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Enhancement charges for Mohali’s Sector 76- 80 plots: GMADA sticks to ₹800 reduction
Punjab chief secretary KAP Sinha, who also heads the executive committee of GMADA, had directed officers to examine how similar housing authorities calculate enhancement charges before clearing any reduction proposal
Having conducted a comparative analysis of enhancement charge formulae used by the Noida Housing Authority and Haryana Shahari Vikas Pradhikaran (HSVP), the Greater Mohali Area Development Authority (GMADA) has once again proposed to slash the enhancement charges for allottees of Sectors 76 to 80 by ₹800 per square yard only.
After GMADA proposed the same reduction in a July meeting, Punjab chief secretary KAP Sinha, who also heads the executive committee of GMADA, had directed officers to examine how similar housing authorities calculate enhancement charges before clearing any reduction proposal.
According to its proposal, GMADA plans to bring down the current enhancement rate from ₹3,164 per square yard to ₹2,364. This will be placed before the executive committee for approval in a meeting scheduled in the first week of October.
A senior GMADA officer involved in the matter said, “The enhancement charge formulae used by the Noida Housing Authority and HSVP vary from case to case. After the study, we have again proposed a reduction of ₹800 per square yard. The final decision will be taken by the authority in its next meeting.”
Enhancement charges are the additional compensation paid by GMADA to landowners for acquired land, which is later recovered from the allottees of plots developed on the same land. Nearly 30,000 allottees in Sectors 76 to 80 are directly affected by these charges.
Decade-long delay behind escalating charges
In 2013, enhancement rates stood between ₹700 and ₹850 per square yard, depending on plot size — nearly three to four times lower than today’s proposed figure. The steep escalation is largely attributed to compounded interest accumulated over the past decade, reflecting significant administrative delays on GMADA’s part.
The origin of the crisis dates back to 2013, when the Supreme Court directed GMADA to pay ₹300 crore as enhanced compensation to landowners for land acquired in Sectors 76 to 80. Although allottees had signed undertakings through allotment letters agreeing to bear these charges, GMADA failed to issue recovery notices for over 10 years.
A 2022 audit report flagged this lapse, pointing out that enhancement charges had been accruing interest since 2013. GMADA eventually started issuing recovery notices in May 2023, even warning of cancellation of allotments for non-payment.
Due to the prolonged delay, interest alone has ballooned by ₹288 crore, taking the total liability for allottees close to ₹600 crore — a massive financial burden on residents that continues to spark protests and appeals for relief.
Residents block Airport Road for three hours
Up in arms against the steep enhancement charges, residents of Sectors 76 to 80 staged a massive protest against GMADA and the Punjab government near Sohana Gurdwara on Wednesday, blocking the busy Airport Road for nearly three hours.
Carrying placards, banners and black flags, the protesters said the notices, which demand additional charges, were unfair, arbitrary and a violation of assurances previously given by the authorities.
Residents alleged that despite repeated appeals and meetings, the government had failed to provide a solution. Instead, they were being harassed with heavy financial demands.
The agitation brought traffic on Airport Road to a standstill, leaving commuters stranded for hours. Police were deployed in large numbers to manage the situation and prevent any untoward incident.
Addressing the gathering, resident leaders accused the government of reneging on its commitments. They demanded the immediate withdrawal of enhancement notices and warned that they will intensify the agitation if their demands were ignored. “We will not remain silent. All democratic means, including continuous protests, legal action and mass mobilisation, will be used to press our demands,” a leader declared.
