Property conversion scheme yet to pick up

CHANDIGARH, April 5: With not many takers for the conversion of leasehold property to freehold in the city, the conversion scheme introdu...

CHANDIGARH, April 5: With not many takers for the conversion of leasehold property to freehold in the city, the conversion scheme introduced in 1996 by the Chandigarh Administration after the Centre8217;s nod has not yet caught up with the public.

According to sources, up to the first week of March, of the total 1,732 persons who had applied for conversion of their residential property to freehold, properties of as many as 1,600 have been cleared by the UT Estate Office. The remaining cases are reported to be under process.

Sources say that the scheme has not picked up due to various impediments in the conversion process, which include getting various clearances for the residential property. Among the formalities to be completed for conversion include getting the no-objection certificate from the buildings branch of the Estate Office, giving clearance to the property from all kinds of violations.

Since a majority of the residential buildings in the city have violations of building bye-laws, they do not get the clearance certificate from the buildings branch.

Even though the Administration has eased the building norms to facilitate conversion of property, there are still not many takers for the scheme. Under the eased bye-laws, each violation can be compounded on paying a fee of Rs 500 per violation, which would enable the property to get a clearance. Sources say that the high rate for conversion of property is another reason for people not coming forward to get their property converted. People feel that since their properties are on a lease of 99 years, they are not keen on conversion, unless the scheme is made attractive. Though the single-window clearance for the scheme proves helpful, it is not considered much of a benefit, since clearing the property from various encumbrances, like building violations, is not easy.

Another stumbling block in the conversion scheme is the General Power of Attorney GPA on which most of the property in the city is bought or sold. Such GPAs are used more for Chandigarh Housing Board flats, and thus there are not many takers for the conversion scheme from among the CHB flat owners.

Sources say that since the GPA has not been recognised by the Administration for the purposes of property transfer, buyers of property do not use it for conversion purposes. This is despite the fact that the property can be converted to freehold even when the GPA holder applies, though the same is converted in the name of original owner.