Aerotropolis project: Landowners from first phase still await possession of developed plots

GMADA had recently announced the compensation for second-phase acquisitions; there are around 6,500 to 7,000 such landowners – their lands were acquired for the development of Pockets A to D of the project – who say they received the letters of intent (LOIs) in 2021 but still have no clarity on when possession will be handed over, where their plots will be located, or when the required infrastructure will be completed.

While the Greater Mohali Area Development Authority (GMADA) recently made headlines for awarding a record compensation of ₹23,457 crore for 3,522.98 acres acquired for the second phase Aerotropolis project, landowners from the first phase say they are still awaiting possession of the residential and commercial plots promised under the land pooling policy.

Aerotropolis project: Landowners from first phase still await possession of developed plots

There are around 6,500 to 7,000 such landowners – their lands were acquired for the development of Pockets A to D of the project – who say they received the letters of intent (LOIs) in 2021 but still have no clarity on when possession will be handed over, where their plots will be located, or when the required infrastructure will be completed.

According to the affected landowners, they opted for the land pooling policy instead of monetary compensation, thinking it was a better deal, and in anticipation that the project would be completed in a timely manner. But years on, they say, they regret their decision.

Many question why GMADA is going ahead with the second phase of acquisition – for Blocks E to J – when it hasn’t been able to settle the pending claims of beneficiaries from the first phase.

2nd phase compensation nearly double that of highest in 1st phase

The authority had touted the second-phase compensation as the largest single-day compensation award in its history. Mattran village received the highest compensation at ₹8.28 crore per acre, followed by Bakarpur at ₹8.22 crore, making it the highest per-acre compensation awarded by GMADA for any village. The rates surpassed those announced in previous acquisitions, including Eco City.

During the acquisition in the first phase, the compensation varied between ₹1.8 crore and ₹4 crore per acre, depending on the village. The latest award of ₹8.28 crore per acre for Mattran is therefore almost double the highest compensation paid during the first phase.

Scam slowed down the project

The prolonged delay has also been linked to the ₹137-crore guava orchard compensation scam, which slowed development in Blocks A to D. Following the registration of a vigilance bureau case in 2023, investigations into alleged irregularities in orchard compensation created a prolonged administrative deadlock. Officials scrutinised land records and compensation claims before allowing further progress on the project, delaying GMADA’s possession of land and halting several infrastructure works. Although the government has since cleared the way for development to resume, the episode pushed back timelines by several years, contributing to the delay in handing over developed plots to landowners who had opted for the land pooling scheme.

Responding to the concerns, GMADA chief engineer Ajay Garg said that infrastructure development is progressing in the Aerotropolis area. He said sewerage lines and internal roads are currently being laid, and if the works continue as scheduled, possession of the developed plots is expected to begin by March 2027.

What RERA rules state

As per Real Estate (Regulation and Development) Act (RERA) rules, GMADA is bound to provide possession within three years of providing LOIs, which, in this case, ended in 2023.

“As RERA imposes heavy penalties on private builders for delays in handing over possession, the regulatory authority should ensure that the same standards are applied to government agencies such as GMADA. This would ensure that allottees who have been waiting for possession receive their rightful dues and are handed over possession at the earliest,” said Mohali Congress committee president and former councillor Jaspreet Singh Gill, who is also one of those awaiting possession.