3 min readChandigarhJan 10, 2026 10:25 PM IST
First published on: Jan 10, 2026 at 10:25 PM IST
In a major relief for city residents, industrialists and traders, the Chandigarh Administration has sent a proposal to the Ministry of Home Affairs (MHA) seeking an amendment to the Capital of Punjab (Development and Regulation) Act to rationalise penalties imposed in thousands of building violation cases.
At present, more than 5,000 notices related to building violations are pending across Chandigarh, primarily involving industrial units and commercial properties. Once Parliament approves the proposed amendment, the UT Administration will be empowered to revise and rationalise penalties at its own level, paving the way for the settlement of these long-pending cases.
The demand for rationalising penalties has been raised by the city’s business community for several years. However, the issue could not be addressed earlier as any change in penalty structure requires a statutory amendment to the Act. With the proposal now forwarded to the Centre, a resolution appears to be in sight.
Penalties exceed property value in some cases
Chandigarh’s Chief Secretary H Rajesh Prasad said that during a review of building violation cases, it was found that outdated provisions in the Act have created serious complications. In several instances, the penalty amount has risen to nearly the same value as the property itself, making it practically impossible for owners to pay.
He said a permanent legal solution is required to address such anomalies.
As per the Chief Secretary, once the Act is amended, penalties in the existing 5,000 cases and in future violations can be rationalised.
Industrial and commercial areas worst affected
The Estate Office routinely issues notices for unauthorised construction, including any structure built beyond approved building plans. A large number of such notices have been served in industrial areas and commercial complexes across the city.
As per officials, even minor deviations from sanctioned plans attract penalties. Over time, these fines accumulate into huge sums running into crores of rupees, leaving business owners unable to clear their dues. As a result, thousands of cases remain unresolved.
In many instances, violators have already removed the unauthorised structures, but the penalty issue continues to remain pending, causing prolonged litigation.
How penalty accumulates
Under the existing provisions, the penalty starts accumulating from the day a notice is issued by the Estate Office. The fine is calculated at Rs 10 or more per square foot per day, depending on the nature of the violation. Due to this daily accumulation, the penalty amount escalates rapidly and reaches several crores within a few months, making it financially unviable for property owners to settle their cases.
As per UT officials, once these cases are settled through rationalised penalties, it will reduce the backlog of building violation cases pending in SDM courts and other legal forums.
At present, more than 5,000 notices related to building violations are pending across Chandigarh. (File photo) 
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