2BHK flat goes for Rs 95 lakh in Chandigarh Housing Board e-auction

Tribune News Service

Chandigarh, October 11

The Chandigarh Housing Board (CHB) has earned a revenue of Rs 19.94 crore against the total reserve price of Rs 18.45 crore from the sale of 29 units, including 28 residential units on a freehold basis and one commercial property on a leasehold basis.

The CHB had last month invited e-bids for sale of 83 residential units on a freehold basis and 96 commercial properties on a leasehold basis. However, it managed to sell 28 residential units and only one commercial property in Mani Majra during an e-auction held today.

The CHB sold 28 residential units for Rs 19.71 crore against the total reserve price of Rs 18.22 crore and one commercial unit for Rs 23.31 lakh against the reserve price of Rs 23.30 lakh.

A two-bedroom flat in Sector 51-A went for Rs 95.52 lakh against the reserve price of Rs 95.34 lakh. Similarly, a two-bedroom flat in Sector 63 went for Rs 87.21 lakh, against the reserve price of Rs 72.25 lakh. Another two-bedroom flat in Sector 63 went for Rs 86.51 lakh against the reserve price of Rs 72.56 lakh. Most of the residential units put up for auction were located in Sectors 63, 51-A, 49 and 38 (West).

Yashpal Garg, Chief Executive Officer, CHB, said they had earned Rs 19.94 crore revenue. The remaining properties would be put up for auction again, he added. He said the highest bidder would have to make Rs 25% payment by October 18 to avoid forfeiture of the earnest money deposit and blacklisting from future tendering processes of the board. Having failed to attract buyers to its commercial as well as residential properties offered on a leasehold basis, the CHB had sought permission from the UT Administration to allow conversion of leasehold properties to freehold.

In a letter to the Secretary, Estates, in February, the CHB had stated many residential and commercial units constructed by the CHB on land allotted by the administration on a leasehold basis were lying unsold for years. The CHB had sought permission to sell such built-up residential and commercial properties on a freehold basis. However, the CHB is yet to get a response.

UT Administrator Banwarilal Purohit had recently stated he was in favour of conversion of leasehold properties to freehold for city’s development. On February 10, the administration had allowed e-auction of residential, commercial, industrial and nursing home sites on a freehold basis and the CHB had converted properties, owned by it and allotted by the administration on a leasehold basis, to freehold, but it required permission for conversion to freehold.

The CHB has to spend a huge amount on upkeep of unsold units. More than 100 commercial properties are lying vacant with the CHB, some were constructed nearly 40 years ago.

If the properties are converted to freehold, it would attract buyers and generate revenue for the CHB and also create employment opportunities in the city.

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