The Punjab Government on Monday announced a cash compensation award of Rs 1,932.38 crore for the compulsory acquisition of 309.30 acres in Mullanpur Garibdas (now New Chandigarh) under Kharar tehsil, to develop a new low and high density residential township in New Chandigarh, which was exclusively reported by The Tribune.The award, officially notified on March 30, by the Land Acquisition Collector, Urban Development Department, fixes the total cash compensation at Rs 6,24,75,426 per acre — calculated on a base market value of Rs1,73,20,277 per acre, multiplied by factor 1.5, plus 100 per cent solatium and 12 per cent annual interest for the period from November 15, 2022 to March 30, 2026 (1,231 days).With this third award, the state has now formally declared cash compensation for three of the seven new residential townships planned as part of one of the most ambitious urban expansion drives in Punjab’s history. The acquisition of a total 11,103 acres across Greater Mohali area and New Chandigarh for seven new townships, seven new sectors and 1,240 acres of master plan roads was exclusively reported in these columns.Related news: Punjab to acquire 11,103 acres in Mohali, New Chandigarh for infra pushFour to goThe fresh award follows two earlier compensation declarations — the acquisition award for 716 acres covering nine villages for the development of Eco City-3 in New Chandigarh, with a total payout of Rs 3,690.32 crore; and a partial award for Aerotropolis Blocks A, B, C and D in Mohali, covering 206.39 acres close to Chandigarh international airport and in the vicinity of Mohali’s IT City and Aerocity. The letters of intent to successful allottees are being issued currently.Together, the three awards account for Rs6,069 crore in declared cash compensation covering over 1,231 acres of land under acquisition across New Chandigarh and Mohali.For the remaining four townships and seven new sectors, the acquisition process is in an advanced stage. For the 3,535-acre Aerotropolis Blocks E, F, G, H, I and J — the single largest project in the entire plan — a declaration under Section 19 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, has already been issued. The compensation award under Section 30 is imminent. For new commercial Sector 87, which the state intends to develop on the pattern of Chandigarh’s iconic Sector 17, and the industrial Sectors 101 and 103 covering 509 acres, Section 11 notifications have been issued. Land acquisition notifications under Section 4(1) have been issued for the Industrial Park in Sector 101 (488 acres), commercial pockets of Sectors 85, 86 and 88 (76 acres), 1,240 acres for master plan roads across Mohali and New Chandigarh, and the 2,489-acre Aerotropolis Extension in Banur. The Section 4(1) notification for the 90-acre Eco City Extension in New Chandigarh will be issued shortly.With the issuance of acquisition notifications, the sale and purchase of all land parcels under the acquisition proceedings stand immediately prohibited.From land pooling to cash routeThe current acquisition exercise marks a decisive policy shift. Earlier in 2025, the state had launched a flagship Land Pooling Policy, under which farmers were to receive developed plots rather than cash. This model was reported exclusively by The Tribune, triggering widespread farmer protests and an interim stay from the Punjab and Haryana High Court. The government withdrew the policy entirely in August 2025.The state subsequently notified a fresh Land Pooling Policy in November 2025, but this time made it entirely optional. Under the current acquisition proceedings, landowners of New Chandigarh, as with others across the acquisition belt, can either opt for the benefits under the new Land Pooling Policy or accept the statutory cash compensation now declared.Senior government officials said the policy offered substantially better returns than straight cash. Prior to acquisition notifications, average land values in the certain GMADA belt stood at around Rs 5 crore per acre, rising to approximately Rs8 crore per acre after notifications. Under the optional Land Pooling Policy, the combined market value of developed plots on offer, either 1,600 square yards of residential land or 1,000 sq yd residential and 200 sq yd commercial (SCO) per acre, is estimated at approximately Rs16 crore per acre. It is more than double the current market price and over three times the pre-notification level.Farmers from affected villages, backed by the Congress, the Shiromani Akali Dal and the BJP, continue a “Pucca Morcha” (permanent dharna), combined with a chain hunger strike, outside the GMADA headquarters in Mohali. Government and GMADA officials have so far been unable to pacify the protesters, even as they cite village panchayat resolutions endorsing the acquisition.How it’s calculatedTotal compensation per acre includes base market value multiplied by factor 1.5, plus 100% solatium, plus 12% annual interest (Additional Payment) from date of Section 4(1)/11 notification to award date, as mandated under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Rehabilitation and resettlement award is to be announced separately under Section 31 of the Act after formation of R&R Committee under Section 45.