APPLICATION FOR PERMISSION TO MORTGAGE
AN ALLOTTED SITE OR BUILDING, AND FOR
THE PRIOR CONSENT IN WRITING OF THE ALLOTTING AUTHORITY
To,
The Estate Officer, Union Territory of Chandigarh, Town Hall Building, Sector 17-C, Chandigarh 160017
(This application is made to the Estate Office, Union Territory of Chandigarh under the Capital of Punjab (Development and Regulation) Act, 1952 and the Chandigarh Estate Rules, 2007, and to no other authority.)
To,
The Estate Officer, Greater Mohali Area Development Authority, PUDA Bhawan, Sector 62, S.A.S. Nagar 160062
(This application is made to the above development authority under the Punjab Regional and Town Planning and Development Act, 1995, and to no other authority.)
Date: 5 April 2026
Subject: Permission to mortgage House No. 1247, Sector 33-C, Chandigarh 160020 in favour of State Bank of India, the loan applied for being a loan to be advanced for constructing the building on the said site.
Sir / Madam,
- WHO IS APPLYING. I, Harpreet Singh Gill, son of Sardar Gurdial Singh Gill, resident of House No. 1247, Sector 33-C, Chandigarh 160020, apply for permission to mortgage the property described in paragraph 2 below, and for the prior consent in writing of the allotting authority to the creation of that mortgage. I hold the said property as the allottee named in the letter of allotment. I am aware that a mortgage created without that prior consent is a breach of the conditions on which the said property was allotted, and that no bank will release money against a property whose file at the allotting authority does not carry the permission.
Mobile: +91 XXXXX XXXXX
Email: harpreet.gill@example.com
JOINT HOLDER. The said property is held jointly and every holder joins in this application. Jaspreet Kaur Gill, wife of Harpreet Singh Gill, resident of House No. 1247, Sector 33-C, Chandigarh 160020, joins in it and has signed it below. The allotting authority keeps one file for the whole of the said property and grants one permission for it. An application signed by one of two joint holders is not a partly good application but an incomplete one, and the notified period for the service does not begin to run on it. Where the annexures to this application are being filed, each holder swears a separate affidavit and executes a separate indemnity bond, each on that holder's own stamp paper and each separately attested.
SIGNED BY AN ATTORNEY. This application is signed on behalf of the holder of the said property by Manjit Singh Bedi, whose authority is a general power of attorney dated 14 March 2024, registered with the Sub-Registrar, U.T. Chandigarh at Serial No. 2216 of Book No. 4. A certified copy of the power of attorney and an attested copy of the attorney's identity document are enclosed, and the original will be produced. The attorney confirms that the power has not been revoked or cancelled and is still valid and operative, that the principal is alive as on the date of this application, that there is no underhand sale between the principal and the attorney, and that the power was not executed to circumvent the Indian Stamp Act, 1899. Where an affidavit is required with this application, the attorney is the deponent of it and swears to the records of the office and to the attorney's own knowledge, and not to anything that is within the knowledge of the holder alone.
WHERE THE HOLDER IS A FIRM OR A COMPANY. The said property stands in the name of M/s Gill Auto Components Private Limited, CIN U34103PB2011PTC035412, registered office SCF 24, Phase 7, Industrial Area, S.A.S. Nagar, and this application is signed by Sardar Harpreet Singh Gill, Director, under the resolution of the board of directors dated 2 September 2026. The authorisation on the letterhead of the firm, or the resolution of the board of directors on the letterhead of the company, naming the authorised signatory and attesting the specimen signature, is enclosed, together with the partnership deed and the chain of partners, or the memorandum and articles of association, the certificate of incorporation and the permanent account number of the company, as the case may be.
- THE PROPERTY. House No. 1247, Sector 33-C, Chandigarh 160020, being residential property held on leasehold tenure. It is called "the said property" in this application.
Area of the site or unit: 10 marla (about 302.5 square yards).
File number or property identification number on the records of the office: EO/RES/33C/1247.
The share proposed to be mortgaged is 100% (the whole of the said property).
- HOW THE SAID PROPERTY CAME TO BE HELD. The said property came to the applicant by way of allotment by the office, evidenced by Allotment Letter No. EO/AL/33C/1247/1998 dated 12 June 1998 dated 1 April 2026.
Physical possession of the said property was delivered to the applicant on 2 April 2026.
- THE LOAN AND THE LENDER. The applicant has applied to State Bank of India, State Bank of India, Sector 17-B Branch, Bank Square, Chandigarh 160017, for a loan of Rs 48,00,000. The loan is a loan to be advanced for constructing the building on the said site.
