Open House: Is the hike in conversion charges for leasehold properties to freehold justified?

A disappointing development

The recent 25 per cent hike in charges for converting leasehold residential properties to freehold for plots above 1000 sq m is disappointing. This sudden increase, especially after eight years, puts an additional financial burden on middle-class families who have waited years for regularisation or planned to apply now. Many of us have invested our lifetime savings into these properties, and such steep hikes make it harder to get full ownership rights. The administration should have considered a gradual increase or provided some relief for

long-term leaseholders.

I request the authorities to reconsider the decision in the interest of residents.

Lakhwinder Wazir Bhullar, Chandigarh

Use extra revenue for devp works

The recent hike by the UT Administration on conversion of lease hold to free hold is justified in view of rise of existing prices over the years. The extra revenue should be utilised for ensuring maintenance and development of City Beautiful. It is also recommended that the conversation charges be revised as per cost inflation index published by Centre on a yearly basis. Authorities must spend the money earned on upkeep and maintenance of the city in a clear cut transparent manner.

Col TBS Bedi (retd), Mohali

Residents already pay hefty property taxes

On one hand, the administration argues that larger properties generally belong to affluent sections of society, and therefore a higher rate is a means to generate additional revenue without burdening small and middle-class owners. It also aligns with the principle of progressive taxation, where the capacity to pay is considered. On the other hand, property owners view this as an arbitrary burden, since they already paid significant sums during allotment and continue to bear hefty property taxes. A steep hike may discourage conversions, affect property transactions, and create dissatisfaction among citizens. While some increase can be justified, the quantum of 25% may appear excessive.

Harinder Singh Bhalla, Chandigarh

A step against affordable housing

The recent hike in conversion charges for leasehold-to-freehold properties for the residents in Chandigarh is totally unjustified. Firstly, it arbitrarily raises costs for property owners, which is insensitive and primarily focused on generating revenue. Secondly, in recent times, the administration has repeatedly taken steps against affordable housing, including revising collector rates, which are highly volatile and do not always reflect the actual market value. Thirdly, this steep increase has been implemented without lack of public consultation or proper justification. It imposes a heavy financial burden on thousands of residents as the new rates, which in some cases can disproportionately residents.

Vaibhav Goyal, Chandigarh

Protect middle-class homeowners

The UT Administration's decision to increase conversion charges from leasehold to freehold by 25 per cent is harsh and unjustified. Chandigarh's residents are mostly salaried people already coping with rising living costs, and this sudden hike further strains their finances. A civic body should promote affordable housing, not act like a profit-driven enterprise. Such an increase will inevitably push property prices even higher, as evident in the recent e-auctions. Instead of fueling speculation, the Administration must protect middle-class homeowners and first-time buyers. Rolling back this hike will help stabilise the market, safeguard Chandigarh's planned character, and keep home ownership within the reach of ordinary citizens who make the city thrive.

Vijay Katyal, Panchkula

UT punishing owners for property size

The UT Administration has unfairly hiked conversion charges for leasehold residential properties above 1000 sq. m to an astonishing 25 per cent of existing rates after just eight years. This move is arbitrary, burdensome, and unjustifiable. Property owners had invested and planned under the earlier framework, and such sudden escalation violates both fairness and predictability in governance. Conversion from leasehold to freehold is not a luxury; it is a basic requirement for ownership security, clear title, and peace of mind. By penalising residents with large plots, the UT is effectively punishing them for their property size rather than facilitating transparent ownership. Chandigarh, conceived as a planned city, deserves policies that inspire trust, not uncertainty.

Brigadier Advitya Madan, Chandigarh

Allow payment in instalments

The hike of 25 per cent

of the existing conversion charges for permitting the leasehold properties above

1000 sq m to be converted to freehold is not much.

The hike has come after as many as eight years. The administration may permit the total enhanced conversion charges to be paid in three or four instalments with interest payable at the maximum rate of 15 per cent per annum.

NPS Sohal, Chandigarh

Adopt a rational, graded approach

The 25 per cent hike in conversion charges for properties above 1,000 sq m is harsh and unjustified. Larger property owners already pay higher taxes and maintenance costs. Such a steep increase after eight years burdens genuine residents instead of curbing misuse. The UT Administration should adopt a rational, graded approach, linking charges with market values rather than imposing a blanket hike that appears arbitrary and discriminatory.

Parvinder Singh, Mohali

move Can generate substantial revenue

Converting leasehold properties to freehold can significantly increase their value, making them more attractive to buyers and investors. The 25 per cent hike in conversion charges can generate substantial revenue for the UT Administration, which can be used for infrastructure development and other public purposes. While the charge may seem high, it's likely intended to balance the benefits of freehold ownership with the need to generate revenue and manage the impact on property prices. The Administration's decision appears to be a balanced approach, aiming to generate revenue while also considering the interests of property owners.

