Flagging serious procedural and legal concerns, the Punjab Finance Department has raised strong objections over the manner in which GMADA processed and got approval for waiving nearly Rs 40 crore, including penal interest, in favour of a private realtor after failing to provide basic amenities and an encumbrance-free site.The 1.13-acre prime site in Sector 62, Mohali, was allotted in 2015 (through auction at a reserve price of Rs 32.50 crore) to Remigate Builders for developing a food court. The builder paid 20 per cent of the amount and the first instalment of Rs 9.87 crore, but could not proceed with the project as GMADA allegedly failed to hand over clear possession despite repeated representations.Instead of resolving the long-pending issue, GMADA issued a show-cause notice to the allottee for non-payment of pending dues. The matter was later taken up in the 34th GMADA Authority meeting, chaired by Chief Secretary KAP Sinha. A decision was taken to waive the penal interest and reschedule the allotment date from 2016 to 2022.However, the Finance Department in its communication to the Chief Administrator, GMADA, has now questioned how the agenda items was placed before the GMADA Authority in its 37th and 40th meetings.The letter points out that the matter has been pending since 2016.“The Estate Officer/Competent Authority ought to have taken appropriate action in accordance with law on merits within a reasonable time period. However, no decision was taken for the last 10 years,” it states.Citing Sections 44 and 45 of the Punjab Regional and Town Planning and Development Act, 1995, the Finance Department has reminded that the Estate Officer is empowered to impose penalty after giving reasonable opportunity of being heard and to decide the matter on merits.Under Section 45(6), the Chief Administrator has the power to hear appeals and confirm, vary or modify orders passed by the Estate Officer.“Accordingly, the case does not warrant placement as an agenda item in both 37th and 40th meetings before the GMADA Authority and ought to be finalised as per law on merits at its level. Therefore, these decisions on these agendas cannot be confirmed and cannot be approved by the GMADA Authority and minutes of the meetings cannot be agreed to that extent,” the letter asserts.It has further highlighted that agendas were received at the “very last moment” in both meetings, leaving little time to examine complex issues involving huge financial implications. The department has reiterated its earlier demand that agendas should be sent at least seven days in advance.In general observations, the Finance Department has directed that observations or objections raised during meetings should be properly recorded in the minutes in future, and matters where decision-making power is vested with the Estate Officer, Chief Administrator or Secretary should not be placed before the full Authority without clearly mentioning the legal jurisdiction.