Chandigarh deems employees’ housing scheme unviable, to refund money

Dushyant Singh Pundir Chandigarh, March 5 Self-Financing Employee Housing Scheme for UT employees, which was launched in 2008, has faced a setback as the UT Administration deems it economically unviable. In an affidavit submitted to the Punjab and Haryana High...

Tribune News Service

Updated At : 02:41 PM Mar 06, 2024 IST

Dushyant Singh Pundir

Chandigarh, March 5

Self-Financing Employee Housing Scheme for UT employees, which was launched in 2008, has faced a setback as the UT Administration deems it economically unviable. In an affidavit submitted to the Punjab and Haryana High Court, the Administration expressed its decision on not to proceed with the scheme and assured a refund of deposited funds to the applicants.

The CHB had floated the special housing scheme for employees in 2008. The draw of lots was held on November 4, 2010, and over 3,900 employees were successful.

Floated in 2008
CHB floats the UT Employees Self-Financing Housing Scheme in 2008
The draw of lots held on November 4, 2010
On October 5, 2012, the Centre directs the Administration that land for any purpose must not be disposed of below the market value and without auction
On January 2, 2019, the Union Cabinet approves allotment of 61.50 acres for the project
On November 24, 2020, representatives of employees union say the rates are unacceptable to them

Under the scheme, 336 three-bedroom flats, 888 two-bedroom, 564 one-bedroom and 320 one-room flats 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 three-bedroom flats, Rs 1.85 crore for two-bedroom flats, Rs 99 lakh for one-bedroom flats and Rs 68 lakh for one-room flats for group ‘D’ employees. In contrast, the launch rates in 2008 were Rs 34.70 lakh for three-bedroom flats, Rs 24.30 lakh for two-bedroom flats, Rs 13.53 lakh for one-bedroom flats, and Rs 5.75 lakh for one-room flats for group ‘D’ employees.

The Chandigarh Housing Board (CHB) had allocated 33 acres in Sector 56 and 28 acres in Sector 52 for the construction of 3,066 flats under the scheme. UT employees had already contributed Rs 58 crore towards this project.

Dr Dharmender Shastri, general secretary of the UT Employees Housing Welfare Society, expressed disappointment, stating that the UT administration was playing with the emotions of employees. He highlighted the commitment of employees in their pursuit of justice, emphasising the toll it has taken, with around 100 employees reportedly having died during this prolonged battle.

An application submitted to the Punjab and Haryana High Court by the employees in May expressed concerns about the elapsed time, retirements and even deaths among allottees, reflecting the prolonged legal struggle. A total of 957 applicants challenged the CHB’s decision to increase the land price from Rs 7,920 per sq yd to Rs 74,131 per sq yd.

The 2008 Employees’ Housing Scheme, initially proposed by the CHB, had been embroiled in controversies. The refusal of land by the then UT Administrator in 2012 led to the termination of the scheme. Later, the Central Government cleared the scheme at the collector rate on January 2, 2019, and the high land costs ultimately hindered its realisation, prompting aggrieved employees to approach the high court. The next hearing in the case is scheduled for March 13.