Chandigarh: The Chandigarh administration has proposed charging approximately 50% of the existing collector rate to convert allotted leasehold industrial and commercial properties into freehold.The administration sent the proposal to the ministry of home affairs (MHA) last week for consideration and approval. This followed a ground survey and financial assessment of all commercial and industrial leasehold properties.The UT administration has also proposed that conversion charges should be 25% of the applicable collector rate for plots and properties allotted through auctions. The authority will charge the applicable premium and ground rent for industrial and commercial properties while converting them from leasehold to freehold.According to UT records, most industrial plots were given on an allotment basis, while around 70% of commercial properties were distributed through allotment. Of approximately 15,016 industrial and commercial properties in the city, around 8,600 are leasehold. These properties are on 99-year leases, requiring owners to pay annual ground rent to the administration.To provide a clear financial picture to the MHA, the administration included detailed calculations for conversion charges based on 50% of the collector rate. While industrial plots are concentrated solely in the Industrial Area, commercial properties are spread across various sectors.Consequently, financial calculations for conversion charges were made separately for each area based on its specific collector rate. The commercial property list includes shop-cum-offices (SCOs), shop-cum-flats (SCFs), booths in different sectors, motor markets and rehri markets.The Chandigarh administration’s proposal to the MHA states: “The provisions of this scheme shall apply only to built-up sites designated for industrial or commercial use in the master plan, zoning plan. In the case of sites, plots allotted on a leasehold basis, conversion charges shall be 50% of the applicable collector rate. For plots, properties allotted through auction, the conversion charges shall be 25% of the applicable collector rate. The applicant shall pay the conversion charges either in lumpsum, by depositing the entire conversion charge in one payment, or by depositing 20% of the total charges upfront, with the remaining 80% payable in four equal annual instalments, together with 10% annual compound interest (compounded yearly).”Hundreds of leasehold properties under the jurisdiction of the UT estate office, MC and Chandigarh Housing Board (CHB) have been lying vacant for years. Despite repeated attempts, authorities concerned have not been able to sell them because of their leasehold nature, resulting in revenue loss.BOX | Collector rates used for conversion calculationsFor its financial calculations, the UT administration has proposed conversion charges at 50% of the applicable collector rate. It has taken a collector rate of Rs 83,100 per square yard for industrial properties and Rs 4,47,300 per square yard for commercial properties. The proposal submitted to the MHA includes area-wise calculations showing the corresponding conversion amounts.BOX | Conditions for conversionConstructed plots only: Conversion will be allowed only for plots on which construction has been completed.Ground rent cleared: All outstanding ground rent must be paid.No outstanding dues: There should be no pending dues against the property.No building violations: The property should not have any building violations.BOX | Industrial properties(Proposed conversion charges at 50% of collector rate)Plot size| Proposed conversion charge125 sq yd (5 marla)Rs 51.9 lakh254.69 sq yd (10 marla) Rs 1.05 crore375 sq yd (15 marla)Rs 1.5 crore528.13 sq yd (1 kanal)Rs 2.1 crore1,006 sq yd (2 kanal)Rs 4.1croreBOX | Commercial properties(Proposed conversion charges at 50% of collector rate)Property| Area | Proposed conversion chargeSCO, Sector 22-A| 287.5 sq yd | Rs 6.4 croreBooths, Sector 31-C | 50.19 sq yd | Rs 74.7 lakhSCF, Sector 30-C| 114 sq yd | Rs 2.5 croreBooths, rehri markets | 7.1 sq yd | Rs 19.7 lakhBooth, motor market, Sector 48 | 9.7 sq yd | Rs 21.99 lakh
