Formulation of uniform policy to restore dwelling units

Chandigarh, 29^th May, 2017: A number of cases are pending in the Supreme Court of India, High Court and other Courts regarding false statements/affidavits falsely stating that the applicant is not having a house in the name of the applicant or his/her wife/husband or any of his/her dependent relations including unmarried children, while applying for the allotment of a dwelling unit under the various schemes floated by the Chandigarh Housing Board.

                   Therefore, a decision had been taken by the Board in its 399^th meeting held on 28.09.2016 to formulate a uniform policy to restore all such dwelling units subject to payment of all outstanding dues, revival charges etc. and penal charges as under:-

          1.      EWS houses        -        5% of existing market value

          2.      LIG houses           -        10% of existing market value

          3.      MIG houses         -        15% of existing market value

          4.      HIG houses          -        20% of existing market value

          5.      HIG(Upper) houses-     25% of existing market value

          6.      HIG(Ind) houses  -30% of existing market value

          7.      Commercial units-50% of the existing market value

                    It was decided that this policy shall give a window of approximately 3 months until 31/12/2016 to all those allottees who may be interested in regularizing their possessions or in having their possessions restored and matters regularized on payment of above cited penal charges. This window was to remain operational uptill 31/12/2016. If any of the allottees did not avail of this policy by paying the penal amount as stipulated above, the existing legal procedures/legal frameworks would apply.

However, the existing formula of fixation of price has many complex aspects.  Recently a commercial Shop cum Office has been sold for 27.54 crores on 31/3/2017 through e-auction and another residential property in Sector-51 has fetched CHB an amount of Rs.77.50 lakhs on 10/06/2016. The Collector rates have been reduced in Industrial Area by 20% and in residential areasupto 10% with creation of three new zones. Commercial property Collector’s rates have also been reduced by 10% in  Sector 17, 22, Sub City Centre-34, Madhya Marg and dividing road of Sector 34/35, Chandigarh.It has been decided by the Deputy Commissioner, U.T., Chandigarh that every year, the Collector rates will be revised on 31^st March.

CHB had recently allotted flats under AssuredBidding scheme in the Self Financing Scheme-2016 on leasehold basis in Sector-51-A, Chandigarh.    Accordingly, the average price of the bid of residential flats, Sector-51, Chandigarh (i.e.  Highest bid of Sector 51 + Lowest Bid of sector51 /2) may be taken as market value in respect of the concerned dwelling units.    It had been intimated that the highest bid in sector 51 of 2BR consisting of covered area 1073 sq.ft was Rs.77.50 lakhs and lowest was Rs.70.50Lacs and the average price per sqft  is worked out as under:

          Average Market Price  per sq. ft. of the covered area of 2BR leasehold flats =                                      Highest bid of Sector 51 +Lowest Bid of sector 51                                2  x 1073 sqft

                                      = 77,50,000 + 70,50,000

                                      2  x 1073

                                      =  74,00,000/1073

                                      =  6896.56 Say Rs.6897/- sqft

          (In case of freehold property the market price will be determined at 10% extra of the market value of the leasehold property i.e. Rs.7587/-  sqft (6897+690)

                    The said proposal was approved by the Chairman, CHB on 07/11/2016 as follows:

1.that the market price would be charged @Rs.6897/-  per sq ft. on the covered area of the respective dwelling unit of leasehold residential property to work out the penal charges to regularize the allotment where the applicant has given false affidavit.

2.that the market price would be charged @Rs.7587/-  per sq ft. on the covered area of the respective dwelling unit of freehold residential property to work out the penal charges to regularize the allotment where the applicant has given false affidavit.

3.that the revival charges will be 2% of the above said market value irrespective of the cancellation status of the property. 

4.the amount of penal charges and revival charges would be kept in separate saving account of SBI, CHB to be opened shortly by Accounts Branch working under the supervision of SO-II.           

