Critical analysis of regularisation of GPAs in Coo

Housing in any city anywhere in the world is something that is most cherished by people. A roof on your head is must. However, with increasing population and nuclear families, paucity of available land in the metros and small cities, governments are finding alternative ways of providing affordable Houses. The situation got no different in Chandigarh. Following the trend in other cities, Chandigarh administration also formulated a policy where it would allot land on chunk basis through Chandigarh Housing Board for construction of Dwelling units (DU) to be allotted to its eligible members. The onus of developing the land and construction of the DUs rested on the management of the cooperative house building societies.
The concept of the scheme was mooted in the late eighties and allotment of land to cooperative house building societies infact was made in the 1992. Under this scheme members of the cooperative housing societies were allotted plots. Need for more housing was felt and Chandigarh administration decided to develop third phase sectors from Sectors 48 to 51.The process of acquiring land was continuosly delayed due to court cases and other reasons. Miffed at this, Shri Satya Pal Jain, the then MP from Chandiarh demanded central intervention to resolve the matter. The then Administrator U.T. Chandigarh Shri BKN Chhibber had said in October 1999 that
the Administration was in the process of acquiring land for the housing societies, which would be completed by this year, benefiting a total of 7,373 members of 64 such societies. He said that the issue of allotment of land to them was hanging fire since a long time due to litigation and various other problems, which had now been resolved by the Administration and land to the societies would be allotted in the third phase of Chandigarh soon.
A scheme called the “Chandigarh Allotment of Land to Coop.House Building Societies Scheme, 1991” vide notification dated 28.5.91. The Chandigarh Housing Board was made the nodal agency for implementing this scheme. Eligible Coop. House Building Societies were requested to send the applications/documents of their eligible /screened members alongwith 25% tentative cost of land @750/- P.S.Y. in Oct/Nov., 1991, for making an assessment of the demand, there was no commitment for allotment
Some of the societies went to the Hon’ble High Court against certain provisions of the scheme.The writ filed by the petitioners was dismissed on 18.12.96 & the societies were asked in Nov./Dec. 1997 to deposit 15% balance to complete 25% of the tentative cost of land alongwith interest within 2 months. Before any of these societies were allotted land, the rate of land was refixed @2500/- P.S.Y. on lease hold basis and @ 2850/- P.S.Y. for free-hold basis in 2000. The 61 remaining societies were asked to complete 25% E.M. at the revised rate. Presently, 57 societies are to be allotted land on free-hold basis. The Chandigarh Administration, has allocated 63.436 acres of land to 31 societies in Sec-48,49 & 51 (Details). The remaining 26 societies will also be allotted land shortly. Land for 3 Societies- United & Priyadarshani & City Star has also been kept reserved as per interim order of the Hon’ble Court.Subsequently the scheme was repealed and w.e.f. 20.1.1997 no. New Cooperative House Building Societies are being registered by RCS UT., and no further allotment of land is to be made to any Cooperative House Building Society.
The revised rate led to a lot of resentment among members of the societies. They maintained that instead of allotting land at the previous rates, the Administration was asking for more money from them to make them eligible for allotment of land. This, they alleged, was discriminatory as they could not be charged the new rate after payment of earnest money several years ago.Other major issue coming in the way of the land was its acquisition and clearing it of all encumbrances.Aministration launched a concerted campaign to clear all encroachments, & planned to clear all encroachments in Sectors 49, 50 and 51 before the draw of lots for the societies.
However, while allotting the land to cooperative housing societies in 2002, Chandigarh Housing Board vide section 22 of the allotment letter, arbitrarily changed this proviso from “5 years from the date of allotment to 5 years after the completion.” This tampering of the statutory rule on transfer was widely resented and the Administration had to retrace its act and it agreed to apply the rule that transfer could be effected after 5 years of allotment.

