The Punjab government has taken a decisive step to resolve the long-stalled Aerotropolis expansion near Mohali's international airport by routing pending compensation payments through the Reference Court. This in-principle decision allows the Greater Mohali Area Development Authority (GMADA) to finally take possession of land in Aerotropolis Pockets A, B, C, and D, resuming development works frozen for over three years due to the multi-crore guava orchard compensation scam.
High-Level Meeting and Formal Notification
The decision emerged from a high-level meeting attended by sarpanches from most villages in the acquisition area. Top government functionaries confirmed to The Tribune that a formal notification granting legal effect to all enhancements will be issued shortly. The move aims to break the deadlock caused by Vigilance Bureau FIR No. 16 of 2023, registered in connection with the Rs 137-crore guava orchard compensation scam.
Details of the Guava Orchard Compensation Scam
The scam allegedly involved manipulation of orchard assessments on land acquired for the Aerotropolis project. Investigators claimed that influential beneficiaries, in collusion with officials from revenue, horticulture, and land acquisition departments, fraudulently claimed massive compensation for fruit-bearing guava orchards shown on acquired land. The probe has led to multiple arrests, prosecution sanctions against officials, and parallel money-laundering proceedings by the Enforcement Directorate.
Administrative Hurdles and High Court Intervention
The controversy triggered administrative restrictions on compensation disbursal. An order by the Additional Chief Secretary, Housing and Urban Development, expressing concerns about orchard and structure assessments, became the principal hurdle. That order was later stayed by the Punjab and Haryana High Court, creating a legal and administrative impasse that stalled payments and delayed development across Aerotropolis Blocks A-D.
New Compensation Mechanism
The government has now decided that all pending cash compensation and disputed payment amounts will be deposited by the Land Acquisition Collector before the competent reference court. Once deposited, GMADA can secure possession and proceed with infrastructure development without waiting for final adjudication of individual disputes. In a significant relief, compensation for structures and orchards not under Vigilance Bureau investigation will be released directly to beneficiaries.
Future Transparent Policy
Officials stated that the government will formulate a fresh transparent policy for assessing structures and fruit-bearing trees to prevent future disputes and ensure timely compensation in subsequent acquisitions. This decision is crucial as Aerotropolis Blocks A-D form part of the larger airport-region development strategy around Mohali. Although compensation awards were announced earlier, physical progress remained constrained due to unresolved disputes linked to the orchard scam.
Chief Minister's Statement
Punjab Chief Minister Bhagwant Mann emphasized, "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."
