Chandigarh Housing Board (CHB) has told the allottees of Small Flats and Affordable Rental Housing Scheme to deposit their outstanding rents within 15 days or face cancellation proceedings
By HT Correspondent, Chandigarh
PUBLISHED ON FEB 02, 2021 09:59 PM IST
Chandigarh Housing Board (CHB) has told the allottees of Small Flats and Affordable Rental Housing Scheme to deposit their outstanding rents within 15 days or face cancellation proceedings.
After waiting for several years for over 10,000 allottees of eight rehabilitation colonies to clear their rent arrears totalling over ₹20 crore, CHB in November last year had started sending them recovery notices.
“Many allottees have not been paying the stipulated rent for many years now. We had started a drive last year and recovered ₹18 crore. But, due to the Covid-19 pandemic, arrears piled up to nearly ₹20 crore again,” a CHB official said.
In 2019, CHB had cancelled the allotment of around 250 allottees for the violation.
“Interest at 12% per annum is being levied in case of delayed payment. For the time being proceedings against rent defaulters were kept on hold, but in case of any further delay, the cancellation proceedings will be initiated,” said Yashpal Garg, chief executive officer, CHB.
The flats in question were allotted under the slum rehabilitation scheme in different parts of the city. Allottees of the one-room EWS flats are charged ₹800 to ₹1,000 per month as ground rent, which is increased by 20% after five years of allotment.
Under the Chandigarh Small Flat (Amendment) Scheme 2020, if allottees do not pay the rent, they are liable to pay a penalty of 12% per annum. If paid on time, the yearly collection of rent will be around ₹20 crore. While, CHB keeps 5% of the recoveries as administrative costs, the rest is deposited with the administration.
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