Chandigarh Housing Board Plans to Auction Sector 53 Land to Private Builders
The Chandigarh Housing Board (CHB) is pushing forward with plans to auction a portion of Sector 53 land to private developers, a move that has sparked controversy and criticism from residents' bodies.
Chandigarh Housing BoardSector 53Real EstateHousing SchemeMaster PlanReal EstateDec 11, 2025
In a letter sent on December 9 to the UT chief architect, CHB chief executive officer Pardeep Kumar stated that Sector 53 spans approximately 21 acres, with 11 acres designated for a general housing scheme for UT employees. Kumar has requested zoning details for the remaining land to obtain the necessary approvals to auction about half of it to a private developer.
Baljinder Singh Bittu, chairperson of the Federation of Sector Welfare Associations Chandigarh (FOSWAC), criticized the move, stating that the CHB seems to be functioning more like a real estate developer than a public housing agency. “According to the 2031 Master Plan, this land is strictly allocated for a housing scheme. Auctioning it to a private builder would be a clear violation,” Bittu said. He further added that the CHB, established in 1976 to provide affordable and good-quality housing, is straying from its original mandate. “Authorities are now acting like real estate agents,” he remarked.
In October this year, Kataria directed the UT chief architect to assess the feasibility of dividing around eight acres into two segments. One segment is to be auctioned, and the other is to be used for housing. He also instructed officials to explore options for increasing floor area ratio (FAR), building height, and density in the second segment to make the scheme financially viable while keeping units affordable for the economically weaker section (EWS).
On December 7, Kataria inspected several key sites, including the IT Habitat Project in Manimajra, Sanjay Colony in Industrial Area Phase I, the Sub-City Centre in Sector 43, CHB projects in Sectors 53 and 54, the vacated furniture market land in Sector 54, and Adarsh Colony in the same sector. Following this inspection, on December 9, the CEO sent a letter to the chief architect asking for the zoning of the land in Sector 53.
The housing scheme, initially expected to launch before Diwali this year, now faces further delays. Tentative prices currently stand at ₹2.30 crore for a three-bedroom unit, ₹1.97 crore for a two-bedroom flat, and ₹74 lakh for an EWS unit. These estimates have increased due to a 35–40% rise in collector rates since April, raising concerns about affordability.
A demand survey completed in March received 7,468 applications for only 372 flats—nearly 20 applicants per unit—highlighting the strong demand for CHB housing. Applicants deposited ₹10,000 for HIG and MIG categories and ₹5,000 for EWS. However, rising costs have compromised the financial viability of the scheme. During the demand survey, estimated prices were significantly lower: ₹1.65 crore for a three-bedroom, ₹1.40 crore for a two-bedroom, and ₹55 lakh for an EWS flat.
Sector 53 has faced setbacks for nearly a decade. First proposed in 2018, the scheme received only 178 applications for 492 flats, primarily due to high prices—₹1.8 crore for a three-bedroom, ₹1.5 crore for a two-bedroom, and ₹95 lakh for a one-bedroom unit—forcing the CHB to shelve it. In 2023, the board revived the project, but then UT administrator Banwarilal Purohit halted it, stating that Chandigarh did not immediately require a new housing scheme. His successor, Kataria, revived it again in November 2024.
Now, in October 2025, Kataria has instructed the UT chief architect to explore dividing the land and auctioning part of it. With the CHB now seeking zoning approval for the site, the proposal has moved a step closer to implementation—setting the stage for a potential clash between the administration, planners, and resident groups in the coming weeks.
Frequently Asked Questions
What is the main concern of the residents' bodies regarding the CHB's decision?
The main concern is that auctioning part of Sector 53 to a private developer violates the city’s master plan and deviates from the CHB’s mission to provide affordable housing.
What is the current status of the proposed auction in Sector 53?
The CHB is seeking zoning approval for the land and has moved a step closer to implementing the proposal to auction part of Sector 53.
How has the cost of housing units in Sector 53 changed since the initial estimates?
The costs have increased significantly. Tentative prices now stand at ₹2.30 crore for a three-bedroom unit, ₹1.97 crore for a two-bedroom flat, and ₹74 lakh for an EWS unit, up from the initial estimates of ₹1.65 crore, ₹1.40 crore, and ₹55 lakh respectively.
Why was the housing scheme in Sector 53 shelved in 2018?
The scheme was shelved in 2018 due to high prices, which resulted in only 178 applications for 492 flats.
What is the CHB's original mandate, and how is the current proposal perceived as a deviation from it?
The CHB was established in 1976 to provide affordable and good-quality housing. The current proposal to auction land to private developers is seen as a deviation from this mandate, as it prioritizes financial gains over affordable housing.
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