CHANDIGARH: The Chandigarh Housing Board (CHB) has decided to increase restoration charges by up to 7% for properties that have been resumed due to non-payment of dues or building violations. Earlier, these charges ranged between ₹1.50 lakh and ₹2 lakh depending on the floor and category of the property. Under the revised structure, restoration charges will increase by an additional ₹1 lakh to ₹3 lakh in many cases. The new fees will also be linked to prevailing collector rates, a move expected to make restoration particularly costly for smaller or lower-category properties.
CHB has stated that existing restoration fees were inadequate and the revised charges are expected to serve a dual purpose-encouraging timely clearance of dues and discouraging unauthorised constructions and other violations. Around 90% of CHB allottees have received violation notices for unauthorised additions or structural irregularities. Under the new rules, allottees seeking to reclaim a resumed property will have to clear pending dues separately in addition to paying the enhanced restoration charges. The board considers the hike essential to promote compliance and reduce enforcement pressure.
Admn seeks approval to regularise GPA property transfers
Meanwhile, 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 will be based on current collector rates.
The 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. Even after approval, the route 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.
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.
90% allottees receive notices
CHB to hike restoration charges for resumed properties by up to 7%
Charges earlier between Rs 1.50 lakh-Rs 2 lakh to rise by Rs 1 lakh-Rs 3 lakh in many cases
Revised fees to be linked to current collector rates, raising costs for smaller units
CHB says increased charges will deter unauthorised construction and ensure timely dues payment
Nearly 90% of allottees have received notices for building violations
Allottees must clear pending dues separately along with higher restoration charges to reclaim resumed properties.
