Allowing leasehold to freehold conversion in Chandigarh being considered: MHA to SC

The affidavit was filed in response to an affidavit of compliance filed by the UT administration regarding the conversion of leasehold to freehold on August 1

The conversion of industrial/commercial plots from leasehold to freehold is a major policy decision for Chandigarh and it will be taken only after due consideration of all relevant facts, the ministry of home affairs (MHA) said in an affidavit to the Supreme Court (SC) on Monday.

Chandigarh currently has 6,621 commercial and 1,451 industrial plots on leasehold, which allow occupation for a limited period, usually 99 years, with government agencies holding the ownership rights. (HT File)

The affidavit was filed in response to an affidavit of compliance filed by the UT administration regarding the conversion of leasehold to freehold on August 1. During a resumed hearing in the estate officer versus Charanjit Kaur’s case, the SC had directed the Union to submit an affidavit concerning the conversion of leasehold commercial and industrial properties to freehold within four weeks in compliance with the UT affidavit.

“The proposal received from the UT administration was examined in detail and at length. The proposal is wanting in certain facts and requires additional inputs from the UT administration and other stakeholder ministries,” said the MHA in the affidavit.

In regard to the amendment in the capital of Punjab (Development and Regulation) Act, 1952, for revision of penalty to be imposed in cases of building violation and misuse of premises in Chandigarh, inter-ministerial consultation underway and appropriate legislative changes would be required following the due process of law, the MHA added.

Earlier, the SC had given three months to the UT administration and the MHA to decide on allowing the conversion of commercial and industrial leasehold properties to freehold.

Chandigarh currently has 6,621 commercial and 1,451 industrial plots on leasehold, which allow occupation for a limited period, usually 99 years, with government agencies holding the ownership rights. Besides legal complications, the allottees struggle with the sale and purchase, and raising a mortgage when needed, issues not normally associated with freehold properties where the allottee is the real owner.