The Mohali municipal corporation (MC) has formally sought the release of ₹678.68 crore from the Greater Mohali Area Development Authority (GMADA), claiming the amount has accumulated over nearly two decades under various revenue-sharing arrangements and funding commitments.
The demand, raised through an official communication to the GMADA chief administrator last week, comprises the MC’s pending share of scrutiny fees, non-construction charges, maintenance funding promised during the transfer of developed sectors, and reimbursement of operation and maintenance (O&M) expenditure incurred by the civic body.
The latest demand follows a series of letters and meetings between the two agencies dating back to 2011, indicating that the issue has remained unresolved despite repeated government-level interventions.
Major share pertains to scrutiny, non-construction fees
According to the MC, a decision taken in June 2011 provided that 50% of scrutiny fees and non-construction charges collected by GMADA within municipal limits would be transferred to the corporation with retrospective effect from April 1, 2008.
According to figures reconciled by the MC, GMADA collected ₹119.78 crore as scrutiny fees between 2007-08 and February 2026, entitling MC Mohali to ₹59.89 crore. However, only ₹14.65 crore has been received so far, leaving ₹45.24 crore outstanding.
{{/usCountry}}According to figures reconciled by the MC, GMADA collected ₹119.78 crore as scrutiny fees between 2007-08 and February 2026, entitling MC Mohali to ₹59.89 crore. However, only ₹14.65 crore has been received so far, leaving ₹45.24 crore outstanding.
{{/usCountry}}Similarly, against ₹477.41 crore collected as non-construction charges during the same period, the MC’s 50% share works out to ₹238.70 crore, of which no substantial payment has been released, leaving ₹224.05 crore pending.
The corporation maintains that these collections themselves are not under dispute and that the outstanding amount relates only to the unreleased municipal share.
Maintenance funding after sector handover
The correspondence also revisits the 2016 agreement under which GMADA transferred maintenance of roads, water supply, sewerage, street lighting, horticulture, solid waste management, community centres and other civic infrastructure in sectors 48-71 and 76-80 to the MC.
Under the arrangement, GMADA had committed to provide ₹50 crore annually from 2016-17 to 2020-21 and ₹22.50 crore annually from 2021-22 to 2025-26 towards maintenance and capital works.
However, records indicate that against a total commitment of ₹362.50 crore, only about ₹60.12 crore has been released so far, leaving a shortfall of approximately ₹302.38 crore. Several financial years reportedly saw either partial payments or no release at all.
Property tax reimbursement still pending
Under a cabinet decision dated August 2, 2021, GMADA was required to reimburse the MC 25% of the expenditure incurred by the corporation each year on the operation and maintenance of civic amenities in GMADA-developed areas. Accordingly, the MC submitted details of the expenditure incurred during the financial years 2016-17 to 2020-21.
Based on these records, an amount of ₹69.13 became payable to the MC as the 25% reimbursement. However, this amount has not yet been released by the GMADA.
For 2024-25, against an entitlement of ₹19.87 crore, the MC says it received ₹18.26 crore, leaving ₹1.61 crore unpaid. For 2025-26, against an entitlement of ₹27.62 crore, only ₹16.35 crore was released, leaving ₹11.27 crore pending.
Issue raised repeatedly over the years
The matter has been reviewed several times by the Punjab government since 2011. Meetings chaired by the then chief minister, the housing department and, most recently, the local government minister in January 2026 directed reconciliation of accounts between the two agencies.
The correspondence also highlights that the MC’s maintenance responsibility has expanded considerably over the years following the transfer of developed sectors and subsequent expansion of municipal limits, while funding support has not kept pace.
GMADA assures examination of demands
When contacted, GMADA chief administrator Sandeep Rishi confirmed that the authority had received the MC’s latest demand. “We have received the demand raised by the MC last week. The matter will be examined and the eligible amount will be released accordingly,” he said.
MC expects phased release
Mohali mayor Sarabjeet Singh Samana said, “Substantial dues were pending from GMADA and said the corporation’s financial burden had increased significantly following the recent expansion of the municipal area and the corresponding increase in civic infrastructure requiring maintenance. We expect, because it’s a large amount, GMADA will release it in a phased manner with the first transaction likely to happen by the end of this month.” The mayor hopes that the dues will help Mohali to work on long pending issues faced by residents.
According to GMADA officials in the know, the dues are expected to be released in installments, with the first tranche of around ₹100 crore likely to be received by the end of this month, subject to completion of the reconciliation process between the two agencies.