Punjab cabinet clears ‘voluntary' land pooling policy for 27 cities

Time of India

2 days ago

Chandigarh: Amid criticism by opposition parties and some farmer groups, the Punjab cabinet on Monday approved a new land pooling policy aimed at curbing illegal colonies and the land mafia, while ensuring direct profit for farmers.
Minister Aman Arora assured that not even "one square yard of land will be forcibly acquired" and the "participation would be entirely voluntary".
T he scheme will initially be rolled out in 27 cities in the state.
Slamming the opposition parties for allegedly misleading people about the policy, Arora said, "Attempts have been made to confuse landowners, but it's the best one drafted anywhere in the country. Farmers will have the freedom to decide whether to hand over their land to the state or a builder, or to develop it themselves.
Unlike previous governments that banned the sale and purchase of notified land—often to benefit the land mafia and political leaders—those restrictions have now been removed.
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Additionally, the policy offers compensation of Rs 30,000 per acre annually during the three-year development phase, with the govt aiming to complete the process within 1 to 1.5 years, wherever feasible.
"Under this policy, the farmers have the option to turn into developers and entrepreneurs.
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It's a self-sustaining model and infrastructure like the outer roads and sewerage treatment plants (STPS) will be provided by the state," said Arora.
The minister further said that a written consent (NOC) will be taken from farmers, and land will be given directly to the govt, not to private developers. Govt will fully develop the land and return plots to farmers and these will include all facilities like roads, electricity and water connections, sewerage pipes, streetlights, and parks.
No private developers or land mafia can exploit farmers as the policy ensures that farmers are protected from exploitation by private players," he said.
An official spokesperson added that the value of these plots will be up to four times the market rate. Each farmer will receive a written document from the govt, and this letter will clearly mention the farmer's full entitlement. Farmers can choose to receive two plots of 500 square yards each and they will have complete freedom to keep or sell them.
The benefits are not limited to just one acre and the more land a farmer contributes, the greater the profit will be, he said.
He further said the revised scheme had been rationalised to particularly benefit small and marginal farmers. "There will be additional benefits through partnership as if a farmer contributes nine acres, they will receive three acres of developed group housing land...," he said.
Meanwhile, farmers in Ludhiana have been protesting against the plan to acquire over 24,000 acres of fertile agricultural land across 44 villages in their district, labelling the move a "land grab in disguise."
CONDITIONAL PARTIAL SURRENDER
The cabinet also approved the partial surrender and partial cancellation of licences 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 was notified on March 10, 2025, concerning the surrender of licences for developing colonies under the PAPRA Act and approvals for industrial parks, said the spokesperson.
LUMP-SUM PAYMENTS
To encourage allottees and bidders of residential, commercial, and other property plots to make lump-sum payments of 75% of the total amount, the cabinet approved a series of incentives. A 15% discount on the cost of the plot/site will be offered to allottees who make a lump sum payment.
CABINET HIKES EDC, CLU CHARGES
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), licence fees (LF), and other charges applicable to real estate promoters.
The last revision of these charges was notified on May 6, 2016, with a provision to increase the rates by 10% annually starting April 1. However, the govt waived the annual hike for several years.
The charges have been increased from April 1, 2020, and have gone up by approximately 77% since 2016.
EXISTING LAND POOLING FOR ONLY MOHALI
Arora said the existing land pooling scheme was meant for only Mohali, which resulted in mushrooming of unauthorised colonies. "This policy is for the entire state… Now farmers will be given land to develop group housing. Besides, for land more than 50 acres, the landowners can develop their own colonies," he said.