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Chandigarh administration forms new panel to review rehabilitation colony housing

#Law & Policy#India#Chandigarh
Last Updated : 5th Mar, 2026
Synopsis

The Chandigarh administration has set up a new committee to evaluate the future of nearly 35,000 houses in the city's rehabilitation colonies, where residents have long sought ownership rights. The panel will examine property status, legal frameworks, fee structures, and approaches adopted by other cities before making recommendations. Earlier attempts in 2023 did not lead to policy changes, leaving residents facing unclear titles, multiple unofficial transfers, and challenges in obtaining home loans. The panel aims to provide clarity and practical solutions for these longstanding housing issues.

The Chandigarh administration has recently established a committee to determine the way forward for about 35,000 houses in rehabilitation colonies. These homes, originally allotted to lower-income groups on lease or licence terms from the late 1970s and 1980s, have long been a subject of debate over ownership rights. Residents have repeatedly requested clarity on property titles, citing multiple informal transfers that complicate legal recognition. The new panel will assess the current legal status of these properties, review past decisions, and study how other cities have handled similar challenges before making recommendations.


Earlier efforts by a committee in 2023 found that ownership rights could not be granted under existing rules and highlighted that many post-allocation sales were illegal. That committee also suggested ways to recover government dues in cases of unauthorised transfers and recommended updating licence fees to reflect market conditions. Despite these suggestions, no policy changes were implemented, leaving residents without clarity on their rights.

Recent surveys indicate that approximately 80% of rehabilitation colony homes are no longer occupied by the original allottees. Many units changed hands through general power of attorney (GPA) agreements, which the Supreme Court had barred in 2011. Some properties were transferred three to four times informally, leading to confusion about legitimate ownership.

The rehabilitation colonies, including areas such as Dadumajra, Indira Colony, Manimajra, Mauli Jagra, Dhanas, Bapu Dham, Sector 52, and Sector 56, were built primarily for economically weaker sections. Since these were allotted on lease or licence terms, ownership transfer was not initially permitted. This has caused difficulties for residents who wish to sell or obtain home loans, as banks often require clear property titles.

Officials also estimate that over 15,000 houses are defaulters on licence fee payments, partly because fees were not revised for many years. These issues have been highlighted in Lok Sabha responses, where the Centre confirmed that current laws do not allow granting ownership rights under this scheme.

The new committee is tasked with resolving these legal and administrative complications. It may recommend reviewing licence fee structures, settling outstanding dues, and proposing frameworks that balance residents expectations with legal requirements. Its findings will guide the administration in taking decisions to provide clarity and stability in these colonies.

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