Chandigarh Administration mulls over framing policy, to seek MHA approval
Conversion of leasehold commercial property to freehold
Tribune News Service
Chandigarh, April 9
The UT Administration is mulling over framing a policy to convert leasehold commercial and industrial property to freehold.
A senior official said the Administration would soon seek the approval of the Ministry of Home Affairs for the policy.
The Administration had allowed the conversion of leasehold residential property to freehold in 2017 by fixing the charges.
The conversion of leasehold plots into freehold was a long-pending demand of traders of the city, said Charanjiv Singh, president, Chandigarh Beopar Mandal. He said they had given memorandums to the UT authorities in this regard several times.
Pending demand
The conversion of leasehold plots into freehold was a long-pending demand of traders of the city, said Charanjiv Singh, president, Chandigarh Beopar Mandal. He said they had given memorandums to the UT authorities in this regard several times.
In the absence of a conversion policy, people were not coming forward to purchase properties even during auction held by the UT authorities, he said, adding that property owners also faced problem in getting loan from the bank.
Buyers were not finding it viable to purchase commercial property as they had to pay lease amount at the rate of 2.5 per cent and 18 per cent GST annually, he added.
“Once the leasehold industrial plots are converted to freehold, more deals will take place and more revenue will be generated. As a result, more industry/business will flourish in the Chandigarh Industrial Area,” said Naveen Manglani, president, Chamber of Chandigarh Industries.
In November 2019, the General House of the Municipal Corporation had passed a resolution to convert its leasehold properties into freehold.
As many as 500 properties of the corporation and about 50 acres of land are lying vacant and it is not getting any takers due to lack of policy on conversion of leasehold property to freehold.
