The Punjab housing and urban development department has recently revoked a significant concession worth nearly ₹40 crore that was granted to Remigate Buildestates (India) Private Limited, a Delhi-based real estate firm. This decision comes in light of an ongoing investigation by the Enforcement Directorate (ED) into the circumstances surrounding the allotment of a prime commercial site in Mohali’s Sector 62. The revocation, announced over eight months after the initial waiver was approved, underscores the heightened scrutiny faced by the Greater Mohali Area Development Authority (GMADA) amid allegations of financial impropriety.
The ED is investigating the allotment process and the subsequent waiver, which has drawn attention due to concerns that it may have involved irregularities. In August, the ED summoned several GMADA officials, including chief engineer Ajay Garg and former chief engineer Sunil Kansal, to provide documentation related to the allotment and the waiver under the Prevention of Money Laundering Act, 2002. The inquiry is particularly focused on potential discrepancies in the engineering assessments and the financial implications of the waiver, which the ED claims could represent a loss of approximately ₹10,000 crore to GMADA and the Punjab government due to alleged manipulation of reserve prices for unsold land parcels.
In a formal order dated October 15, Vikas Garg, the principal secretary of the housing and urban development department, dismissed the revision petition submitted by Remigate and rescinded the earlier decision made by GMADA’s appellate authority in February 2026. This order reversed the previous concessionary rescheduling of instalments that had been granted to the company, reflecting the government’s determination to uphold financial accountability amid ongoing investigations. The matter has been contentious, as GMADA had initially approved the waiver based on claims that the site was encumbered, which raised objections from the Punjab finance department.
The controversy traces back to the allotment of a 1.13-acre food court site in Mohali, which was auctioned to Remigate for ₹32.50 crore in September 2015. Although the company made an initial deposit and a subsequent payment, it later argued that GMADA failed to deliver a site free of encumbrances. Consequently, GMADA issued a show-cause notice due to outstanding dues. During a critical meeting in February 2026, GMADA concluded that the demand for nearly ₹40 crore in non-construction charges was unjustified, particularly since the site was not encumbrance-free, leading to the contentious approval of the waiver. In its revision petition, Remigate sought additional time and concessions regarding financial charges, further complicating a situation already fraught with legal and regulatory challenges. This unfolding scenario highlights the intricate interplay between real estate development, regulatory oversight, and financial governance in Punjab’s urban landscape.
