Chandigarh rehabilitation colonies: With over ₹43 crore pending in rent, CHB to start allotment cancellations

With more than ₹43 crore in rent yet to be paid, the Chandigarh Housing Board (CHB) has decided to initiate allotment cancellation proceedings against more than 12,000 residents of eight rehabilitation colonies

With more than ₹43 crore in rent yet to be paid, the Chandigarh Housing Board (CHB) has decided to initiate allotment cancellation proceedings against more than 12,000 residents of eight rehabilitation colonies.

The flats in question were allotted by CHB under the slum rehabilitation scheme in different parts of Chandigarh. (HT File)

The allottees are from rehabilitation housing schemes in Dhanas, Sector 38 (West), Sector 49, Sector 56, Ram Darbar, Mauli Jagran, Maloya and Industrial Area. Also, 1,300 allottees under the Affordable Rental Housing Scheme in Maloya owe CHB around ₹3 crore.

“We have sent recovery notices regarding payment of rent, but with dues still pending, we will initiate cancellation proceedings against defaulters,” said a CHB official.

The flats in question were allotted under the slum rehabilitation scheme in different parts of the city. Allottees of one-room EWS flats are charged ₹800 to ₹1,000 per month as ground rent, which is increased by 20% after five years of allotment.

Under the Chandigarh Small Flat (Amendment) Scheme 2020, if allottees do not pay the rent, they are liable to pay a penalty of 12% per annum. If paid on time, the yearly collection of rent will be around ₹20 crore. While CHB keeps 5% of the recoveries as administrative costs, the rest is deposited with the administration. In 2019, the CHB had cancelled the allotment of nearly 250 allottees for the violation.