Chandigarh: Now, convert your home from leasehold to freehold | 5Anjabi

Around 25,000 house owners will benefit from the decision. These include people who the Estate Office and the Chandigarh Housing Board had allotted plots and who could not get their conversion done earlier, before 2013 due to various reasons

MP Kirron Kher with supporters at UT guest house in Chandigarh on Friday. She claimed credit of the decision and said that she put a lot of effort in reviving the policy that was eagerly awaited by residents.(Anil Dayal/HT)

In a relief to Chandigarh residents who wanted complete ownership title to their homes and residential properties, the UT has given green signal to re-start conversion of residential leasehold properties into freehold.

This conversion was stopped in 2013, after the then UT administrator Shivraj Patil referred it to ministry of home affairs (MHA) for re-fixation of conversion charges.

A property on leasehold can be occupied for a limited period, mostly for 99 years. The real ownership remains with the UT administration. The person having freehold of property is its owner and can utilise it for any purpose.

Now, the new rates will be notified within a week.

Around 25,000 house owners will benefit from the decision. These include people who the Estate Office and the Chandigarh Housing Board had allotted plots and who could not get their conversion done earlier, before 2013 due to various reasons. More than 100 Co-operative Housing Societies will also benefit from this order.

How was the decision arrived at?

The UT administration’s decision came a month after the Union ministry of urban development clarified that the power to fix conversion charges had been delegated to the administrator at the time of sanction given to original scheme in 1996.

Accordingly, the UT has taken a decision to fix collector rates to be used as land rates in the formula for calculation of conversion charges. The UT estate office is likely to notify these rates within a week.

“The administrator has approved the re-implementation of the conversion policy and directed the officials to notify the rates within a week,” MP Kirron Kher told a press conference. She claimed credit of the decision and said that she put a lot of effort in reviving the policy that was eagerly awaited by residents.

She added that once rates are notified, people can apply for conversion and get the property transferred in their name. Currently, the Chandigarh administration owns these as part of allotment rules.

No conversion charges below 50 sq metre

As part of the policy decision, there will be no conversion fee for the plots below 50 square metre and EWS/cheap houses/industrial houses as was in the originally crafted Chandigarh Conversion of Residential Lease-hold Land Tenure into free-hold Land Tenure Rules, 1996.

What is leasehold?

A property on leasehold can be occupied for a limited period, mostly for 99 years. The real ownership remains with the UT administration.

What is freehold?

The person having freehold of property is its owner and can utilise it for any purpose.

What it means

Once rates are notified, people can apply for conversion and get the property transferred in their name, a huge relief as people can have their home in their own name. Currently, the Chandigarh administration owns these as part of allotment rules.

Boon for realty market

If rates are reasonable, it will be a boon for the local real estate market as sale and purchase of properties will increase.

What’s there for UT?

The UT administration can earn huge revenue, subject to the rates fixed by them. A decision has already been taken that a new fund “Urban Development Fund” is being created into which the conversion charges shall be deposited. The projects related to development of urban infrastructure shall be funded from this fund. Commissioner municipal corporation will be custodian on behalf of the UT administration.

Patil imposed ban in 2013

In 2013, the then UT administrator Shivraj Patil had imposed a ban on the conversion of property, leaving the decision to the MHA. Patil was of the view that allowing conversion will make the leaseholder an owner, which couldn’t be allowed at a price lower than the market price.