UT forms new panel to decide future of rehab colony houses

Chandigarh: The Chandigarh administration constituted a new committee to determine the future of nearly 35,000 dwelling units in the city's rehabilitation colonies, amid persistent demands from residents for ownership rights and continuing disputes over illegal transfers and occupancy.The newly formed panel was tasked with examining the present status of the properties, studying the legal framework governing them, and reviewing models adopted by other cities to address similar issues under rehabilitation schemes. Chief Secretary H Rajesh Prasad confirmed the constitution of the committee and directed it to submit its report at the earliest. A final decision will be taken by the administration based on its recommendations.
The move came despite the existence of a previous committee formed in 2023, whose recommendations were not implemented. That panel concluded that ownership rights could not be granted to residents, termed post-survey sale and purchase transactions illegal, and suggested framing a policy to recover govt dues in cases involving unauthorised transfers. It also recommended charging licence fees at prevailing market rates. A recent survey of the colonies revealed that nearly 80% of the houses are no longer occupied by their original allottees. Many units changed hands through general power of attorney (GPA) transactions, with several properties reportedly sold multiple times — in some cases 3 to 4 times. The administration maintains that such transactions based on "flimsy documents" are invalid, as the houses were allotted on a monthly licence fee basis under a rehabilitation scheme intended for economically weaker sections, not for commercial transfer. Historical background and legal position The rehabilitation colonies — including Dadumajra, Indira Colony, Manimajra, Mauli Jagra, Dhanas, Bapu Dham, Sector 52 and Sector 56 — comprise over 34,965 units constructed since 1980 under the scheme. Most units were allotted on 99-year leases or similar terms beginning in 1979. In 2011, the Supreme Court barred property transfers through GPA arrangements, a restriction that continues to apply. The issue was also raised in the Lok Sabha. In response to queries from Chandigarh MP Manish Tewari last year, the Centre clarified that there is no provision to grant ownership rights to beneficiaries of the rehabilitation scheme. The properties remain on leasehold terms, and transfers contrary to the original allotment conditions are not recognised. Practical challenges Residents pointed to several difficulties arising from the current arrangement. Banks often decline housing loans due to unclear ownership titles, restricting property transactions and limiting value appreciation. Officials estimate that over 15,000 houses are listed as defaulters for non-payment of licence fees over the years. In many colonies, licence fees were not revised since 2008. Although applications for ownership rights were invited briefly in 1990, the process was not pursued further, leaving most residents without ownership status. The newly constituted committee is expected to address these legal and administrative complexities, including possible revisions in fee structures and mechanisms for relief, while ensuring compliance with existing laws and the original objectives of the rehabilitation scheme.