UT allows conversion of leasehold residential properties into freehold

Tribune News Service

Chandigarh, August 18

In a major relief for the residents, the Chandigarh Administration has decided to allow conversion of residential leasehold properties into freehold.

This was announced by MP Kirron Kher on Friday amidst the presence of large numbers of the BJP workers at the UT guest house.

Addressing a press conference, Kher said while the administration has allowed the conversion of the residential properties the demand for the conversion of the commercial and the industrial properties will also be fulfilled soon.

All the commercial and industrial properties are on leasehold in comparison to the residential properties which are mostly already converted into freehold.

The administration has kept the policy at abeyance since 2013 after the matter was referred to MHA for re-fixation of conversion charges.

Kher said Ministry of Urban Development has clarified in July 2017 that the power to fix the land rates for conversion of leasehold residential properties to freehold has been delegated to the administrator at the time of sanction given to original scheme in 1996.

Accordingly decision has been taken to fix collector rates to be used as land rates in the formula for calculation of conversion charges.

She said that a new fund “Urban Development Fund” is being created into which the conversion charges shall be deposited.

This fund shall be utilised in accordance with guidelines of the ministry. The projects related to development of urban infrastructure shall be funded from this.

Commissioner Municipal Corporation shall be administrative in-charge and shall be custodian on behalf of Chandigarh Administration.

He shall release the funds to the projects sanctioned and given approval by Chandigarh Administration.

Kher said that it has also been decided to calculate conversion charges for LIG/MIG/HIG/EWS/Cheap Houses on pro-rata increase done in land rates.

These rates shall be notified within a week’s time and after that residents can apply for conversion of their leasehold properties into freehold properties.