GMADA Auctions on Hold After ED Searches: What It Means for Buyers in Mohali

What happened?

Hindustan Times reported that the Enforcement Directorate searched the Greater Mohali Area Development Authority (GMADA) for nearly 52 hours from September 22. The agency examined land files and policy decisions, and alleged that reserve prices of unsold land were manipulated. Its note put the possible loss at nearly ₹10,000 crore, though HT noted that the note offered no evidence that the full amount was actually lost.

According to the newspaper, the housing and urban development department has since gone slow. The state-wide auction of residential and commercial properties, first planned for September 24, was postponed. A housing summit set for October 9 has been moved to November. The Eco City-2 (Extension) township launch in New Chandigarh, spread over 96 acres, has been put on hold.

HT also reported that a notification for the proposed Eco City-4 township, a 517- to 526-acre project in Mullanpur, is on hold. An officer, speaking anonymously, said a decision on the auction and project launches will come after some time. No new dates have been announced.

Which sectors are affected?

• Mohali
• New Chandigarh (Mullanpur)
• GMADA residential and commercial plot auctions
• Eco City-2 (Extension)
• Eco City-4
• Punjab development authorities

Potential impact

The effect is mainly on timing and supply, not on completed projects. With the auction and the Eco City-2 (Extension) draw of lots deferred, fewer authority-sold plots and commercial sites will reach the market for now. If the pause is short, the effect on Mohali prices is likely to be small. A long one could lead some buyers to turn to private sellers and resale plots, where our data puts the Mohali average at ₹6,900 per sq ft.

The longer-term picture is unclear. HT said the department relies heavily on auctions for revenue, which gives it a reason to resume. But officers are being cautious and the probe is still open, so no timeline can be assumed. HT quoted a local consultants' body leader saying builders and officials are in a wait-and-watch mode, so private deal-making may also slow. Nothing here guarantees a price rise or fall.