In a major breakthrough for the long-stalled Aerotropolis expansion near the international airport in Mohali, the Punjab Government has decided in-principle to route pending compensation payments through the Reference Court. The government’s decision has paved the way for the Greater Mohali Area Development Authority (GMADA) to finally take possession of land in Aerotropolis Pockets A, B, C and D and resume development works that have remained virtually frozen for over three years due to the multi-crore guava orchard compensation scam.
The decision was taken at a high-level meeting held recently, which was also attended by the sarpanches of the majority of villages falling under the Aerotropolis acquisition area. A formal notification giving legal effect to all enhancements will be issued shortly, top government functionaries told The Tribune.
The move seeks to break the deadlock created by Vigilance Bureau FIR No. 16 of 2023, registered in the Rs 137-crore guava orchard compensation scam that exposed alleged manipulation of orchard assessments on land acquired for the Aerotropolis project. Investigators alleged that influential beneficiaries, in connivance with officials of the revenue, horticulture and land acquisition departments, fraudulently claimed massive compensation for fruit-bearing guava orchards shown on acquired land. The probe has since led to multiple arrests, prosecution sanctions against officials and parallel money-laundering proceedings by the Enforcement Directorate.
The controversy had triggered a series of administrative restrictions on compensation disbursal. A subsequent order issued by the Additional Chief Secretary, Housing and Urban Development, expressing apprehensions about the assessment of orchards and structures, became the principal hurdle in releasing compensation and taking possession of acquired land.
According to the officials, that order was later stayed by the Punjab and Haryana High Court, creating a legal and administrative impasse that effectively stalled payments and delayed development works across Aerotropolis Blocks A-D. The government has now decided that all pending cash compensation and other disputed payment amounts will be deposited by the Land Acquisition Collector before the competent reference court. Once deposited, GMADA will be able to secure possession of the acquired land and proceed with infrastructure development without waiting for the final adjudication of individual compensation disputes.
In a significant relief for many landowners, compensation relating to structures and orchards that are not under the Vigilance Bureau investigation will be released directly to beneficiaries.
Officials said the government would also formulate a fresh transparent policy governing assessment of structures and fruit-bearing trees to prevent future disputes and ensure timely compensation in subsequent acquisition exercises.
The decision assumes significance as Aerotropolis Blocks (from A to D) form part of the larger airport-region development strategy around Mohali. While compensation awards for the area were announced earlier, physical progress on the ground remained constrained due to unresolved compensation disputes linked to the orchard scam.
Farmers’ interests foremost: Mann
“Punjab’s development cannot remain hostage to pending disputes. We have decided to safeguard the interests of genuine farmers, ensure transparency in compensation, and fast-track possession and development of Aerotropolis so that this flagship project moves forward without further delay," said Bhagwant Mann, Punjab Chief Minister.