The loan was sanctioned on 4 April 2026.
Sanction letter reference: Sanction Letter No. SBI/17B/HL/2026/1188.
The security the lender requires is an equitable mortgage by deposit of title deeds under section 58(f) of the Transfer of Property Act, 1882. The consent letter of the lender, on the letterhead of the lender and signed by its authorised signatory under seal, is enclosed in original in the form set out at Annexure A to this application.
- EARLIER MORTGAGES AND CHARGES. Save as stated in this paragraph, the said property is free from every mortgage, charge, lien and encumbrance, no part of it stands mortgaged to any person, and no loan of the applicant or of any other person is secured on it.
AN EARLIER MORTGAGE, AND ITS CLEARANCE. The said property was mortgaged to Punjab National Bank, Sector 22-B Branch, Chandigarh in 2016 to secure a housing loan of Rs 22,00,000. The loan was repaid in full on 30 June 2026 and the bank's no objection certificate dated 14 July 2026 is enclosed in original. The no objection certificate of the earlier lender, on the letterhead of that lender, stating that the loan against the said property has been cleared and that nothing is outstanding against the applicant, is enclosed in original, together with the redemption deed or the reconveyance where one has been executed. The office is requested to note the redemption of the earlier mortgage on the file of the said property before, or at the same time as, it grants the permission now applied for. Where the earlier loan is to be taken over by the lender named in paragraph 4 above, the applicant asks the office to say so in terms in the permission, so that the file of the said property does not come to show two subsisting mortgages at once.
- THE STATE OF DUES. No Dues Certificate No. EO/NDC/2026/4821 dated 12 August 2026 is enclosed. The entire premium of the said property, with interest, stands paid; the annual ground rent and the goods and services tax charged on it stand paid and credited; and nothing is outstanding on any head as on that date.
Ground rent, and the goods and services tax charged by the office on it, stand paid and credited up to 3 April 2026, and the receipts or challans for the last three payments are enclosed.
The applicant undertakes that if any amount is found by the office to be due on the said property on any head, it will be paid within thirty days of the grant of the permission to mortgage, and the applicant accepts that the permission may be made conditional on that payment.
- THE BUILDING ON THE SAID PROPERTY. The said site is vacant and no building has yet been raised on it.
The document produced with this application to establish the status of the building is Occupation Certificate No. EO/OC/2001/774 dated 9 August 2001, issued by the Estate Office, U.T. Chandigarh.
Where the office requires proof of the building, the applicant produces the Occupation Certificate; failing that, the sewerage connection certificate; and failing both of those, the certificate of the date of permanent release of the electricity or water connection issued by the concerned authority, together with a certificate of a Registered Architect on the letterhead of the architect that the building has been constructed in accordance with the sanctioned building plan and that there is no violation in the building so constructed.
- LITIGATION, INJUNCTION AND ATTACHMENT.
WHAT IS DISCLOSED. A show cause notice under Rule 10 of the Chandigarh Estate Rules, 2007 dated 3 February 2024 in respect of an alleged misuse of the rear garage was replied to on 20 February 2024 and no order has been passed on it. The applicant does not admit any misuse. The applicant discloses this squarely rather than leave it to be found on the file, and asks the office to record the disclosure and to deal with the application on its merits.
Save as disclosed in this paragraph, no suit, appeal, revision, execution or other proceeding is pending in any court or before any authority in respect of the said property; no injunction or other order restraining the transfer, sale or mortgage of the said property has been issued by any court; the said property is not under attachment; and no notice of resumption, cancellation, misuse or recovery in respect of the said property is pending against the applicant.
- THE STATUTORY BASIS OF THE PERMISSION, AND WHAT TURNS ON IT. The said property was allotted or auctioned by a public authority and the applicant's right in it is subject to the conditions of that allotment. The permission now applied for is the prior written consent of that authority to the creation of a security interest over the said property, and it is not a transfer of the said property, a sale of it, or a waiver of any condition of allotment.
IN CHANDIGARH. The said property is governed by the Capital of Punjab (Development and Regulation) Act, 1952 and, according to the date of its allotment, by the Chandigarh Estate Rules, 2007 or by the rules in force at the time of allotment and saved by Rule 20(ii) of the 2007 Rules. Rule 7(ii) of the Chandigarh Estate Rules, 2007 treats a mortgage of a site or building allotted on concessional rates or on leasehold basis, or of any right, title or interest in it, as a transfer for the purpose of the one-third share of the unearned increase, which is otherwise payable to Government before the transfer is registered. The first proviso to Rule 7(ii) then takes the mortgage out of that charge where the mortgage or charge is created with the previous consent in writing of the Estate Officer in favour of the Central Government, a State Government, the Chandigarh Administration, the Life Insurance Corporation of India or any Scheduled Bank, for securing a loan to be advanced by them for constructing the building on the site. The exemption is drawn round a CONSTRUCTION loan and round those lenders, and a loan taken for some other purpose, or from a lender outside that list, does not answer it.
