The Chandigarh Housing Board (CHB) has given its nod, with certain conditions, to the mortgage of residential and commercial properties allowing around 70,000 owners to take loans against these. There are 63,000 residential and 4,300 commercial properties in the city. The allottee has to apply for the permission letter to the board.
Under the normal course with a processing fee ranging between Rs 1,000 and Rs 2,000 (depending on the property size), the board will give permission to the allottee within two working weeks from the date of application. Under the tatkal window, where the processing fee is between Rs 30,000 and Rs 50,000, the nod for the mortgage will be given within five days.
CHB chairman Maninder Singh said, “The board has not been giving permission for mortgage of residential and commercial properties it has allotted to get loans. This has led to inconvenience and unnecessary hardship to the allottees/transferees at the time of seeking loans from banks. Now, we will issue permissions for mortgage of residential and commercial properties subject to conditions.”
He added that the allottees/occupants of the dwelling units and commercial properties are facing extreme difficulty in raising loan (s) against properties that the CHB has allotted, in spite of having paid the full amount in respect of such properties to the board.
The chairman added that this was causing genuine hardship to the allottees who are in genuine need of funds and need to mortgage their properties for raising loans for educational purposes, medical facilities and any other legitimate purposes and hence, at times, succumb to distress sale of such properties.
Before the CHB gives permission for mortgage, one of the first conditions that will need to be satisfied is that the allottee/transferee has paid the consideration/price of the property and all other dues are cleared. The board shall have the first and paramount charge of the said property for the unpaid portion of outstanding dues/penalty, if any. The CHB will not pay interest or grant any other benefit The mortgagee bank/financial institution etc. shall recover its loans from the allottee/transferee through its own means/procedures and the CHB shall not provide any assistance in the recovery of loans. The CHB will not enter into any tripartite agreement for the purpose of raising loans.
In case of foreclosure (the lender or the mortgagee selling the property to recover the loan), the mortgagee shall obtain prior permission of the CHB.