Chandigarh | To ease property pangs, panel recommends slew of measures
High-powered committee suggested that collector rate (rather than market value) must be basis of conversion charges
In its second set of recommendations, an 11-member committee on property matters, has suggested that collector rate rather than market value be the basis of conversion charges in the city.
The committee, which is headed by Chandigarh MP Kirron Kher, also recommended that a temporary roof be put up in Sector 7 and 26 shop-cum-offices and additional activities be allowed in industrial areas.
The panel on property matters was constituted by the UT administration on October 5, 2021, in compliance with a Supreme Court order, dated September 7, 2021. The administration has submitted an action-taken report in the apex court on its first set of recommendations.
Calculating conversion charges
The committee decided that instead of market-value based on average auctions, collector rate should continue to be the variable for calculating conversion charges. It stated that the administration should consider this reference of the Supreme Court and re-examine conversion charges. For calculating the charges, the administration should consider the allotment price and current value, existing value of property as per collector rate, and mode of disposal of property, which may be auction or allotment.
Additional activities in industrial area
The committee has recommended that considering the existing scenario of industrial development, the list given in Schedule 1 of Industries (Development and Regulation) Act 1951 (except the red category) should be considered with or without changing the existing floor area ratio (FAR). It has contended that allowing such activities would not affect the existing infrastructure.
It further stated that the department of industries should examine the issue in consultation with all stakeholders for amendment in the Chandigarh Industrial Policy, 2015, and send a report within one month to the administration so that all such activities be allowed in the industrial area.
Relief for Cooperative Housing Societies
The administration has formulated a scheme called the “Chandigarh scheme for transfer of flats for dwelling units in cooperative housing building societies, 2018. Under the scheme, stamp duty is charged at the time of registration of sub-conveyance deed or sub-lease deed in the name of original allottee or member. It is charged on present value of the flat based on current collector rate.
As per the scheme, even if the society has been converted into freehold after paying the requisite conversion charges, the allottees are still required to get the sub-conveyance deed by paying the requisite stamp duty.
The committee said, “This stamp duty is not justifiable so the Chandigarh administration should consider amending this scheme after examining all aspects.”
Relaxation in building violation notice period
The committee examined the show-cause notice issued and penalty slapped in cases where violations are sanctionable and compoundable through revised building plans. The estate office issues notice of 15 days to submit building plans. A penalty is imposed from the date of issuance of notice to date of submission of revised building plan. The committee has recommended that a 45-day period be given to all such owners for submission of sanctionable building plans and the penalty be issued after that.
Additional floor-area ratio
It said that for availing additional floor-area ratio (FAR), the administration should adopt a different formula for different type of properties. It has directed that a subcommittee comprising the assistant estate officer, secretary CHB and joint commissioner MC recommend a different formula for different type of properties. Currently, rates of additional purchasable FAR are same for commercial, residential, institutional properties.
Courtyard coverage in SCOs
With the majority of restaurants being operated in Sector 26 and 7 an open courtyard has been designed in between the front and rear building. The committee has recommended that retractable or temporary roofs should not be considered as a modification in the building and floor-area ratio.
Land allotment to institutions
The committee observed that Chandigarh has a lot of vacant land earmarked for institutional and cultural purposes. “The price of these lands is too high at present. A policy should be formulated for allotment of land for institutional and cultural purposes so that land may be utilised property,” the committee observed.
Key recommendations
1. Formulate a committee to allow need-based changes
2. Allow more activity in Industrial areas in consultation with stakeholders
3. No clusters of industrial activity, commercial activity in industrial areas
4. 45-day notice period for submission of revised building plan in case of compoundable building violations
5. Cases similar to Charanjit Kaur case for property conversion to be considered along similar lines
6. Different rates of additional purchasable floor-area ratio for different properties
7. Allowing retractable roofs over open courtyards in Sector 7 and 26