CHANDIGARH: Amid criticism from opposition parties and ongoing tensions with farmer unions, the Punjab cabinet today approved the Land Pooling Policy, aimed at curbing illegal colonisation.
Under the policy, farmers can voluntarily offer their land for development and, in return, receive a residential plot and a commercial site in lieu of one acre of land.
The Punjab cabinet approved the introduction of a new land pooling policy in the state to promote planned and sustainable development. A spokesperson from the Chief Minister’s Office said the policy aims to involve landowners, promoters, and companies as stakeholders in the development process and to increase interest in land pooling among landowners.
The revised scheme has been rationalised to benefit small and marginal farmers significantly, offering more options to landowners, which will boost group housing and planned development, ultimately benefiting the common man. The policy is designed to ensure holistic development by integrating every stakeholder into the process.
The new policy will be a game changer for the state as it will provide major benefits for farmers. There will be no more exploitation of farmers, and under this policy, farmers will directly benefit by crores of rupees. No private developers or land mafia can exploit farmers as the policy ensures protection from such exploitation, an official said.
The official added that complete authority lies with the farmer, and it will be 100 percent their decision whether to give land to the government or not. Farmers can either keep their land and continue farming or choose to sell it.
There will be no forced acquisition as used to happen earlier. Nothing will proceed without the farmer’s written consent (NOC), and the land will be given directly to the government, not private developers.
The government will fully develop the land and return plots to the farmers, which will include all facilities like roads, electricity and water connections, sewerage pipes, street lights, and parks. The value of these plots will be up to four times the market rate. Each farmer will receive a written document from the government clearly mentioning the farmer’s full entitlement.
Farmers can choose to receive two plots of 500 square yards each and will have complete freedom to keep or sell them. The benefits are not limited to just one acre - the more land a farmer contributes, the greater the profit. Additionally, through partnership, if a farmer contributes nine acres, they will receive three acres of developed group housing land. If multiple farmers pool together 50 acres of land for the government, they will receive 30 acres of fully developed land in return.
This policy stipulates the end of land mafia rule and enforces a complete ban on illegal colonies.
The Cabinet also approved the Partial Surrender and Partial Cancellation of Licenses issued to colonies under the Punjab Apartment and Property Regulation Act (PAPRA), 1995, as well as the Partial Cancellation of approvals granted to industrial park projects. A policy in this regard was notified on March 10, 2025, concerning the surrender of licenses for developing colonies under the PAPRA Act and approvals for industrial parks.
This decision allows for partial surrender of licensed areas, subject to certain conditions, and partial suspension or cancellation of licenses for such projects.
To encourage allottees and bidders of residential, commercial, and other property plots to make lump sum payments of 75 percent of the total amount, the cabinet approved a series of incentives.
A 15 percent discount on the cost of the plot will be offered to allottees who make a lump sum payment. This measure is expected to ensure consolidated revenue for the state government while reducing the number of defaulters.
To further facilitate the state’s holistic development and boost revenue generation, the Cabinet approved an increase in External Development Charges (EDC), Change of Land Use Charges (CLU), License Fees (LF), and other charges applicable to real estate promoters. These promoters are required to pay EDC under the PAPRA Act and for Mega Projects under the Punjab Government’s Mega Project Policy.
The last revision of these charges was notified on May 6, 2016, with a provision to increase the rates by 10 percent annually starting April 1. However, the government waived the annual hike for several years. The charges have been increased from April 1, 2020, and have gone up by approximately 77 percent since 2016.
Going forward, CLU charges, EDC, and license fees will be increased by 10 percent annually, compounded from April 1, 2026.