CHANDIGARH: The Chandigarh administration has taken significant steps to convert leasehold industrial and commercial plots to freehold ownership, a move expected to unlock properties valued at hundreds of crores, enhance revenue, and improve the ease of doing business.
The Punjab governor and UT administrator, Gulab Chand Kataria, has approved a comprehensive proposal, which has now been sent to the Ministry of Home Affairs (MHA) for final approval.
A senior MHA official commented, “The ministry is currently reviewing the proposal from UT Chandigarh.”
This development follows earlier indications from the administrator that the matter was being considered.
Will This Attempt Succeed?
This is not the first time the Chandigarh administration has sought to facilitate such conversions. A previous proposal was rejected by the MHA. However, officials believe the current request has a better chance for two reasons:
Firstly, the Centre is actively encouraging the UT administration to optimize land use, placing conversion issues among its top priorities as part of its deregulation agenda.
Secondly, the administration has addressed the significant historical objection noted by former UT administrator Shivraj Patil in January 2015. Patil opposed leasehold land conversions, arguing they would transfer valuable public property to private entities at below-market prices and risk public scandal while contradicting court directives for public asset auctions.
It has been reported that the current proposal includes “prudent” financial justifications for the conversion.
Following MHA directives, the administration had previously paused projects like Vikas Marg development and property auctions related to this issue.
