Guest Column | Chandigarh Housing Board at odds with its objectives

Forty-five years after its inception, the CHB has mutated into yet another public sector behemoth bent on milking its allottees

On July 15, the Chandigarh Housing Board invited the public to submit suggestions on how it could simplify its processes and minimise regulatory compliances, which was surprising in itself as many of my representations are buried beneath the files at the CHB office.

The CHB was established in 1976 with the primary objective of providing affordable and quality housing to Chandigarh residents, particularly the less affluent sections of society. However, now the housing board is charging a small fortune for its flats. (HT File)

The CHB was established in 1976 with the primary objective of providing affordable and quality housing to UT residents, particularly the less affluent sections of society. However, all of it is water under the bridge, with the housing board charging a small fortune for its flats.

This is evidenced by the board’s 2016 self-finance scheme for Sector 51, which garnered a poor response due to the unrealistically high price of the flats. A mere 225 applications were received for 200 units. However, the CHB remained undeterred and pitched a costlier housing scheme for Sector 53, where a three BHK (bedrooms, hall and kitchen) flat was offered for ₹1.8 crore, a two BHK for ₹1.47 crore and one BHK for ₹95 lakh. To nobody’s surprise the CHB found few takers and the prices had to be revised twice. The final pricing for the three categories was ₹1.5 crore, ₹1.28 crore and ₹86 lakh, respectively, which was still way over the market price. The scheme drew so poor a response that it had to be scrapped.

This raises questions over how the CHB determines the price for its flats and shows that the board has deflected from its professed objectives over the years.

Hefty fee for recording transfers

Moreover, the CHB recovers the complete cost of its housing projects from the allottees. Once possession is handed over to an allottee, the CHB owes no duty to the allottees. The cost of all repairs, and maintenance work falls to the allottee.

The board also charges a pretty penny for recording the transfer of flats and houses. For instance, in Sector 63, the flats were initially allotted on leasehold basis. If an allottee sold his high-income group (HIG) flat after the lock-in period by way of a registered sale deed and the purchaser applied to CHB to transfer the flat in his name, then the purchaser had to pay a transfer fee of ₹3,75,000, with an additional 18% goods and service tax (GST). The same fee is charged each time the flat is sold, generating a handsome income for the CHB.

Interestingly, the CHB earlier charged a mind-boggling sum ranging from ₹7 lakh to ₹10 lakh, depending on the category of flat. Is charging so high a fee for merely recording transfers in CHB records commensurate with the ‘affordable’ housing objective of the CHB in any manner?

At each step one has to pay arbitrary charges and a hefty fee for the most nominal of services. For example, it is mandatory to pay ₹10,000, plus GST, for publishing a notice for each sale in newspapers. Every sale and transfer of property is published in newspapers for no rhyme or reason on the dime of the purchaser. This also applies to legal heirs who have to pay around ₹12,000 for the same despite there being no ambiguity in the chain of title.

Legally, publishing neither creates rights in favour of the transferee nor does it extinguish anybody’s interest in the property. Thus, publishing every transfer in the newspaper is a futile exercise. The common man has to shell out money to satisfy the whims of the babus at the helm.

Arbitrary, exorbitant pricing

In case, a purchaser takes a home loan, the bank sends a letter to CHB intimating it of its charge over the property. The CHB only has to put that letter in the concerned property file for record purposes. However, it charges ₹7,500, plus GST, for the same.

These are just a few ways by which the CHB unreasonably and arbitrarily charges allottees. Charging property owners for the meanest of services when the CHB does not take any responsibility for maintenance of flats after handing them over to the allottees is hardly fair.

It is unfortunate that 45 years after its inception, the board has mutated into, yet another public sector behemoth bent on milking its allottees for all they are worth.

amitjaiswal.adv@gmail.com

(The writer is an advocate in the Punjab and Haryana high court. Views expressed are personal.)