GMADA issues fresh enhancement demand notices after Cabinet cuts levy in Mohali

GMADA has issued fresh demand notices to plot allottees in Mohali sectors 76–80, fixing enhancement charges at Rs 2,216 per sq m. (File Photo)

The Greater Mohali Area Development Authority (GMADA) has begun serving new demand notices to residential plot holders in sectors 76 to 80, implementing the Punjab Cabinet’s decision to significantly reduce enhancement charges that have remained unresolved for more than a decade. Under the revised policy, allottees have been asked to pay Rs 2,216 per square metre, bringing long-awaited clarity to one of Mohali’s most contentious housing issues.

Officials said the fresh notices replaced all earlier enhancement demands, many of which had drawn sharp opposition from residents and resulted in prolonged agitation. Nearly 30,000 plot allottees are expected to benefit from the reduction approved by the Cabinet led by Chief Minister Bhagwant Singh Mann.

The enhancement charges originated from land acquisition compensation linked to a Supreme Court ruling in 2013, which required GMADA to pay about Rs 300 crore to original landowners. Although plot holders had furnished undertakings agreeing to share the additional cost, the authority failed to initiate recovery for years. As a result, interest continued to accumulate, eventually swelling the interest component alone to nearly Rs 288 crore, taking the total projected recovery close to Rs 600 crore.

When GMADA finally initiated recovery in May 2023, the authority fixed the rate at Rs 3,164 per square metre and warned of possible cancellation of allotments for non-payment. The move triggered strong backlash and renewed demands for government intervention.

Following sustained negotiations and political mediation, the rate was first brought down to Rs 2,325 per square metre. The latest Cabinet clearance has further reduced the amount to Rs 2,216 per square metre, which GMADA has now declared as the final figure.

Members of the residents’ committee that pursued the reduction have welcomed the development and appealed to plot holders to deposit the revised amount within the stipulated time. Committee representative Surinder Singh Roda termed the decision a “long-overdue correction”.

Meanwhile, clarity is still awaited on refunds for allottees who had already paid at higher rates. Mohali MLA Kulwant Singh said the excess amount would be returned, though he acknowledged that the refund process would take time due to procedural requirements.