e-auction of freehold units put on hold in Chandigarh

Sandeep Rana

Chandigarh, October 3

The UT Administration has put brakes on plans to dispose of commercial and industrial properties on a freehold basis.

UT’s Finance Secretary has issued a letter to the Municipal Corporation, Estate Office and Chandigarh Industrial and Tourism Development Corporation Limited (CITCO) asking these to put on the hold plans to e-auction properties on a freehold basis. It has been stated some clarification from the Ministry of Home Affairs (MHA) is yet to be received in this regard.

It comes as a big blow to the civic body as it had prepared a public notice for e-auction of six properties in Mani Majra. These properties are being offered for the first time on a freehold basis.

The corporation had planned to offer its total 18 commercial properties in Mani Majra on a freehold basis via e-auction in a phased manner. In all, 15 SCFs, two restaurants and a motor trade site had to go under the hammer. The sites are located near the Mani Majra bus stand, opposite Dhillon mall. These properties have been lying unsold for several years since there were no takers as these were leasehold units and the prices were too high for buyers. Some of around 200 MC properties are worth crores of rupees and have fallen into ruin. Maintenance issues have also cropped up as these properties never got disposed of after construction. Prospective buyers had been pressing for their sale as freehold units.

The MC had approved the agenda regarding the 18 properties at its House meeting about two months ago.

After the Supreme Court rap, the MHA had sought additional information from the administration on conversion of leasehold industrial and commercial plots to freehold.

The apex court had recently junked all objections raised by the administration on conversion of leasehold industrial and commercial plots to freehold and directed the UT and MHA to do the “needful” within three weeks.