Punjab and Haryana High Court Upholds GMADA's ₹2,500 Crore Loan Plan
HC dismisses PIL against GMADA’s plan to raise ₹2,500-cr loan
Hindustan Times
Image: Hindustan Times
The Punjab and Haryana High Court has dismissed a public interest litigation challenging the Greater Mohali Development Authority's (GMADA) decision to borrow ₹2,500 crore for infrastructure projects. The funds will support ongoing developments like Aerotropolis and Eco City-3, with a loan structured over three years at a 7% interest rate.
- 01The High Court dismissed a PIL against GMADA's loan plan.
- 02GMADA plans to borrow ₹2,500 crore for various infrastructure projects.
- 03The loan is structured for three years at a 7% interest rate.
- 04Funds will support ongoing projects including Aerotropolis and Eco City-3.
- 05The court affirmed that GMADA's borrowing is consistent with the Punjab Regional and Town Planning and Development Act, 1995.
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The Punjab and Haryana High Court has dismissed a public interest litigation (PIL) that challenged the Greater Mohali Development Authority's (GMADA) plan to raise ₹2,500 crore from various urban development agencies in Punjab. The PIL, filed by the Public Action Committee (PAC) and six individuals, sought to quash an April 1 communication from the Punjab Urban Planning and Development Authority (PUDA) that directed development authorities to provide loans to GMADA. The funds will be used for ongoing infrastructure projects, including the Aerotropolis and Eco City-3 developments. The loan is structured over a period of three years with an interest rate of 7%. The court found that Sections 49 and 51 of the Punjab Regional and Town Planning and Development Act, 1995, empower development authorities to borrow funds from legitimate sources. It ruled that the April 1 communication was issued with the approval of the state government and dismissed the PIL, stating there were no grounds for interference.
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The approval of this loan will facilitate ongoing infrastructure projects, potentially leading to improved urban development in Greater Mohali, which could benefit local residents and businesses.
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