Mohali: No penalties for Max Healthcare’s 5-acre site in Medicity, says GMADA

The decision came during the 35th meeting of the GMADA Authority, chaired by the Punjab chief secretary last month

In a major relief to Max Healthcare Institute Limited, the Greater Mohali Area Development Authority (GMADA) has decided not to impose penalties on the institute over the 5-acre site allotted to it at Medicity, New Chandigarh, in 2015, for its new hospital in the district.

Launched in 2011, Medicity was envisioned as a healthcare hub, with nearly 100 acres earmarked for multi-specialty hospitals and research institutes. (HT Photo for representation)

The decision came during the 35th meeting of the GMADA Authority, chaired by the Punjab chief secretary last month. The authority noted several discrepancies in the original allotment process, including the presence of high-tension wires (relocated only in July 2019), a revenue road cutting through the plot (which remained in use until July 2024), and GMADA’s own failure to install an incinerator and effluent treatment plant (ETP) as required under the allotment conditions.

Acknowledging these factors, GMADA ruled that Max Healthcare could not be penalised for delays beyond its control. Instead, relief was granted under PUDA’s 2003 policy, which allows condoning of payment delays with applicable interest and penalties. As a result, the hospital’s pending third installment of ₹5.34 crore will be regularised on payment of 12% annual interest and a 5% penalty. The fourth to seventh installments, previously deferred, will not attract any charges, though Max Healthcare must now deposit them in a lump sum.

The authority has directed the hospital to take possession of the site within 30 days, secure building plan approval within 60 days, and complete construction within three years of possession. Any failure will invite resumption of the land. Additionally, the three-year moratorium on construction will begin from the possession date, and no non-construction fee will be levied. GMADA has also scrapped the earlier condition mandating installation of an incinerator and ETP.

Launched in 2011, Medicity was envisioned as a healthcare hub, with nearly 100 acres earmarked for multi-specialty hospitals and research institutes. Of the four major projects—Tata Memorial Cancer Hospital, Chaitanya Paediatrics and Gynae Hospital, Grewal Eye Hospital, and Max Multispeciality Hospital—only Tata Memorial, inaugurated in August 2022, and Grewal Eye Hospital are currently functional. Chaitanya and Max Healthcare are yet to begin construction.