Chandigarh Housing Board Under Fire for Alleged Favoritism
Loss of Revenue Estimated in Hundreds of Crores
Chandigarh, May 14:- The Chandigarh Housing Board, entrusted with providing affordable housing to the middle class and economically weaker sections, has come under scrutiny for its dealings with real estate giant Parsvnath Developers Limited.
Discrepancy in Conversion Charges
- Industrialists vs. Parsvnath: Had the Chandigarh Administration applied the same conversion charges to Parsvnath as they do to city industrialists, the exchequer would have garnered significantly more revenue.
- Prime Commercial Land Allocation: 123.79 acres, initially earmarked for IT professionals' housing, were allotted to Parsvnath for a massive housing complex adjacent to the Rajiv Gandhi Technology Park.
Financial Transactions Under Question
- Land Allotment Price: The Chandigarh Administration sold the land to the Chandigarh Housing Board at Rs 308.77 per square yard (Rs 18.5 crore for 123.79 acres).
- Sale to Parsvnath: The land was subsequently sold to Parsvnath for Rs 829 crore.
- Estimated Loss: Based on the Administration's conversion charge formula for industrial land, the estimated loss per square yard is approximately Rs 1.43 lakh.
Insights from Right to Information Act
- Dubious Role of Chandigarh Housing Board: Documentation obtained under the RTI Act highlights the Board's questionable actions.
- Pricing Disparity: When tasked with building for the middle and economically weaker classes, the CHB acquired land at Rs 3,200 to Rs 5,900 per square yard, costs inevitably passed on to consumers.
- Tax Notice: The Income Tax department has issued a notice to the CHB for tax payment on the amount received from the developer.