GMADA E-Auction: How to Bid, Eligibility Fee, Payments and What Happens After You Win
Property1313 Team · October 25, 2026 · 11 min read
Quick answer: A GMADA e-auction is run online under the Punjab government's e-auction policy of 20 February 2025. You register on the e-auction portal linked from gmada.gov.in, pay a refundable eligibility fee (₹5 lakh to ₹10 lakh for GMADA plots and SCOs, by reserve price), and bid in rupees per square metre. If your bid is accepted, you pay 10% plus a 2% cancer cess within 5 working days. Then you pay another 15% within 7 working days of the allotment letter, and the balance 75% either within 120 days with a 7.5% rebate or in 8 half-yearly instalments at 9.5% interest.
Most people who ask us about a GMADA e-auction have seen a newspaper advertisement for residential plots, SCOs or booths in Mohali and want to know two things: what they have to pay before they can bid, and what they are signing up for if they win. The rules are not hidden. The Punjab Department of Housing and Urban Development notified a single e-auction policy for all its development authorities on 20 February 2025 (notification No. 10/02/2025-5HG1/226), and GMADA publishes the full notification on its own website. This guide walks through that policy in the order you will meet it, with the clause numbers, so you can check every figure yourself.
Everything below is as stated in that notification, which we read on gmada.gov.in on 30 October 2026. Each auction also has its own advertisement and terms, and those decide the details for that auction.
What a GMADA e-auction is, and what it is not
GMADA (Greater Mohali Area Development Authority) sells sites it owns in three ways: by e-auction, by draw of lots in a plot scheme, and through land pooling to landowners whose land it acquires. An e-auction is the open, highest-bid route. Under clause 1 of the 2025 policy, all auctions by PUDA and the special development authorities, GMADA included, are held only as e-auctions.
You are buying a bare site from the authority, not a flat from a builder. The site is offered "as is where is" (clause 11.2), so levelling it or clearing anything on it is your job. A site bought at auction is also not a RERA project in itself. If you want a finished, RERA-registered home rather than a plot to build on, you are looking at a different purchase altogether.
The policy splits sites into two groups (clause 2). In GMADA, a site with a bid price of ₹50 crore or more is a "chunk site", typically group housing, hotel, hospital or large commercial land. Anything below ₹50 crore is "other than chunk site", which covers the residential plots, SCOs, SCFs, single-storey shops and booths that individual buyers bid for.
How to bid in a GMADA e-auction: the steps
Here is the sequence from advertisement to bid.
- Read the advertisement and the auction's own terms on gmada.gov.in. They list the sites, sizes, reserve prices, the eligibility fee and the dates.
- Register on the e-auction portal that GMADA's website links to. Under clause 8.5, you can take part through a digital signature certificate (DSC), OTP-based verification or Aadhaar-based authentication.
- Pay the eligibility fee online through the portal, in advance, for each site you want to bid on.
- Bid during the auction window. Bids are made in rupees per square metre (clause 8.1), never below the reserve price (clause 9.1).
- Wait for the authority's decision. Acceptance is conveyed by SMS or e-mail, and the clock for your first payment starts then.
A few rules catch people out. Nobody may bid on behalf of another person (clause 8.2). Joint bidding is allowed for residential plots, SCFs, SCOs, shops and booths, but not for chunk sites (clause 8.4). Once a bid is placed, you cannot withdraw it; if you do, the eligibility fee is forfeited in full (clause 8.7). An auction needs at least 2 bidders and 3 bids for a successful bid (clause 8.3).
Tip: Before you register, open the property's sector on our Mohali map layout pages and visit the site in person. A plot on a map and a plot on the ground can feel very different once you see the road in front of it.
The eligibility fee (what people call the EMD)
Most buyers search for "GMADA EMD". The 2025 policy calls it an eligibility fee, and clause 3 says it is refundable or adjustable: if you win, it is adjusted against your first payment. For GMADA, the fee for residential plots, SCOs, SCFs, single-storey shops and booths is set by reserve price:
| Reserve price of the site | GMADA eligibility fee |
|---|---|
| Up to ₹1 crore | ₹5 lakh |
| ₹1 crore to ₹5 crore | ₹7.5 lakh |
| More than ₹5 crore | ₹10 lakh |
For multiplex, commercial, hospital, hotel, nursing home, group housing and school sites, the fee is ₹25 lakh up to 1 acre, ₹2 crore from 1 to 5 acres, and ₹5 crore for 5 acres and above. The note under the table says chunk-site fees follow the earlier policy of 16 February 2023.
