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The Greater Mohali Area Development Authority (GMADA) has proposed to reduce enhancement charges by INR 800 per square yard for over 30,000 plot allottees in Mohali. This decision, awaiting state government approval, aims to provide financial relief. Currently at INR 2,645 per square yard, these charges are additional compensation to landowners, recovered from allottees. The proposed revision, contingent on comparison with Noida and Panchkula models, seeks to balance landowner compensation with allottee relief, addressing concerns about rising costs and administrative delays in the past.
The Greater Mohali Area Development Authority (GMADA) has recently put forth a proposal to reduce certain charges for plot allottees in Mohali, Punjab. This decision, made during an executive committee meeting, aims to provide financial relief to thousands of property owners by proposing a reduction in enhancement charges. Advertisement
GMADA has proposed reducing enhancement charges by INR 800 per square yard for over 30,000 plot allottees in sectors 76-80 of Mohali. This proposal awaits state government approval. Enhancement charges are additional compensation paid to landowners whose land was acquired for development. This amount is then recovered from the plot allottees. This has been a concern for allottees due to rising charges and administrative delays.
In 2013, these rates were lower, ranging from INR 700-INR 850 per square yard. The current higher rates are attributed to compounded interest due to GMADA's administrative delays over the past decade. GMADA currently charges INR 3,164 per square meter, which is approximately INR 2,645 per square yard.
The authority proposes to revise this to INR 2,364 per square meter, or approximately INR 1,864 per square yard. This proposed reduction aims to balance compensating original landowners and providing financial relief to plot allottees, while also aligning with practices in neighboring states. The approval of this proposal is contingent on a comparative review of enhancement charge calculation models used by the Noida Housing Authority and Haryana Shahari Vikas Pradhikaran (HSVP) at Panchkula. Plot owners have cautiously welcomed this potential revision.
Reduction in enhancement charges can bring relief to homebuyers and stimulate activity in the real estate market, especially in planned urban areas where such charges are levied. It also reflects efforts by authorities to address citizen concerns about property costs.
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