Section (3) of allotment letter state “The Allotment/Sale shall be governed by the provisions of the Capital of Punjab (Development and Regulation) Act 1952 and the Chandigarh (Sale of Sites and Building Rules, 1960”

Purpose of applicability of these rules is shown inter alia :

Section (2) “ xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx.In case
The installment of sale Price is not paid on the due date, interest as per provisions of the Chandigarh (Sale of Sites and Building) Rules 1960 or at such other rate as may be fixed by the Chandigarh Administration.”

Section (12) of the allotment letter states “The building on the site shall be constructed strictly in accordance with the approved /sanctioned plans. Which must conform to the Punjab Capital (Development & Regulation) Building Rules, 1952 and the provision of Frame Control and Architectural Control and Zoning plan (which ever is applicable.)”

Section 11 further requires “The Society shall have to execute the deed of conveyance in respect of the land allotted to it after the total price of the land and all other dues are paid by the society.”

The rationale of policy/rule makers to apply the provisions of the Capital Of Punjab (Development & Regulations) Act 1952 and Chandigarh (Sale of sites and Building rules) 1960 in addition to the terms and conditions of allotment lay:

In ensuring proper construction of the dwelling units, according to zoning plans and approved/sanctioned plans in consultation with Chief Architect, and Secretary Architecture Department Union territory chandigarh.and to get accorded to it the sanction of the Chief Administrator Chandigarh., on the land allotted to the society (Capital of Punjab(Development & Regulations) Act 1952.

To lay a procedure in case of default where in administration reserved to it a provision within rule 11 of Chandigarh (Sale of Sites and building) Rules, 1960 which reads:” In case an installment is not paid (under rule10) by the transferee by the 10th of the following month in which it falls due a notice shall be served on the transferee calling upon him to pay the installment within a month with a penalty which may extend to ten percent of the installment payable. If the payment is not made with the said period or such extended period as may be determined by the Estate Officer, but not exceeding three months in all from the date on which installment was originally due, the estate officer may proceed to have the same recovered as an arrears of land revenue or to take action under the Act.” To further strengthen its stance it added within the Chandigarh Allotment of Land to Cooperative House Building Societies Scheme 1991” The Society and its members shall be jointly and severally responsible for payment of premium including installments”.

From the foregoing, it is clear that the society to which land has been allotted in any of the schemes floated by the Chandigarh Administration, nowhere application of the Sale of Sites and Building Rules 1960 in the context of other than rule 11 is legally void. Similarly. Application of Punjab Capital (Development & Regulation) Act 1952 in a context other than ensuring planned development of the Society complexes is also untenable

Further, byelaws of the society vests powers to enter new member, to transfer old shares. Relevant portion of the bye laws is reproduced below:

“Byelaws rule 36 (i) to (vii) xx xx xx xx xx (viii) to elect new members, to issue and transfer old shares. (ix) to (xxiv) xx xx xx xx.

Section 105 of Punjab Cooperative Societies Act 1961 (as applicable to UT Chandigarh) contains a special provision for regularization of occupancy rights who have acquired such a right through the instrument of the general power of attorney or agreement for sale.

This aspect, and this is very important aspect under review, of regularization of the occupancy rights of such persons who have acquired this right through the instrument of the general power of attorney is not getting the attention of the administration. The GPA holders were made nominees by the allottees and the list of such nominees is entered in the register of the Registrar Cooperative Societies. In the event of demise of an allottee, the nominee gets to transfer the plot on his name without paying any charges. While allowing substitution in a GHS, in the matter of a civil writ petition before the Hon’ble Punjab and Haryana High Court, Chandigarh Administration went for consensual charges of Rs. 50,000/, Rs. 35000/-, Rs.25000/- for Category A, B, C respectively.

The neighboring states of Punjab, Haryana, and Delhi have framed “People Friendly” rules to regularize transfer of flats on the names of GPAs by charging nominal fee ranging from 10,000/- to 30,000/- for all categories of the flats in the cooperative housing societies.Chandigarh Administration should realize that it was the GPAs funds that were instrumental in the completion of the societies’ projects and that it need not harass this class.

Satish Chandra Sharma,
General Secretary,
Cell: 9888-255-128