Chandigarh Traders Urge Review of Industrial Plot Penalties
Traders Urge Review of Industrial Plot Penalties in Chandigarh

Various industrial associations in Chandigarh have appealed to the UT Administration to review and rationalize the proposed penalties related to misuse and building violations on industrial plots. In representations submitted to the Estate Office, they urged the authorities to adopt a more industry-friendly approach while determining future penalties.

Background on Penalty Structure

The associations pointed out that prior to 2009, misuse charges on industrial plots were levied at approximately Rs 10 per square yard. They suggested that any revised penalty structure should use this as the base rate, adjusted only for inflation. They argued that linking penalties to collector rates was inappropriate, as industrial activities have no direct correlation with the sale value of plots.

Request for Notice Period

They also sought a minimum three-month notice period for industries to rectify violations before additional charges. Immediate punitive action, they stated, places undue pressure on the working capital of industrial units.

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Challenges Faced by Manufacturing Sector

Highlighting the challenges faced by the manufacturing sector, associations mentioned that industrial growth in Chandigarh has remained stagnant for several years. Many businesses have shifted operations to neighboring states due to rising costs and regulatory burdens.

Industry Leaders' Appeal

Chander Verma, president of the Chandigarh Industrial Converted Plot Owners' Association, requested the Administration to formulate a balanced policy that ensures compliance while safeguarding the viability and competitiveness of local industries.

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