The Greater Mohali Area Development Authority (GMADA) finds itself in a major controversy after floating a single, massive tender worth over Rs 1,000 crore for a 10-year period, leading to allegations of favouritism and creating a monopoly. The GMADA Contractors Association has accused the authority of sidelining hundreds of local registered contractors to benefit one large firm, and has warned of intense protests, including hunger strikes and legal battles.
Unprecedented Tender Sparks Allegations of Bias
As part of its ambitious 'Mohali Next Generation Programme', aimed at transforming the city into a modern, future-ready urban centre, GMADA issued mega tenders on December 31, 2025. The tender closing is set for 11 am on January 22. The contract encompasses comprehensive road development, resurfacing, major junction upgrades, and city beautification works across Mohali, with a total estimated cost exceeding Rs 1,000 crore.
While GMADA officials, including Executive Engineer Ajay Garg, maintain that the project will significantly upgrade infrastructure, ease traffic congestion, and give Mohali a distinct modern identity, the contracting community sees it differently. The primary point of contention is the bundling of all works into one long-term contract, a move the association labels as an unprecedented step that effectively blocks local participation.
A 'Do-or-Die' Situation for Local Contractors
The GMADA Contractors Association, representing 343 registered contractors, has levelled serious allegations of a 'deliberate conspiracy'. Association president Harshdeep Singh Sra claimed that the stringent eligibility criteria are designed to exclude all local companies from Punjab, Haryana, and Himachal Pradesh, ensuring only one big contractor qualifies.
"As many as 343 registered contractors are now on the verge of unemployment. Our machinery is on EMIs, and banks are pushing us towards default. This is the government's 'New Year gift' to us," Sra stated starkly. The contractors describe the situation as a 'do-or-die' battle for their survival and have vowed to fight democratically, including approaching the Punjab and Haryana High Court to protect their rights.
Administrative Shifts and Escalating Conflict
Adding another layer to the dispute is a significant administrative change accompanying the project. Several major roads previously under the jurisdiction of the Mohali Municipal Corporation have now been brought under GMADA's control for development and maintenance, a move that has sparked debate at the municipal level.
The contractors' association has issued a clear warning to GMADA, indicating plans for widespread protests. The potential actions include hunger strikes and pursuing all available legal avenues to challenge the tender process. This standoff puts a cloud over the launch of the high-profile 'Mohali Next Generation Programme', highlighting the clash between large-scale urban development goals and the economic interests of local small and medium businesses.
GMADA, for its part, insists the tenders were floated strictly under the programme's guidelines with the sole objective of developing Mohali into a "beautiful, modern and well-organised city." As the January 22 tender closing date approaches, the tension between the development authority and the local contractor community continues to rise, setting the stage for a significant confrontation.
