11 months on, Chandigarh Housing Board awaits nod for conversion of units to freehold

Tribune News Service

Dushyant Singh Pundir

Chandigarh, January 12

Even after 11 months, the Chandigarh Housing Board (CHB) is yet to get approval for conversion of leasehold properties to freehold.

Unable to attract buyers to leasehold properties, the CHB had sought permission from the UT Administration to allow conversion of leasehold properties to freehold in February last year.

In a letter to the Secretary, Estates, UT, the CHB had stated many residential and commercial units constructed by it on land allotted by the administration on a leasehold basis were lying unsold for years. It had sought permission to sell built-up residential and commercial properties on a freehold basis for which the land was allotted on a leasehold basis by the UT Administration.

However, nearly 11 months after the request was made, the board was yet to receive approval from the administration, said an official of the CHB.

The official said if the properties were converted into freehold, it would attract buyers and generate revenue for the CHB and also create employment opportunities in the city.

Citing an example, the official said a commercial booth on leasehold could not be sold for nearly Rs 40 lakh, but was auctioned off for nearly double the amount after conversion to freehold. To attract purchasers, the existing property would have to be first converted from leasehold to freehold, he added.

The official said the CHB had to spend a huge amount of money on the upkeep and maintenance of the unsold properties. More than 100 commercial properties were lying vacant with the CHB, some were constructed nearly 40 years ago, he added.

Despite repeated auctions, the CHB has failed to attract buyers to its commercial as well as residential properties offered on a leasehold basis.

Attributing the poor response to the leasehold properties to the present situation, a property consultant said the main reason was lack of ownership rights.

In the absence of ownership, the buyer had to pay the yearly lease money and also failed to get other facilities such as bank loan. “If someone purchases a leasehold property, sooner or later, he/she has to convert it to freehold, which will again incur heavy expenses,” he added.

After a gaffe in the Supreme Court on the conversion of leasehold commercial and industrial properties of the Estate Office, UT Administrator Banwarilal Purohit had clarified he was in favour of conversion of leasehold properties to freehold for the development of the city.

On February 10 last year, the administration had allowed the e-auction of residential, commercial, industrial and nursing home sites on a freehold basis and the CHB had also converted its properties owned by the board to freehold, but it required permission for conversion of properties to freehold, which were allotted by the administration on a leasehold basis.

100 commercial properties vacant

• Despite repeated auctions, CHB has failed to attract buyers to commercial/residential units offered on a leasehold basis
• More than 100 commercial properties are lying vacant with the CHB, some constructed nearly 40 years ago
• The CHB has to spend a huge amount of money on upkeep and maintenance of the unsold properties

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