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Chandigarh admn slashes cost of employee housing scheme, but allottees reject proposals

Two housing proposals — a seven-storey project and a mix of seven- and eleven-storey project — were discussed in a meeting chaired by UT adviser Manoj Parida

Published on: Nov 17, 2020, 23:55:37 IST
By , Chandigarh
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The stalemate over the 12-year-old UT employees’ housing scheme continues as the allottees on Tuesday rejected two fresh proposals of the administration even as the flat costs were slashed by up to 31% from the prices offered last year.

A meeting underway between UT adviser Manoj Parida and employee representatives in Chandigarh on Tuesday.
A meeting underway between UT adviser Manoj Parida and employee representatives in Chandigarh on Tuesday.

Two housing proposals — a seven-storey project and a mix of seven- and eleven-storey project — were discussed in a meeting chaired by UT adviser Manoj Parida with employees’ representatives Dr Dharmender Shastri, Balwinder Singh and Dr Brahmprakash Yadav.

While in the first option, the prices were slashed by 13-31% in the four categories of flats, in the second option, the drop was 3-24% (see box), with the maximum difference in the case of 1BHK (bedroom, hall and kitchen) flats that form the bulk of the project.

“We have rejected the administration’s proposals, as the flats are still way too expensive as compared to the original brochure prices (of 2008), and are only marginally lower than the 2019 prices. We will submit our decision to the Punjab and Haryana high court. We have already communicated our decision to the administration. We will take flats only on brochure prices,” said Shastri.

Parida said: “We will wait for their (employees’) formal response. The ministry of home affairs (MHA) will take a final call. The matter is subjudice.”

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The much-delayed scheme

Around 4,000 flats were to be built in Sectors 52, 53 and 56 by the Chandigarh Housing Board for government employees as part of a scheme launched in 2008.

The project comprised 252 3BHK flats with servant quarters, 168 2BHK with servant quarters, 3,066 1BHK and 444 single-room flats.

A draw of lots was held in 2010, in which 3,930 employees among 7,827 applicants were selected. They had then deposited around 57 crore with the CHB under the scheme.

Later, the scheme was shelved, and then revived after the employees took up the matter with MP Kirron Kher. But the MHA allowed the administration to transfer the land to the CHB at the current collector rates, which shot up the apartment costs manifold (see box).

The employees even moved the high court, demanding that flats be allotted at the same rates as asked for in 2008, following which the MHA and administration were directed to resolve the pricing issue. Tuesday’s meeting was also held following fresh HC directions this month.

However, even after the revised prices offered now, a 3BHK flat will cost employees more than 1.5 crore in both the options, around five times the original offer.

The twin proposals

Under the 2019 proposal, the administration was charging for the whole piece of land (73 acre), which was to cost around 2,629 crore.

Under the first option (Concept 1) submitted on Tuesday, the land cost will be charged on plotted area basis. Though total 65.96 acre will be utilised, but only 38 acre will be charged at 35.88 crore per acre, ie a total of 1,304 crore. This will require the approval of the Union Cabinet before it can be implemented.

Under the second option (Concept 2), the administration will charge for the whole chunk of land (48 acre), on which a mix of seven- and eleven-storey project will be constructed at a total cost of 1,734 crore. This option requires approval of the Union Home Ministry as it needs amendments in the Chandigarh Master Plan.

  • Munieshwer A Sagar
    ABOUT THE AUTHOR
    Munieshwer A Sagar

    Munieshwer A Sagar is a principal correspondent at Chandigarh and reports on real estate.