Capt Amar Jeet (retd), Kharar

Earn trust

through fair hike

Public trust is earned through fairness, not forced through financial pressure. The 25 per cent hike in conversion charges from leasehold to freehold for larger properties is arbitrary, unfair, and completely unjustified. Citizens are already overburdened with stamp duties, registration costs, and ever-rising property taxes. Instead of simplifying ownership, the administration seems intent on squeezing more revenue from law-abiding residents. Targeting bigger plots with disproportionate hikes reflects a discriminatory approach. Larger property owners are already contributing more to the exchequer, yet they are being penalised further. Such policies only discourage freehold conversions, trigger litigation, and erode trust in governance. What citizens expect is transparency, efficient services, and ease of doing paperwork-not constant financial exploitation.

Vineet Gandhi, Chandigarh

Provide justification for hike in charges

If there is any hike in departmental structure

cost, any enhancement in services, then the hike of 25 per cent of the existing conversion charges for permitting the leasehold properties above 1000 sq m to be converted to freehold can be justified. If neither is the case, then hike in charges becomes an unnecessarily burden on the residents.

Charanjit Singh

Increase in charges

is reasonable

The government's proposal to levy conversion charges on leasehold properties is a justified and necessary measure. In many cases, leaseholders gain substantial market value overnight, often without making any direct investment or improvement to the property. This windfall profit, derived from policy changes or urban development, creates an imbalance unless matched by a fair contribution to the public exchequer. It is both reasonable and responsible for the Administration to seek a share of these gains, especially when such funds are directed toward public welfare, infrastructure, and civic services.

Narinder Banwait, Chandigarh

Need to look beyond revenue generation

A 25 per cent hike in conversion charges for residential properties above 1,000 sq m seems more like a revenue?driven move than a justified adjustment. While the UT Administration can argue rising land values and administrative costs, such steep hikes unfairly burden genuine residents rather than speculative investors, especially after people already paid hefty premiums at allotment. Policy should distinguish between end?users and commercial profiteers, perhaps with graded increases linked to property size, usage, or holding pattern, instead of a blanket hike. Transparency on how these additional funds will be used-whether for urban infrastructure, public amenities, or maintenance-would make the decision more palatable.

Gaganpreet Singh, Mohali

Take homeowners' interest into account

The recent hike in conversion charges for leasehold residential properties to freehold by the UT Administration has sparked debate. The 25 per cent increase for properties above 1,000 sq m may seem steep, but it's essential to consider the context. The revision aims to bring charges in line with the increased collector rates, which have doubled in some areas. This adjustment reflects the changing market dynamics and property values. However, it's crucial to ensure that the hike doesn't disproportionately burden property owners, particularly those with smaller holdings. A balanced approach,

considering both revenue generation and property owners' interests, is necessary to make the hike justified.

Gurdev Singh, Mohali

Should reconsider such steep hikes

The UT Administration has revised the charges for the conversion of leasehold residents properties into freehold. Charges have been hiked by 25 per cent of the existing charges for properties above 1000 sq m The present increase in hike is not justified as it is against the public interest. Every step should be taken after considering how it impacts the public and

not be aimed at revenue generation alone.

Adish Sood, Amloh

Hike charges in phased manner

The 25 per cent hike on conversion charges for residential properties above 1,000 sq m in Chandigarh is hard to justify from a public interest standpoint. While the UT Administration links the new charges to revised collector rates to align with market values, the sudden and steep increase without transparent justification or public consultation is problematic. This move unfairly burdens residents, particularly those who have patiently awaited this conversion for years. The Administration should consider a more phased and equitable approach. First, it should provide a clear, detailed explanation of the rationale behind the hike, including a breakdown of how the new rates were calculated. Second, it should introduce a structured, gradual increase over a period of time instead of a sudden, drastic jump to prevent financial shoc.

Amanjot Kaur, Mohali

blanket charges

not justified

The UT Administration has now found many ways and means to collect money for the fund shortage it is facing since long. Increasing the conversion charges suddenly by 25 per cent without any time limit cannot be justified at all. The people who have purchased the properties on leasehold to stay put in City Beautiful are being blackmailed by the administration for their failure to arrange funds for the development of city. The Administration must make long term plan to allow conversion with minimum to maximum slab of charges instead of imposing directly 25 per cent more than the current slab.

