Relief from most property issues in Chandigarh likely by April-end

Residents’ key property-related issues, pending for decades now, are set to be resolved within two months.

By April-end residents can expect a sharp reduction in the unearned increase on leasehold properties’ transfers, permission for need-based changes, provision of another year for getting conveyance deeds of units at cooperative housing societies, greater ease in getting occupation certificates and linking of MC records with property registration.

Chandigarh administrator Banwarilal Purohit chaired a high-level meeting of UT officials here on Wednesday and set deadlines for the implementation of recommendations by the 11-member committee on property matters, headed by Chandigarh MP Kirron Kher. The committee had submitted its report last week.

The panel 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.

Giving directions for the constitution of the committee, the Supreme Court had observed, “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.”

UT adviser Dharam Pal said, “All major recommendations will be implemented in a month’s time. For three committee suggestions, which require Union government’s approval, we have set a deadline of three months. But 90% of the recommendations will be implemented by April-end.”

Suggestions within the purview of administration’s executive authority will be implemented first while policy decisions requiring Centre’s nod are pursued more aggressively.

For allowing conversion policy for commercial and industrial plots from leasehold to freehold, reduction in the misuse charges and the charges for the additional Floor Area Ratio (FAR), a three-month timeline will be followed.

To be implemented by April-end

Among the recommendations set to be enforced by April-end are reduction in 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 also suggested, the existing rate of interest – 9% per annum – for updating the original premium should be increased to 12% per annum.

The decision will make properties cheaper for the buyers and reduce financial burden on the sellers also.

Also, one year extension in the 2018 scheme for transfer of flats/dwelling units in cooperative housing societies will be made effective before March-end.

On the contentious issue of need-based changes in small flats, the committee has favoured allowing these, but only 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,” states the committee report.

“A CHB committee has been constituted on the issue and a report will be submitted in less than two weeks,” said the adviser.

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.

Another long-pending issue, which also requires only administration’s executive decision – simplification of granting of occupation certificates – is also targeted to be resolved within two months.

The administration also plans to link the municipal corporation and Chandigarh Housing Board (CHB) property records with the sub-registrar office, which will allow automatic revision of property records.

It will also start evaluating all cases of property transfers by way of special power of attorney and general power of attorney, on individual merit, rather than mechanical rejection of all cases of similar nature.

Three-month deadline

The committee’s recommendation of putting a cap on the total misuse/building violation charges, though accepted by the administration, will require Centre’s nod.

The administration will approach the committee to help rationalise the charges on the additional FAR. Allowing conversion of commercial leasehold properties to freehold, also accepted by the administration and sent to the Union ministry of Home Affairs, will be pursued for quick approval.