Open House: What steps should Chandigarh take to resolve issue of conversion of industrial, commercial units from leasehold to freehold?

Ownership rights in the case of leasehold properties rest with government agencies like the UT Estate Office, the MC and the CHB. More than 5,000 lessees stand to get ownership rights if the Administration’s decision is approved by the Centre. The city’s business and industrial community has been for long demanding the right to own properties to facilitate expansion and loans. In the absence of the conversion policy, the government has been losing out on revenue, as there are few takers for leasehold properties. Chandigarh trails behind Mohali and Panchkula on this account. Lack of ownership rights has created artificial stagnation in the market and impacted the business growth in the city.

Sanjay Chopra, Mohali

Question for next week

Despite repeated diarrhoea and cholera outbreaks caused by contaminated water over the years, the Mohali administration and civic bodies in the district have failed to address the issue. What measures should the authorities take to prevent the outbreak of such diseases?

Suggestions in not more than 70 words can be sent to openhouse@tribunemail.com

Don’t permit change of land use

The UT Administration should develop a policy to convert leasehold commercial and industrial properties into freehold units on the pattern of residential properties. The use of properties may not changed from industrial to another purpose like hotel, etc, as for employment and development the city needed industry. The bureaucrats of Haryana and Punjab do not want this policy as it affected properties in their states. The Administration should watch the interests of local residents and immediately introduce a soft policy for conversion from leasehold to freehold.

Kirpal Singh, Chandigarh

Consider phased conversion

The Chandigarh Administration should explore alternative solutions, engaging with stakeholders and legal experts to address the Ministry of Home Affairs’ concerns. The Centre may consider phased conversion, offering incentives to property owners to opt for freehold status, or establishing a dedicated cell to facilitate the conversion process. Transparency and dialogue are key to resolving this long-standing issue and boosting the city’s economic growth.

Gaganpreet Singh, Mohali

Address concerns raised by Centre

The Chandigarh Administration should re-evaluate the proposal, addressing MHA’s concerns with robust data, financial analysis and clear long-term benefits. Emphasise increased property values, revenue generation and economic growth through freehold conversion. Simultaneously, explore alternative revenue streams and utilise the generated funds for city’s development to mitigate the MHA reservations. Proactive engagement with stakeholders and transparent communication are crucial for gaining support and overcoming hurdles.

Amanjot Kaur, Mohali

Highlight economic benefits of policy

The Chandigarh Administration should create a comprehensive, evidence-based proposal highlighting the economic benefits and increased property values by converting leasehold units into freehold. Establishing a public-private partnership to manage the conversion process can ensure efficiency and accountability. Regularly engaging with the Ministry of Home Affairs through detailed progress reports and addressing their concerns promptly can build trust.

Sahibpreet Singh, Mohali

Know industry, bizmen viewpoint

The Chandigarh Administration faces a critical juncture in resolving the leasehold-to-freehold conversion issue for industrial and commercial properties. It should hold dialogue with industry representatives, local businesses and residents. Understand their concerns and aspirations regarding property ownership. Offer attractive incentives to property owners to convert their units into freehold. Tax breaks, streamlined processes and reduced fees can encourage participation. Establish a transparent, time-bound process for conversion.

Sargunpreet Kaur, Mohali

Wait for apex court verdict on issue

One just fails to comprehend any rationale behind much ‘hue and cry’ being raised over the conversion of leasehold industrial and commercial properties into freehold units by various stakeholders even as this issue remains the sole prerogative of the UT Administration. The MHA turning down such a proposal must have some well-meaning, valid reasons for doing so. However, as the Supreme Court is reportedly seized of this matter, the Administration should wait for the final verdict.

Kumar Gupt, Panchkula

Consider long-term lease extension

The Administration should restart dialogue with the Centre by revising its proposal, addressing legal or policy concerns aligning development goals. Consultations with various stakeholders, including property owners, be held to make a more robust proposal. Also highlight in the proposal pilot projects showing economic impact of conversion on increased investment, job creation and economic growth. Alternatives like long-term lease extensions that provide more stability to property owners without full conversion to freehold may be explored.

Harinder Singh Bhalla, Chandigarh

UT Admn should re-present case

The issue is lingering on since long. The Chandigarh Administration should study the reasons for the rejection of the proposal by the Central Government and re-present its case. The concept of having a property on lease does not give the feeling of ownership and thwarts the development of the unit.

NPS Sohal, Chandigarh.

Ministry may work out conversion rate

The root cause of the MHA turning down the UT proposal needs to be addressed on priority. The crux of the matter is that once the proposal gets approved, the allottees will get a windfall immediately due to the sudden rise in the rates of properties. The MHA working out the conversion rate formula and announcing it soon can resolve this impasse for the benefit of all stakeholders. All other states and the Delhi Government have already devised a conversion policy. This will reduce litigation to a large extent and will provide tremendous relief to the judiciary.

Brigadier Advitya Madan, Chandigarh

Issue unresolved for years now

The case of conversion of leasehold commercial and industrial properties in the City Beautiful has not been sorted out for several years. People pay for properties to make it theirs for lifelong, but the lease of 99 years keep them bereft of absolute rights. There is a need to convert the leasehold commercial and industrial properties to freehold as has been done to residential properties.

Wg Cdr JS Minhas (retd), Mohali

Conversion needed for ease of doing biz

Conversion to freehold will solve lot of problems being faced by stakeholders such as defective titles, unable to raise funds from financial institution, new investment not coming, etc. This is very important for ease of doing business as envisaged by the Prime Minister. The Chandigarh Administration should again send the proposal to the MHA taking into consideration the difficulties being faced by leaseholders, as it will get huge revenue by way of conversion charges, registration charges, etc.

