₹7,845 Per Sq Yd Charge Raises Heat in Mohali IT City

A fresh wave of concern has swept through Mohali IT City as allottees grapple with a newly announced enhancement charge of ₹7,845 per square yard. The decision has triggered anxiety among plot owners and investors who had budgeted their projects based on earlier cost structures. With development timelines already stretched the added financial burden has become a hot topic across the region’s real estate circles.

What’s Behind the New Enhancement Charge?

The levy has been introduced by GMADA citing increased infrastructure and development costs within IT City. Authorities point to upgrades in roads, utilities and civic infrastructure as the basis for recalculating charges. While such enhancement fees are not uncommon in planned developments the timing and quantum have caught many allottees off guard.

Why Allottees Are Worried

For many buyers especially small and mid sized enterprises the charge translates into a significant unplanned expense. Projects that were financially viable earlier may now require revised budgets, fresh funding approvals or scaled back plans. The sudden nature of the levy has also raised concerns about predictability in future costs.

In a development that has added a new financial strain for nearly 7,000 IT City plot holders enhancement charges have come into focus. These charges represent the extra compensation paid to original landowners during land acquisition which is subsequently passed on to plot allottees by the authority.

Understanding Enhancement Charges

Enhancement charges are typically imposed when the cost of acquiring land or developing infrastructure exceeds initial estimates. In theory they ensure that the authority can complete promised facilities without compromising quality. However buyers argue that such costs should be anticipated upfront to avoid surprises later in the project lifecycle.

The Chief Accounts Officer to the Land Officer directed that immediate action be taken to recover the revised enhancement charges from allottees and transferees as per approved norms. For unsold plots the revised amount will be factored into the reserve price when the properties are offered through auction or fresh allotment.

Impact on Investment Sentiment

The announcement has introduced a degree of uncertainty in Mohali IT City’s otherwise promising outlook. While the area continues to benefit from strong connectivity and proximity to Chandigarh recurring cost escalations could dampen investor confidence particularly among startups and IT firms operating on tight margins.

Allottees have begun seeking clarity on the calculation method, timelines and possible relief measures. Industry observers suggest that transparent communication and phased payment options could help ease tensions. Some buyers are also exploring collective representations to request a review or rationalisation of the charge.

What Lies Ahead

As discussions evolve much will depend on how the authority engages with stakeholders. Clear timelines, justification of costs and potential concessions for early allottees could help restore confidence. For now plot owners are recalibrating their plans while keeping a close watch on official updates.

Mohali IT City remains a strategic destination for technology led growth but the latest enhancement charge has underscored the importance of cost certainty. How this issue is addressed will play a key role in shaping buyer trust and the city’s long term development trajectory.