GMADA’s Silent Shift: Commercial land turned Residential for Big Builders, raising concerns of government loss
Kanwar Inder Singh/ royalpatiala.in News/ March 18,2026
The Greater Mohali Area Development Authority (GMADA) is facing scrutiny over alleged changes to the Master Plan that enabled the auction of land reserved under the Mixed Land Use (MLU) category to real estate developers for high-rise residential projects.
As per the Master Plan of Mohali from 2006 to 2031, Sector 62 (also known as Phase 8) and Sector 87 are primarily designed as a commercial and strategic business corridor on the pattern of Sector 17, Chandigarh. These sectors have a significant focus on mixed land use (MLU), meant for shopping complexes, cinemas, commercial spaces, office spaces, retail activities, and high-rise residential flats at the upper floors only, with no provision for regular housing or residential activities. These sectors were reserved to serve as a major trade and retail hub in Mohali.
As per available information, the authorities have altered the rules to sell land reserved under MLU. According to government rules, “no such changes shall be made in any master plan unless the same is in the public interest and notified to the public.”
Now, the authorities have changed the master plan as per their wishes and allotted land through an auction. The said land, reserved under the MLU category, has been auctioned for the construction of high-rise flats to real estate giants. Three plots—10, 13, and 20-21—were sold through auction. As per records (sector 62 official GMADA map at the bottom), total area of the 62 sector is 269.58 acres and area under Mixed use/Commercial is approximately 85.203 acres. Rest is for food court, food street, hospital, auditorium,nature park, 66 kv grid etc . Means no space is kept for residential, flats purpose.
As per available information, real estate giants Homeland and VRC have launched two projects on 5 acres and 12.5 acres of land in Sector 62, Mohali, which were purchased by them in an auction.
A property dealer, Kamal, alleged that the move benefited private developers at the cost of the state exchequer. “The authorities seem to have given undue advantage to real estate firms, resulting in financial losses to the government,” he said.
As per available information, in the October 2025 e-auction, GMADA’s six commercial sites in Sector 62 failed to attract buyers . At that time, officials had attributed the lack of response to the high reserve price of over Rs 75 crore per acre for plots under the MLU category.
But,in the latest auction, however, the reserve prices appear to have been reduced. GMADA fixed the price at Rs 45.41 crore for plot number 10 measuring 5.51 acres, Rs 49.53 crore for plot number 13 measuring 6.30 acres, Rs 43.71 crore for plot number 30-34 measuring 27.77 acres, and Rs 40.06 crore for plot number 20-21 measuring 12.92 acres.
As per the Homeland website, “The upcoming Homeland Sector 62 Mohali apartments will offer residents the perfect balance of urban convenience, luxury lifestyle, and peaceful surroundings. With excellent road connectivity and easy access to major landmarks, the project promises unmatched location advantages.”
A senior GMADA official, speaking on condition of anonymity, defended the decision, stating that all actions were taken as per rules and with due approval from competent authorities. The official said that the Punjab Regional and Town Planning and Development (PRTPD) Board is empowered to make changes to the master plan if deemed in public interest and properly notified.
Adding further the officer said “Moreover, mixed land use (MLU) is a blended development strategy used by governments to ensure the most effective utilisation of space, which is a precious commodity in urban centres. The idea is to promote optimum utilisation of space, which also improves the economic rate of return for the area. Concepts like having everything available within the neighbourhood help reduce pressure on roads, traffic, and commute time.”
Meanwhile, the EO (Housing, Plots), GMADA, Varun Kumar, PCS, could not be contacted despite repeated attempts.
The real estate giant is offering a Pre-Launch Price of Rs 12,000 per sq.ft and a launch price of Rs 15,000 per sq ft for unit sizes of 3750 sq ft and 4750 sq ft for its 5-acre project. The booking amount is Rs 51 lakhs for 3+1 and 4+1 BHK apartments in S+16 towers.
Similarly, the real estate giant has offered a Pre-Launch Price of Rs 12,500 per sq.ft and a launch price of Rs 9,999 per sq ft for unit sizes of 3000 sq ft and 4000 sq ft for its 12.5-acre project. The booking amount is Rs 51 lakhs for S+16 towers.
