UT opens freehold door

Tribune News Service

Chandigarh, August 18

In a major relief for residents, the Administration has decided to allow conversion of residential leasehold properties into freehold. This was announced by Kirron Kher, MP, in the presence of a large number of BJP workers at the UT Guest House today.

Addressing a press conference, Kher said while the Administration had allowed the conversion of residential properties, the demand for conversion of commercial and industrial properties would also be fulfilled soon. All commercial and industrial properties are leasehold as compared to the residential properties, most of which have already been converted into freehold.

The Administration had kept the policy in abeyance since 2013 after the matter was referred to MHA for re-fixation of conversion charges.

Kher said the Ministry of Urban Development had clarified in July 2017 that the power to fix the land rates for conversion of leasehold residential properties into freehold had been delegated to the Administrator at the time of giving sanction to the original scheme in 1996. Accordingly, a decision had been taken to fix the collector rates, to be used as land rates in the formula for calculation of conversion charges.

She said the Urban Development Fund was being created, and the conversion charges would be deposited in it. The fund would be utilised in accordance with the guidelines of the ministry. Projects related to development of urban infrastructure would be funded from it. The MC Commissioner would be its administrative in-charge and custodian on behalf of the Chandigarh Administration.

Kher said it had been decided to calculate the conversion charges for LIG/MIG/HIG/EWS/cheap houses on the basis of pro-rata increase as done in the case of land rates.

These rates would be notified within a week after which residents could apply for conversion of their leasehold properties into freehold. She said nearly 20,000 to 25,000 households, allotted plots by the Estate Office and the CHB on a leasehold basis and who could not get these converted before 2013, would benefit. Over 100 cooperative housing societies would also benefit.

Conversion fee set to increase manifold

The fee is likely to see a steep rise as the collector rates have increased over the years. The Administration has asked the Estate Office to fix the rates, which will be notified soon. Earlier, the Administration used to charge Rs 1,710 per sq metre as the conversion fee. There will be no conversion fee for plots measuring below 50 sq metre as well as for EWS/cheap houses/industrial houses as was the case in the original scheme. The Administration will follow the Chandigarh Conversion of Residential Leasehold Land Tenure into Free-hold Land Tenure Rules, 1996, while deciding the  rates.

CHB, Estate Office begin process

The Chandigarh Housing Board and the Estate Office have started the process   of conversion from leasehold to freehold. There are nearly 25,000 properties allocated by the CHB which are to be converted from leasehold to freehold. Residents can apply  for conversion  from Monday.