Chandigarh MC toughens stance, plans to slap steep fines on encroachers
With ₹2,000 fine not proving to be enough of a deterrent, Chandigarh MC proposes to hike fine to at least ₹5,500; agenda to be tabled in upcoming House meet
Stepping up its efforts to combat the growing menace of encroachments across the city, the Chandigarh municipal corporation (MC) is planning to impose stiffer penalties on shopkeepers and street vendors repeatedly occupying public spaces illegally.
Currently, violators face a fine of ₹2,000 for the release of seized articles, but under a new proposal, the penalty for first-time offenders will increase to a whopping ₹5,500, including a fine of ₹500 and ₹5,000 as recovery charge.
In case of a second violation, the penalty will rise further to ₹6,000, including ₹5,500 as recovery charge. A third violation will lead to permanent seizure and auctioning of the violator’s goods. MC is set to present this proposal for discussion and approval in the upcoming House meeting on February 17.
Despite existing regulations, shopkeepers and vendors continue to encroach upon corridors, verandahs, pavements, parking areas and other public spaces across Chandigarh. According to MC officials, the enforcement wing is responsible for clearing these temporary encroachments, but habitual violators return as soon as enforcement staff leaves.
One of the reasons for habitual encroachment was the meagre fine amount of ₹2,000, MC officials noted in the agenda, which states, “The enforcement wing has to release the seized articles of the encroachers once the fine amount and removal charges are paid. After releasing the articles, the habitual encroachers again encroach upon the same area.”
“The fine for encroachment is less as compared to fines for street vending violations. The vendors under the street vendors category have to pay an increasing amount from ₹1,000 to ₹5,000 for every subsequent violation, and after the third violation their licence is suspended for three months. Thereafter, in case of fifth violation, the licence is terminated permanently by MC. But there is no such deterrent for the shopkeepers/habitual encroachers,” the officials further said.
As per official data shared by MC, the civic body issued a total of 13,008 challans to encroachers between July 2024 and January 2025, collecting ₹1.33 crore in penalties.
Additionally, MC is proposing to extend the time allowed for the release of seized items from 30 to 45 days.
“Many a times, the 30 days limit is short as usually a vendor has to cater to their personal, social or financial commitments, due to which they are unable to get their articles released within the time period. They take up space at the storehouse and their value depreciates with time. Sometimes, such items go unsold in the auctions also. Hence, if the time period is increased the person concerned can get it released from the store and this can fetch MC revenue also,” the officials said in the agenda.
Encroachments growing by the day
Encroachments continue to grow unabated in Chandigarh’s markets, with commercial hubs like Sectors 15, 17, 19, 22 and 35 the worst affected.
Public footpaths and open spaces are illegally taken over by shopkeepers and illegal vendors, causing significant inconvenience to pedestrians and shoppers.
Councillors have repeatedly blamed MC and police for the menace, alleging a nexus with encroachers that prevents effective action against illegal occupants. Despite numerous complaints and promises of action, the effective action remains awaited.
“The city faces massive encroachment in all markets. Once the enforcement staff’s duty ends, Chandigarh turns into ‘Farigarh’. Apart from MC, the Deputy Commissioner’s office must also ensure strict enforcement against encroachment. Along with increasing fines, MC should initiate legal action against encroachers and illegal vendors. When the law provides for action, why aren’t legal proceedings being carried out against violators under Section 285 of the Bharatiya Nyaya Sanhita?” questioned councillor Saurabh Joshi, who represents Sectors 15 and 17.