Wg Cdr JS Minhas (retd), Mohali

Reduce the

margin of hike

The UT Administration has increased, by 25 per cent, the existing conversion rates from leased to freehold property. The proposed surge in conversion rates will make ownership difficult since the proposed hike will have financial implications for owners. Considering present economic factors / inflation that the public is already reeling under, the proposed raise in the conversion rates need to be given a relook / slashing down for financial relief as the proposed hike is too steep.

SS Arora, Mohali

Introduce tiered subsidies

The 25 per cent hike in conversion charges for leasehold residential properties exceeding 1,000 sq m, tied to escalated collector rates, feels punitive rather than progressive, burdening middle-class families already strained by Chandigarh's soaring real estate costs-nearly doubling fees for a modest 150 sq m home to Rs 19 lakh. While revenue generation for urban infrastructure is valid, this abrupt escalation risks stifling homeownership dreams and inflating black-market transactions.To justify and refine: Introduce tiered subsidies for first-time converters and eco-friendly upgrades, capping hikes at 15% for seniors or low-income brackets. Mandate a six-month grace period post-revision for pending applications, ensuring transparency via an online portal for real-time rate tracking. Pair the policy with incentives like reduced stamp duties on freehold sales, fostering equitable growth without alienating residents.

Gurpreet Kaur, Mohali

Public consultation key for such moves

The 25 per cent hike in conversion charges for residential properties above 1,000 sq m appears arbitrary and regressive, especially when citizens have waited years for regularisation. While aligning rates with revised collector values may seem administratively sound, the sudden escalation-without transparent justification or public consultation-undermines trust and burdens middle-class families, senior citizens, and cooperative housing societies. The UT Administration must adopt a graded, equitable approach that considers socio-economic diversity and avoids penalising long-term residents. A rollback or phased implementation, coupled with clear rationale and stakeholder engagement, would reflect governance rooted in fairness, not fiscal expediency.

Sahibpreet Singh, Mohali

prioritise long-term affordability

The 25 per cent hike in conversion charges for residential properties above 1,000 sq m needs to be viewed cautiously. While the Administration may argue it boosts revenue and discourages speculative gains on prime land, such a steep rise after eight years risks appearing arbitrary and burdensome. Property owners already pay hefty taxes, ground rent and transfer levies, and an additional hike may discourage regularisation or push transactions into grey channels. Instead, a rational, transparent formula linked to circle rates or market valuation, with periodic but moderate revisions, would ensure fairness and stability. Differential slabs based on property size and usage could balance revenue needs with public trust. Policy should prioritise long-term certainty, affordability and encouraging compliance rather than imposing sudden financial shocks that alienate genuine residents and create friction between citizens and the Administration.

Sargunpreet Kaur, Mohali

Need Transparency in how revenue is used

While it is understandable that the Administration seeks to augment its revenue, the steep hike seems difficult to justify in the present economic climate. Property owners have already paid substantial sums for leasehold rights, and additional burden in the form of inflated conversion fees may discourage them from opting for freehold. Rather than imposing across-the-board hikes, the administration should adopt a rational and graded approach, linking charges to market values and providing relief to long-standing residents. Transparency in how the additional revenue will be utilised is also essential.

Sanjay Chopra, Mohali

Consider factors like house location, value

The UT Administration's decision to hike conversion charges of leasehold residential properties above 1,000 sq m by 25 per cent can be seen from two perspectives. On one hand, the increase will help boost government revenue and ensure that larger property owners contribute more towards city development. Given the rising costs of infrastructure and maintenance, the administration needs additional resources to meet civic demands. On the other hand, the timing and scale of the hike may burden property owners already struggling with high taxes and maintenance expenses. A more graded approach, linked to factors such as property value, size, and location would have been fairer.

Kumud Sachdeva, Dera Bassi

hike unjustified in absence of amenities

Charges for the conversion of leasehold residential properties to freehold in the city are already higher as compared to other states. The civic body and Administration have already failed in providing basic amenities to the residents, like functional streetlights and smooth roads. Parking is still a major concern in residential areas that needs utmost attention. Floorwise sale of property is also prohibited in the city, which puts a burden on the property owners who can't take care of their properties due to old age, being alone, or facing financial issues. Keeping these points in mind, it is unfair to hike conversion charges.

Abhilasha Gupta, Mohali

Hike justified given property value

The revised charges for the conversion of leasehold residential properties to the freehold ones are 101% justified. Just ask the owners of the properties above 1000 sq m about the market value today and eight years ago. The prices of the properties have skyrocketed. So why there is any hue and cry if the charges have been increased by 25%. Last but not the least how many property owners are going to convert their leasehold properties to the freehold one as the lease is up to 99 years.

Savita Kuthiala