CHANDIGARH: The AAP-led Punjab government has withdrawn concessions worth nearly Rs 40 crore and a subsequent waiver of dues granted to Delhi-based builder Remigate Buildestates (India) Private Limited, months after the relief was approved amid an ED probe into the allotment of a prime commercial site in Mohali.
Sources said the state Housing and Urban Development Department has revoked the concessions granted to the company. The reversal comes as the ED probes the circumstances surrounding the allotment of a site in Sector 62, Mohali, and the subsequent waiver of dues by the Greater Mohali Area Development Authority (GMADA).
Sources further said that, in a 19-page order dated October 15, Vikas Garg, principal secretary, Department of Housing and Urban Development, Punjab, acting as the revisional authority, dismissed the company's revision petition and rescinded the February 5, 2026, order passed by GMADA's appellate authority-cum-additional chief administrator. The order also reverses the concessional rescheduling of instalments granted by the estate officer (housing) in December last year.
The revisional authority noted that the company had stopped paying instalments in 2016 and remained in default. It rejected the claim that substantial capital had been deployed and engineering teams mobilised, observing that no documentary evidence, photographs or expenditure statements had been produced to substantiate it. Construction, which began after approval of the plinth/DPC level in March 2021, had since been abandoned.
The order also stated that the company had failed to comply with the revised payment schedule communicated in March 2026. Against Rs 6.46 crore due on September 1 towards the third instalment, it had paid approximately Rs 2.46 crore, leaving a shortfall of Rs 4 crore as of October 13.
GMADA has now been directed to calculate the entire outstanding amount, including applicable interest, penal interest and non-construction fees, after adjusting all payments received. It has also been asked to send an itemised statement to the company within two weeks, following which the company will have one month to clear the dues. Failure to pay could lead to proceedings for resumption of the site and forfeiture, subject to statutory notice and a reasonable opportunity of hearing.
The case pertains to the allotment of a 1.13-acre food court site in Sector 62, Mohali, to Remigate for Rs 32.50 crore through an auction in September 2015.
The company initially deposited 20% of the total cost and subsequently paid an instalment of Rs 9.87 crore. The firm later contended that GMADA had failed to provide an encumbrance-free site despite repeated representations. The authority, however, issued a show-cause notice to the company over outstanding dues and non-payment.
The company cited inadequate road access, lack of water supply, a sewerage line passing through the site, delays in statutory clearances and inadequate civic infrastructure to justify its request for relief. GMADA's engineering reports, however, stated that the site was accessible through adjoining roads and that sewerage and stormwater drainage infrastructure was available along a nearby 100-foot road.
During GMADA's 34th authority meeting in February this year, chaired by Chief Secretary KAP Sinha, the authority reportedly concluded that the demand for nearly Rs 40 crore in non-construction charges was not justified because the site was allegedly not free from encumbrances and consequently approved the waiver. Despite objections from the state Finance Department, the concession was granted.
In its revision petition, the company had sought an additional year to pay the rescheduled instalments beyond December 1, 2026, an extension of the construction period from three to five years, and a waiver or reduction of non-construction fees, penalties and other financial charges.
In August this year, the ED summoned three GMADA officers, Chief Engineer Ajay Garg, former Chief Engineer Sunil Kansal and then Land Acquisition Officer Hardeep Singh, to its Delhi office to furnish records and documentary evidence in connection with the investigation under the Prevention of Money Laundering Act, 2002. The inquiry covers the allotment, engineering assessments and the subsequent waiver of dues.
In September, the agency conducted a three-day search operation at GMADA's office. It subsequently alleged that the manipulation of reserve prices for unsold land parcels could have caused a potential loss of nearly Rs 10,000 crore to GMADA and the Punjab government.