Mohali, Feb 16: The Punjab Housing Department has authorized a waiver of approximately Rs 40 crore in penal interest for a private developer following a failure by the Greater Mohali Area Development Authority (GMADA) to provide essential amenities at a Mohali project site. This decision comes as the state government explores leveraging GMADA’s prime real estate to secure loans for various public welfare initiatives.
Official records from the Housing Department stated that the 1.13-acre site in Sector 62, intended for a food court, was originally auctioned to Remigate Builders in September 2015. Despite the developer paying the initial 20 percent of the Rs 32.50 crore reserve price and a first installment of Rs 9.87 crore, the site remained plagued by encumbrances for years.
The waiver was finalized during the 34th GMADA authority meeting, chaired by Chief Secretary KAP Sinha. The authority affirmed that administrative deficiencies within the estate office had effectively prevented the allottee from commencing the commercial project. To rectify the situation, the board moved to reschedule the formal allotment date from 2016 to February 2022.
“The department acknowledges that the allottee was restrained from project development due to internal oversight,” a senior housing official maintained.
Internal reports also noted that successive Estate Officers and Chief Administrators had overlooked provisions of the Punjab Regional Town Planning and Development Act since 2016. This administrative lapse reportedly contributed to the prolonged delay in the department recovering its legitimate dues while the site sat idle.