If the authority does not accept the highest bid for any reason, clause 8.9 says the eligibility fee is refunded in full within 7 days of that decision. The policy does not set a separate timeline for bidders who simply lose; check that in the auction's own terms.
What you pay after you win a GMADA e-auction
This is the part to plan before you bid, because the deadlines are short and the money is forfeited if you miss them.
| Stage | What you pay | Deadline |
|---|---|---|
| Fall of hammer | 10% of the total bid (minus the eligibility fee) plus 2% cancer cess on the total bid | Within 5 working days of the acceptance SMS or e-mail |
| Allotment letter | Issued by GMADA | Before the 30th day after the 10% deposit |
| To complete 25% | A further 15% of the bid price | Within 7 working days of the allotment letter |
| Balance 75%, option 1 | Lump sum, with a 7.5% rebate on the 75% | Within 120 days of allotment |
| Balance 75%, option 2 | 8 half-yearly instalments, with interest at 9.5% a year, compounded annually | First instalment 6 months after allotment |
Sources: clauses 4, 5 and 6 of the 2025 policy.
Three things to note. First, if you miss the 10% deadline, the eligibility fee is forfeited (clause 4.1). Second, if you miss the 15% deadline, GMADA presumes you have not accepted the allotment, and everything you have deposited, including the cancer cess, is forfeited (clause 5.1). Third, when you pay the 15%, you must deposit TDS separately with the Income Tax Department; GMADA credits it against your next instalment once you submit the challan and the TDS return (clause 5.2).
If an instalment is late, clause 6.1 gives a one-month grace period at the normal 9.5% interest, then five more months with a 5.5% a year penalty on top. After six months unpaid, GMADA can start resumption of the site under the Punjab Regional and Town Planning and Development Act, 1995. The same clause applies to sites sold by draw of lots.
What to check: Line up your funds, or your bank's sanction, for at least the first 25% before you bid. A home loan is rarely disbursed in 5 working days, and the forfeiture rules do not wait for a bank.
Possession, building and the 3-year rule
Possession is offered in the allotment letter itself (clause 7.1). You must take it within 7 working days of paying the 15%, or it is treated as handed over on the due date. GMADA will not actually deliver the site until 25% of the price plus the 2% cancer cess has been paid.
Ownership stays with GMADA until the full price, interest and dues are paid (clause 8.10). After full payment, you execute a conveyance deed in the prescribed form within 90 days (clause 8.11).
Then comes construction. Under clause 11.3, you must build a dwelling unit on a residential plot, or one storey on an SCO or SCF, within 3 years of possession or deemed possession. Building plans must first be approved under the Punjab Urban Planning and Development Building Rules, 2021 (clause 10.1). The Estate Officer can extend the period on payment of an extension fee. Before you occupy the building or hand it on to a buyer, you need a completion or occupation certificate (clause 11.4).
Land use is fixed. A site can only be used for the purpose it was allotted for, and it cannot be sub-divided or have its land use changed (clauses 10.5 and 11.1), unless it was sold as a mixed land use site.
Can you sell before you finish paying?
Yes, with permission. Clause 8.12 lets an allottee transfer the site by sale or gift before the last instalment falls due, with the Estate Officer's prior permission and a transfer fee. The whole site must be transferred; you cannot sell part of it. Once the last instalment is due, you cannot transfer until you have paid in full and executed the conveyance deed. Mortgage needs prior permission too. Our GMADA resale checklist covers the transfer paperwork step by step.
Not sure whether a GMADA auction plot or a ready home suits your budget and timeline better? Send us the site number from the advertisement. Call or WhatsApp 89100 01313, or use our contact page, and we will go through the terms and the location with you before you pay the eligibility fee.
How GMADA sets the reserve price
Clause 12 explains where the starting number comes from. In a new urban estate with no earlier auction, the reserve price of a residential plot is the highest rate fixed for allotment of residential plots in that estate; for SCOs and SCFs it is 3 times that rate, and for single-storey shops and booths 2 times.
