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Chandigarh admn to auction prime land in Sector 53 to private builder
If all goes according to plan, this will be for the first time in the history of CHB that a private player will be constructing and allotting the flats
After years of deliberations and repeated policy reversals, the UT administration has decided to auction nearly nine acres of prime land in Sector 53, belonging to the Chandigarh Housing Board (CHB), to a private developer for construction of residential flats. If all goes according to plan, this will be for the first time in the history of CHB that a private player will be constructing and allotting the flats.
Earlier in 2008, the CHB had got into a joint venture with Parsvnath Developers to build a township, ‘Pride Asia’, in the IT Park area, however, the project could not take off. Ultimately, the CHB decided to refund the award money while the private developer returned the land to the Board.
Interacting with the media on Friday, UT chief secretary and Chandigarh Housing Board (CHB) chairperson H Rajesh Prasad said the land belongs to the Board and will be auctioned in March. “All due procedures will be followed to ensure transparency,” said Prasad.
The development comes after UT administrator Gulab Chand Kataria, had in October last year, directed CHB officials to divide 21 acres in Sector 53 into two parts – about 11 acres for the general housing scheme for UT employees and the rest for auction to private players. The UT chief architect is currently finalising zoning plans for the site, a prerequisite for moving ahead with the auction.
Established in 1976, the CHB was mandated to provide affordable, good-quality housing to residents, particularly government employees. Initially, CHB planned to construct flats on its own at Sector 53 and had hoped to launch the scheme before Diwali last year. However, escalating costs and market realities forced a rethink.
Costs rise, demand remains high
Tentative prices under the earlier proposed CHB scheme had risen sharply to ₹2.30 crore for a three-bedroom flat, ₹1.97 crore for a two-bedroom unit and ₹74 lakh for an economically weaker section (EWS) dwelling unit after 35-40% hike in collector rates in April 2025. This had raised concerns over the affordability of the scheme.
Ironically, the demand for CHB housing remains robust. A demand survey completed in March had attracted 7,468 applications for just 372 flats, which means there were nearly 20 applicants per unit. Applicants deposited ₹10,000 for high-income group (HIG) and middle-income group (MIG) categories, and ₹5,000 for EWS units.
A project long marked by delays
The Sector 53 housing project has been mired in uncertainty for nearly a decade. First proposed in 2018, it received only 178 applications for 492 flats due to high prices, forcing the CHB to shelve the plan. The project was revived in 2023, only to be halted again by then UT administrator Banwarilal Purohit, who said the city did not immediately require a new housing scheme. Kataria revived it once more in November 2024.
Need-based changes policy under review
The UT administration has also initiated steps to resolve the long-pending issue of need-based changes in CHB dwelling units. The chief secretary said an 11-member committee has been constituted to review the policy notified on January 3, 2023, which was put on hold following a Supreme Court (SC) order dated January 10, 2023.
“The committee will submit its report within two weeks, and we are hopeful of implementing need-based changes as per the 2023 notification, wherever permissible,” Prasad said.
The SC had directed the administration to freeze the floor area ratio (FAR), barring any further increase. Officials said previous need-based changes would be scrutinised for compliance with building rules and court directions, and violations would invite strict action. Approximately 62,000 CHB dwelling units are estimated to have some form of violation, including additional rooms and altered balconies.
