Getting Pagdi Tenants to Agree to Redevelopment: Consent, Holdouts and Documents

Redevelopment of a pagdi or cessed building cannot move without the tenants. How much consent is needed, why tenants hesitate, what reassures them and how to deal with the few who refuse.

In short: redevelopment of a pagdi or cessed building cannot move without the tenants. The regulations require written consent from a specified majority of eligible tenants, and in practice a project moves much faster when nearly all of them are on board. Most tenants do not object to redevelopment itself; they object to uncertainty. A clear written offer, a credible developer and tenancy papers in order resolve most objections.

Landlord or tenant of a pagdi or cessed building? Get a free first assessment from Mungekar Realty of your building’s redevelopment options. Register your property or WhatsApp us on +91 98207 44734.

How much consent is needed

For cessed buildings in the Island City redeveloped under Regulation 33(7), and for tenanted buildings under 33(7)(A), the redevelopment proposal must be supported by the written consent of at least 51% of the eligible tenants or occupants. Where a cessed building has been declared dangerous, Section 79A of the MHADA Act gives the owner the first opportunity to submit such a proposal within a fixed period; if the owner does not, the right passes to the tenants and then to MHADA. Conditions are amended from time to time, so confirm the current requirement for your building with your architect and advocate.

The legal minimum is only the starting point. Developers and approving authorities look for broad agreement, and every tenant who does not sign can delay the day the building is vacated.

Why tenants hesitate

  • Fear of losing a home the family has lived in for decades.
  • Doubt about whether the new building will ever be completed, especially where neighbours have waited years in transit camps.
  • No clarity on the new area, floor, location or rent during construction.
  • Disagreement within the family over who the tenant is. See transferring a pagdi tenancy after a death.
  • For shopkeepers, worry about losing the frontage and income. See shops in redevelopment.
  • Long-standing mistrust between landlord and tenants.

What reassures tenants

  • A written offer for each tenant: the new carpet area, the floor, the monthly rent and shifting charges during construction.
  • A registered agreement before vacating: each tenant’s Permanent Alternate Accommodation Agreement should be registered before anyone moves out.
  • A developer with a record: completed projects, sound finances and a clean history on the MahaRERA portal.
  • Open meetings and written answers: tenants should hear the proposal together and receive answers in writing.
  • The tenants’ own adviser: encourage the tenants to appoint an advocate or representative of their choice. It builds trust rather than weakening the landlord’s position.
  • Regular updates on approvals once the project begins.

Get the tenancy papers in order

Before collecting consents, prepare a clean tenant list: each room or shop, the tenant’s name as on the rent receipts, the area occupied and the supporting documents. Where a tenant has died or a tenancy has passed to someone else, settle the name change first. Disputed or unclear tenancies are one of the most common reasons consents are challenged later.

Dealing with the few who still refuse

  • Find the real objection. An elderly tenant who cannot face shifting, a family dispute or a shopkeeper’s location concern can often be addressed directly.
  • Offer specific solutions: an accommodation nearby, help with shifting, a ground-floor unit for a shop.
  • Use a neutral mediator where relations between landlord and tenant are strained.
  • Take legal advice before any formal step. Where a building is dangerous, the authorities can require occupants to vacate for safety, and disputes over a tenant’s rights can be taken to the appropriate forum. Legal routes take time and should be the last resort.

A practical sequence

  1. Prepare the tenant list and settle tenancy papers.
  2. Get a feasibility report so that the offer to tenants is realistic.
  3. Select the developer and agree the landlord’s terms. See the landlord–developer agreement.
  4. Hold a meeting of all tenants to present the proposal.
  5. Give each tenant a written individual offer.
  6. Collect consents in the prescribed format.
  7. Work through the remaining objections.
  8. Sign and register the individual agreements.

Frequently asked questions

Can a landlord redevelop without the tenants’ consent?

Not under these regulations. The proposal needs the consent of the required majority of eligible tenants.

Is a consent letter the same as the tenant’s agreement?

No. The consent supports the redevelopment proposal. Each tenant later signs an individual agreement with the developer setting out the new home and the terms during construction.

Can tenants withdraw their consent?

Disputes over withdrawn consents do arise, and their outcome depends on the facts. A clear written offer before consents are collected is the best way to avoid them.

Planning to redevelop your building?

Mungekar Realty works with landlords and pagdi tenants across Mumbai to prepare a fair proposal and bring tenants on board before disagreements turn into disputes. Register your property or call or WhatsApp us on +91 98207 44734.

This article is general information, not legal advice. Consent requirements and tenants’ rights depend on the regulation that applies and the facts of each case; consult an advocate.

Disclaimer: This article is for general information and educational purposes only. It is not legal, tax or financial advice. Rules change from time to time and every property is different, so please consult a qualified advocate, chartered accountant or architect before acting on it.
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