Chandigarh Housing Board to get 5% on rental income from rehab colonies

Board stands to gain more than Rs 60 lakh annually with the Chandigarh administration allowing it to get 5% on rental income from rehabilitation colonies in the city

Chandigarh Housing Board (CHB) stands to gain more than Rs 60 lakh annually with the UT administration allowing it to get 5% on rental income from rehabilitation colonies in the city.

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In a year, around Rs 12 crore has to be collected as rentals from the allottees at rehabilitation colonies in Dhanas, Ram Darbar, Mauli Jagran, Sector 38, Sector 49 and Sector 56. The CHB collects the amount on behalf of the administration.

Confirming the development, Yashpal Garg, chief executive officer (CEO), said, “CHB will getting 5% as administrative costs of the total rental collections from the allottees under the Chandigarh Small Flat Scheme.”

Under the Small Flat Scheme, the CHB charges small amount of rent, but despite this, many allottees are not depositing the same. The monthly rent is Rs 800, which is increased by 20% after every five years.

On an average, only around Rs 8 crore was being collected as rent from colonies, but in the last financial year more than double the amount was collected as CHB organised special camps. Currently, around Rs 20 crore are pending with 250 defaulters as unpaid rent.

While CHB will get 5% of the collection, the rest of the amount will be accrued to the UT administration.

Significantly, the UT Administration has earmarked a revolving fund of Rs 57 crore to be spent in colonies for civic works, including road, building, electrical and horticulture. It is 10% of the total cost of building these flats.