Chandigarh bars property conversion through GPA
The UT administration has barred the conversion of a property from leasehold to freehold on the basis of general power of attorney (GPA).
As per the order issued by the UT finance department, Rule 8 in the Chandigarh Conversion of Residential Leasehold Land Tenure into Freehold Tenure Rules, 1996, has been deleted.
The rule detailed the procedure, terms and conditions for the conversion of a property held through a GPA. The administration has also deleted related provisions under Rule 9.
Also, now the consideration amount for the payment of stamp duty for purpose of a registered conveyance deed will be “conversion fee” only and not “surcharge”, which was earlier the case.
In Chandigarh, residential properties can be converted from leasehold to freehold on payment of a conversion fee. For commercial and industrial properties, though the administration has agreed to allow conversion, the approval of Union ministry of home affairs is awaited.
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