CHANDIGARH, Feb. 13 -- The Union ministry of micro, small and medium enterprises (MSME) has clarified that long-pending issues affecting industrial units in Chandigarh's Industrial Area, including restrictive Floor Area Ratio (FAR) norms, defective land titles, leasehold constraints and widespread building violation and misuse notices, fall primarily under the jurisdiction of the Chandigarh administration and the Ministry of home affairs (MHA), offering no immediate relief on several core demands of industry stakeholders. In a written reply to an unstarred question by MP Manish Tewari in the Lok Sabha on Wednesday, Minister of State for MSME Shobha Karandlaje said that promotion and development of industrial areas is a state subject, and that the Centre's role is limited in matters relating to local planning regulations and property administration in Chandigarh. The Ministry noted that the Industrial Area of Chandigarh is governed by architectural controls and zoning plans, under which the FAR was initially fixed at 0.5, later increased to 0.6 and subsequently to 0.75 or 1.00, depending on plot sizes. However, the government acknowledged that the issue of higher FAR, especially in comparison with neighbouring industrial areas in Punjab and Haryana - where FAR norms range between 2.5 and 3.0 - has been repeatedly raised. The reply said that the matter has been discussed in Deregulation 1.0 and 2.0 committee meetings for Industrial Area Phases I, II and III. In a fresh development, a committee was constituted by the UT administration on January 23, 2026, under the chairmanship of the deputy commissioner-cum-estate officer, to revisit and amend building regulations to reduce land loss on industrial plots. The panel is also reviewing the augmentation of civic services by the municipal corporation as a prerequisite for any potential increase in FAR. On the long-standing demand for conversion of industrial properties from leasehold to freehold and resolution of defective land titles, the Ministry stated that these matters are governed by the UT administration and the MHA. Significantly, it disclosed that a proposal sent by the administration for conversion of industrial and commercial plots from leasehold to freehold has been examined by the MHA and not agreed to, dashing industry hopes for an early policy shift. On penalties and retrospective amendments to the Chandigarh Estate Rules, the Ministry said action is being taken under the Capital of Punjab (Development and Regulation) Act, 1952, and related rules. It added that a proposal for amendment of penalty provisions has been forwarded to the MHA for consideration. The Ministry also ruled out any immediate relief through regularisation, stating that at present no one-time amnesty scheme for building violations is in force....