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GMADA land-use tweaks, masterplan modifications come under ED scrutiny
According to officials of the department of housing and urban development, who are privy to the development, a series of planning decisions, including GMADA’s January 2026 move to convert large commercial parcels in Sector 62 into mixed land use (MLU) sites and its re-planning of a 30-acre prime parcel adjoining Eco City-1 in New Chandigarh
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A day after the Enforcement Directorate (ED) in a note alleged that manipulation of reserve prices of unsold land could have caused a potential loss of nearly ₹10,000 crore to the Greater Mohali Area Development Authority (GMADA) and the Punjab government, the agency has widened its scrutiny on policy decisions, including the land-use changes and masterplan modifications taken this year.
The ED is examining whether the changes may have benefited private developers.
The agency, however, has not presented evidence in its note establishing that the entire alleged loss actually occurred.
According to officials of the department of housing and urban development, who are privy to the development, a series of planning decisions, including GMADA’s January 2026 move to convert large commercial parcels in Sector 62 into mixed land use (MLU) sites and its re-planning of a 30-acre prime parcel adjoining Eco City-1 in New Chandigarh — earlier earmarked for a truck/transport terminal — as an MLU project, have come under the ED lens during the three-day raid at GMADA headquarters that concluded on Thursday.
“The ED is also looking into proposed amendments to the planning framework covering 78 villages in the Kurali area, including changing the land-use classification of several pockets,’ said an official, requesting anonymity.
Principal secretary, department of housing and urban development, Vikas Garg did not immediately respond to calls and text messages for comment.
Sector 62 MLU switch
GMADA’s January 2026 decision to shift large land parcels in Sector 62 from purely commercial to mixed land use (MLU) is under scrutiny following the subsequent auction of a 27.78-acre parcel for ₹1,742.31 crore in August this year. The change expanded the permissible development to residential, retail, office and other allied uses, altering the development potential of the prime sites.
Though officials quoted above said the policy was tweaked after the site repeatedly failed to attract buyers as a large commercial parcel. The parcel was the highest-value property in GMADA’s e-auction, in which 27 of 36 properties fetched ₹5,391 crore, against a combined reserve price of ₹3,872 crore.
Masterplan tweak in New Chandigarh
The other decision that has come under the scanner is an amendment to the Master Plan 2031 in January 2026. The GMADA changed the proposed use of a 30-acre prime parcel adjoining Eco City-1 in New Chandigarh, replacing the earlier plan for a truck/transport terminal with an MLU project. The authority subsequently fixed a ₹1,311.18-crore reserve price and offered the strategically located land for private-sector development.
The change converted a parcel originally earmarked for a public transport and logistics facility into a development opportunity, allowing residential, commercial, office and allied uses. The decision assumes significance amid the ED’s scrutiny of GMADA’s land-use changes, planning decisions, reserve prices and auctions.
Officials said the agency was examining whether the amendment was driven solely by evolving planning requirements or whether its timing and nature conferred an advantage on particular private interests.
Proposed land-use changes in 78 Kurali villages
GMADA’s proposed amendment to Master Plan 2031 covering 78 villages around Kurali, which seeks to alter the land-use classification of several areas earlier earmarked for residential and industrial development to proposed green zones, is also under scrutiny. The proposed decision could potentially restrict the development potential of land in the rapidly urbanising belt.
“The agency is examining whether the timing and sequence of such decisions had any bearing on the interests of particular private developers. The probe is ongoing, and the allegations under examination have not been established as wrongdoing so far,” officials said.
Many objections against the draft notification proposing the changes have already been filed.
Delays in Aerotropolis, Eco City projects
The ED is also examining allegations that delays in the development of Aerotropolis, an extension of Aerocity, and Eco City-2 and 3 may have benefited private players by giving them more time to sell existing inventory before competing projects were launched. The scrutiny assumes significance as GMADA issued the letter of intent (LOI) for Aerotropolis nearly five years ago, but development work on the project is yet to begin. Similarly, LOIs have been issued for Eco City-2 and Eco City-3, but substantial development is still awaited. The ED is examining whether the delays were part of a deliberate strategy to protect the interests of existing private developers.
