In a bid to revive stalled land auctions and align official rates with market realities, the Punjab government has approved a rationalisation and reduction of property prices under the Greater Mohali Area Development Authority (GMADA) by nearly 22.5 per cent. The move is aimed at improving the marketability of residential, commercial, institutional and industrial sites that have remained unsold at earlier reserve prices.

Price Reduction: The Punjab Cabinet has given the green light to reduce the reserve prices of various residential, commercial, institutional, and industrial properties of GMADA. The Finance Minister stated that rates would be reduced by almost 22.50% to ensure the properties are sold.

Revised Auction Guidelines: The government amended the e-auction guidelines for determining the reserve prices. The new policy mandates the appointment of three independent valuers, empanelled by nationalised banks and the income tax department, to assess the rates of sites.

Mechanism for Unsold Properties: For properties that fail to sell in two or more consecutive auctions, the average of the rates provided by these independent valuers will be used to determine a new reserve price.

Validity: The new property rates will be valid for one calendar year.

Objective: The goal is to facilitate the sale of properties that remained unsold at previous higher reserve prices, thereby allowing the Housing and Urban Development Department to proceed with a mega auction to generate an estimated ₹15,000 crore in revenue. This revenue is intended to fund development projects and repay existing loans.

This move marks a shift in policy, as the government seeks to align official land rates with market realities to attract buyers.