E-Paper
Rehab colonies’ rent dues mount to ₹20 crore, CHB starts sending notices
Allottees at eight colonies have not paid rent for years, will also face penalty at 12% per annum.
After waiting for several years for over 10,000 allottees of eight rehabilitation colonies to clear their rent arrears totalling over Rs 20 crore, the Chandigarh Housing Board (CHB) has started sending them recovery notices.
“Many allottees have not been paying the stipulated rent for many years now. We had started a drive last year and recovered Rs 18 crore. But, due to the Covid-19 pandemic, arrears again piled up. The dues now stand at nearly Rs 20 crore,” said Yashpal Garg, chief executive officer, CHB.
While last year, CHB had even cancelled the allotment of around 250 allottees for the violation, Garg said this year, eviction will not be the immediate action.
“We will be taking action against the defaulters as per law. But, in the wake of the pandemic, we will not be resuming their properties,” he added.
In addition to issuing notices, the board has also put up the list of defaulters on its website and on the premises of its office.
The flats in question were allotted under the slum rehabilitation scheme in different parts of the city. Allottees of one-room EWS flats are charged Rs 800 to Rs 1,000 per month as ground rent, which is increased by 20% after five years of allotment.
Under the Chandigarh Small Flat (Amendment) Scheme 2020, if allottees do not pay the rent, they are liable to pay a penalty of 12% per annum.
If paid on time, the yearly collection of rent will be around Rs 20 crore.
While, CHB keeps 5% of the recoveries as administrative costs, the rest is deposited with the administration.
Recoveries pending in commercial properties
In October this year, CHB had served similar notices on more than 600 commercial establishments for recovering Rs 56 crore in outstanding dues.
Many allottees have not been depositing ground rent, instalments and interest for several years.
Most defaulters have been allotted CHB properties in rehri markets and motor markets in different sectors, and the grain market in Sector 26. The highest amount due from a single allottee is Rs 1.3 crore.
“Recoveries from commercial properties have been slow so far. In some cases, allottees have moved court,” Garg said.
