Chandigarh employees housing scheme: Administration challenges Punjab and Haryana High Court order in apex court
The UT Administration has finally filed a special leave petition (SLP) in the Supreme Court against the order of the Punjab and Haryana High Court wherein the UT Administration and the Chandigarh Housing Board (CHB) were directed to start the construction of flats under the self-financing housing scheme for government employees and complete the process within a year.
On May 30, the High Court had directed the UT Administration to construct the flats within a year at the 2008 rates. The order stated that the construction cost would be borne by the employees at the current rates, which are approximately ?50 lakh for a three-bedroom flat, ?40 lakh for a two-bedroom flat, ?35 lakh for a one-bedroom flat, and ?15 lakh for an Economically Weaker Section (EWS) unit.
The CHB had floated the Self-Financing Employee Housing Scheme for UT employees in 2008. The draw of lots was held on November 4, 2010, and over 3,950 employees were successful. But nothing was done by the CHB and even acceptance-cum-demand letters were not issued to the successful applicants.
The Administration submitted that providing flats at the 2008 brochure rates would lead to a financial loss of nearly ?2,000 crore. Also, the piece of land in Sectors 52, 53, and 56 on which the flats were to be constructed belonged to the Chandigarh Administration and was yet to be allotted to the CHB. The CHB had floated the scheme, thinking that the land would be allocated. The petition also mentioned that the CHB had only collected registration fee from the applicants.
The employees union had filed a caveat in the Supreme Court in July this year. A caveat serves as a precautionary notice, requesting the court not to issue any order or grant relief without first notifying the party that filed it.
Under the scheme, 336 three-bedroom flats, 888 two-bedroom, 564 one-bedroom and 320 one-room units were to be built on a chunk of land measuring 61.5 acres. Around 3,930 flats have to be constructed in Sectors 52 and 56. Later, the scheme was shelved. However, the Ministry of Home Affairs allowed the Administration to transfer the land to the CHB with the current collector rates. This had enhanced the cost of the flats manifold.
The initial rates presented in 2008 were considerably lower than the revised rates, with the CHB quoting Rs 2.08 crore for a three-bedroom flat, Rs 1.85 crore for a two-bedroom one, Rs 99 lakh for a one-bedroom unit and Rs 68 lakh for a one-room flat for group ‘D’ employees. In contrast, the launch rates in 2008 were Rs 34.70 lakh, Rs 24.30 lakh, Rs 13.53 lakh and Rs 5.75 lakh respectively.
The employees had deposited Rs 57 crore as earnest money with the CHB.
A total of 957 applicants challenged the CHB decision to increase the land price from Rs 7,920 per sq yd to Rs 74,131 per sq yd in 2013.
Revised rates
The initial rates presented in 2008 were considerably lower than the revised rates, with the CHB quoting Rs 2.08 crore for a three-bedroom flat, Rs 1.85 crore for a two-bedroom one, Rs 99 lakh for a one-bedroom unit and Rs 68 lakh for a one-room flat for group ‘D’ employees. In contrast, the launch rates in 2008 were Rs 34.70 lakh, Rs 24.30 lakh, Rs 13.53 lakh
and Rs 5.75 lakh respectively.
