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GMADA writes to govt for reduction of enhancement charges in Mohali’s Sectors 76 to 80
Enhancement charges refer to the additional amount paid to landowners against acquisition. At the time of the allotment of these plots, GMADA had obtained an undertaking from the allottees, for payment of enhancement charges as decided by the authority.
The Greater Mohali Area Development Authority (GMADA) has sent a proposal to the state government to reduce the enhancement charges on residential plots in Sectors 76 to 80 by around ₹800 per square metre following objections raised by around 30,000 residents living in these five sectors.
Enhancement charges refer to the additional amount paid to landowners against acquisition. At the time of the allotment of these plots, GMADA had obtained an undertaking from the allottees, for payment of enhancement charges as decided by the authority.
As per residents, the initial enhancement amount, in 2013, was ₹300 crore but as GMADA failed to collect it in a timely manner, it ended up adding ₹288 crore in interest, which it tried to shift onto the allottees. The allottees had then moved the Punjab and Haryana high court, challenging the decision. The latest proposal is an outcome of the residents’ plea in the HC in October last year.
“If the state government accepts our proposal, residents will only have to pay around ₹2,400- ₹2,500 per square metre instead of ₹3,164 per square metre as additional cost,” said a senior GMADA official. The official added that the state government may also come up with a one-time settlement policy, which will prove to be a huge relief to residents.
GMADA chief administrator Moneesh Kumar said the proposal to revise the enhancement cost was sent to the state government following which the same was sent to the finance ministry for the final decision.
“We are awaiting the government’s decision. GMADA has never revised the enhancement cost in the past, but we have sent a proposal for the same keeping in mind the interest of people who are likely to get major relief,” said the CA.
GMADA had also added a financial burden of ₹5 crore on residents of Sectors 76-80 by including 80 acres of land from Sectors 85 and 89 within its boundaries. This was confirmed by the development authority in its response to a Right to Information (RTI) plea.
Sucha Singh Kalaur, president of the Sector 76-80 plot allotment welfare committee, said that GMADA had held a meeting with them on December 4 but due to unsatisfactory response, the committee will again approach the court. “We had requested them to waive off the interest amount of ₹288 crore, citing illegal and unjustified assessment by GMADA but the officials rejected the same. They only agreed to consider our allegation of unjustified recovery of additional price of land that falls in Sector 85 to 90. The residents are being wrongly forced to shell huge amounts from their pockets for which we will again move court soon,” said Kalaur.
Since May 2023, the authority has issued over 1,400 notices to homeowners. According to notices, owners of 8-marla plots are required to pay over ₹6 lakh, while those with 6-marla plots must pay nearly ₹4 lakh.
Scheme launched in 2000
The Punjab Urban Development Authority (PUDA), now GMADA, had introduced a scheme for 3,950 plots on 1,264 acres, even though the land had not yet been acquired. This led to allotment delays and multiple court cases. Even 23 years later, about 50 allottees still await possession of their plots. Plot sizes under the scheme range from 150 to 500 square yards, with rates initially set at ₹3,350 per square yard for plots up to 200 square yards, ₹3,750 for plots between 200 and 500 square yards, and ₹3,900 for larger plots. Possession began in 2007, and by 2013, most allottees had received their plots. Approximately 3,931 successful applicants were issued letters of intent, with GMADA collecting 25% of the total plot cost upfront. However, technical and legal challenges delayed the final possession process.