For later auctions, if a site sold at up to 25% above reserve, the next reserve is 90% of that sale price. If it sold for more than 25% above reserve, half of the excess is added to the last reserve price. Where a site fails to sell in 2 consecutive auctions, the reserve can be cut by 7.5%, up to 22.5% in total in steps, but not if another site of the same category in the same sector sold in those auctions. Where no auction has been held for 3 years, the price is re-fixed with reference to collector rates, allotment rates, market rates and the last auction.
That is how the authority fixes its floor. It says nothing about what a site is worth to you, so compare it with resale prices in the same sector on our property rates page before you decide how high to go.
A checklist before you bid
- Read the auction's own terms as well as the 2025 policy; the advertisement decides the eligibility fee and the dates.
- Visit the site. It is sold "as is where is".
- Check the land use, the permitted coverage and FAR for that site in the advertisement and the building rules.
- Plan for the cancer cess (2% of the bid), the TDS and the stamp duty on the conveyance deed, all over and above the bid (clause 9.4). Our guide to stamp duty and registration charges in Punjab explains the last one.
- Keep your 10% and 15% ready in cash or sanctioned funds.
- Budget for building within 3 years, or for the extension fee.
- Keep copies of every SMS, e-mail, receipt and the allotment letter in one folder.
If you would rather buy a home than a site
An auction plot suits a buyer who wants to build, has the cash flow and can wait. Many families we meet want a finished or registered home near the same roads instead. Two RERA-registered options in GMADA-planned areas that we list:
The Medallion · GHS Site 4 & 5, IT City, Sector 82-A, Airport Road, Mohali
The Pinnacle · Sector 83 Alpha, IT City, Mohali · Rs. 3.25 Cr onwards
You can also browse plots in Mohali and the wider property in Mohali page, and work out instalments on the EMI calculator.
Talk it through before you bid
A GMADA e-auction is fair and transparent, but it is unforgiving on deadlines. If you want a second pair of eyes on an advertisement, a site visit with someone who knows the sector, or a comparison with resale and new homes nearby, call or WhatsApp Property1313 on 89100 01313 or write to us through the contact page. There is no charge for the conversation.
This guide is general information about the published policy, not legal or tax advice; check with a CA or property lawyer before you bid.
Frequently Asked Questions
- How do I participate in a GMADA e-auction?
- Read the auction advertisement and terms on gmada.gov.in, register on the e-auction portal it links to, and pay the eligibility fee online for each site. Under the policy of 20 February 2025 you can take part through a DSC, OTP-based verification or Aadhaar-based authentication, and you bid in rupees per square metre.
- What is the EMD for a GMADA e-auction?
- The 2025 policy calls it an eligibility fee. For GMADA residential plots, SCOs, SCFs, shops and booths it is ₹5 lakh up to a ₹1 crore reserve price, ₹7.5 lakh from ₹1 crore to ₹5 crore, and ₹10 lakh above ₹5 crore. It is adjusted against your first payment if you win.
- How much do I pay after winning a GMADA auction?
- You pay 10% of the bid (less the eligibility fee) plus 2% cancer cess within 5 working days of acceptance. A further 15% is due within 7 working days of the allotment letter. The balance 75% is paid either within 120 days with a 7.5% rebate, or in 8 half-yearly instalments at 9.5% a year.
- Can I withdraw my bid in a GMADA e-auction?
- No. Clause 8.7 of the 2025 policy says a bid cannot be withdrawn or surrendered once placed, and the eligibility fee is forfeited in full if you do. Missing the 10% or 15% payment deadlines also leads to forfeiture.
- Is it compulsory to build on a GMADA auction plot?
- Yes. Clause 11.3 requires a dwelling unit on a residential plot, or one storey on an SCO or SCF, within 3 years of possession or deemed possession. The Estate Officer can extend this on payment of an extension fee.
- Can I sell a GMADA auction plot before paying in full?
- Only with the Estate Officer's prior permission and a transfer fee, and only before the last instalment falls due. After that, no transfer is allowed until full payment and the conveyance deed. The whole site must be transferred, not part of it.
- Is a joint bid allowed in a GMADA e-auction?
- Joint bidding is allowed for residential plots, SCFs, SCOs, shops and booths, but not for chunk sites such as group housing, hotel, hospital or school sites. Nobody may bid on behalf of another person.