Property issues in Chandigarh: Panel puts slew of relief measures on table
Committee was formed by the Chandigarh administrator in October last year in compliance with an order by the Supreme Court that will now review its recommendations
The 11-member committee on property matters, headed by Chandigarh MP Kirron Kher, has recommended major relief measures for city residents.
Among these are sharp reduction in the unearned increase on leasehold properties, misuse charges and additional FAR fee; permission for need-based changes, provision of another year for getting conveyance deeds of units at cooperative housing societies and conversion of leasehold properties to freehold.
The committee was constituted by the UT administrator on October 5, 2021, in compliance with a Supreme Court order, dated September 7, 2021, in the Estate Officer vs Charanjit Kaur and Others case.
The apex court had ordered the formation of the committee to streamline the process for sanction of mutation, grant of occupancy and no-objection certificates, and other citizen-centric requirements.
The committee’s second and final meeting was held on November 1, following which the final minutes of the meeting were prepared this week and will soon be submitted before the SC and administrator.
Cheaper sale/purchase of leasehold properties
The committee has acceded to residents’ long-standing demand to reduce the unearned increase in the value of a leasehold property.
The unearned increase is the difference between the price paid by the original allottee and the market value at the time of permission of transfer. It is paid before registry of such sale or transfer.
As per the committee, it should be reduced from the existing 33.33% (1/3rd) to 25% or 20% (1/4th or 1/5th).
Alternatively, it has suggested, the existing rate of interest – 9% per annum – for updating the original premium should be increased to 12% per annum.
Cooperative housing societies: More time for property transfer
The committee has recommended giving one year extension in the 2018 scheme for transfer of flats/dwelling units in cooperative housing societies.
The recommendation, when implemented, will give relief to more than 10,000 families living in 108 such societies in the city. The policy allows for registration of conveyance deed in their name.
The flats, all leasehold properties, were constructed on Chandigarh Housing Board (CHB) land. The administration had put the transfer of flats at housing societies on hold in January 2014, a decision that had restrained more than 60% allottees from carrying out the process.
Need-based changes with riders
On the contentious issue of need-based changes in small flats, the committee has favoured allowing these, but if the change or extra coverage is within the allotted area and with the payment of a composition fee.
“The changes may be examined with regard to applicable rules, character of the city and civic amenities,” said a member of the committee.
Simplified access to OC
For the owners of constructed houses who don’t have the mandatory occupation certificate (OC), the committee has suggested that it be provided on the basis of sewerage, electricity or water connection.
“There are a number of owners who have occupied their houses long back without OC, but have sewerage, electricity and water connections. In such cases, the certificate should be granted after verification of these connections from the departments/agencies concerned,” said a committee member.
The panel has also recommended verification by a third party (registered architects or structural engineers) to reduce delay and all sorts of allegations.
Reduction in building violation charges
A cap on the total misuse/building violation charges, which can be certain percentage of the applicable collector rate, has been recommended.
The issue should also be pursued with the Union ministry of home affairs at the appropriate higher levels, so that the cases pending in different courts can be decided accordingly, the committee observed.
Lower additional FAR fee
The committee observed that the rates notified for charging extra floor area ratio (FAR) were on the higher side and should be rationalised.
FAR is the maximum space that can be covered with construction on a piece of land. For industrial plots in the city, the FAR is 0.75, which can be extended to 1, as per a 1994 UT notification.
Earlier, this additional FAR of 0.25% could be availed on the payment of ₹200 per square feet. But the administration, in 2020, decided to link additional FAR charges with collector rates, raising these to around ₹3,400 per square feet.
Linking MC records with property registration
Hundreds of property owners in the city end up paying lakhs in penalties due to failure in getting the ownership records updated with the municipal corporation, resulting in mismatch in property tax records.
To give relief to the residents, the committee has asked for linking of MC and CHB records with the sub-registrar office on the lines of estate office, allowing automatic revision of records.
On the issue of transfer of property by way of special power of attorney and general power of attorney, the committee has suggested that the cases covered as per the existing instructions/policy should be properly examined instead of mechanical rejection of all cases of similar nature.
Notably, the committee’s recommendation of auctioning administration’s unsold properties on freehold basis has already been accepted by the administration.
“We hope that the learned administrator will take appropriate steps to implement the suggestions made by the committee, including forwarding of the proposed amendments to the ministry of home affairs, if any,” the apex court had held in September last year, while asking the committee to submit a report to the UT administrator in three months.