Sector 39 mandi plan hits another hurdle as three auctions fail to draw buyersOnly 12 of 92 planned SCO sites sold so far; delayed possession to first buyers, 43% hike in reserve prices dent investor confidenceTNNChandigarh: The Chandigarh administration’s long-pending plan to shift wholesale trade from Sector 26 to a new mandi in Sector 39 has suffered another setback, with three consecutive e-auctions for commercial sites failing to attract buyers. The poor response has not only exposed concerns about high property prices but also the administration’s failure to ensure timely possession to investors who bought sites in the first auction.The State Agricultural Marketing Board had offered 23 leasehold shop-cum-office (SCO) sites for auction in Sept, Oct and Nov 2026. While the Sept round received just one technical bid, the Oct and Nov auctions failed to attract a single bidder.The reserve price of each 100.23 sqm plot was increased from Rs 3.7 crore to Rs 5.3 crore, a jump of nearly 43% after revision of the city’s collector rates. The combined reserve value of the 23 sites is now over Rs 122 crore.However, the experience of the first set of buyers has also emerged as a major concern. On March 31, 2025, the board auctioned 12 of the 23 sites for a combined Rs 45 crore, with successful bids ranging from Rs 3.72 crore to Rs 3.85 crore against a reserve price of Rs 3.7 crore.Soon after the auction, Subzi Mandi Aarthi Association challenged the open e-auction policy in Supreme Court, resulting in a stay on the issuance of allotment letters. The legal hurdle was cleared on Dec 17, 2025, when the court disposed of the petition in favour of the UT administration and marketing board.Although the administration initiated the formal allotment process in Jan 2026, buyers continue to face delays in receiving final allotment letters and physical possession, according to traders. This prevented them from starting construction and putting their investments to commercial use for an extended period.“The prolonged wait has reportedly weakened confidence among prospective investors. The 12 sites auctioned in March 2025 remain the only ones sold out of the 92 SCOs planned for the Sector 39 mandi,” said a trader based in Sector 26 mandi.Traders have also questioned the decision to offer the new sites through open bidding without preferential allotment to existing Sector 26 licensees. The absence of an established trading ecosystem, including functional cold-storage and supply-chain facilities, has added to their reluctance to invest heavily in the project.The 75-acre Sector 39 site was acquired by the UT administration in 1990 to decongest the historic Sector 26 wholesale market, which faces persistent traffic congestion and sanitation problems. The land was formally earmarked for a grain, fruit and vegetable market in 2002, but construction began only in 2014-15 and subsequently stalled due to a shortage of funds.Punjab and Haryana high court had directed the administration in 2015 to make the mandi operational by March 2016, but the deadline was missed. In 2023, the discovery of an underground Kajauli waterworks pipeline necessitated further changes to the project layout.UT officials said the board would review the pricing structure and allotment conditions before announcing fresh auction dates.BOX | Sector 39 mandi: A 36-year wait1990: UT administration acquires around 75 acres in Sector 39 for Rs 2-3 crore.2002: Land formally earmarked for a grain, fruit and vegetable market2014-15: Construction begins but stalls midway due to a fund crunch2015: Punjab and Haryana high court directs UT to make the mandi operational by March 2016March 31, 2025: 12 of 23 SCO sites auctioned for Rs 45 croreApril 2025: Supreme Court stay following a challenge to the open auction policyDec 17, 2025: Supreme Court disposes of the petition, clearing the legal hurdleJan 2026 onwards: Formal allotment process initiated, but buyers continue to face delays in getting possessionSept 2026: Fresh auction receives just one technical bidOct 2026: Second auction fails to attract any bidderNov 2026: Third auction fails to attract any bidder
