CHANDIGARH: The Chandigarh Housing Board (CHB) has announced a proposed increase of up to 7% in restoration charges for properties that have been resumed due to unpaid dues or building violations. Previously, these charges ranged from ₹1.50 lakh to ₹2 lakh based on the floor and category of the property. Under the new structure, the charges are set to rise by an additional ₹1 lakh to ₹3 lakh in many instances. Furthermore, the revised fees will be aligned with the current collector rates, which may significantly impact smaller or lower-category properties.
CHB has indicated that the current restoration fees are inadequate, and the increased charges aim to encourage timely payment of dues while deterring unauthorized constructions and other violations. Approximately 90% of CHB allottees have been issued violation notices for unauthorized additions or structural discrepancies. The new rules stipulate that allottees wishing to reclaim resumed properties must settle any outstanding dues in addition to the increased restoration fees. The board considers this hike essential for promoting compliance and alleviating enforcement pressures.
Administration Seeks Approval for GPA Property Transfers
In another development, the Chandigarh administration has proposed to the central government to formalize the registration of properties previously transferred via General Power of Attorney (GPA). If the proposal is approved, buyers of GPA properties will be able to register them by paying a 5% stamp duty along with the “unearned increase,” which reflects the property’s appreciation during the remaining years of the mandatory 15-year lock-in period, calculated based on current collector rates.
This initiative aims to resolve ongoing issues related to nearly 50,000 properties under the estate office and CHB that were resold through GPA, resulting in substantial revenue losses from uncollected stamp duties. Even if approved, this process is expected to be costly. For example, if a property was sold early during the lock-in period—say after two years—the buyer would still be liable for the unearned increase for the remaining 13 years based on the current value appreciation.
Many original allottees previously sold their properties prematurely via GPA transfers to evade the restrictions imposed by the 15-year lock-in when units were allotted at concessional rates. The administration believes that formalizing the registration of such properties will close existing loopholes and help recover lost revenue.
90% of Allottees Receive Notices
CHB is set to raise restoration charges by up to 7% for resumed properties, shifting charges from ₹1.50 lakh-₹2 lakh to ₹1 lakh-₹3 lakh in several cases. The new fee structure will be linked to existing collector rates, increasing costs for smaller units. CHB emphasizes that the increased charges are intended to deter unauthorized construction and ensure prompt payment of dues, with nearly 90% of allottees having received notices for building violations. Allottees must clear outstanding dues in addition to higher restoration charges before reclaiming resumed properties.
