MP Tewari opposes hike in conversion charges in UT

Chandigarh MP and former Union Minister Manish Tewari has strongly opposed and has demanded the immediate rollback of the steep hike in the conversion charges in the Union Territory.

He raised the issue in the Lok Sabha during the ongoing monsoon session on Wednesday.

“I moved a special mention under Rule 377 in the Lok Sabha today opposing the steep hike in conversion charges from leasehold to freehold with regard to the properties that is imposing immense hardship and pecuniary burden on the ordinary people in Chandigarh,” he said.

Tewari said the recent decision of the Chandigarh Administration to impose a steep hike in conversion charges for leasehold to freehold properties, effective from June 30, has caused deep distress among thousands of residents, many of whom are retired individuals, salaried middle-class families, and members of the cooperative housing societies, who have waited patiently for years for the regularisation of their homes.

“The conversion charges had remained unchanged since 2017. This arbitrary and sudden increase, introduced without meaningful public consultation or transparent justification, has not only blindsided citizens but also betrayed their legitimate expectations,” he said.

The senior Congress leader said it reflects a disturbing lack of sensitivity to the economic hardships faced by the ordinary people.

“This move contradicts the broader goal of regularising tenure and empowering urban residents with secure property titles,” he commented.

Tewari further stated that it reflects a troubling pattern of policy decisions that prioritise revenue generation over the rights and welfare of citizens.

“I urge the Union Government to immediately review this hike, explain the rationale behind it, and direct the Chandigarh Administration to rollback the increase,” the local parliamentarian demanded, while adding that it must be ensured that any future policy changes are rooted in fairness, transparency, and public interest.

BASED ON COLLECTOR RATES

Property conversion charges in Chandigarh are based on collector rates, which were also increased 2 to 4 times with effect from April 1 this year. While there are no conversion charges for properties measuring between 0 to 50 square meter, f conversion charges are payable at 7.5% of Collector rates for 51-150 sq mt, 10% for 151-250 sq mt, 15% for 251-350 sq m, 20% for 351-500 sq mt, 22.5% for 501-1,000 sq mt, and maximum of 25% charges are levied for conversion of leasehold to freehold properties measuring above 1,000 square meter.

ALMOST DOUBLE

As per the revised conversion charges applicable in Chandigarh since June 30, 2025, the levy has almost doubled. For instance, a 251-350 square meter leasehold property in Sector 15 attracts Rs 38 lakh levy against Rs 20 lakh payable before the increase.

DELHI MODEL DIFFERENT

The formula for calculating the property conversion charges in Delhi is different. It varies based on factors like the type of conversion — residential to commercial, leasehold to freehold, location and category of the area. Delhi residents have the option of paying this levy one-time or in annual instalments. The conversion charges for residential to commercial use of property are calculated as per the Circle rates and area, with a formula involving 10% of commercial Circle rates. Similarly, leasehold to freehold conversion charges also involved stamp duty and registration fees.