Mohali, Feb 16: To resolve a long-standing property dispute, the Punjab Housing Department has dropped nearly Rs 40 crore in penal interest owed by a private realtor after admitting the Greater Mohali Area Development Authority (GMADA) failed to deliver a cleared site. The waiver coincides with broader government efforts to utilize GMADA assets as collateral for funding state programs.
Remigate Builders had secured the 1.13-acre plot in Sector 62 through a 2015 auction, yet the project stalled when GMADA failed to provide a site free of encumbrances or basic infrastructure. While the builder submitted multiple representations regarding these deficiencies, the department initially responded with a show-cause notice for non-payment.
During a recent high-level meeting led by Chief Secretary KAP Sinha, the authority declared that the original 2016 allotment date would be reset to February 2022. This adjustment effectively nullifies the accumulated penal interest that had accrued during the period the builder was unable to access the land for its intended food court project.
“The failure to provide an encumbrance-free site led to a significant delay in the commencement of the project,” the authority asserted in its findings.
Sources within the department stated that the Estate Office’s failure to adhere to the Punjab Regional Town Planning and Development Act contributed to the stalemate. By resetting the timeline, the government aims to recover the remaining principal amount while acknowledging the infrastructure gaps that hindered the developer for nearly nine years.
