Chandigarh: Thousands of allottees residing in cooperative house-building societies across Chandigarh continue to grapple with unresolved policy disputes that have left them paying inflated charges, unable to convert their properties from leasehold to freehold, and, in many cases, burdened with water bills nearly four times the normal rate due to the non-issuance of completion certificates.Representatives of cooperative housing societies allege that prolonged delays in resolving issues related to conversion charges, unearned increase and completion certificates have imposed a substantial financial burden on residents while restricting their property rights.They claim that despite repeated representations over the past four to five years, several matters remain pending with the Chandigarh Administration and the Chandigarh Housing Board (CHB).One of the key concerns pertains to conversion charges. According to society representatives, CHB is levying inflated charges by applying an incorrect formula under the 1996 conversion policy. They argue that cooperative house-building societies should fall under Clause (iii) of Part II of the policy, which applies to 100% of the allotted area. Instead, CHB is allegedly applying Clause (i), under which the area is multiplied by 1.2, increasing conversion charges by up to 30%.“The issue has reportedly been examined by the secretary, estate, and the legal remembrancer, but remains unresolved. The societies also referred to an Estate Office letter dated June 3, 2025, which stated that since CHB itself is a lessee of the land, matters relating to conversion should be dealt with by the estate office. However, approval to take up the issue is still awaited from the estate department,” said R S Thapar, co-convener of Voice of Housing Societies.Another major grievance relates to the calculation of unearned increase. Society representatives alleged that after the collection of unearned increase was transferred from the Estate Office to CHB after January 31, 2020, the board began applying a collector rate of Rs 2.96 lakh per dwelling unit instead of the notified land collector rate of Rs 1.28 lakh.According to the societies, this has significantly increased the financial liability of members, even though the land remains in the name of the cooperative society and only the dwelling unit changes hands.Thapar questioned why leasehold dwelling units of CHB are not subjected to unearned increase at the time of sale, while members of cooperative societies are required to pay it. “The present system also exposes members of leasehold societies to 18% GST, whereas residential flats constructed by private builders attract GST of only 5%,” he said.The absence of completion certificates has emerged as another major hurdle. Societies claimed that several cooperative housing societies are still awaiting completion certificates despite directions issued by the then UT adviser on March 2, 2016, for all certificates to be issued by March 31 that year.“The Estate Office again sought permission through a letter dated June 3, 2025, to implement the earlier decision, subject to society presidents furnishing an undertaking to remove pending violations within a specified period. The proposal, however, is yet to be approved,” said J J Singh, president of the Resident Welfare Association, Sector 48.According to the societies, the delay has had direct financial consequences for residents. Without completion certificates, members are being charged water tariffs nearly four times the normal rate and are also unable to apply for conversion of their properties from leasehold to freehold, preventing them from securing clear ownership rights.The allottees said nearly 100 meetings have been held by the Voice of Housing Societies and other residents’ associations with various departments of the Chandigarh Administration over the past four to five years to resolve the issues.Thapar also referred to a June 2024 meeting of the Estate Department, during which verbal directions were allegedly issued to CHB officials to confirm within 15 days whether the disputed conversion-charge calculation had been rectified.Despite years of representations and discussions, the issues remain unresolved. The allottees have urged the administration to intervene and settle the pending matters at the earliest.“The administration is examining all these issues, and a decision is under active consideration,” said a senior UT official.
