Blow to 4,000 employees as Chandigarh admin closes housing scheme

A status report submitted to the Punjab and Haryana High Court later last month in the form of an affidavit by Sorabh Kumar Arora, Joint Secretary Estate Chandigarh administration, stated, “The present status report by way of affidavit is being filed to apprise this court about the decision of the Chandigarh administration to not go ahead with the UT Employees’ Self-Financing Housing Scheme, 2008, and consequently refund the money deposited by the petitioners and other applicants.”

The affidavit also mentioned, “The scheme was launched in 2008. Since its launch, a period of 15 years had already passed resulting thereby that the ground situation including the number of employees fulfilling the eligibility criteria has also changed. After examining the entire facts and circumstances and discussion of the case, and taking a holistic view of the matter, it was noticed that the implementation of the present housing scheme at this stage is not viable in public interest, for reasons more than one, hence it has been decided by the competent authority that the scheme would be closed and the employees would be refunded their money by the Chandigarh Housing Board.”

The high court had on a petition filed (in 2019) by employees asked the Chandigarh administration to submit the status report on the housing scheme. The employees, that is, the petitioners had demanded that the flats be allotted at the same rates as was promised in 2008. The CHB, however, estimated that the rates had increased five times.

In 2020, a meeting was also held with the Union Home Ministry officials through video conferencing. After deliberations to resolve the issue regarding rates of flats of the housing scheme, it was decided that the calculation of rates be made again for different categories by applying various factors like FAR (floor area ratio), collector rate, plot area and others in consultation with the representatives of petitioners of the housing scheme court case.

The employees were given an assurance that the project will not be abandoned and they will be getting the houses. However, the employees had said that they could ill-afford the inflated rates which the UT was now asking, as most of the employees were about to get retired and they do not have the repaying capacity.

Over the years 80 employees have passed away and more than 70 have retired.

About the scheme

In 2008 as many as 4,000 flats were to be built in Sectors 52, 53, and 56 by the CHB for government employees as part of the housing scheme launched that year. Thereafter, in 2010 a draw of lots was conducted for allotment of houses whereby 3,930 employees among 7,827 applicants were selected. The employees then deposited around Rs 57 crore with CHB under the scheme. Later, the scheme was shelved.

Upset over that decision the employees then took up the matter with the administration. The issue went up to the Union Ministry of Home Affairs and attempts were made to revive the scheme.

How rates of apartments shot up

Due to the delay in the entire process the cost of a unit shot up to Rs 2.08 crore for category A, Rs 1.64 crore for category B, Rs 1 crore for category C, and Rs 50 lakh for category D. The inflated costs were not acceptable to the employees, because when the scheme was announced the rates were only Rs 34.70 lakh for category A, Rs 24.30 lakh for category B, Rs 13.53 lakh for category C, and Rs 5.76 lakh for category D. Following the inflated costs, the employees then moved the high court alleging that the CHB was charging five times the initial price for land.