CHANDIGARH: A major scam has erupted in the Chandigarh Administration after allegations surfaced that the then Home Secretary tampered with the final approved draft of Punjab Governor Administrator Chandigarh regarding the transfer of society flats in 2009, resulting in a direct government revenue loss to the tune of crore of rupees. The alleged manipulation bypassed the mandatory charging of a one-third unearned increase in land cost as calculated by the Estate Office, Chandigarh.
The issue centers on the throwing all rules, laws and Acts into the dustbin and forced the cooperative societies to transfer flats in the name of GPA holders allow circumventing formal mandatory execution of registered sale deeds while the Apex Court. Even Apex Court various ruling make such transfer invalid.
Sources indicate that the Administrator, Chandigarh had given final approval to a specific draft order also signed by 21 officials on 2.3.2009 outlining the regularization process and associated charges to be paid by the transferee. However, the order that was eventually issued under the Home Secretary's authority on the same day reportedly omitted crucial three clauses. Surprising thing of the matter is that all this exercise has been done within five hours that was too during code of conduct. The order issued by the then Home Secretary bears the dispatch number of finance department 128/UTFI(4)/2009/4039. The Home Secretary does not the legal power to overturn or modify an approval granted by the Governor Punjab and Aministrator Chadigarh and his action legally invalid.
The order issued by the then Home Secretary omitted three clauses approved by the Administrator UT Chandigarh – society should have been issued completion certificate; NOC from the house building society and the collection of one-third of the unearned increase in land value as calculated by the Estate Office. This omission effectively granted an undue financial benefit to the individuals involved in GPA-to-GPA transfers at the cost of government revenue.
The financial impact of this alleged manipulation is estimated loss of government revenue in crore of rupees. The core evidence in the case is the comparison between the Administrator's final approved draft and the actual order issued by the Home Department with mala fide. Even then the Minister of State for Finance Mr Pawan Kumar Bansal wrote a DO letter dated 20.2.2008 stating the “newly added clause about unearned income in the policy may be withdrawn. A official in response to this letter stated that the Administration has not added any new clause about “unearned income” and Rule 8 © of the Chandigarh (Sale of Sites and Building Rules 1960 and Rule 17 (10) of the Chandigarh Lease hold of sites and building Rules 1973 the charging of unearned increase is mandatory and it is not the discretion of the authorities.
In a stunning revelation of alleged financial and administrative malpractice, hundreds of flats in 70 prominent housing cooperative societies spread in four sectors in Chandigarh have reportedly transferred for a "zero amount, " bypassing legal and financial protocols caused huge revenue loss to the government. While estate office had calculated 1/3rd unearned increase in land cost as – for category ‘A’ Rs 5, 25, 480; category ‘B’ Rs 3, 75, 348 and category ‘C’ Rs 2, 92, 000.
The then managing committee of the society in Sector 48 had refused to transfer 12 flats simply as their documents were not valid in the eyes of law. The then Registrar, Cooperative Societies, Chandigarh dissolved the committee and enforced an administrator to transfer flats. The Administrator had transferred 12 flats along with transfer of share/membership is legally invalid. Even these share transfers have not been approved by the general house.. Thus action of administrator resulted in revenue loss to government exchequer to the tune of Rs 49, 54, 572. The society had written a number of letters to the higher authorities even the Administrator UT Chandigarh for vigilance inquiry into the matter but the case files do toss like a tennis ball from on office to other on one pretext or the other. Despite society pleas to the Registrar, Cooperative Societies, Chandigarh to endorse these transfer but he refused to do so. He had also refused to provide number of flats category-wise transferred in 2009 by stating th
The Finance Department order No 33/3/128/UTFI(4)/2008/5750 dated 15.8.2008 clearly stated transfer should be done through a legal process. On the other it also states that whereas the Administrator UT Chandigarh after carefully examining these issues, is unable to accede to their request so far as the non-charging of unearned increase is concerned shall be payable bytransferor or transferee to the Chandigarh Administration. Even the then Finance Secretary vide letter No 33/3/128/UTFI(3)/2009/6769 dated 8.10.2009 specifically stated “The terms and conditions as already conveyed vide this department note dated 2.3.2009 shall be followed strictly.
The Special Secretary, Estates stated that all these transfers have been done without having the deed of conveyance executed duly registered with Sub Registrar, Chandigarh thus were in contravention to the provisions of Transfer of Property Act; Stamp Duty Act and Registration Act. Further he stated that the order 2.3.2009 by the Department of Cooperation has certain legal infirmities and not in consonance with the orders of Hon’ble Apex Court and Punjab and Haryana High Court..
The act of omission and commission of officials has led to call for an immediate and high-level investigation into the scam. Stakeholders are demanding accountability and the recovery of the lost government revenue and loss to each society. This development raises serious questions about transparency and integrity within the top tiers of the local administration. Time has come when everyone peep deep into themselves what type of system we are leaving behind for coming generation.