Following directions from UT administrator Gulab Chand Kataria, the Chandigarh Housing Board (CHB) has initiated steps to divide 21 acres of land in Sector 53, with roughly half proposed for auction to a private developer. The move has raised alarms among resident groups, who argue that it violates the city’s 2031 Master Plan and strays from CHB’s mandate to provide affordable housing.

The scheme, originally planned for launch earlier this year, now faces further delays amid rising costs, with tentative flat prices for HIG, MIG, and EWS units climbing by 35–40% since April, intensifying concerns about housing affordability in the city, according to a report by the Hindustan Times.

Federation of Sector Welfare Associations Chandigarh (FOSWAC) chairperson Baljinder Singh Bittu criticised the move, saying the CHB appears to be functioning as a real estate developer rather than a public housing agency. “As per the 2031 Master Plan, this land is strictly earmarked for a housing scheme. Auctioning it to a private builder would be a clear violation,” Bittu said.

He added that the CHB, established in 1976 to provide affordable and good-quality housing, is drifting from its original mandate. “Authorities are now behaving like real estate agents,” he remarked.

In October this year, Kataria had directed the UT chief architect to assess the feasibility of dividing around eight acres into two pockets—one to be auctioned, and the other used for housing. He also asked officials to examine options for increasing floor area ratio (FAR), building height, and density in the second pocket to make the scheme financially viable while keeping units affordable for the economically weaker section (EWS).

Even 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 which, on December 9, CEO shot a letter to chief architect asking him for zoning of the chunk in Sector 53.

The housing scheme, initially expected to be launched 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 surged following a 35–40% increase 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—illustrating strong demand for CHB housing. Applicants deposited ₹10,000 for HIG and MIG categories and ₹5,000 for EWS.

However, rising costs have eroded 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 just 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, saying 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.