Construction on converted industrial plots: UT to do away with 3-yr clause | chandigarh | Hindustan Times
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Construction on converted industrial plots: UT to do away with 3-yr clause

chandigarh Updated: May 20, 2014 12:15 IST
Vinod Kumar
Vinod Kumar
Hindustan Times

In a major relief to industrialists, the Chandigarh administration is all set to do away with the three-year clause mandating construction on converted industrial plots. The decision will help the plot owners complete construction on their plots without any stipulation of time period.

The administration had introduced the Chandigarh conversion of land use of industrial sites into commercial activity/ services in Industrial Area, Phases 1 and 2, scheme in September 2005 for two years whic was later extended for another six months till March 2008.

Initially, the Chandigarh Housing Board was made the nodal agency for execution of the scheme and later the responsibility of implementation of the scheme was given to the estate office.

Both agencies issued conversion letter to the industrialists, who opted for the scheme. The estate office incorporated a clause that revised building plans will be sanctioned only if the building will be completed within three years from the date of issuance of conversion letter, failing which the applicant will be liable to pay extension fee as notified by the administration. However, no such condition was laid in the conversion letters issued by the Chandigarh Housing Board under the same policy.

Over the years, the converted plot owners have been at the logger heads with the administration for r e movi n g the time limit on the pattern of the Chandigarh Housing Board.

The administration initially charged Rs 20,000 per square yard as conversion fee, which was enhanced to Rs 29,713 per square yard for those whose applications were received on or after December 18, 2007.

Before t hat, 75 industrialists had availed the scheme on the old rate by paying 10% earnest money and balance in the for m of postdated cheques.

The estate office has now written to the finance department for approval to remove the threeyear clause.

When contacted, assistant estate officer (AEO) Rahul Gupta said, “The three-year clause incorporated by the estate office is an anomaly. There has to be parity and the finance department has been requested to remove the clause.”

Despite repeated attempts, UT finance secretary Sarvjit Singh was not available for comment.

Chandigarh Industrial Converted Plot Owners’ Association president Chander Verma said, “Having two set of rules under same scheme makes no sense and the authorities will have to remove the three-year clause.”

He further said till date, the administration had f ailed to determine the extension fee to be charged from the converted plot owners for the delay on completion of buildings.

The administration had carved out Phases 1 and 2 during the ’70s over an area of 147 acres. According to the available data, there are a total of 1,781 plots in both phases, of which 125 plot holders opted for conversion policy.