In a significant financial boost for the cash-strapped Municipal Corporation (MC) of Chandigarh, the UT Administration has approved the auction of 7 acres of land in Manimajra for a housing project on a freehold basis.
The land, located in Pocket 6 near Panchkula, is expected to fetch over ₹400 crore, according to sources. This comes as a major relief for the civic body, which is currently facing a severe financial crisis and has been unable to fund development works.
Confirming the development, MC Commissioner Amit Kumar said that the corporation had received the approval letter from the Administration and had sought a few clarifications. “The auction process will begin after we receive the clarifications,” he said.
Mayor Harpreet Kaur Babla, who had taken up the matter with UT Administrator Gulab Chand Kataria, welcomed the decision. She said the Department of Architecture and Urban Planning had also approved the zoning plan for the residential site as per the Chandigarh Master Plan.
Babla highlighted that the auction would help the MC tide over its financial crisis. She also reiterated her request for the MC to receive a share of the revenue generated by the Registering and Licensing Authority (RLA) through vehicle registrations. She urged that at least 50% of that revenue be allocated for maintaining city roads and parking.
Citing the Municipal Corporation Act, 1976, which applies to the UT, she pointed out that the MC is entitled to a share in road tax collections — a share it is currently being denied. She added that the Administrator had assured a separate grant of ₹238 crore to the MC.
The last major land auction by the MC was in 2005, when a 5.39-acre plot in Manimajra was sold to Uppal Housing for ₹108 crore. The project, which delivered over 160 flats, saw a strong public response. Another notable sale was in 2006, when a hotel site in Sector 35 was auctioned for ₹101.37 crore on a leasehold basis.
The upcoming auction could mark a turning point for the financially struggling civic body, providing much-needed funds for basic infrastructure and development.
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