Chandigarh waives 15-yr lock-in period for sale of freehold properties

Dushyant Singh Pundir

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Tribune News Service

Chandigarh, July 10

Amending the Chandigarh Estate Rules, 2007, the UT Administration has provided the much-needed relief to the allottees of freehold properties. Now, there will be no restriction of 15-year lock-in period and liability of unearned increase in charges on transfer of the site building allotted on freehold basis, if the allottee/transferee has paid full consideration amount/price, dues, etc, of the site.

A notification issued by the Finance Department, UT, states that these Rules may be called the Chandigarh Estate (Amendment) Rules, 2020.

In the Chandigarh Estate Rules, 2007, the existing Rule 7, sub-rule (i), has been substituted with new Rules.

Earlier, no site/building sold by way of allotment whether on leasehold basis or on freehold basis was allowed to be transferred before the expiry of 15 years from the date of allotment unless in exceptional circumstances.

In case of transfer of site after the expiry of 15 years by the original transferee (allottee/lessee) by way of sale/gift/mortgage or otherwise of the site or any right, title or interest therein, one-third of the unearned increase in the value (difference between the price paid by the original allottee/lessee and the market value of the site, building at the time of permission of transfer) was to be paid to the government before registering such sale or transfer.

“Through this notification, thousands of people will be benefitted. As the 15-year lock-in period has been waived, people now are not liable to pay unearned increase if they pay full consideration amount and price of the site allotted on freehold basis by the Administration,” said advocate Vikas Jain.

An official at the Estate Office said most of these properties were located in Sector 33, 34, 35 and 36 where land was allotted mostly to defence personnel on concessional rates.