The Punjab housing and urban development department has held that GMADA’s appellate authority-cum-additional chief administrator Amarinder Singh Malhi overlooked key construction approvals while granting nearly ₹40 crore in concessions to Delhi-based developer Remigate Buildestates (India) Pvt Ltd for a commercial site in Mohali.

In his October 15 revision order, principal secretary Vikas Garg noted that the company had obtained building plan approval in 2017 and clearance up to the plinth/DPC level on March 9, 2021, showing that construction was possible and had in fact begun.

“The additional chief administrator, in particular, wholly overlooked the material fact that the company had secured these approvals,” Garg observed.

“Had the petitioner completed the building and then sought a concession on account of any shortfall in amenities, its bona fides might have been established; instead, it stopped construction and stopped payment,” the principal secretary held while revoking the ₹40-crore waiver, granted by the GMADA additional chief administrator in February 2026.

Through the 19-page order, Garg had dismissed the company’s revision petition for further relief, stating that a clear picture was not presented before the authorities, when the file for concession was moved.

The case pertains to the allotment of a 1.13-acre food court site in Sector 62, Mohali, to Remigate for ₹32.50 crore through an auction in September 2015.

Allotment under ED scanner

The development comes amid an Enforcement Directorate (ED) probe into the allotment and waiver of dues. The federal agency has written to the Punjab Police seeking registration of an FIR against GMADA officials and the company’s directors over alleged irregularities in land dealings.

On October 17, ED had arrested the company’s promoter, Jagmohan Garg, in connection with its money-laundering investigation into the alleged irregularities.

“As the principal secretary has passed a detailed order, now the ED probe will focus on the officers who overlooked the material facts,” said an official of the Punjab Urban Development Authority, not wishing to be named.

The ED’s investigation has extended to officials involved in the allotment, engineering assessments and the subsequent waiver of dues. In August, the agency summoned three GMADA officials—chief engineer Ajay Garg, former chief engineer Sunil Kansal and then land acquisition officer Hardeep Singh—to furnish records and documentary evidence under the Prevention of Money Laundering Act (PMLA).

Officials said the ED will summon more officers linked to the allotment and waiver.

During a three-day search at GMADA’s office last month, the ED seized records and electronic devices. The agency has alleged that manipulation of reserve prices for unsold land parcels could have caused a potential loss of nearly ₹10,000 crore to GMADA and the Punjab government.

Company stopped paying instalments in 2016

While seeking relief, Remigate had cited the alleged lack of an encumbrance-free site, poor road access, lack of water supply, a sewerage line passing through the plot and delays in statutory clearances.

Taking up the plea, during GMADA’s 34th authority meeting in February 2026, chaired by chief secretary KAP Sinha, the authority reportedly approved the ₹40-crore concession despite objections from the state finance department.

The authority concluded that the site was not fit for construction, while the ground facts were contrary to it as construction was started once and halted in 2022.

GMADA’s engineering reports, on the contrary, stated that the site was accessible through adjoining roads and that sewerage and stormwater drainage facilities were available along a nearby 100-foot road.

The October 15 order recorded that the company had stopped paying instalments in 2016. It also failed to follow the revised payment schedule issued in March 2026. Against ₹6.46 crore due on September 1, it paid around ₹2.46 crore, leaving ₹4 crore outstanding as of October 13.

Garg directed GMADA to calculate the entire outstanding amount, including applicable interest, penal interest and non-construction fees, after adjusting all payments received.

It must communicate 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.