtra Rent Control Act, 1999, lays down tenancy rights under the Pagdi system. The tenancy goes to the tenant’s legal heirs who are residing with the tenant at the time of their death.
Daughter’s rights in the Pagdi system
Under the Pagdi system, daughters have the same inheritance rights as the other immediate family members. In case of the demise of the tenant, the daughter must prove her residency at the time of the tenant’s death to get the tenancy rights and occupy the property under the rental terms agreed upon by the original tenant. There are state-specific rent control laws governing the transfer of rights that protect tenants and their families.
Drawbacks of the Pagdi system
- Limited tenancy security: The legal framework can be complex even while tenants are given certain protections. In case of a dispute with the landlord, the tenant may face complications.
- Eviction risks: Under the Pagdi system, tenants are at risk of eviction, which may result in legal disputes with the landlords.
- Difficulty in transferring tenancy: Transferring tenancy rights to heirs involves a bureaucratic process. Landlords may challenge such transfers, resulting in legal disputes.
Housing.com News Viewpoint
Tenants must be aware of their legal rights to secure their property share. Under the Pagdi system, a tenant’s heirs can legally get property rights. This system of property distribution and inheritance arrangement exists in Maharashtra. In the Pagdi system, daughter, son, spouse and close family have equal property rights.
FAQs
What is the Pagdi system?
In the Pagdi System, the tenant is a co-owner of the property and has the right to sublet it.
Can a married daughter claim her father’s property?
A married daughter in India has the same rights to her father’s self-acquired property as an unmarried daughter.
Can a daughter-in-law be evicted from the matrimonial home?
A daughter-in-law cannot be evicted from the marital home. However, if she is evicted, she can seek compensation from her in-laws.
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