CHANDIGARH: With no major project undertaken for the past several years, the Chandigarh Housing Board (CHB) is now losing money and running deficits. As per the financials submitted for three financial years, 2022-23, 2023-24, and 2024-25, the CHB’s receipts are less than its payments.
From generating a surplus of Rs 25 crore in FY 2022-23, the CHB is heading to run a deficit of around Rs 4.5 crore in FY 2024-25. In the previous year, FY 2023-24, CHB generated a surplus of Rs 17.4 crore.
When the board of directors of the CHB meets on Feb 12, this worsening financial position will be on top of the agenda. The budget will be submitted to the board of directors for its approval. CHB has proposed to tap into its accumulated savings to tide over the deficit.
The receipts of CHB have been decreasing consistently. As per budget estimates 2023-2024, the receipts were pegged at Rs 473 crore. The actual receipts were Rs 108 crore. For the outgoing financial year, the receipts are pegged at Rs 120.26 crore. “The actuals are likely to be lower, which will be calculated at the end of the financial year,” said a CHB official.
The major source of income for CHB is derived from the sale of residential and commercial property, service charges, and user charges being charged from various allottees. A CHB official said, “The decrease in receipts in the revised estimates during 2023-24 was due to non-finalisation of schemes in IT Park (Rs 300 crore), UT Employees (Rs 5 Crore), and Sector 53, against which the provision was made in the previous year. The increase in the estimated receipt for the next financial year 2024-25 has been proposed due to the auction of vacant residential property, commercial property, and rental income.”
Similarly, the official said, the decrease in payments in the revised estimates during 2023-24 was due to non-finalisation of schemes in Sector 53, UT Employees, and IT Park Scheme and due to the decrease in CHB Works (Rs 134 Cr), Income Tax (Rs 48 Cr). The increase in the estimated payments for the financial year 2024-25 is due to an increase in CHB works from Rs 10.75 crore to Rs 44.13 crore, said the official.
The working of the CHB has come under the scanner and its relevance questioned with its failure to launch any new project after 2016. But it has continued to add to its employee strength, the latest being the addition of 38 engineers. CHB pays around Rs 2 crore per month in salary/wages to its employees, whose strength is around 500.
In the last five years, CHB has not much to show for. During this period, it completed 200 two-bedroom flats in Sector 51, office building ‘B’ block in CHB Complex, constructed a boundary wall at the complex of small flats complex at Dhanas, renovated rental accommodation of CHB employees, and renovated toilets in Hotel Chandigarh Beckons Sector 42. Recently, UT chief secretary-cum-CHB chairman directed it to undertake a fresh demand survey for the Sector 53 housing scheme. CHB is yet to start the survey.
