Today: Jul 11, 2025

Gmada Proposes Significant ₹800 Cut in Enhancement Charges for Mohali Plot Allottees, ET RealEstate

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5 hours ago


MOHALI: In a potential relief to over 30,000 plot allottees in sectors 76 to 80, the Greater Mohali Area Development Authority (Gmada) has proposed a reduction of Rs 800 per square yard in enhancement charges. However, the proposal awaits final approval as the state government seeks a comparative review of how other regional development authorities calculate similar charges.

The decision came during a Gmada executive committee meeting chaired by Punjab chief secretary K A P Sinha, who also heads the committee. The meeting was held at the PUDA office in Sector 62 on Thursday.

Before moving forward with the proposed reduction, chief secretary Sinha directed Vikas Garg, principal secretary of the housing and urban development department, to conduct a comparative analysis of enhancement charge models adopted by the Noida Housing Authority and Haryana Shahari Vikas Pradhikaran (HSVP) at Panchkula.

Enhancement charges refer to the additional compensation paid to landowners for acquired land, which is subsequently recovered from the plot allottees whose plots are carved out on that land. The contentious issue has been a longstanding concern among allottees, many of whom have questioned the rising charges and administrative delays in their calculation.

According to the agenda presented at the meeting, Gmada is currently charging Rs 3,164 per square metre (approx Rs 2,645 per square yard) and now proposes to revise it to Rs 2,364 per square metre (approx. Rs 1,864 per square yard). The revised rates — if approved — would offer a relief of around Rs 800 per square yard to thousands of allottees.

The proposed revision will be re-evaluated after studying the enhancement formulas used in Noida and Haryana, and the findings will be placed before the committee in the next executive meeting for final approval.

Historical data reveals that in 2013, the enhancement rates were significantly lower — between Rs 700 and Rs 850 per square yard, depending on plot size. The current steep rates are attributed to the compounded interest accumulated over the past decade, a result of administrative delays in Gmada’s processing and finalisation of enhancement calculations.

The move signals an effort by the state to strike a balance between compensating original landowners and offering financial relief to plot allottees, while ensuring that Punjab’s urban development authorities remain aligned with practices in neighbouring states.

Plot owners in the affected sectors have welcomed the possibility of a revision but remain cautiously optimistic, awaiting the final nod from the Gmada executive committee.

  • Published On Jul 11, 2025 at 10:19 AM IST

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