The Pagdi system is a traditional way of renting where tenants become like co-owners of a property. They get to stay indefinitely, pay low rent, and can pass on their rights to others. Though the system itself is legal, charging a Pagdi premium as an extra payment is banned in many Indian states under rent control laws. This law protects tenants from unfair extra charges while allowing them stable housing.
Pagdi system explained: How India’s unique co-ownership tenancy model works and its legal status
