Can a Pagdi Shop Be Vacated by the Owner? — Legal Reality Explained

Can a Pagdi Shop Be Vacated by the Owner? — Legal Reality Explained

By Proclee.com | Simplifying Property Clarity

In many Indian cities, especially Mumbai and Delhi, old commercial shops still run under the Pagdi system — a traditional tenancy model where the tenant pays a one-time Pagdi amount and nominal rent for decades. But a common question remains —
Can the owner get the shop vacated when required?

What Is a Pagdi System?

The Pagdi system gives the tenant long-term protection and even hereditary rights, while the landlord retains ownership. However, eviction is allowed only under specific legal grounds — not by personal demand.

Legal Position in India

Pagdi tenancies are protected under state Rent Control Acts, such as:

  • Maharashtra Rent Control Act, 1999
  • Delhi Rent Control Act, 1958
  • West Bengal Premises Tenancy Act, 1997

These laws protect tenants but also allow landlords to reclaim possession through due legal process.

When Can the Owner Seek Eviction?

Ground for Eviction

Relevant Law

Remarks

Non-payment of rent

Sec. 16(1)(a), Maharashtra Act

After proper legal notice

Unauthorized subletting

Sec. 16(1)(e)

If done without written consent

Owner’s bona fide use

Sec. 16(1)(g), Sec. 14(1)(e) Delhi

For personal or family business

Redevelopment or repair

Sec. 16(1)(h)

With alternate space/compensation

Nuisance or misuse

Sec. 16(1)(c)

Damaging or illegal use of premises

Owner’s Reality Check

An owner cannot evict instantly. They must:

  • Serve a legal notice
  • File a case before the Rent Controller or Court
  • Prove genuine need or violation of terms

Courts ensure tenant protection and fairness to landlords both.

Practical Tip by Proclee.com

Before any eviction or redevelopment:

  • Owners should verify documents and seek legal counsel.
  • Tenants should maintain payment records and avoid subletting.

A balance of rights and respect ensures harmony between heritage tenancy and modern property laws.

Conclusion

Yes, a Pagdi shop can be vacated — but only through lawful grounds and due process.
At Proclee.com, we help property owners and tenants understand their rights with clarity and confidence.