Chandigarh: MP-led panel pitches for relief to allottees

Tribune News Service

Dushyant Singh Pundir

Chandigarh, February 16

The 11-member committee, headed by Member of Parliament Kirron Kher, has recommended reduction in unearned profit from the existing one-third to one-fourth or one-fifth to provide a major relief to residents.

The committee was constituted on the direction of the Supreme Court to streamline the process of sanction of mutation, grant of occupancy certificate, no-objection certificate and other citizen-centric requirements, including calculation of unearned profit under the 1973 or 2007 Rules.

Major recommendations

• Reduction in unearned increase to one-fourth or one-fifth from the existing one-third
• Extension of Chandigarh scheme for transfer of flats in Cooperative House Building Societies-2018 by a year
• Older constructions may be granted after verification of sewerage connection or electricity connection or water connection from the departments concerned
• Need-based changes to be allowed on payment of composition fee if such changes are within the allotted area
• Rates for extra FAR should be rationalised

Under provisions of the Chandigarh Estate Rules-2007, charging of one-third unearned increase exists and is applicable to all sites or buildings sold out by allotment or hire purchase or on concessional rates. At the time of transfer or such flats or units, the charging of unearned increase has been rising from time to time.

Sources said the committee recommended that the exiting rate of unearned increase as 33.33 per cent (one-third) should be reduced to 25 per cent or 20 per cent (one-fourth or one-fifth).

The panel was in favour of extending the Chandigarh scheme for transfer of flats/dwelling units in Cooperative House Building Societies-2018 by one year to provide a reprieve to occupants of societies.

As per the scheme, the UT Administration or the Chandigarh Housing Board will execute the deed of conveyance or lease deed, as the case may be, in favour of the house building society on the payment of the prescribed stamp duty on the actual amount paid to the CHB/Administration as consideration.

As per the scheme, the conveyance deed or lease deed was to be executed till June 30, 2019, and after that the said deed was to be executed and registered at the prevailing market rates and not on the actual amount paid to the Administration or the CHB.

For older constructions, the committee recommended that the older construction may be granted after verification of sewerage connection or electricity connection or water connection from the department/agencies concerned.

On the payment of the composition fee, need-based changes to be allowed if such changes/extra coverage are within the allotted area, suggested the panel, adding that the rates for extra floor area ratio (FAR) should be rationalised.

During its meetings, members of the panel discussed in detail the process of mutation of property through sale deed, transfer of lease rights by sale, grant of no-objection certificate, unearned increase for transferring society flats and other properties, charging of the GST by the CHB and transfer of flats in case of GPA holders.

The 11-member committee includes the Mayor, Deputy Commissioner, CEO, CHB, Chief Architect, Senior Standing Counsel, Secretary, CHB, Assistant Estate Officer, Municipal Corporation, Estate Officer, Finance and Planning Officer and Arun Sood, former councillor.

The committee will soon submit its report to the UT Administrator for appropriate steps to implement the suggestions made by the committee.

About The Author

Tribune News Service

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

Join Whatsapp Channel of The Tribune for latest updates.

#Chandigarh