Surinder Gupta, President, Chamber of Chandigarh Industries

Admn can explore alternatives

To resolve the issue of converting leasehold industrial and commercial properties into freehold, the Chandigarh Administration should consider revising the proposed policy, engaging in dialogue with the Ministry of Home Affairs, exploring alternative solutions and providing regular updates to stakeholders. These steps may help to find a mutually acceptable solution that meets the needs of all parties involved.

Prithvee Yakhmi

Policy to pave way for sale of units

There will be rise in the sale of properties if the conversion is approved and the UT Administration can earn handsome amount by way of stump duty. Further, leasehold property is a burden on the UT for its periodical maintenance and upkeep of records.

Col TBS Bedi, Mohali

Policy will jack up Admn revenue

Delhi, Punjab, Haryana, and Himachal Pradesh have already converted leasehold properties into freehold. The government has absolutely no reason to reject this demand of ours as we cannot take loans against property nor transfer it. We fail to understand that when other states can do it, why can’t it be done in Chandigarh. If the policy is approved, the Administration can earn more revenue that what it is getting as lease charges. The policy will be a win-win situation for both the Administration and the property owners.

Vinod Mittal, ex-president, Chamber of Chandigarh Industries

Industrialists may have to move out

Chandigarh Administration should re-address this issue by citing the benefits of the policy. It will not only facilitate industrialists and businessmen in the city, but the Administration as well. The Industrial Area is considered as the backbone of growth of the city. Such decisions will force industrialists to move out of the city to look for better opportunities being offered by nearby states.

Anil Kaushal, Chandigarh

Roll back decision in city’s interests

The Chandigarh businessmen/industrialists are being harassed unnecessarily by not letting them convert properties from leasehold to freehold. The MHA decision is creating an hindrance in the economic growth of the city. Businessmen refrain from investing in Chandigarh due to its non-conversion policy. The city lags behind in terms of industrial growth and job opportunities for the youth. The decision should be rolled back.

Abhilasha Gupta, Mohali

Policy will bring in new investment

The conversion of industrial and commercial plots from leasehold to freehold in Chandigarh is a crucial policy shift aimed at fostering local industrial growth. Benefits include retention of businesses, infrastructure enhancement, improved facilities, increased investment and administrative efficiency. The change would prevent business migration, upgrade industrial infrastructure and attract new investments.

Divakar Tomar

Centre’s decision smacks of politics

One fails to understand why the MHA did not approve the conversion policy when the same was allowed in Delhi. Is the political affiliation of the new MP the spoiler? The concept of leasehold properties is warranted where the land is a parcel of some cantonment, public sector undertaking or other autonomous body and has to be offered to attract investment/business for civil or civic activities of local residents. The UT Administrator must use his good office to make mandarins in the MHA relent.

Lalit Bharadwaj, Panchkula

Policies in tricity should be similar

Although Chandigarh is a UT, it is joint capital of Punjab and Haryana too. The adjacent towns of both states are separated not by borders but only demarcation of boundaries, hence termed tricity. However, their policies do not match. In many cases, taxes levied on some most common things are different. Therefore , the general public prefer to make their purchases where the cost is less, resulting in loss to the exchequer of the state the belong to. At least the policies of tricity should be made similar. A fresh proposal showing benefits of conversion should be made and sent to the Centre.

Surinder Paul Wadhwa, Mohali

UT Admn need to find the middle way

This is long pending demand of industrial and commercial property holders. The policy once implemented would surely cut down litigations involving leasehold units. UT officials must meet with representatives of industrial and commercial property owners, understand their requirements, and convey the MHA’s reasons for turning down the conversion policy proposal. Some common, viable conversion fee and agreeable conditions /points can be deliberated on and final outcome can be reached on the pattern of New Delhi and other cities.

Vijay Shukla, Chandigarh

Times changed, need to allow conversion

The foundation stone of Chandigarh was laid in 1952. To develop the city, a policy was devised to give the land on lease as it had lower upfront cost, lower monthly rental payment compared to buying and resale hassle. Today, the circumstances are different and in the fitness of things, the MHA needs to review its decision and allow conversion of leasehold properties into freehold units on the payment of certain fee. This would enable lessee to redesign business as per needs and within the framework of bylaws, besides helping the Administration generate more revenue.

SS Arora, Mohali

Consider demand of stakeholders

Allowing conversion of leasehold properties into freehold will facilitate their holders. Unlike freehold properties, there are restrictions on the transfer of title and bank finance is not easily available in the case of leasehold properties. Conversion would help hassle-free sale and purchase of properties. Therefore, the demand of community for conversion from leasehold to freehold should be considered as early as possible.

Charu Malhotra, Mohali

Conversion issue sensitive, complex

The issue of conversion is very sensitive and complex, involving many technicalities. Before proposing any policy to the Home Ministry, it will be vital for the Chandigarh authorities to hear out stakeholders. Opinion of officials and legal experts be taken. This will help to ease out certain legalities and frame an accurate and rewarding policy.

Saikrit Gulati, Chandigarh

Write to Ministry to review decision

The proposal to convert leasehold properties into freehold should have been approved. The Chandigarh Administration should write to the MHA to reconsider its decision and give its nod to the policy, which will benefit both property owners as well as the government.

Avinash Goyal, Chandigarh

Leasehold units have title issues

The policy would have put unkempt properties to productive use. The leasehold properties also have documentation issues as many do not have proper lease titles and many litigations were also pending in courts for years now. So the policy would have been a win-win situation for all stakeholders.

Anil Yadav