12% penalty a year for rent defaulters in Chandigarh’s rehabilitation colonies
The UT housing department aims to recover around ₹15 crore in rental arrears through the amendment notified on June 2 to the Chandigarh Small Flat Scheme 2006.
Chandigarh: People living in Chandigarh’s rehabilitation colonies will now have to pay 12% penalty per annum for defaulting on rent for their small flats/dwellings unit to the Chandigarh Housing Board (CHB).
The UT housing department notified the Chandigarh Small Flat (Amendment) Scheme 2020 on June 2 under which defaulters will have to pay CHB 12% penalty per annum on delayed/outstanding rent for small flat/dwelling unit allotted under the scheme.
The department aims to recover around ₹15 crore in rental arrears through the amendment notified on June 2 to the Chandigarh Small Flat Scheme 2006.
No penal interest previously
Significantly there was no provision of penal interest in the 2006 scheme.
“Many allottees were not paying rent due to the CHB for some years. The outstanding amount had crossed over ₹30 crore over several years. While earlier allottees could get away with non-payment or delays, now they will have to pay penalty. We expect greater compliance with the rental norms,” said a senior UT official privy to the development.
CHB last year organised special camps for rent recovery in the rehabilitation colonies in Dhanas, Ram Darbar, Mauli Jagran, Sector 38, Sector 49 and Sector 56.
The board recovered ₹18 crore from these camps which were spread over 10 days.
Another three-day mini camp was organised at Industrial Area phase 1, after which the department prepared a list of about 250 defaulters.
Allotment of some people who had defaulted on rent were also cancelled.
“Under the small flat scheme, CHB charges small amount of rent, but despite this, many allottees are not depositing the same. The monthly rent is ₹800, which is increased by 20% after every five years. The board has asked all the allottees to pay their rent soon to avoid action,” said the offical.