Allowing transfer of leasehold property old wine in new bottle

Rajmeet Singh

Tribune News Service

Chandigarh, July 2

In the new Industrial Policy-2015, the announcement to allow the transfer of industrial leasehold property on the payment of the transfer fee is like serving old wine in a new bottle.

For the past over five years, the Chandigarh Administration has been “sitting” on a file to decide the new rates to be charged for the transfer of leasehold property. Instead of coming up with revised rates, the UT Estate Office stopped the transfer of industrial leasehold property.

In the new industrial policy, a ray of hope has emerged for the stakeholders as the UT has promised to come out with new rates within a month. This will enable many GPA holders to get property transferred in their names.

The decision will be a major shift in the thinking of the UT top brass that previously was of the view that the plots were allotted for setting up business and not for the purpose of being sold further.

Over the past few years, the Administration and city-based industrialists have been at loggerheads over the issue of transfer of leasehold plots. Some industrialists had also approached the Punjab and Haryana High Court challenging the provisions of the Chandigarh Estate Rules, 2007, pertaining to the transfer of such plots.

There are around 1,800 leasehold plots in Phase 1 and II of the Industrial Area, which were allotted between 1971 and 1980. The allotment letter mentioned that these plots were transferable after 15 years.

Prior to banning the transfer, the Estate Office was charging fee on unearned increase in the value, the difference between the price paid by the original allottee and the market value of the site or building at the time of permission for the transfer.

The Administration issued a notification on June 6, 2002, under Rule 9-A of the Chandigarh (Sale of Sites and Buildings) Rules, 1960, read with Rule 17 (10) of the Chandigarh Leasehold of Sites and Building Rules, 1973, fixing the fee for the transfer of leasehold rights for various categories, not subject to the payment of unearned increase in terms of Rule 17 (10) of the Rules of 1973.

The notification was superseded by another notification dated May 26, 2003, issued under Rule 17 (10) of the Rules of 1973 in which the transfer charges for industrial plots were fixed at Rs 200 per sq yard. It continued for some years before being stopped in 2011.

Now, again the process of fixing the transfer fee has begun.