GMADA Land Allotment Row: ED Flags ₹400 Crore Loss to Punjab Government

October 24, 2026

Chandigarh: A major irregularity has come under scrutiny in the allotment of government land in Mohali, where plots reserved for displaced persons were allegedly allotted at old rates despite subsequent price increases. An investigation by the Enforcement Directorate (ED) estimates that the practice may have caused a loss of around ₹400 crore to the Punjab government.

According to the investigation, Greater Mohali Area Development Authority (GMADA) continued issuing allotment letters at ₹25,000 per square yard even after land rates had increased. The old rate was fixed in 2018, but allotments were reportedly still being made at the same price in 2025-26, when the applicable rate had risen to ₹65,000 per square yard.

441 Plots Allotted at Old Rates

The ED investigation found that 441 plots were allotted under the displaced persons’ quota between 2019 and 2026 in Mohali’s IT City. These included 100 plots in Sector 82 Alpha and 341 in Sector 66 Beta.

Another 169 applications remain pending. Of these, 39 relate to Sector 82 Alpha and 130 to Sector 66 Beta.

The investigation has raised questions over why the revised rates were not applied to these allotments as land prices increased. The difference between the old and revised rates is a key part of the estimated financial loss to the state.

GMADA’s plot rates stood at ₹25,000 per square yard in 2018-19 and 2019-20. However, according to the ED’s findings, allotment letters under the displaced persons’ quota continued to be issued at the old rate in subsequent years.

June 2020 Meeting Under Scrutiny

The investigation has also examined a committee meeting held in June 2020. Senior officials from GMADA and the Punjab Urban Planning and Development Authority (PUDA), along with the Estate Officer (Plots) and a legal adviser, reportedly discussed rates for plots allotted under the displaced persons’ quota.

The ED is now examining why the revised rates discussed during the meeting were not implemented in later allotments. It is also looking into how the old rates continued to be used despite increases in land prices.

The estimated loss of ₹400 crore is based on the difference between the rates used for allotments and the higher rates that could have applied. The findings have brought GMADA’s allotment process under scrutiny, although the investigation’s conclusions and any official determination of responsibility remain to be established.