Chandigarh Administration Unveils Major Property Monetization Drive
The Chandigarh administration has announced a significant initiative to monetize approximately 1,000 vacant properties across the city. This phased program is scheduled to commence at the beginning of the upcoming financial year, with the primary objectives of boosting municipal revenue and ensuring the optimal utilization of government-owned land and buildings.
Comprehensive Identification of Auction-Ready Properties
The UT Estate Office has meticulously identified around 1,000 properties spanning various categories that are now primed for auction, contingent upon market response. The portfolio includes a diverse mix of assets: approximately 130 residential sites, 205 commercial sites, 168 industrial sites, five nursing home sites, and one institutional site. Senior UT officials have projected that this ambitious auction drive could generate over Rs 1,000 crore in revenue during the first two quarters of the new financial year.
Geographical Distribution of Key Properties
Residential Properties: The majority of residential sites slated for auction are concentrated in the southern sectors of Chandigarh. Sector 40 leads with 38 sites, followed by Sector 38 with around 30 sites, and Sector 37 accounting for 12 sites.
Commercial Properties: Commercial sites will be distributed across various sectors, with a marginally higher concentration in southern areas. Sector 39 boasts the maximum number with 15 commercial sites, closely followed by approximately 10 sites each in Sector 40 and the Industrial Area.
Industrial Properties: Industrial areas constitute a substantial portion of the auction inventory. Industrial Area Phase II accounts for around 60 sites, while Phase I has 10 identified sites. The still-developing Phase III Industrial Area is expected to contribute nearly 100 sites to the auction pool.
Structured Monthly E-Auction Framework
The estate office has formulated a detailed plan to conduct property auctions on a monthly basis through its dedicated e-auction portal. Officials confirmed that the administration had, in principle, approved monthly auctions last year, leading to the preparation of a comprehensive schedule. The proposed auction timetable for the new financial year has already been submitted to the competent authority for formal approval.
Rigorous Due Diligence and Legal Clearance
Over the past year, the estate office undertook an extensive exercise to identify all vacant properties while ensuring they were free from legal disputes and other encumbrances. This process included identifying resumed properties and taking possession where necessary. These cleared sites will now be incorporated into the auction schedule.
Transforming Property Auctions into an Annual Institution
Administration officials revealed they are working to establish property auctions as a regular annual exercise, similar to the annual revision of collector rates. This systematic approach is designed to achieve multiple benefits:
- Prevent illegal occupation of government land
- Support a healthier and more transparent real estate market
- Unlock revenue currently tied up in vacant properties that require ongoing maintenance
Building on Previous Success and Competitive Advantages
In the previous fiscal year, the administration earned approximately Rs 150 crore through property auctions. Officials highlighted a key competitive advantage: many of the estate office's commercial and industrial sites are available on a freehold basis. This contrasts with properties under the municipal corporation or Chandigarh Housing Board, which are largely leasehold and often attract limited market interest.
Comprehensive Breakdown of Auction Properties
The final inventory of properties scheduled for auction includes:
- Residential: 130 sites
- Commercial: 210 sites
- Industrial: 170 sites
- Nursing Home: 5 sites
- Motor Market: 130 sites
- Rehri Market: 270 sites
- Milk Colony: 40 sites
- IT Park: 4 sites
- Institutional: 1 site
The administration has also established a contingency plan: properties that fail to attract bidders in any given month will be re-auctioned in subsequent months, ensuring maximum asset monetization over time.
