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The Chandigarh Housing Board (CHB) is considering a proposal to convert leasehold apartments to freehold in its Sector 63 housing scheme. This move has been a long-standing demand of the allottees and will benefit over 2,100 of them. The CHB officials have been weighing the pros and cons of the proposal, as it has the potential to increase property values and simplify property transfers for allottees. The conversion of leasehold apartments to freehold will also confer ownership rights to the allottees.
The CHB board of directors is scheduled to meet by the end of the month or early next month to discuss the proposal. The conversion of leasehold to freehold is already permitted in all other CHB housing schemes. However, in the case of the Sector 63 housing scheme, the CHB had chosen to allot the flats on a leasehold basis, even though the scheme had been constructed on land allotted to the CHB on a freehold basis. The five-year lock-in period for the flats has now elapsed, and it appears that the CHB may finally permit the conversion.
The Sector 63 housing scheme was launched by the CHB 15 years ago, in 2008, and has a total of 2,108 flats. Of these, 336 are three-bedroom apartments, 888 are two-bedroom apartments, and 564 are one-bedroom apartments. There are also 320 flats designated as economically weaker sections (EWS) apartments. In 2015, the scheme was inaugurated by Prime Minister Narendra Modi.
One of the key issues that the CHB officials have been considering is whether to continue to charge an annual lease amount from the allottees or have earnings in terms of a lump-sum conversion fee collected after conversion is allowed. They are weighing the benefits of both approaches and looking at factors such as bank interest earned on the conversion fee deposit versus the earnings from annual lease payments.
Permitting the conversion of leasehold apartments to freehold will bring a host of benefits for allottees. For one, they will gain ownership rights, which will give them greater control over their property. Secondly, it will make the transfer of the property simpler, as there will be no need to seek permission from the CHB for the transfer. Finally, it will potentially increase the value of the property, which will be a significant benefit for the allottees.
In conclusion, the proposal to convert leasehold apartments to freehold in the Sector 63 housing scheme has been long overdue. If the CHB board approves the proposal, it will be a welcome move for allottees, who will gain ownership rights and potentially see an increase in the value of their property.
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