E-Paper
MHA rejects Chandigarh’s proposal to allow freehold ownership of commercial, industrial plots
For over two decades, Chandigarh-based traders have been demanding freehold ownership as they struggle with the sale, purchase and mortgage of these plots, besides other legal complications
In a major setback to city-based traders, the Ministry of Home Affairs (MHA) has rejected Chandigarh’s proposal to convert industrial and commercial plots to freehold ownership, from leasehold occupancy.
In Chandigarh, all commercial and industrial properties allotted after 1973 are on leasehold basis, which allows occupation for a limited period, typically 99 years. Currently, there are 6,621 such commercial and 1,451 industrial plots in the city.
For over two decades, the traders have been demanding freehold ownership as they struggle with the sale, purchase and mortgage of these plots, besides other legal complications that are not normally seen in freehold properties where the allottee is the real owner.
Estate Officer vs. Charanjit Kaur
On Monday, the additional secretary of the Ministry of Home Affairs filed an affidavit before the Supreme Court, stating, “Chandigarh’s proposal regarding the conversion of industrial/commercial plots from leasehold to freehold has been examined and not agreed to.”
The apex court was hearing a matter involving the Estate Officer vs. Charanjit Kaur.
Regarding the amendment to the Capital of Punjab (Development and Regulation) Act, 1952, for revising the penalty imposed in cases of building violations and misuse of premises in Chandigarh, the proposal received from the UT administration is under examination and consultation with the Department of Legal Affairs, the MHA submitted.
Traders flay move
Chamber of Chandigarh Industries vice-president Naveen Manglani said, “It has come as a shock to us. All through, the UT administration and the MHA were in favour of converting industrial plots from leasehold to freehold for Chandigarh. They were last given to understand that the MHA was working out the conversion rate formula, and it would be announced soon,” he said.
“If all states and even the Delhi government has already come out with the conversion policy for leasehold to freehold of industrial plots, then why is Chandigarh being singled out?” he asked.
“Now, litigations will increase because the lessees have not been able to transfer the leasehold industrial plots due to the absence of the transfer policy of the administration,” he added.
Varinder Singh Saluja, president of the Industrial Association of Chandigarh, said, “Until 1972, the UT administration used to allot freehold industrial plots. Since 1973, the UT started allotting on leasehold, and charges for allotment of leasehold properties were either the same or more than freehold properties in some cases. At that time, the generation that opted for leasehold property was not aware of the impractical restrictions and conditions, and now they are bearing the brunt,” he said.
Anti-people move, says Chandigarh Congress
Terming the MHA’s stance anti-people, Chandigarh Pradesh Congress Committee president HS Lucky said, the Narendra Modi-led government has betrayed the people. “It was the Congress party which had first brought the provision for conversion of leasehold properties to freehold in 1996. Bylaws were also amended by the Parliament 28 years ago to provide relief to leasehold property owners. The BJP, on the contrary, has been adding obstacles in the process since 2014,” said Lucky.
“First, it made the process of conversions extremely cumbersome and increased the conversion charges. Now, it has opposed the very concept of conversion of leasehold properties into freehold,” he said.
