The Sector 39 vegetable and fruit market in Chandigarh will be the first to experience the impact of the Ministry of Home Affairs (MHA) restrictions on the Chandigarh administration, which prevents auctioning or offering sites on a freehold basis. The administration was nearing the final stages of auctioning shop-cum-office sites in the new market on a freehold basis but is now revising its plans to align with MHA's guidelines.

The MHA has prohibited the administration from allotting industrial and commercial properties on a freehold basis, reaffirming its stance against converting leasehold properties to freehold. Consequently, the administration will now only offer leasehold properties in the Sector 39 market, deviating from its initial plan to auction 92 freehold plots.

Officials express concerns that the shift to leasehold may deter buyers, as many properties offered by the administration, municipal corporation, and Chandigarh Housing Board (CHB) remain unsold due to the lack of freehold options. The recent MHA decision adds to these challenges, potentially reducing interest in the Sector 39 market.

Despite the MHA's ban, the administration had previously dismissed a CHB proposal to auction its leasehold properties on a freehold basis, citing a lack of policy to permit such conversions. This decision follows a year after allowing the auction of its own leasehold properties as freehold.