In a significant development for Chandigarh's commercial infrastructure, the UT administration has finally commenced the allotment of shop-cum-office (SCO) sites in the long-awaited new grain, fruit, and vegetable market in Sector 39. This move comes nearly a year after legal proceedings had brought the entire process to a grinding halt.
Legal Hurdle Cleared, Allotments Begin
The breakthrough follows a favorable ruling from the Supreme Court in December. The apex court disposed of a petition that had led to a stay on the matter back in April 2025. With this legal obstacle removed, the administration has now started issuing allotment letters to the twelve successful bidders from an e-auction held in March of last year.
Originally, 23 fruit and vegetable SCOs were offered for leasehold e-auction in March 2025 under the Chandigarh Estate Rules. However, bids were received for only 12 of these sites, and the subsequent court stay prevented the administration from formalizing the allotments at that time.
Phased Development and Upcoming Auctions
Officials have confirmed that the administration is now gearing up to auction more SCO sites within the same market. A public notice for the next round of auctions, featuring SCOs each measuring 120 square yards, is anticipated before the end of this month.
This revival of the allotment process has breathed new life into the decades-old plan to relocate the wholesale mandi from its current location in Sector 26 to the modern facility in Sector 39. The new market project, spread over 75 acres, had remained stalled for over thirty years. Officials estimate that the complete relocation will take a minimum of two years, with the project being developed in phases. All 92 planned SCO sites will be auctioned in a staged manner.
Revised Reserve Prices Reflect Market Changes
Prospective bidders for the upcoming auctions should note a substantial revision in the reserve prices. Following a recent update in collector rates, the reserve price for each SCO site is now expected to be around Rs 5.40 crore. This marks a significant increase from the Rs 3.70 crore reserve price set during the auction held last year.
The commencement of allotments is a crucial step forward for Chandigarh's urban planning and commercial landscape, finally setting the wheels in motion for a project that promises to transform the city's wholesale trade ecosystem.
