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Chandigarh: Restrictive clause stalls CHB plan to auction land to pvt developer
It may be recalled that in 2003, the UT Estate Office transferred around 21 acres in Sector 53 to CHB at a cost of about ₹5 lakh per acre
Even though the Chandigarh Housing Board (CHB) had decided to auction a prime parcel of land in Sector 53 to a private developer, the move has run into a major hurdle due to a restrictive clause imposed by the UT Estate Office at the time of allotment.
When the land was allotted to CHB in 2003, the Estate Office had included a condition prohibiting the sale of the land to any third party and mandating that the board develop the site on its own. As a result, CHB is currently unable to proceed with the proposed auction, which was scheduled for March this year.
A senior CHB officer said the board had earlier overlooked the clause, but after it recently came to light, a formal request had been sent to the Estate Office seeking removal of the condition to enable CHB to move ahead with the auction process.
“We have written to the estate office requesting relaxation of the clause so that the auction can be conducted as per the latest policy decision,” the officer said.
It may be recalled that in 2003, the UT Estate Office transferred around 21 acres in Sector 53 to CHB at a cost of about ₹5 lakh per acre. Of the total area, nearly 11 acres were earmarked for a general housing scheme for UT employees, while the remaining land was proposed to be auctioned.
In January this year, after years of deliberations and repeated policy reversals, the UT administration decided to auction a portion of the Sector-53 land to a private developer, marking a significant shift in CHB’s housing strategy. As per the decision, the private builder would construct flats on the site and sell them in the open market.
Earlier, in October last year, UT administrator Gulab Chand Kataria had directed CHB to divide the Sector 53 land into two pockets — one for auction to a private builder and the other for housing. He had also asked the chief architect to examine the feasibility of carving out around nine acres for dual use. However, the latest plan envisages auctioning the entire identified area.
Established in 1976, the Chandigarh Housing Board was mandated to provide affordable, good-quality housing, particularly for government employees. CHB had initially planned to construct flats on its own at Sector 53 and had hoped to launch the scheme before Diwali last year. However, rising construction costs and changing market conditions forced a rethink, leading to the current proposal to involve a private developer.
Rising cost doesn’t deter demand
Tentative prices under the earlier proposed CHB scheme have risen sharply. Current estimates stand at around ₹2.3 crore for a three-bedroom flat, ₹1.97 crore for a two-bedroom unit and ₹74 lakh for an economically weaker section (EWS) dwelling. These prices surged after a 35-40% hike in collector rates since April 2025, triggering concerns over affordability.
Ironically, demand for CHB housing remains robust. A demand survey completed in March last year attracted 7,468 applications for just 372 flats — 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.
However, the financial viability of the project has weakened considerably. During the demand survey, estimated prices were much lower — ₹1.65 crore for a three-bedroom flat, ₹1.40 crore for a two-bedroom unit and ₹55 lakh for an EWS flat—highlighting how rising costs eroded affordability within a short span.
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.