THE POSITION CLAIMED ON THE SAID PROPERTY. The said property is held on freehold tenure and was not allotted at concessional rates, so no share of the unearned increase arises on it under Rule 7(ii) of the Chandigarh Estate Rules, 2007.
THE FIFTEEN-YEAR BAR IN RULE 7(i), PUT TO THE OFFICE RATHER THAN LEFT TO THE COUNTER. Rule 7(i) of the Chandigarh Estate Rules, 2007 bars the transfer of a site or building allotted on concessional rates or on leasehold basis before the expiry of fifteen years from the date of allotment. The said property was allotted on 1 April 2026. The applicant does not read that bar as catching a mortgage created with the previous consent in writing of the Estate Officer, for two reasons: the first proviso to Rule 7(ii) expressly contemplates exactly such a consented mortgage, in favour of a Scheduled Bank and for constructing the building on the site, so a reading that forbade the security while permitting the consent would leave that proviso with nothing to operate on; and a mortgage, unlike a sale or a gift, leaves the ownership recorded on the file of the said property untouched. If the office holds otherwise, the applicant asks it to say so IN WRITING, naming the provision it relies on, rather than return the file across the counter, so that the applicant may take the point to appeal or apply for relaxation before the disbursement date is lost.
THE PRE-EMPTIVE RIGHT. The applicant is aware of the second proviso to Rule 7(ii), by which the Government has the pre-emptive right to purchase the mortgaged or charged property after deducting one-third of the unearned increase, and applies for the permission subject to it.
THE PUBLIC NOTICE EFFECTIVE 10 FEBRUARY 2023. The applicant asks the office to confirm on the acknowledgement of this application that the Public Notice of the Estate Officer effective 10 February 2023, made after the judgment of the Supreme Court of India dated 10 January 2023 in Residents Welfare Association v. Union Territory of Chandigarh, SLP(C) Nos. 4950 and 5489 of 2022, which stopped transfers and mutations of residential properties outside four permitted categories pending the decision of the Chandigarh Heritage Conservation Committee, does not affect a permission to mortgage - a permission which does not change the ownership recorded on the file, even though Rule 7(ii) calls a mortgage a transfer for the purpose of the unearned-increase charge. If the office holds that the Public Notice does affect this application, the applicant asks to be told so at once and in writing, and not after the date fixed for disbursement has gone by.
THE APPLICANT FURTHER NOTES that Rule 1(ii) of the Chandigarh Estate Rules, 2007 applies those Rules to allotments and auctions made after 7 November 2007, that the said property was allotted on 1 April 2026, and that where the allotment is earlier what governs the said property is the condition of allotment and the rule then in force, saved by Rule 20(ii). Nothing in this application is an admission that any particular head or figure applies to the said property, and the applicant asks the office to state in the permission the head and the amount, if any, it holds to be payable, so that the applicant may pay it or contest it.
The applicant also notes that section 3(3) of the Capital of Punjab (Development and Regulation) Act, 1952 keeps the site or building belonging to the Central Government until the whole of the consideration money together with interest and any other amount due is paid.
THE REMEDY IF THIS APPLICATION IS REFUSED, WHICH IS NOT THE REMEDY IF IT IS DELAYED. Section 19 of the Capital of Punjab (Development and Regulation) Act, 1952 bars the jurisdiction of the civil courts over an order made under that Act, so a refusal is not answered by a suit. An appeal against an order refusing this permission lies to the Chief Administrator, Union Territory of Chandigarh, within THIRTY DAYS of the communication of the order, under section 10 of the 1952 Act read with Rule 18 of the Chandigarh Estate Rules, 2007, and the appellate authority may condone a delay in filing it for sufficient cause. A revision lies within thirty days of the appellate order - to the Adviser to the Administrator under Rule 18(iv) where the order was made under the 2007 Rules, and to the Central Government under section 10(4) where the order was made under section 8 or section 8-A of the 1952 Act. That ladder answers a REFUSAL. The Right to Service ladder in paragraph 12 below - the Assistant Estate Officer as designated officer, then the Estate Officer, then the Secretary Estate - answers DELAY, and an applicant who has been refused and climbs the delay ladder instead will spend the thirty days doing it. The applicant therefore asks that any refusal be communicated in writing, with reasons and with the date of the order stated on it.