New inspection rules during flat transfer- Chandigarh Housing Board

new-inspection-rules-during-flat-transfer-chandigarh-housing-board

On Tuesday Yashpal Garg, CEO of Chandigarh Housing Board (CHB) issued an executive order stating that board officials would not inspect a dwelling during transfer time unless a notice of violation of the building was sent to the allottee.

Board CEO Yashpal Garg said: “Based on the significant number of inquiries during public hearings, there is a need to explain aspects regarding inspections by CHB officials during the transfer of dwelling units. In cases where building abuse / violation is not reported on the basis of the available record. The information provided by the applicant in the application form of transfer of dwelling units is used together with the declaration of the transferor and the transferee. In all these cases, the CHB does not carry out a new inspection at the time of the transfer of units.

However, he clarified: “The applicant/transferee is responsible for concealing the facts of the declaration regarding violations and irregularities, and the necessary actions are taken in accordance with the law. In addition, the transferee is liable for any construction infringements that existed at the time of the transfer or committed subsequently.”

Garg also said that in cases where reports of violations were available to CHB, declarations or affidavits of no violations are not accepted and CHB officials will again conduct an inspection.

Can apply for Joint Inspection-

The board also issued injunctions to protect the rights of innocent buyers. The executive order states. “It was observed that the transfer of the unit was in some cases permitted on the basis of affidavits. However officials found that there were subsequently some violations/irregularities. When lawsuits were filed against such irregularities, recipients/transferees felt cheated by the transferor due to erroneous affidavits, while such irregularities existed during the transfer of the housing unit. According to the CHB standard, the existing owner/tenant (transferee) is responsible for remedying violations. Otherwise it will have consequences like cancellation of transfer, etc.

To overcome this situation and protect innocent buyers, the Chandigarh Housing Board has provided an additional mechanism whereby the transferor party and the recipient can jointly request inspection from the CHB and obtain a certificate of no violation at that time. For this purpose, the transferor (current owner) can submit a joint application along with a commission of Rs 5,000 at CHB’s reception.”

Garg added that they issued similar orders on August 27, 2019, still many property dealers deceiving innocent buyers, so new orders were issued on Tuesday. “In the event of a breach of instructions of inspection of August 2019, strict measures will be taken against the CHB officers involved.”

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Chandigarh Housing board set up help desk for property auction

chandigarh-housing-board-set-up-help-desk-for-property-auction

The Chandigarh Housing Council (CHB) is setting up five help desks to help bidders bid on 79 housing units in different parts of the city through e-tender.

On 17 May, CHB began an auction process for the sale of 79 residential properties in various sectors of the city. The auction is done through an electronic bidding process, and bidders can submit their bids for properties before 31 May. The help desk can be found in sectors 38 west, 49 and 51 as well as two in sector 63.

In the last auction, the CHB was able to auction 36 freehold dwelling units. The highest bidders were required to deposit 25% of the bid amount within five working days. However, the six highest bidders could not deposit the 25% amount within the prescribed period. And accordingly, their earnest money deposit (EMD) amount of Rs 2 lakh each has been forfeited by the board.

Change in Reserve Price

Yashpal Garg, CEO of Chandigarh Housing Council, said, they listed the six properties at the next auction and that a total of 79 properties were up for auction. The board of directors adopted full secrecy at the last auction and that the same formula will be applied at the next auction. CHB has compiled a list of 270 properties, including 11 residential (rent), 109 residential (non-ownership), and 150 commercial (leasehold) for sale. CHB has started auctions for the sale of residential properties first. The rest of the properties are offered for sale at a later date.

Privacy to bidders identity  

In order to get response the CHB has reduced the property reservation price by 10%. Since the reserve price for residential and commercial properties was too high. Therefore none of the bidders showed interest in the CHB real estate auction in 2019. 

This time, CHB decided to replace the real estate e-auction process with the e-tender process. In the e-auction, the deposit money (EMD) for participation cannot paid be online. The applicant pays the same into the CHB account and provides proof. CHB officials will confirm the payment before allowing the auctioneer to take part in the e-auction process. Thus, the number of applicants for a particular property and their identity are not entirely confidential.

In e-tender, EMD can be paid for online and no approval is required, so the number of bidders and their identity is completely secret and confidential.

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