Chandigarh Royal City Promoters to file Rs. 250 crore recovery suit against GMADA
Babushahi Network
Chandigarh, July 24, 2025: Chandigarh Royal City Promoters Private Limited in a statement said that many unreasonable demands related to the CRC project are being made by GMADA. The body is responsible for the development work, and has not done any concrete work so far.
The promoter company said that this project was approved by GMADA in the year 2011, and at the same time, an agreement was also signed between GMADA and the promoter, which was prepared by GMADA itself. This agreement mentions that if the main development works are done by the state government or GMADA, then only the promoter will have to pay proportionate fees for them.
According to the promoter company, GMADA had demanded a total of Rs 25.54 crore as EDC (External Development Charges), against which the promoter has so far paid Rs 32.76 crore to GMADA as EDC, license fees and other charges.
Despite this, GMADA is now demanding an additional Rs 40.04 crore, which is actually not EDC but interest.
The company has raised this issue in the High Court, and GMADA itself has admitted in court that no development work has been done in the colony.
Neeraj Kansal, Promoter of Royal Group, said, “GMADA neither laid the sewerage line nor carried out the storm water drainage work”. “There is a deliberate attempt to tarnish the image of their project. The company is preparing to file a recovery suit against GMADA to reclaim the amount collected without any development”, he stated further.
The promoter also alleged that GMADA adopted a coercive attitude and took post dated cheques, while the building plan approval process of the colony was stopped. These cheques were given by the company with clear opposition, on the condition that these cheques should not be deposited in the bank until GMADA starts the development work.
Despite this, GMADA presented the cheques, which bounced. Now GMADA is only trying to build pressure and collect extra money while about 500 families living in the colony are suffering due to lack of basic facilities.
Around 500 families out of a total of 2,000 are currently residing here, and they are facing numerous issues. During the rainy season, the problems worsen due to the complete lack of services provided by GMADA. Treated water from the sewerage system also accumulates in the area, creating serious health and hygiene concerns, as GMADA has failed to carry out its responsibilities.
Even the electricity infrastructure had to be arranged by the promoter, who paid extra to the PSPCL department, despite it being GMADA’s responsibility to lay electricity lines in the colony for power connections.
For drinking water, residents are compelled to rely on groundwater, which is technically unauthorized. However, due to GMADA’s inaction even after being directed to make arrangements they have no other option. GMADA is defaulting on its duties at every level.
Looking at the situation, the promoter company is now preparing to file a recovery suit of about 250 to 300 crores against GMADA. They say that they have paid the amount in return for which GMADA had to do the work, but no facility has been provided till now.