Soon, violators of building bylaws in Chandigarh will have to pay through their nose as the administration is proposing fines between ₹3 and ₹10 per square ft a day, depending on the nature of the violation and the use of the property.
For perspective, at the maximum proposed rate of ₹10 per sq ft a day, a 5,000 sq ft commercial property could attract a penalty of ₹50,000 per day, amounting to ₹15 lakh over a 30-day period.
This is a steep rise compared to the current penalty, which is capped at ₹500 along with ₹20 per day – an amount that officials acknowledge is no longer proportionate to present-day property values.
The proposal for the hike, part of amendments to the Capital of Punjab (Development and Regulation) Act, 1952, will be sent to the Ministry of Home Affairs (MHA) next week.
In Chandigarh, building violations generally refer to any construction, alteration, use, or maintenance of property that is not in accordance with the approved plans, zoning regulations, building rules, or conditions of allotment/lease. Under Section 13 of the Capital of Punjab (Development and Regulation) Act, 1952, violations in residential areas include construction of structures beyond the permissible limits, additional rooms, toilets, conversion of balconies into rooms and covering of the courtyard.
Violations in commercial areas include removal of internal walls in shop-cum-offices, use of basements for other activities instead of storage, and construction of upper floors in bay shops and booths.
{{/usCountry}}Violations in commercial areas include removal of internal walls in shop-cum-offices, use of basements for other activities instead of storage, and construction of upper floors in bay shops and booths.
{{/usCountry}}According to officials, currently there are over 5,000 buildings in the city that have some sort of violation.
Outdated penalty structure
The existing penalty of ₹500 along with ₹20 per day is not linked to the size or nature of the property, making it ineffective as a deterrent. Officials say the penalties have remained unchanged since the law came into force over seven decades ago.
At present, penalties under the Act can only be imposed following conviction by a competent court, a process widely seen as time-consuming and cumbersome. The Estate Rules, 2007, too had prescribed higher penalties without a clear enabling provision in the parent legislation, leading to legal inconsistencies. The need for reform was also underscored by the Punjab and Haryana high court in the Dhira Singh judgment dated November 8, 2012, which called for amendments to strengthen enforcement.
Key features of proposed framework
Under the new framework, violators would be given a month’s time to rectify or remove the violation. If the violation persists beyond this period, penalties would accrue on a daily basis.
The proposal also includes a cap on total penalty at 10% of the property’s value. It has provision for charging simple interest at 1% per month if the penalty is not deposited within 30 days.
It also replaces the court-based prosecution system with an administrative penalty mechanism, in line with the Centre’s push for decriminalisation and ease of doing business. Officials said the shift to an administrative system would enable quicker enforcement and reduce prolonged litigation.
Traders seek one-time settlement
The proposed penalty structure has, however, drawn concern from members of the trading community, who argue that a daily per-square-foot penalty could impose a heavy financial burden, particularly in cases involving long-pending or legacy violations. Traders have urged the administration to review pending cases and consider introducing a one-time settlement or relief mechanism for older violations. They have also suggested that factors such as the nature and severity of the violation, property category, and business circumstances be taken into account while determining penalties.