Chandigarh, Oct. 17 -- The Punjab Urban Planning and Development Authority (PUDA) has sealed a deal with the State Agricultural Marketing Board (Mandi Board) to take over its 14-acre prime land in Mohali, on which a mandi has existed since 2011, but it never became functional.

The deal has been part of optimum utilisation of vacant government lands (OUVGL), under which PUDA would pay the mandi board a sum of Rs.700 crore and then raise the funds by disposing of the land for commercial or residential purposes to a private developer. PUDA officials hope that the resale may fetch a much higher price for the land. Officials in PUDA, pleading anonymity, said that in the bargain state's housing authority hopes to earn a profit of Rs.500 to Rs....