Now, pay nearly double for conversion of residential property to freehold in Chandigarh

After nearly eight years, the UT Administration has revised the charges for the conversion of leasehold residential properties to freehold. Earlier, the conversion charges were revised in 2017.

The owner of a 150 sqmt house in Sector 16 will now have to pay nearly Rs 19 lakh, whereas the previous charges were nearly Rs 10 lakh. However, the final charges are calculated on the basis of a specific formula for each category of property.

According to a notification issued by the UT Administration, the rate applicable for calculating the conversion charges will be the same as collector rate for the residential urban areas. The revised collector rates were implemented from April 1. In future, the conversion charges will be automatically fixed with revision of the collector rates.

According to experts, the conversion charges, which are based on the collector rates, vary depending upon plot size and zone (sectors). However, economically weaker sections (EWS) will remain exempt from conversion charges.

With the recent increase in collector rates and the hike in conversion charges, property rates are likely to go up further in the city.

Kamaljit Singh Panchhi, president of the Property Federation Chandigarh, acknowledged the Administration’s step to streamline the conversion of leasehold properties to freehold. “Aligning conversion charges with Collector Rates brings transparency and uniformity,” he said.

However, he urged the Administration to consider the financial burden on middle-income and economically weaker sections, especially in areas like Manimajra (Sector 13), where applying rates from Sector 38 onwards may not reflect ground realities.

Amit Jain, general secretary of the federation, requested that the automatic revision clause be reviewed to ensure predictability for residents planning conversion. A fixed window or grace period post rate revision would offer relief and clarity.