PAVING THE way for transfer of leasehold properties to freehold, the Chandigarh Administration has fixed the fee for transfer of both residential and commercial properties allotted on a leasehold basis. As per official records, there are over 50,000 properties which have been allotted on lease of 99 years by the administration, of which a total of 2,000 are industrial plots in Phase I and Phase II of the Industrial Area. The rate fixed by the administration has been approved by UT Administrator Kaptan Singh Solanki and now will be sent to the Ministry of Home Affairs (MHA) for approval. As per the rate proposed by the administration, an allottee will be charged 50% of unearned increase in the value, that is, the difference between the price paid by the original allottee/lessee and the market value of the site/building at the time of permission of transfer to be calculated on the basis of existing collector rates. The collector rate is the minimum rate at which the property is registered. The rates are determined by the Chandigarh Administration and are revised from time to time according to market dynamics. The administration had recently reduced collector rate in the Industrial Area by 20%. Confirming the development, UT Finance Secretary Sarvjit Singh said that the rate proposed by the administration had been approved by the administrator and would be sent to MHA for mandatory approval. After directions from the then administrator Shivraj Patil, the administration in 2013 had imposed an embargo on transfer of leasehold plots to freehold. The move evoked sharp criticism from various industrial and residential association. Challenging the decision, the Industries Association of Chandigarh (IAC) approached MHA, which issued directions for finding a solution for transfer of leasehold properties to freehold. Expressing displeasure over the rate fixed by the administration, Arun Mahajan, city-based industrialist and a member of Industrial Advisory Committee (IAC), said: “The rate fixed for transfer of leasehold to freehold are unreasonable and unjustified. The rates should have been determined after consulting industrialists and resident welfare association.” The UT administrator has also approved the rate to be charged for transfer of leasehold to leasehold properties. The administration has fixed a rate of Rs 1 lakh per square yard. The final rate to be paid for transfer will be calculated by multiplying Rs 1 lakh with the total area of plot minus price paid by the original allottee.
