Chandigarh Is in India by Vikramaditya Prakash. The most readable scholarly account of how Le Corbusier and Pierre Jeanneret made the city, written by an architect who grew up there. Strong on the politics and the practical compromises behind the master plan.
Chandigarh: Living with Le Corbusier by Maristella Casciato (ed.). A more recent edited volume that takes the question further: how do you live in a city designed as a manifesto seventy years after the manifesto was written?
Train to Pakistan by Khushwant Singh. Not set in Chandigarh, but essential reading for understanding why the city exists at all. Singh's classic novella about a Punjabi village during Partition gives the human texture to a political event that produced the new capital.
The Lost Generation by Nirupama Dutt. A clear-eyed account of the Punjab insurgency of the 1980s and 90s, when Chandigarh sat at the centre of one of India's bloodiest internal conflicts.