Rejection of freehold proposal blow to Chandigarh MC

Sandeep Rana

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Chandigarh, July 16

Rejection of conversion of commercial and industrial properties from leasehold to freehold has come as a big blow to the city Municipal Corporation (MC). Properties worth crores under the MC have been lying vacant for over a decade.

The Ministry of Home Affairs (MHA) has turned down the UT Administration’s proposal for conversion of industrial/commercial plots from leasehold to freehold.

Civic body mulling Public- pvt partnership projects

The corporation is planning to introduce public-private partnership (PPP) projects for these properties, for which a transaction adviser would be appointed. After a survey of each property, the transaction adviser will suggest to the MC what projects can be implemented for properties under the PPP mode.

Following a resolution passed by the MC House, the corporation had previously sought the UT Administration’s nod to allow it to auction its booths on a freehold basis to tide over the financial crunch. The Administration had further sent the proposal. The ministry’s recent submission in the Supreme Court that it was against the proposal has dashed the hopes of the MC.

After its repeated failure to dispose of its booths and other properties on a leasehold basis, the MC had got the feedback that these would attract buyers if offered on a freehold basis.

Now, the corporation is planning to introduce public-private partnership (PPP) projects for these properties, for which a transaction adviser would be appointed. Municipal Commissioner Anindita Mitra said, “We will put up the decision in the MC House.”

Sources said the authorities would analyse legality involving each category of property.

The vacant properties of the MC include 105 booths in Vikas Nagar (Mauli Jagran), shops at the Sector 17/22 subway, 18 booths in the Shopping Complex, Mauli Jagran; 40 booths at the new overbridge in Sector 17, booths at Sector 39-D and Sector 41 AC Fish and Meat Market, and a hospital site along with 20 SCF plots in Mani Majra. Most properties have not been disposed of since these were constructed. These could not be auctioned despite repeated tenders.