UT administration has decided to allow conversion of residential plots in Chandigarh from leasehold to freehold. It was huge demand from industrialists of Chandigarh to allow conversion of leasehold plots to freehold plots. It is expected that that UT is likely to resolve this issue. The residents will be given their rights to convert leasehold plots to freehold ones. The action is expected to be taken immediately. Not only this, Chandigarh administration is informed of the same.
The residents will be given their rights to convert leasehold plots to freehold ones. The action is expected to be taken immediately. Not only this, Chandigarh administration is informed of the same. Phase 1 and Phase 2 of Chandigarh have 2100 industrial leasehold plots, by the conversion decision 1500 leasehold plots would be affected. Industrialists demand conversion of these plots on basis of fixed rates.
Conversion of Residential plots-Freehold to Leasehold
Industrialists are having this demand from so many years and now they are having a hope that some action will be taken soon. The administration is likely to announce the conversion of residential plots from leasehold to freehold ones. Industrialists have been demanding that in phase 1 and phase 2 of Chandigarh, the administration must allow the conversion of residential plots from leasehold to freehold ones. Around 1500 leasehold industrial plots would be affected from a total of 2100 industrial leasehold plots of Phase 1 and Phase 2 Chandigarh. Rates are fixed at 7.5% to 20% of the collector rate and sent to MHA for approval.
The industrialists of Chandigarh have been demanding the conversion of leasehold to freehold plots on the basis of fixed rates for the holders of general power of attorney and original owners. This same system of conversion of leasehold plots to freehold plots takes place in Delhi. The conversion will benefit the owners and facilitate the sale of properties. You can get a detailed guidance regarding this from The Property Buying Company.
55,000 property owners will be affected by this decision. On leasehold, the property is occupied for a limited period of time, usually for 99 years. The real ownership remains with the UT administration even after paying 2.5% of auction amount as rental every year. Whereas on freehold the ownership of property gets transferred and the owner can utilize it for any purpose. Ut administration can earn up to 500 crores by this conversion decision. At present they are earning few lakhs by lease rental income from shop owners.
Phase 1 and Phase 2 Chandigarh
Phase 1 and phase 2 of Chandigarh has a total of 2100 small scale industries, seven medium scale industries, and one large industrial unit. The Phase 1 and Phase 2 of Chandigarh was carved in 1970 on 1475 acres of land. The various plots have been allotted on leasehold basis on the 99-year lease basis. Industrialists have been demanding conversion of these leasehold plots to freehold plots.
Source: Hindustan Times