GMADA Implements Reduced Enhancement Charges for Mohali Plot Allottees
The Greater Mohali Area Development Authority has started issuing fresh demand notices to residential plot holders in sectors 76 to 80. This action follows the Punjab Cabinet's decision to significantly reduce enhancement charges that have remained unresolved for over ten years.
New Rate Brings Relief to Thousands
Under the revised policy, allottees must now pay Rs 2,216 per square metre. This new rate replaces all previous enhancement demands that had sparked strong opposition from residents and led to prolonged agitation.
Nearly 30,000 plot allottees stand to benefit from this reduction approved by the Cabinet led by Chief Minister Bhagwant Singh Mann. The fresh notices provide long-awaited clarity on one of Mohali's most contentious housing issues.
Background of the Dispute
The enhancement charges originated from land acquisition compensation linked to a Supreme Court ruling in 2013. That ruling required GMADA to pay approximately 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. Interest continued to accumulate during this period, eventually swelling the interest component alone to nearly Rs 288 crore.
The total projected recovery approached Rs 600 crore before the recent intervention.
Recovery Attempts and Public Backlash
When GMADA finally initiated recovery in May 2023, the authority fixed the rate at Rs 3,164 per square metre. Officials warned of possible cancellation of allotments for non-payment.
This 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.
Residents Welcome the Decision
Members of the residents' committee that pursued the reduction have welcomed this development. They have 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" to the problematic enhancement charges.
Refund Questions Remain
Meanwhile, clarity is still awaited on refunds for allottees who had already paid at higher rates. Mohali MLA Kulwant Singh confirmed that the excess amount would be returned to affected residents.
He acknowledged that the refund process would take time due to procedural requirements within the administration.
The resolution marks a significant step toward settling a dispute that has troubled Mohali's residential sector for more than a decade.
