State govt targets ₹24K cr by transfer of ownership rights of ULB properties

CHANDIGARH : The state government eyes mopping up at least ₹24,000 crore by transfer of ownership rights of properties that all 167 Urban Local Bodies (ULBs) own to those in legal possession for at least 12 years. This will be possible under a new law, ‘The Punjab Management and Transfer of Municipal Properties Act’ that the Vidhan Sabha passed in its budget session that concluded on March 4.

Local bodies minister Brahm Mohindra said, “If all goes well, my department could fund development projects by mopping up good revenue from the scheme and provide best urban facilities to residents. The department has a large number of properties leased out on nominal rent. We want to monetise these properties. The scheme that the government has rolled out will help shop dwellers, as it will make them owners. This will also help them expand businesses.”

ULBS TOLD TO IDENTIFY PROPERTIES AND MAKE AN INVENTORY

As the first step towards implementation, the local bodies department has asked all ULBs to identify properties and make an inventory. The department will also list down the market value and legal status of each of these properties. The legal status will clarify whether a particular property is under long-term lease or annual rent agreement.

Local bodies department director Bhupinder Singh said across the state, properties of an estimated value of ₹17,200 crore were on rent and properties of ₹6,643-crore were on long-term lease. “The government notification on the project is expected soon. After that, we will write to all ULBs to start the process to make people in possession as owners,” he added, saying that the state had been divided into six zones for the purpose. The exact size-wise break-up of properties is yet to be tabulated.

In 2016, the then Akali-BJP government had also passed a similar law, ‘The Punjab municipal (Vesting of Proprietary Right) Act. “The response was negligible as only a single property was transferred and that case too is also under vigilance scrutiny,” claimed an officer of the local bodies department. He added politicians at the grassroots had to ensure the success of the scheme, by passing on correct information. “What if a councillor tells a shopowner not to move his case? The scheme would never take off,” the officer claimed, adding the scheme was in the larger interest of all stakeholders.