Union urban development ministry writes to home ministry to give UT goahead
The Union ministry of urban development (MoUD) has reportedly asked the ministry of home affairs (MHA) to direct the Chandigarh administration to allow conversion of properties from leasehold to freehold and fix the rates.
In January this year, the UT administration had decided to allow conversion of residential properties from leasehold to freehold. The rates were fixed — 7.5% to 20% of the collector rate — and sent to the MHA for approval.
Once the MHA gives it the go ahead, the decision will benefit 50,000 residential properties in the city.
Sources in the administration said as soon as they receive the directions, the rates for commercial and industrial properties will also be finalised. There are around 5,000 commercial and industrial properties on leasehold in the city.
PATIL IMPOSED BAN IN 2013
In2013,thethenUTadministrator ShivrajPatilhadimposedabanon the conversion of property, leaving the decision to the MHA.
Patil was of the view that allowing conversion will make the leaseholder an owner, which couldn’t be allowed at a price lower than the market price. He feared that it would lead to a scam, as otherwise properties were either auctioned or sold at market price. He wanted the decision to be taken at highest level.
RESIDENTS WELCOME MOVE
The city residents have been demanding the conversion for long. Sources said the urban development ministry has told the MHA that the conversion of leasehold to freehold was part of the government’s policy and Chandigarh residents shouldn’t be deprived of it.
Welcoming the development, Kamaljit Singh Panchhi, president of the Sector-17 traders’ association, said: “We have been fighting for it (conversion). As of now, we have to pay lease money at 2.5% of the amount at which the shop is auctioned every year. If the amount is ₹1 crore, we deposit ₹2.5 lakh. Then we also have to pay the Goods and Services Tax (GST) now. But we are still not the owners.”
“The conversion from leasehold to freehold will facilitate sale of properties,” says Sunil Kumar, Laghu Udyog Bharti vice-president and ex-chairman of the property consultants association.