The Government of Punjab has officially initiated one of its largest land acquisition exercises in recent years, clearing the decks for the acquisition of over 5,100 acres in Mohali and New Chandigarh. This move comes months after the withdrawal of the land pooling policy and marks a return to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act).
According to a senior government functionary, a Section 11 notification under the RFCTLARR Act has been issued for acquiring 4,059 acres in Mohali, while compensation awards for 1,048 acres already under acquisition in New Chandigarh will be released shortly.
Key Development Areas
Mohali (4,059 acres):
3,535 acres earmarked for Blocks E to J of the Aerotropolis extension near the international airport.
524 acres for the development of new sectors, including:
Sector 87 (Commercial)
Sector 101 (Partial)
Sector 103 (Industrial)
The mandatory Social Impact Assessment (SIA) has been completed, and the expert committee has fully endorsed the acquisition.
New Chandigarh (1,048 acres):
Compensation awards for 720 acres have been finalised, furthering the development of residential and township projects in the region.
Background
The state government had previously introduced a land pooling policy under which farmers were to receive developed plots instead of monetary compensation. However, due to strong farmer opposition, political pushback, and an interim stay by the Punjab and Haryana High Court, the policy was rolled back in August.
The government has now reaffirmed its commitment to expanding Mohali and New Chandigarh through statutory and transparent land acquisition mechanisms.
Significance of the Initiative
This land acquisition drive is expected to:
Accelerate planned urban expansion around Mohali and New Chandigarh
Provide momentum to infrastructure and economic development projects
Reinforce transparency and fairness through statutory compensation
Support structured urban growth aligned with long-term development goals
A total of 5,107 acres now officially enter the acquisition pipeline, marking a major push toward enhancing urban infrastructure in the regions adjoining Chandigarh.