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Punjab has cancelled concessions and a dues waiver worth nearly Rs 40 crore granted to Delhi-based Remigate Buildestates (India) Private Limited for a 1.13-acre food-court site in Sector 62, Mohali. A revisional order dated October 15, 2026, also overturned earlier decisions that had rescheduled the company’s instalments.
The reversal came after an Enforcement Directorate investigation into the site allotment and the waiver approved by the Greater Mohali Area Development Authority (GMADA). The ED’s broader allegations remain under investigation and are not final findings of wrongdoing.
What Punjab cancelled
Principal Secretary Vikas Garg, acting as the revisional authority in the Punjab Housing and Urban Development Department, dismissed Remigate’s revision petition in a 19-page order dated October 15, 2026.
The order rescinded GMADA’s February 5, 2026 appellate decision and reversed concessional instalment rescheduling approved in December 2025. Together, those decisions had reduced or deferred non-construction-related charges and other outstanding amounts by nearly Rs 40 crore.
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The state’s action means the concession and related waiver no longer stand. GMADA must now recalculate what Remigate owes under the original allotment terms, including applicable interest, penal interest and non-construction fees.
The Sector 62 site and payment history
| Item | Details |
|---|---|
| Property | 1.13-acre food-court site in Sector 62, Mohali |
| Auction | Allotted to Remigate in September 2015 for Rs 32.50 crore |
| Initial payment | 20% of the auction price was deposited |
| Later instalment | Remigate subsequently paid Rs 9.87 crore |
| Payment stoppage | The authority said instalments stopped in 2016 |
| Construction | Work began after plinth or DPC approval in March 2021 but was later abandoned |
| Outstanding amount on September 1, 2026 | Rs 6.46 crore, according to the authority |
| Payment credited by October 13, 2026 | About Rs 2.46 crore, leaving a shortfall of roughly Rs 4 crore |
GMDA said Remigate did not substantiate claims that major capital had been deployed or that engineering teams had been mobilised. The authority’s account also records a prolonged period of unpaid instalments before the disputed relief was granted.
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Why the waiver was disputed
Remigate’s objections
Remigate argued that GMDA had not delivered an encumbrance-free plot. It cited inadequate road access, lack of water, a sewerage line crossing the property, delayed statutory clearances and insufficient civic infrastructure as reasons the project could not proceed as planned.
GMDA’s engineering response
GMDA engineering reports gave a different account. They stated that the plot could be reached through adjoining roads and that sewerage and stormwater drainage were available along a nearby 100-foot road. The conflicting descriptions of access and services became central to the dispute over whether non-construction charges should be waived.
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How the concession was approved
At GMDA’s 34th authority meeting in February 2026, chaired by Chief Secretary KAP Sinha, members concluded that nearly Rs 40 crore in non-construction charges was not justified because the site was allegedly not free from encumbrances. The proposal faced objections from the Punjab Finance Department before approval. The October order has now set that relief aside.
What the Enforcement Directorate is examining
The ED summoned GMDA Chief Engineer Ajay Garg, former Chief Engineer Sunil Kansal and then Land Acquisition Officer Hardeep Singh in August 2026. The summons sought records under the Prevention of Money Laundering Act, 2002, relating to the allotment and subsequent decisions.
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In September, the agency conducted a three-day search at GMDA offices. Reporting on the investigation alleges that manipulation of reserve prices for unsold land parcels could have exposed GMDA and the Punjab government to a potential loss of nearly Rs 10,000 crore. Separate reports have put the alleged benefit associated with the Remigate waiver at between Rs 40 crore and Rs 57 crore.
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What happens to the food-court site now
GMDA has been directed to prepare a complete account of the allotment. The calculation must credit payments already made and separately show principal, ordinary interest, penal interest and non-construction fees.
- GMDA must send Remigate an itemised statement within two weeks of the order.
- Remigate will have one month to clear the recalculated dues.
- If the dues remain unpaid, GMDA may begin site-resumption and forfeiture proceedings.
- Before any resumption or forfeiture, GMDA must issue the required statutory notice and provide a reasonable opportunity for the allottee to be heard.
The immediate consequence is therefore a recalculation and demand, not an automatic cancellation of the allotment on October 15. The property’s final status will depend on whether Remigate pays the assessed amount or contests the demand through the available process.
Why the decision matters
The order removes an exceptional concession from a high-value public land allotment while the ED examines how the allotment and waiver were handled. It also leaves the competing infrastructure accounts unresolved for any further administrative or legal challenge: Remigate says site conditions prevented construction, while GMDA maintains that access and essential drainage infrastructure were available.
For the allottee, the practical exposure is the full recalculated liability, potentially including accumulated interest and penalties, followed by the risk of losing the site if the demand is not settled after notice and hearing.
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