Chandigarh, August 24: The cash-strapped Chandigarh municipal corporation (MC) will auction nearly seven acres of prime land in Manimajra for residential development after receiving approval from the UT administration, which has directed that 15% of the flats be reserved for the economically weaker sections (EWS).
The 6.9-acre site lies in the Shivalik Enclave area, where five plots in Pocket Number 6 will be put up for auction with a cumulative reserve price of more than ₹794 crore. According to officials, the project is expected to draw major real estate developers, as the land may be allotted to either a single developer or a consortium. However, the plots cannot be fragmented or amalgamated, and all construction must conform to the approved zoning plan. The housing units will be strictly residential, with no commercial use permitted.
MC officials said the auction, once finalized, could provide significant financial relief to the civic body, which has been grappling with a budget crisis for over a year.
While the UT has made EWS reservation mandatory, officials admitted that there is no clear policy framework to implement it. The MC had earlier sought clarification on eligibility criteria, including the income ceiling for beneficiaries, the process for inviting applications, and the method of allotment.
In its reply, the UT administration acknowledged that while EWS flats have been allotted in the past under different housing schemes, no consolidated guidelines exist. This, officials said, has often led to confusion, with different income thresholds being applied in separate projects.
Municipal commissioner Amit Kumar said the administration has instructed the corporation to move ahead with the auction process while it works on a framework. “UT has now asked the MC to start the land auctioning procedure and instruct the successful bidder to reserve 15% of the flats for EWS people. A detailed policy on allotment will be framed by the UT before the completion of the project,” Kumar said.
The Manimajra auction is among the largest land monetisation efforts in the civic body’s history and is being closely watched as a test case for how Chandigarh balances real estate development with affordable housing obligations.