The Board in its 399^th and 404^th meeting held on 28/09/2016 and 09/02/2017 had formulated a uniform policy to restore all such dwelling units, wherein a number of cases were lying pending in the Supreme Court of India, High Court and other Courts regarding giving false statements/affidavits for not having a house in the name of the applicant or his/her spouse or any of his/her spouse or any of his/her dependent relations including unmarried children, while applying for the allotment of a dwelling unit under various schemes floated by the Chandigarh Housing Board, subject to payment of all outstanding dues, revival charges etc. and penal charges as mentioned above.

                   As per decision, an opportunity was given to all those who were interested in regularizing their possessions or in having their possessions restored and matters regularized, uptill 31/12/2016 and the scheme was further extended till 31/03/2017. However, keeping in view the demand of a large number of applicants and in the interest of the General Public, the Board accorded approval for further extension of the scheme till 30/06/2017.

                    The Board in its 399^th meeting has also relaxed Regulation 6 of the Chandigarh Housing Board (Allotment, Management and Sale of Tenements) Regulations 1979, in exercise of its powers under Regulation 50 of the above laid Regulations of 1979, and it is further clarified that these relaxations are also applicable to the cases where Chandigarh Housing Board has not released possession to the allottees due to the violation of Regulation 6.

It has also come to notice that many CHB Houses have been cancelled due to non payment, illegal construction and for either filing false affidavits or suppression of material facts from the Board in order to seek the allotment from the board by fraudulent means.

It is proposed that the CHB will revive the allotments as follows:

i)In case of show cause notice or cancellation made due to nonpayment- complete upto date payments + Revival charges + the penal charges as approved by the Board.

ii)In case of show case notice or cancellation made due to violations and misuse of Dwelling Unit – Removal of violations/ misuse + payment of upto date dues + Revival charges and penal charges as approved by the Board.

iii)In case of show case notice or cancellation made due to suppression of facts and for having furnished false affidavits/ information - payment of upto date dues + Revival charges and penal charges as approved by the Board

In the first two cases of nonpayment and illegal construction the allotments can be revived as and when the erring allottee make the requisite payment and removes the illegal construction and violations by payment of the fees already approved by the Board. However, in cases of suppression of facts and false affidavits the Board has decided to give them another opportunity till 30.09.2017 for coming forward and getting the said allotments regularized by payment of penal fees, as already decided by the Board and to qualify the giving of this further opportunity by the board such allottees must come forward and deposit at least 10percent of the said fees on or before 30.06.2017. 

There are cases where the Dwelling Units have been sold by the erring allottee and the buyer is in the possession of such houses which have been cancelled for the various reasons as mentioned above. No doubt in such matters the buyer needs to be aware that he/she shall acquire the title/rights in the said property as held by the allottee/seller. In order to mitigate the loss suffered by such buyers it has been decided by CHB to regularize such cancellations of Dwelling Units as brought out in the preceding paragraphs. 

These orders shall however be applicable in case of the sold dwelling units only where such property has been sold uptill 11/10/2011, this being the date when the Hon’ble Supreme Court of India in the case of Suraj Lamps and Industries Vs State of Haryana- SLP(C) No.13197 of 2009 has categorically laid down that “immovable property can be legally and lawfully transferred/conveyed only by a registered deed of conveyance. Transactions of the nature of ‘GPA sales’ or ‘SA/GPA/WILL transfers’ do not convey title and do not amount to transfer, nor can they be recognized as a valid mode of transfer of immoveable property. The courts will not treat such transactions as completed or concluded transfers or as conveyances as they neither convey title nor create any interest in an immovable property. They cannot be recognized as deeds of title, except to the limited extent of section 53A of the TP Act. Such transactions cannot be relied upon or made the basis for mutations in Municipal or Revenue Records. What is stated above will apply not only to deeds of conveyance in regard to freehold property but also to transfer of leasehold property. A lease can be validly transferred only under a registered Assignment of Lease. It is time that an end is put to the pernicious practice of SA/GPA/WILL transactions known as GPA sales.”

These orders shall not be applicable to the Dwelling Units which have been cancelled or evicted after cancellation and are in the possession of CHB.