Fund-starved Chandigarh MC eyeing ₹200cr from sale of 6-acre land in Manimajra

As a step to tackle its worsening financial crisis, the Chandigarh municipal corporation (MC) is planning to sell a prime 6.9-acre land parcel in Shivalik Enclave area, Manimajra.

The land, located in Pocket 6 near Panchkula, has been reserved for a residential society under the city’s master plan and is expected to fetch at least ₹200 crore.

If the auction proceeds successfully, it could provide a much-needed financial boost to the cash-strapped civic body.

As per MC’s assessment, the prevailing collector rate for residential properties in Shivalik Enclave is ₹58,687 per square yard. At the rate, MC expects to rake in around ₹195.36 crore from the sale of the 6.9-acre land.

However, with the UT administration already working on increasing collector rates in the city, the sale could fetch the civic body even more money.

“MC has already sent a file to the UT administration seeking zoning plan approval for the land. However, the chief architect’s office confirmed that it will take around one month to complete the documentations, following which MC can start the bidding process,” said municipal commissioner Amit Kumar.

MC has already completed its ground survey, which includes land verification, identification of existing encumbrances and assessment of underground services at the site.

Following multiple meetings with Punjab governor and UT administrator Gulab Chand Kataria, mayor Harpreet Kaur Babla is actively pursuing the sale to refill MC’s fast depleting coffers.

However, this will not be the first time that MC has auctioned its land. In 2005, the corporation had sold a 5.39-acre plot in Manimajra for a similar housing society on freehold basis. The land was allotted to Delhi-based Uppal Housing for ₹108 crore, but the project soon got embroiled in controversy.

Under the agreement, 15% of the housing units were to be allocated for the Economically Weaker Section (EWS), with a minimum area of 200 square feet per unit, which the developer failed to fulfil.

In 2011, MC issued a show-cause notice to the developer, followed by a penalty of ₹1.5 crore. However, the project was stayed after residents moved court.

The second sale for MC was for the Hotel JW Marriott project in Sector 35 at a cost of ₹101.37 crore on a leasehold basis in 2006.