Cabinet Revises Land Pooling Policy; Regularizes Unauthorized Colonies

July

2026

The Panjab Cabinet approved fresh amendments to the state’s Land Pooling Policy, 2021 on 1 Jul, offering additional benefits to landowners, amid continuing protests against the scheme. The policy—revised for the third time—enhances the size of residential and commercial plots to be allotted to landowners in exchange for land surrendered under the policy. The owners will get an additional 10–40 sq yd commercial or residential plot per acre of land they give up under the policy. The high-level meeting was attended by the sarpanches (village council heads) of the villages falling under the Aerotropolis acquisition area. Furthermore, original landowners allotted developed plots under the policy will not have to pay stamp duty or other charges at the time of registration or execution of the conveyance deed. Eligible landowners will also receive one tubewell connection, while farmers participating in the policy will be eligible for allotment of plots at preferential locations. The cabinet also initiated the process to change the land use of nearly 54 acres of Manauli village, Sahibzada Ajit Singh Nagar (SAS Nagar) district—in the SAS Nagar Master Plan—from institutional to industrial category. A draft proposal has been placed in the public domain, inviting objections and suggestions from stakeholders within 30 days. Additionally, the cabinet approved an amendment to Rule 31 of the Punjab Apartment and Property Regulation (PAPR) Rules, enabling regularization of unauthorized colonies where 25% construction has taken place. Under the rule, a promoter or developer who has developed an unauthorized colony may apply to the authority for reaching an agreement on reduced payment for the offense. The cabinet also amended the Jalandhar Master Plan to reclassify nearly 200 acres in Mehli village from residential to industrial zone. Meanwhile, the Enforcement Directorate has uncovered that private developers are altering layout plans in ongoing real estate projects by exploiting provisions under the Real Estate Regulatory Authority Act and bypassing safeguards under Section 14 of the Act. The probe has revealed a nexus between developers and officials of the Greater Mohali Area Development Authority. Concurrently, the union government has extended the Punjab Right to Business Act, 2020, to Chandigarh. The notification seeks to establish a streamlined, technology-driven regulatory framework for industrial and commercial enterprises in Chandigarh (earlier coverage).