Financial Irregularities Alleged in 10-Year-Old Mohali Food Court Project

The Punjab Finance Department has raised serious concerns over the process and approval mechanism adopted by the Greater Mohali Area Development Authority (GAMADA) in granting relief of approximately ₹40 crore to a private builder in Mohali. The department has objected to the legal procedure followed in approving the decision. The मामला pertains to a plot in Sector 62, Mohali, which was allotted several years ago to a private builder for the development of a food court. The penalty and interest associated with the project were later waived, leading to scrutiny by the Finance Department. According to details, the 1.13-acre prime site was auctioned in 2015 at a reserve price of ₹32.50 crore. The builder deposited 20 percent of the total amount along with the first installment of ₹9.87 crore but failed to proceed with the project thereafter. The Finance Department has questioned why a decision regarding a project that has remained pending for nearly a decade was not taken earlier, despite lower-level officials having the authority to act. It also raised concerns over why the matter was introduced as a last-minute agenda item in the authority’s meeting. The department clarified that decisions involving financial concessions cannot be directly approved in such meetings without due process. Further, the department has directed that similar cases in the future must be handled strictly through the appropriate legal channels, ensuring full compliance with rules before being placed before the authority. The issue was reportedly discussed during the 34th meeting of the GAMADA authority, chaired by the Chief Secretary. The food court project has remained unresolved since 2016. The communication pointed out that the estate officer should have taken appropriate action as per law, but no decision was made over the past ten years. Referring to Sections 44 and 45 of the Punjab Regional and Town Planning and Development Act, 1995, the Finance Department outlined the powers of the estate officer and the chief administrator. It also emphasized that agenda items must be submitted to the authority at least one week in advance.