Chandigarh Housing Board Implements 7% Hike in Restoration Charges for Resumed Properties
The Chandigarh Housing Board (CHB) has announced a significant increase in restoration charges, raising them by up to 7% for properties that have been resumed due to non-payment of dues or building violations. This move is part of a broader strategy to enforce compliance and address widespread issues of unauthorised constructions and financial defaults among allottees.
Revised Fee Structure and Impact on Property Owners
Previously, restoration charges ranged between ₹1.50 lakh and ₹2 lakh, depending on the floor and category of the property. Under the new revised structure, these fees will see an additional increase of ₹1 lakh to ₹3 lakh in many cases. More critically, the restoration charges will now be linked to prevailing collector rates, a change that is expected to make the process particularly costly for smaller or lower-category properties. This adjustment aims to reflect current market values and ensure that fees are more aligned with property appreciation.
The CHB has stated that the existing restoration fees were inadequate, and the revised charges are designed to serve a dual purpose: encouraging timely clearance of dues and discouraging unauthorised constructions and other violations. With around 90% of CHB allottees having received violation notices for unauthorised additions or structural irregularities, the board considers this hike essential to promote compliance and reduce enforcement pressure.
Requirements for Reclaiming Resumed Properties
Under the new rules, allottees seeking to reclaim a resumed property will face stricter financial obligations. They must clear all pending dues separately, in addition to paying the enhanced restoration charges. This measure is intended to ensure that property owners take their financial responsibilities seriously and adhere to building regulations, thereby minimising future violations and administrative burdens on the board.
Chandigarh Administration Proposes Regularisation of GPA Property Transfers
In a related development, the Chandigarh administration has submitted a proposal to the central government seeking approval to allow formal registration of properties that were previously transferred through general power of attorney (GPA). If approved, GPA buyers will be able to register their properties by paying 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. The calculation for this will be based on current collector rates.
This move aims to address long-standing issues involving nearly 50,000 properties under the estate office and CHB that were resold using GPA, resulting in significant revenue losses due to uncollected stamp duty. Many original allottees sold properties prematurely by using GPA transfers to bypass the restrictions of the 15-year lock-in imposed when units were allotted at concessional rates. The administration believes that formalising the registration of such properties will close loopholes and help recover revenue lost over the years.
Cost Implications and Future Outlook
Even after approval, the route for GPA property registration is expected to remain expensive. For instance, if a property was sold early during the lock-in period—say after two years—the buyer would still have to pay the unearned increase for the remaining 13 years based on current value appreciation. This could result in substantial costs for property owners, but it is seen as a necessary step to ensure legal compliance and revenue recovery.
The combined efforts of the CHB and the Chandigarh administration highlight a proactive approach to tackling property-related violations and financial irregularities. By increasing restoration charges and proposing regularisation of GPA transfers, authorities aim to foster a more transparent and compliant property market in Chandigarh, ultimately benefiting both the administration and property owners through improved enforcement and revenue collection.
