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 under which a tenant pays merely a one-time Pagdi amount in lieu of advance, along with nominal rent for decades. But, the moot question remains -
Can the owner have the shop vacated when need arises?

What is a Pagdi System?

Pagdi gives a long-term protection, and even hereditary rights to the tenant, while the landlord retains the ownership. Eviction is permitted only on 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 the tenants but also allow the landlord to reclaim possession through due process of law.

When Can the Owner Seek Eviction?

Grounds for Eviction

Relevant Law

Remarks

Non-payment of rent

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

After due legal notice

Subletting without authorization

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 Abuse

Sec. 16(1)(c)

Premises, damaging or illegal use of

Owner’s Reality Check

An owner cannot evict instantly. They have to:

  • Serve a legal notice
  • File a case before the Rent Controller or Court
  • Demonstrate clear necessity or breach of conditions

The courts provide protection to tenants and also fairness to landlords.

Practical Tip by Proclee.com

Before any eviction or redevelopment:

Owners should check the papers and consult a lawyer. Tenants should also keep a record of their payments and avoid subletting. A balance of rights and respect ensures harmony between heritage tenancy and modern property laws.

Conclusion:

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