Leasehold to freehold: MP rejects ‘hefty’ conversion rates

Ramkrishan Upadhyay 

Tribune news service 

Chandigarh, October 15 

MP Kirron Kher has disapproved the ‘exorbitant’ rates for conversion of properties from leasehold to freehold, proposed by the Estate Office. She has also asked the Administration to reduce the conversion rates and scrap the processing fees fixed by the Chandigarh Housing Board (CHB) for the purpose.

While the Administration is yet to notify the rates for conversion of property, the rates proposed by the Estate Office on the basis of the collector’s rates have caused resentment among people.

Kirron Kher said that she had already asked the Administration to fix conversion rates affordable to residents. She added that she had also asked the authorities to do away with the processing fee fixed by the housing board.

Sources said the Administration had proposed a 50-60 per cent hike in the conversion rates pertaining to properties of the Estate Office and the CHB. 

Besides, the CHB has asked for additional processing fees ranging from Rs 5,000 to Rs 20,000.

The Administration has calculated conversion charges on a pro rata basis (proportionate allocation according to share) and 

sent it to the UT Administrator for approval. 

It has been proposed to revise the conversion rate for LIG flats from Rs 4,300 to Rs 2 lakh and for MIG flats from Rs 6,100 to Rs 3 lakh. For getting HIG (lower) property converted into freehold, applicants will be charged Rs 4 lakh as per the proposal. Earlier, they had to pay Rs 6,100. Similarly, conversion charges for HIG (upper) flats were proposed at Rs 5 lakh against Rs 10,700 earlier. 

Likewise, manifold increase in conversion fees for plots of the Estate Office has also been proposed. The conversion rate is likely to be fixed between Rs 9 lakh and Rs 50 lakh, depending on the size and location (sector where it is situated) of the property.

On August 18, the Administration had announced to lift the embargo imposed on transfer of leasehold to freehold residential properties after a gap of four years.

Baljinder Singh Bittu, chairman of the Federation of Sector Welfare Associations of Chandigarh (FOSWAC), said the proposed rates were out of reach of leaseholders and no one would have benefited from the new rates.