Mohali: Legal hurdle gone, development back on track in Phase-9 Industrial Area
PSIEC gives the go-ahead for setting up 125 units after notification of a new Punjab policy, allowing bifurcation of industrial plots
With a two-year legal tussle over wrongful subdivision of land out of the way, 125 plot owners in Industrial Area, Phase 9, Mohali, can finally resume development of their stalled units and offices.
Following the notification of a new policy in July 2025, allowing the bifurcation and fragmentation of industrial plots in the state, the Punjab Small Industries and Export Corporation (PSIEC) has given the green signal to these industrial plot holders to set up their units, ending a freeze imposed in 2023. The Punjab government has allowed PSIEC to restore water, sewerage and power services to these units.
While approving the policy, the state cabinet also safeguarded bifurcations and fragmentations previously permitted by PSIEC under its earlier policies framed in 2005 and revised in 2021.
Tracing the controversy
The land in question had been embroiled in controversy since 2021, when Gulmohar Township Pvt Ltd purchased 25 acres from Punjab Anand Lamps (popularly known as Philips Company).
The land was subsequently subdivided into 125 plots, ranging from 500 to 1,000 square yards, earmarked for Micro, Small & Medium Enterprises (MSMEs) and IT units.
In 2022, the Punjab Vigilance Bureau initiated an inquiry, alleging that PSIEC had permitted fragmentation of the land without mandatory approvals, causing an estimated ₹700 crore loss to the state exchequer.
The bureau went on to register an FIR in January 2023 against then Punjab industries minister Sham Sunder Arora and several senior PSIEC officers, and even arrested them.
The FIR, however, was challenged in the Supreme Court, which on April 5, 2023, stayed further proceedings and directed the petitioners to approach the Punjab and Haryana high court.
In December 2024, the high court quashed the FIR, clearing the way for industrialists to seek restoration of their rights.
Following the verdict, plot owners repeatedly urged the state government to lift the embargo on development of the subdivided plots. After reviewing the matter from a legal perspective, the state government decided not to file a Special Leave Petition (SLP) and allowing PSIEC to restore water, sewerage and power services to the affected plot holders.
Renewed fillip to economic activity
With the embargo now lifted and PSIEC’s approval in place, industrialists in Phase 9 can finally move ahead with their projects, paving the way for new economic activity in the area.
A senior PSIEC officer confirmed that the Board of Directors, in a meeting held last month, resolved to restore services for bifurcated plots across different focal points. The decision regarding Industrial Area, Phase 9, Mohali, was taken in the first week of September, the officer added.
Welcoming the decision, Balwinder Jindal, president of the Mohali Chamber of Industry and IT and a plot owner in Phase 9, said, “We are grateful to the state government for allowing us to set up our units. This decision will not only generate employment but also boost revenue, as 125 new industrial units will come up in the area.”
