The UT Administration has fast-tracked the process of shifting the wholesale fruit, vegetable and grain market in Sector 26 to the new site in Sector 39.
The State Agricultural Marketing Board has appointed Nabard Consultancy Services (NABCON), a wholly owned subsidiary of the National Bank for Agriculture and Rural Development (NABARD), to provide project management consultancy services for the New Mandi project being developed in a phased manner on nearly 75 acres.
According to officials, the board has also applied for the environmental clearance. The agenda was discussed in the State Expert Appraisal Committee (SEAC) meeting held on April 27. However, the committee raised some points, which have now been redressed. The agenda has been submitted to the Environment Committee.
After getting the environmental clearance, the process of auctioning the remaining sites, measuring 120 square yards each, and other developmental activities would start at the Sector 39 mandi, stated the officials.
As many as 23 fruit and vegetables SCO sites out of 92 sites at the new mandi were put up for an e-auction. These were offered on a leasehold basis as per the provision laid down under the Chandigarh Estate Rules. The bidding for the sites closed on March 31, 2025. Bids were received for 12 SCOs.
Later, the Subzi Mandi Aarhti Association filed a petition in the Supreme Court against the e-auction and the court stayed the process.
On December 17, 2025, the apex court dismissed the petition in favour of the Chandigarh Administration/State Agricultural Marketing Board.
With the increase in the Collector Rates, the reserve price of an SCO site increased to Rs 5.40 crore from the earlier Rs 3.70 crore. The Punjab and Haryana High Court had dismissed the traders’ petition, stating that they were attempting to derail the auction process. The association filed a petition against the auction in the Supreme Court on March 24. Officials said a total of 92 SCOs would be auctioned in phases, and the revenue generated used exclusively for the development of the new mandi. While arhtiyas have been demanding that at least 50 per cent of the plots be allotted to them at concessional rates, the administration has maintained that only office spaces on rent will be provided to the existing traders in the new market.
