MHA puts brakes on auction of freehold properties in Chandigarh
MHA has put a brake on auction of commercial and industrial freehold properties in Chandigarh for three weeks. In a letter to finance secretary, UT administration, MHA has sought some clarification on the issue
The Ministry of Home Affairs (MHA) has put a brake on the auction of commercial and industrial freehold properties in Chandigarh for three weeks.
In a letter to the finance secretary, UT administration, the MHA has sought some clarification on the issue, following which the UT finance secretary has written to the MD, Chandigarh Industrial and Tourism Development Corporation Limited (CITCO), MC commissioner, estate officer and the Chandigarh Housing Board (CHB) not to auction any freehold properties for at least three weeks.
MC defers its auction
The Municipal Corporation of Chandigarh, which was to auction its 18 commercial sites at Manimajra this month, has deferred it now. Last month, the MC General House had given the approval to auction its 18 shop-cum-flats (SCF) in Manimajra through e-auction.
A senior officer of the MC said, “We were to auction the properties in October and now after the letter, it has been deferred. The reserve price of total properties is around ₹62 crore. The reserve of the SCF measuring 110 square yards is around ₹3 crore, while the reserve price of the SCF measuring 225 square yards is ₹6 crore.
CHB withdraws auction of one property
After the letter, the Chandigarh Housing Board (CHB) has withdrawn the auction of its one commercial property in Sector 51, while the auction of 177 freehold and leasehold residential and commercial properties is underway.
Yashpal Garg, CEO, CHB, said, “We have withdrawn one freehold commercial property in Sector 51 after the letter, while other auctions of leasehold and freehold residential properties are underway.”
Leasehold to freehold conversion
Last month the MHA has sought three months’ time from the Supreme Court to frame a policy on the conversion of leasehold industrial and commercial plots to freehold in Chandigarh.
During the meetings held last month, the MHA informed the UT administration that the letters sent by the administration on April 13, 2021, and August 20, 2022, did not contain a comprehensive and detailed proposal or a draft scheme for the conversion of industrial or commercial property from leasehold to freehold. As the issue involved an important matter of policy, an appropriate policy decision could be taken in consultation with the stakeholders concerned only after receiving a detailed proposal or draft scheme from the Chandigarh administration.
In continuation of the reply sent to the MHA on August 20, the administration had sent a detailed proposal to the MHA for converting leasehold property to freehold (commercial/industrial) on September 13. “This being a major policy decision, the matter is being considered by the MHA as per the established legal procedure and in consultation with all stakeholders concerned,” the UT submitted.
