Clarification regarding e-Auction poilcy dated 20-02-2025 and dated 04-06-2025.

Overview of the Clarification Notice

PUDA has issued an important clarification about the E-Auction Policies dated 20 February 2025 and 4 June 2025. The clarification explains when the reserve price of a property should be increased and when the 10% increase rule will not apply. The clarification was issued because authorities were seeking guidance on properties that remained unsold even after being offered in e-auctions more than once. The new clarification makes the position clearer for such properties.

When Will the Reserve Price Stay the Same?

If the reserve price of a property was already increased by 10% under the notification dated 4 June 2025, but the property still remained unsold in the auction, its reserve price will not be increased again under the same notification. This means an unsold property that has already received the applicable 10% increase will not automatically face another 10% increase.

What If the Reserve Price Was Reduced?

The 10% increase rule will also not apply when the reserve price of a site has been reduced under Clause 12.2 of the E-Auction Policy dated 20 February 2025. So, properties whose reserve price has been reduced under this specific provision will be treated separately and will not be subject to the 10% increase mentioned in the 4 June 2025 notification.

What Happens When a Property Category Is Sold?

The clarification also covers cases where a particular category of property is sold. In such cases, the rates will first be fixed according to the formula prescribed by the concerned Authority. After that, the rates will be increased as applicable under the provisions of the notification dated 4 June 2025. This provides a clear method for authorities to decide the revised rates instead of treating every unsold property in the same way.

Why This Clarification Matters

Reserve prices can directly affect people who are planning to participate in PUDA or other development authority e-auctions. A property remaining unsold does not necessarily mean that its reserve price will simply keep increasing after every auction. This clarification separates different situations—such as properties that have already received a 10% increase and properties whose reserve price was reduced under the earlier policy. For bidders, this makes it easier to understand that the next reserve price depends on the property's previous treatment under the applicable e-auction policy.

Geographical Scope and Affected Areas

The notice does not specify individual land parcels or sectors but applies broadly to assets designated for e-Auction within GMADA’s jurisdiction. These include development plots, sectors, and other assets in the Greater Mohali area affected by recent policy revisions. The scope covers regions in GMADA’s wider development zone involved in ongoing urbanization, industrial projects, and land transactions linked to GMADA’s master plans and development schemes.

Context within GMADA land transactions

This notice is part of GMADA’s recent communications on land pooling, licensing, conversions, and auctions. GMADA has issued multiple notices over recent months to update stakeholders on land management policies. Documents from 20-02-2025 and 04-06-2025 provide the policy framework guiding these processes, including land auctions. These policies are integral to GMADA’s broader efforts to regulate land transfer, promote planned urbanization, and clarify procedures for stakeholders involved in land development and sales. The clarification issued in September 2025 follows earlier notices announcing new procedures for transparent and efficient land disposal.

Relevance to GMADA's Development Initiatives

The clarification aims to improve transparency and understanding of GMADA’s e-Auction procedures. Clear policies support fair land sales, attract investors, and encourage organized urban growth. This notice underscores GMADA’s commitment to transparency and efficiency in land disposal, which is vital for promoting investment, ensuring compliance, and facilitating smooth transfer of assets in accordance with the policies enacted earlier in 2025. These efforts are aligned with GMADA’s larger goal of sustaining sustainable development in Greater Mohali.

Practical Information and Next Steps

• Notice Date: September 23, 2025

For more information and complete details, click on “Open Original Document” to view the official source.