To ensure transparency in transactions of freehold properties, the UT administration has decided to amend the Chandigarh Estate Rules, 2007, for incorporating the provision requiring no-objection certificate (NOC) at the time of sale of freehold property.
The move came after the Supreme Court dismissed the UT administration's special leave petition (SPL) challenging the decision of the Punjab and Haryana high court that had struck down the requirement of NOC before sale of freehold property.
The estate office was asked to amend the rules if they intend to make NOC mandatory in such cases. On December 3, 2012, the UT authorities had moved the apex court seeking stay on the implementation of the high court orders issued on May 5, 2012, in which it had termed the practice of the administration demanding NOC before the sale of freehold property as against the rules.
UT finance secretary VK Singh said they are in a better position to ascertain the genuineness of the property and their sole aim is to ensure that there are no irregularities in the sale transactions besides putting a check on fraudulent and illegal sales, and also building violations. However, he said they require some time to complete the process as it requires lot of deliberations.
Lauding the administration for putting efforts to make NOC compulsory for the sale of freehold property, chairman of Chandigarh Industrial Converted Plot Owners Association, Chander Verma said NOC is only instrument, which can safeguard the interest of the buyers. “If sale transactions are permitted without NOC, the chances of buyers being cheated increase manifold,” said Verma.
Meanwhile, for the time being after its petition was dismissed by the apex court, the estate office has directed the sub-registrar's office for not asking for NOC in transaction cases of freehold property with a condition. The buyers and the sellers will be required to submit affidavit, which will help the authorities in taking action
against those who indulge in any irregular transactions.
Misuse charges being reviewed
Following a demand from various traders' associations, the administration is reviewing misuse charges being taken for various violations in commercial buildings. In 2007, the administration had enhanced misuse charges from Rs 10 per square feet to Rs 500 per square feet with the enforcement of the Chandigarh Estate Rules, 2007. Different trader bodies, including Chandigarh Beopar Mandal (CBM), have been at loggerheads with the administration demanding reduction in misuse charges.
According to senior official, the authorities have failed to recover misuse charges to the tune of several crores from traders. “Exercise of reviewing the misuse charges is being carried out,” said an official.