Punjab govt seeks Rs 1,000 crore from 4 housing bodies

Punjab government has sought Rs 1,000 crore from the development authorities in Mohali, Jalandhar, Ludhiana and Bathinda, citing obligations under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

The authorities under the Department of Housing and Urban Development have already paid Rs 2,500 crore to the state government earlier this year. The money, to be deposited with the state Finance Department, pertains to thousands of acres of land acquired by the authorities over the years for urban development.

Of the Rs 1,000 crore, GMADA is contributing Rs 300 crore, followed by the Greater Ludhiana Development Authority (Rs 500 crore), Jalandhar Development Authority (Rs 100 crore) and Bathinda Development Authority (Rs 100 crore).

Under Section 10(3) of the Act, the authorities were required to develop an equivalent area of cultivable land for agricultural purposes, or deposit an amount equivalent to the value of the land acquired with the state government. Neither was done. “But the money is being diverted to fund the government’s populist schemes,” said sources in the government.

It may be mentioned that the state has claimed that it invested a whopping Rs 94,443 crore to enhance food security. Based on the acquisitions made by the development authorities, including in Mohali, the state government has been seeking funds from the development authorities.

The eight development authorities under the Department of Housing and Urban Development collectively hold an inventory of unsold residential, commercial and industrial sites, with GMADA alone accounting for nearly Rs 24,000 crore.