Chandigarh admn mulls allowing share-wise property registration in city’s non-heritage sectors

Officials said the administration is examining legal aspects to determine whether registrations can be resumed in non-heritage sectors without violating the apex court’s directions.

The UT administration is considering allowing share-wise property registration in Chandigarh’s Phase 2 (Sectors 31-47) and Phase 3 (beyond Sector 47) areas, while retaining the restrictions in the heritage sectors (1-30). The move is aimed at providing relief to residents after registrations remained suspended for nearly three years following a 2023 Supreme Court order.

Chandigarh MP Manish Tewari has repeatedly raised the issue in the Lok Sabha over the past two years. He has argued that the UT administration may have misinterpreted the court’s order by imposing a blanket ban on share-wise registrations across the entire city. (HT File)

UT administrator Gulab Chand Kataria has reportedly directed officials to explore possible solutions to address the issue and provide relief to property owners.

Officials said the administration is examining legal aspects to determine whether registrations can be resumed in non-heritage sectors without violating the apex court’s directions.

The court, in an order dated January 10, 2023, had barred the conversion of residential houses into floor-wise apartments in Chandigarh’s heritage sectors (1-30). It had also directed the Heritage Committee to examine the issue of re-densification in these sectors. Based on the committee’s recommendations, the UT administration was asked to consider amendments to the Chandigarh Master Plan-2031 and the 2017 Apartment Rules, subject to final approval from the Centre. In view of this, the UT administration imposed a ban on share transfers outside the family across Chandigarh, and also halted the approval of building plans for properties jointly owned by unrelated individuals.

Legal aspects of SC’s 2023 order being examined

A senior UT official said the administration is currently undertaking a detailed legal review of the court’s order, particularly with regard to Phase 2 and Phase 2 areas, while keeping the restrictions applicable in Phase 1 sectors (1-30) intact. According to officials, the restrictions imposed by the court primarily relate to Phase 1 sectors. In view of this, the administration is examining whether share-wise registrations can be allowed in other parts of the city that fall outside these sectors. The suspension of share-wise transfers has impacted the city’s real estate market, with property prices reportedly rising due to the restriction on registrations.

Issue raised in Parliament

Chandigarh MP Manish Tewari has repeatedly raised the issue in the Lok Sabha over the past two years. He has argued that the UT administration may have misinterpreted the court’s order by imposing a blanket ban on share-wise registrations across the entire city.

Tewari said the SC’s directions were primarily related to planning and structural issues and did not explicitly prohibit the sale of property on a share basis. Property dealers’ associations have also been demanding the reopening of such registrations for a long time.

Vikram Chopra, president of the Property Consultant Association, Chandigarh, criticised the administration’s stance.

“Why has the UT administration failed to properly interpret the apex court’s order even after three years?” he asked. He said the city had already suffered a “massive loss” in stamp duty and tax revenue, while residents continued to face harassment and a rise in avoidable litigation. “If the UT is unable to obtain clarity from its legal officers, it should seek clarification directly from the SC,” Chopra added.

Revenue loss for administration

Before the suspension, around 80 to 100 share-wise property registrations used to take place every month, translating into nearly 1,000 registrations annually. Each registration generated about 5% in stamp duty, contributing significantly to government revenue. Officials estimate that due to the continued ban, the administration has suffered revenue losses exceeding ₹40 crore so far. In contrast, no such restriction exists in neighbouring Panchkula and Mohali, where share-wise property registrations continue without interruption.

Centre seeks report

The Ministry of home affairs has also sought a report from the UT administration regarding the issue. According to MP Tewari, the SC ruling does not explicitly ban share-wise property sales. He reiterated in Parliament that the administration’s interpretation of the order has caused unnecessary hardship to residents and property owners.