Sectors 76 to 80: Relief for 30,000 allottees as GMADA approves ₹839 cut in enhancement cost

Development authority’s executive committee, under the chairmanship of Punjab chief secretary KAP Sinha, slashes current enhancement rate from ₹3,164 per square metre to ₹2,325

In some respite for over 30,000 residents of Mohali’s Sectors 76 to 80, the executive committee of the Greater Mohali Area Development Authority (GMADA) on Wednesday approved a reduction of ₹839 per square metre in the contentious enhancement charges.

A senior officer of GMADA confirmed that the amount had been slashed by ₹839 per square metre and residents now can pay the remaining amount. (Getty Images/iStockphoto)

Enhancement charges are the additional compensation paid by GMADA to landowners for acquired land, which is later recovered from allottees of plots developed on the same land.

The GMADA executive committee, under the chairmanship of Punjab chief secretary KAP Sinha, on Wednesday decided to slash the current enhancement rate from ₹3,164 per square metre to ₹2,325.

A senior officer of GMADA confirmed that the amount had been slashed by ₹839 per square metre and residents now can pay the remaining amount.

In a meeting held in July, the chief secretary had asked GMADA officers to study enhancement charge formulae used by the Noida Housing Authority and Haryana Shehri Vikas Pradhikaran, but officers found that approaches vary from case to case. Based on their review, officers again proposed a reduction of ₹839 per square metre.

While hailing the decision, Mohali MLA Kulwant Singh said the reduction was the result of several rounds of discussions held with GMADA and the state government: “It is a big victory and relief for nearly 30,000 people of the said sectors.”

Decade-long delay behind escalating charges

In 2013, the enhancement cost stood between ₹700 and ₹850 per square metre, depending on plot size — nearly three to four times lower than today’s figure. The steep escalation to ₹3,164 per square metre in a little over a decade is largely attributed to accumulating interest due to administrative delays on GMADA’s part.

The origin of the row 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 swelled to ₹288 crore, taking the total liability for allottees close to ₹600 crore — a massive financial burden on residents that continues to spark protests.

Welcoming the cut in enhancement charge, Sucha Singh Kalaur, president, Sector 76-80 Plot Allotment Welfare Committee, said their fight against the interest burden passed on to allottees will still continue. The matter remains sub-judice in the Punjab and Haryana high court.

Scheme launched in 2000

In 2000, the Punjab Urban Development Authority (PUDA), now GMADA, had 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 have 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.

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.