The owner of a flat in a group housing society will now be able to get it registered in his name as the UT Administration on Tuesday decided to allow the transfer of flats (leasehold) to allottees in such societies October 20 onwards. The decision will be a huge relief for several people staying in 15,000 flats of group housing societies in Chandigarh. While UT Administrator V P Singh Badnore has already given his approval, the UT Estate office, which is in the process of finalising the policy, also held a meeting in this regard on Tuesday.
The flats were allotted to residents on a 99-year lease. So, with the new move, leasehold property will become freehold. Since the flat can be registered in the name of the owner, he would also be able to further sell the property at market rates that have not taken place for the last six years. In 2012, the Registrar, Cooperative Societies, had put on hold the transfer of leasehold properties. There are 15,000 flats in 115 societies of Chandigarh. Till 2012, the transfer of both leasehold and freehold properties was allowed. Following this, flats in 35 societies became freehold. But the transfer of leasehold properties stopped post-2012.
Pradeep, the vice-chairman of the Sector 50 Group Housing Cooperative Society, told Chandigarh Newsline that the move will benefit only if the administration allows the execution of the conveyance deed with stamp duty on the original collector rates. “We have come to know that the administration will be charging stamp duty on the prevailing collector rates which is around Rs 70,000 per sq yard. We request the administration to charge us stamp duty on the original rates,” he said.
Not only this, for the transfer in his name, the owner will also have to shell out an unearned profit before registration. Chairman of Group Housing Cooperative Societies Welfare Council, Satish Sharma, added that no one will come forward as UT is imposing the condition of payment of unearned profit. The amount of unearned profit will be paid to the government before registration. Unearned profit is the difference between the price paid by the original allottee and the market value of the site at the time of transfer.
Uma Shankar Gupta, Additional Secretary, Estate and Housing, said the administration will be charging only a third of the unearned profit which would be quite less. “Otherwise, if the allottees had to pay, the unearned profit would have charged them Rs 14-15 lakh but since it is one-third only, the amount would be quite less,” said Gupta, adding that the draft had been finalised.
Sandeep Bhardwaj, Chief Adviser of the Group Housing Society Welfare Council, added, “This is totally unjust. Only to pay the unearned profit, it will cost us around Rs 2.5 lakh to Rs 5 lakh and thereafter stamp duty and other charges. This way, the owner will have to shell out around Rs 8 lakh only for the transfer. People won’t come forward if such charges are imposed.”