Punjab’s ambitious and controversial Mohali Next Generation Roads Programme ran into fresh trouble on Friday as the Punjab and Haryana High Court ordered that allotment of the tender shall be subject to the outcome of the pending litigation, forcing GMADA to defer the opening of financial bids — for the third time — to March 27.

A division bench, comprising Justice Lisa Gill and Justice Ramesh Chander Dimri, also directed the state to file a detailed para-wise reply to the writ petition after the short reply filed by GMADA failed to address the core issues raised by the petitioners. The matter has been adjourned to April 1 for further proceedings.

According to advocate HC Arora, who appeared for the petitioners along with advocate Sunaina, the court’s direction effectively puts the brakes on the project until the petition is finally decided.

“When we pointed out the glaring defects in the tender process, the state council could not justify the exclusion of existing contractors or the provisions that could be complied with only by a giant contractor,” Arora said.

Petition and GMADA’s reply

The writ petition, filed by the GMADA Contractor Association and others, challenges the tender notice dated January 11, 2026. The petitioners contend that the entire tender process was designed to eliminate contractors already registered with GMADA, that no provision for a joint venture was included, and that no Detailed Project Report (DPR) was prepared before the tender notice was issued. They have alleged that the notice was hurriedly pushed through and got approved by the Chief Secretary and the Chief Engineer, GMADA.

The petitioners have also raised a pointed allegation that several roads, either recently constructed or where work was already ongoing through existing contractors, were bundled into the new tender — suggesting that the cost estimate was not prepared in the prescribed manner and that the project appeared aimed at conferring benefit to a select large contractor.

GMADA’s Chief Engineer, Ajay Garg, in a short reply by way of affidavit filed before the court, maintained that the petition was not maintainable and that the petitioners lacked locus standi. The affidavit argued that the petitioners had consciously chosen not to participate in the pre-bid meeting held on January 19, 2026, and could not, at this stage, seek to assail tender conditions.

It further submitted that the fixation of tender value was entirely within the executive’s purview and that the petitioners were in effect seeking a dilution of eligibility and technical criteria to suit their own convenience rather than alleging any illegality or arbitrariness.

GMADA contended that the petitioners had concealed the Schedules forming part of the RFP, which clearly laid out the phased scope of work, and had misrepresented facts before the court.

However, the court found GMADA’s short reply evasive and insufficient, and directed that a detailed para-wise reply be filed before the next date of hearing.

Cost cut, yet project stumbles

Friday’s developments are a significant setback for a project that had just received a fresh push. Only recently, the project had received formal in-principle approval at the meeting held under the chairmanship of Chief Secretary KAP Sinha in Chandigarh. The meeting had also noted that GMADA had already revised the project cost downward from Rs 783.46 crore to Rs 666.41 crore through an official corrigendum, citing a change in the scope of work.

The in-principle approval had come with conditions — it was subject to clearance by the General House of the Municipal Corporation, Mohali; the proposal had to be certified as party neutral; and the entire financial liability was to be borne by GMADA and the Municipal Corporation, with nothing passed on to the State Exchequer or the Finance Department.

Ironically, the cost revision itself has been cited by the petitioners as evidence that the original estimates were not prepared with due diligence. “The inevitable consequence of the pending writ petition was that the estimated cost had to be reduced from Rs 783 crore to Rs 666 crore,” Arora pointed out.

Project under scanner

The Mohali Next Generation Roads Programme has been under sustained scrutiny since The Tribune first reported it on January 18, triggering sharp public debate over the unprecedented cost of nearly Rs 10 crore per kilometre and a decade-long outsourcing arrangement. The last date for submission and opening of financial bids, originally set for February 2, was extended first to February 16, then to February 27, and now to March 27 — the third deferral since the project was floated.

Under the programme, 83.4 km of major roads and junctions across Mohali are to be handed over to a private concessionaire under the Hybrid Annuity Model (HAM) for upgradation, resurfacing, beautification, operation, and maintenance over 10 years. The project covers roads in three phases — Phase 1 (41.4 km), Phase 2 (21.6 km), and Phase 3 (20.4 km) — with no fresh land acquisition proposed.

Project at a glance

Original cost: Rs 783.46 crore

Revised cost: Rs 666.41 crore

Length: 83.4 km

Concession period: 10 years

Model: HAM

Current status: Financial bids deferred to March 27, next HC hearing on April 1