Mohali: GMADA ‘inaction’ to cost residents of Sectors 76-80 ₹288 crore more

Residents have questioned why the Greater Mohali Area Development Authority waited so long to collect the fee that was mentioned in their documents

As many as 30,000 residents of sectors 76-80 are to pay ₹288 crore more as enhancement fee as the Greater Mohali Area Development Authority (GMADA) failed to initiate the recovery in 2013.

At the time of plot allotment, the Greater Mohali Area Development Authority took an undertaking from the allottees to pay the enhancement charges as decided by it. (HT Photo)

The authority is now passing on the burden of a 10-year-old delay onto the residents of Sectors 76 to 80 and is demanding enhancement charges with an additional ₹288 crore, while the actual amount is ₹300 crore. GMADA was to recover the amount in 2013 when the amount was ₹300 crore, but now the authority has added the interest of ₹288 crore. Around 30,000 residents live in these five sectors.

At the time of plot allotment, GMADA took an undertaking from the allottees to pay the enhancement charges as decided by it. Enhancement charges refer to the additional amount paid to landowners following the Supreme Court’s decision. Once the enhancement charges are paid, they constitute the final payment to GMADA. A senior GMADA official said, “Initially, we are issuing notices to residential plot owners and later, notices will be issued to commercial establishments, societies, and religious institutions.”

In May 2023, the development authority issued 1,400 notices to homeowners, asking them to pay the amount calculated at ₹2,645.50 per square yard or face action. The allotment letters stated that allottees would have to pay the enhanced amount given to landowners. However, the enhanced payments to landowners were completed by 2013 following a decision by the Supreme Court. Residents have questioned why GMADA has waited so long to collect a fee that was mentioned in their documents but never enforced in the last decade.

According to the notices, owners of 8-marla plots will be required to pay over ₹6 lakh, while owners of 6-marla plots will pay nearly ₹4 lakh.

However, Sectors 76-80 plot allotment and Development Welfare Committee is in the process of moving the Punjab and Haryana high court as 600 residents have decided to move the court under this committee.

Audit raised the issue in 2022

In 2022, the audit report raised objections that GMADA had failed to recover the enhancement charges from allottees, which totalled ₹300 crore. In response, GMADA claimed that it was in the process of recovering the amount and began issuing notices to allottees in May last year, demanding payments of ₹2,645.50 per square yard, which included interest of ₹288 crore. The first 25% instalment is to be paid within a month, with the remaining two instalments due at six-month intervals. Failure to comply will result in the cancellation of allotments.

GMADA failed to recover enhancement charges in 2013

In 2013, GMADA decided to recover enhancement charges, setting the rate at ₹700 per square yard for plots up to 200 square yards. For plots between 200 and 300 square yards, the charge was set at ₹800 per square yard, and for plots larger than 300 square yards, it was ₹850 per square yard. But the authorities did not issue any recovery notice to the allottees. In 2013, allottees of 150 square yards were required to pay ₹1.05 lakh, while those with plots of 200 to 300 square yards were required to pay ₹1.60 lakh, while plot owners of above 300 square yards were to pay ₹2.55 lakh.

Scheme launched in 2000

In 2000, the Punjab Urban Development Authority (PUDA), now GMADA, launched a scheme offering 3,950 plots on 1,264 acres of land, even though the land had not been acquired. This led to delays in allotment and several court cases. Even after 23 years, around 50 allottees are yet to receive possession of their plots.

The plot sizes range from 150 to 500 square yards, and the plots were allotted at ₹3,350 per square yard for up to 200 square yards, ₹3,750 for plots between 200 and 500 square yards, and ₹3,900 for larger plots. GMADA began handing over possession in 2007, and by 2013, most allottees had received their plots.

Approximately 3,931 successful applicants were issued letters of intent, and 25% of the total plot cost was collected from them. However, due to technical and legal issues, the possession of plots was delayed.

Sant Singh, general secretary, Sector 76-80 Plot Allotment Welfare Committee, said, “The allottees deposited 10% of the total cost in December 2000 and January 2001, along with their applications for the draw of lots. Successful applicants then paid an additional 15% of the plot price. However, possession was only given in 2007. Between 2000 and 2006, allottees had already deposited 25% of the amount, totaling ₹82.7 crore.”

GS Pathania, secretary finance, Sector 76-80 Plot Allotment Welfare Committee, said, “We demand a complete rollback of the unjust decision regarding the assessment and recovery of additional charges from allottees and transferees of Sectors 76 to 80.”

What they say

I have asked the officers concerned to review the notices as we do not want to place an additional financial burden on the allottees. As for why the 2013 decision was not implemented, I will need to check. We have received representations from the allottees, stating that commercial areas should be excluded, and interest should be waived. Since this is a financial matter, the final decision will be made at the government level.

– Moneesh Kumar, chief administrator, GMADA

Why did GMADA not implement the 2013 decision, and why have they suddenly woken up after 10 years, imposing an additional burden of ₹288 crore as interest on the allottees? Though MLA Kulwant Singh and MP Malwinder Singh Kang have assured us the issue will be resolved, no action has been taken yet. We are moving the Punjab and Haryana high court.

– Sucha Singh Kalaur, president, Sector 76-80 Plot Allotment Welfare Committee