Enhancement charges for Mohali’s Sector 76- 80 plots: Noida, Haryana models to be studied

GMADA had proposed a ₹800 per square yard reduction in enhancement charges, a move that could benefit over 30,000 plot owners

While Greater Mohali Area Development Authority (GMADA) has proposed a reduction of ₹800 per square yard in enhancement charges for plots in Sectors 76 to 80, Punjab chief secretary KAP Sinha has called for a comparative analysis with the formulae used by the Noida Housing Authority and Haryana Shahari Vikas Pradhikaran (HSVP) before taking a final decision.

Enhancement charges refer to the additional compensation paid to landowners against the acquired land. In this case, GMADA was to pay ₹300 crore to landowners, as directed by the Supreme Court in 2013, and later recover it from the plot allottees. (HT File)

In a meeting of the GMADA executive committee meeting on Thursday, the Authority tabled an agenda to bring down the current enhancement rate from ₹3,164 per square metres to ₹2,364 per square metres. In response, the chief secretary has directed principal secretary, and housing and urban development department Vikas Garg to study how similar housing authorities calculate enhancement charges before approving proposed reduction.

Enhancement charges refer to the additional compensation paid to landowners against the acquired land. In this case, GMADA was to pay ₹300 crore to landowners, as directed by the Supreme Court in 2013, and later recover it from the plot allottees. Though GMADA obtained undertakings from allottees, agreeing to pay these charges, no formal recovery notices were issued for over a decade.

Due to the 10-year lapse, the interest alone has ballooned to ₹288 crore, raising the total demand from allottees to nearly ₹600 crore. In 2013, enhancement rates were in the range of ₹700 to ₹850 per square yard, depending on plot size — nearly three to four times lower than today’s proposed amount.

After an audit report in 2022 that criticised the GMADA for the delay, noting that enhancement charges had been accruing interest since 2013, the Authority finally began issuing recovery notices in May 2023, threatening cancellation of allotments for non-payment.

If the reduction, as proposed by the GMADA in Thursday’s meeting, is approved, it could benefit about 30,000 plot allottees in these sectors.

HC hearing in Sept

The Sector 76-80 plot allotment welfare committee has approached the Punjab and Haryana high court, demanding a complete waiver of the interest component. The petitioners have objected to GMADA’s decision to include an additional 82 acres from Sectors 85 and 89 into the boundaries of Sectors 76 to 80, arguing that this has imposed an extra ₹5 crore in enhancement costs on existing allottees. The next hearing in the case is scheduled for September 9, 2025.