UT Administration Appoints NABCON for New Mandi Project
The Chandigarh Administration has accelerated the process of relocating the wholesale fruit, vegetable, and grain market from Sector 26 to a 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. The project is being developed in phases on approximately 75 acres.
Environmental Clearance Sought for Sector 39 Mandi
According to officials, the board has applied for environmental clearance for the new mandi. The agenda was discussed during the State Expert Appraisal Committee (SEAC) meeting held on April 27. The committee raised certain points, which have since been addressed. The updated agenda has been submitted to the Environment Committee for further review.
Once environmental clearance is obtained, the auctioning of remaining sites — each measuring 120 square yards — and other developmental activities will commence at the Sector 39 mandi, officials stated.
E-Auction of SCO Sites and Legal Challenges
As many as 23 fruit and vegetable shop-cum-office (SCO) sites out of a total of 92 at the new mandi were put up for e-auction. These sites were offered on a leasehold basis under the provisions of the Chandigarh Estate Rules. The bidding for these sites closed on March 31, 2025, with bids received for 12 SCOs.
Following the auction, the Subzi Mandi Aarhti Association filed a petition in the Supreme Court challenging the e-auction, which initially stayed the process. However, on December 17, 2025, the apex court dismissed the petition in favor of the Chandigarh Administration and the State Agricultural Marketing Board.
Reserve Price Increase and High Court Ruling
With the increase in Collector Rates, the reserve price of an SCO site rose to Rs 5.40 crore from the earlier Rs 3.70 crore. The Punjab and Haryana High Court had earlier dismissed a petition by traders, stating they were attempting to derail the auction process. The association subsequently filed a petition in the Supreme Court on March 24.
Officials said a total of 92 SCOs will be auctioned in phases, with the revenue generated used exclusively for the development of the new mandi. While arhtiyas have demanded 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 existing traders in the new market.
