The Enforcement Directorate’s three-day search at the Greater Mohali Area Development Authority (GMADA) last month has put Punjab’s housing and urban development department on the back foot, with several major property auctions and urban development projects being put on hold amid heightened scrutiny of land transactions and policy decisions.
The state-wide auction of residential and commercial properties, originally scheduled for September 24, was postponed, while the National Housing and Urban Innovation Summit, scheduled for October 9, has been deferred to November. The proposed launch of the Eco City-2 (Extension) township in New Chandigarh has also been put on hold.
A senior officer of the housing and urban development department said the government had decided to proceed cautiously in the wake of the ED action.
“Some activities have been put on hold as officers do not want to take any risk at this stage. The auction scheduled for September 24 was postponed, and a decision on the auction and launch of various projects will be taken after some time,” the officer said, requesting anonymity.
Auctions hit a roadblock
{{/usCountry}}Auctions hit a roadblock
{{/usCountry}}The department has been a major source of revenue for the state government through periodic auctions of residential and commercial properties across Punjab. Over the past four years, especially before Navratras, such auctions have generated substantial revenue. In the auction held in October 2025, the department earned around ₹1,900 crore, while GMADA raised nearly ₹5,400 crore from an auction held about two months ago. The postponement of auctions and projects comes at a time when GMADA and other development authorities have been increasingly relying on land monetisation to generate revenue and fund urban infrastructure.
This follows the ED’s search operation at GMADA that began on September 22 and continued for nearly 52 hours. During the operation, the agency examined land-related files and policy decisions and alleged manipulation of reserve prices of unsold land. In its note, the probe agency later alleged that this could have caused a potential loss of nearly ₹10,000 crore to the GMADA and the Punjab government. However, the agency did not provide evidence in the note to establish that the entire alleged loss had actually occurred.
Major projects in hold
The impact is also being felt in the functioning of the authority. GMADA’s last meeting was held in August and was chaired by chief secretary KAP Sinha, who also happens to be the chairman of the authority. Several important matters are pending before the authority, including proposals related to employee promotions, decisions on disputed projects and other administrative and policy issues.
One of the projects affected is GMADA’s proposed Eco City-2 (Extension), its eighth township project, which was scheduled to be launched in September. Spread over 96 acres, it envisages residential as well as commercial plots.
Under the proposed scheme, 135 one-kanal and 18 two-kanal residential plots were to be offered at ₹5,500 per square yard through a draw of lots, while commercial sites were to be sold through auction. The launch has now been deferred.
The notification under Section 11 for another proposed township, Eco City-4, has also been put on hold. GMADA has proposed developing a 517- to 526-acre residential township in New Chandigarh (Mullanpur), which is currently at the preliminary stage of land acquisition and statutory notification.
The uncertainty has also begun to affect the real estate sector, with developers and property consultants adopting a cautious approach.
Shailender Anand, former chairman of the Mohali Property Consultants Association (MPCA), said the ED action had created an atmosphere of uncertainty among officials and private players.
“After the ED raids, senior officers are not willing to take risks or make major decisions. There is a wait-and-watch approach, while builders are also panicking,” he said.