Punjab Cabinet Approves Amended Land Pooling Policy

CHANDIGARH — The Punjab Cabinet, led by Chief Minister Bhagwant Mann, officially approved amendments to the state’s Land Pooling Policy on Wednesday, July 1, 2026. The revised framework aims to address stakeholder concerns by offering significantly improved compensation packages and simplifying procedures for landowners whose agricultural land is acquired for urban and public infrastructure development.

The decision comes nearly ten months after the government was forced to withdraw its previous, highly contentious Land Pooling Policy (LPP) 2025 following widespread protests from farmer unions and political opposition. The new policy, formalized during a cabinet meeting, introduces specific incentives to make the land acquisition process more equitable and attractive to rural stakeholders.

Enhanced Benefits for Landowners

Finance Minister Harpal Singh Cheema, while briefing the media on Thursday, detailed several key revisions aimed at increasing the value returned to farmers. Under the amended policy, landowners will now receive a commercial plot of 210 square yards for every one acre of land contributed, an increase from the previous 200 square yards.

For landowners who prefer residential plots over commercial ones, the entitlement has been raised to 1,630 square yards, up from the 1,600 square yards provided in earlier provisions. Additionally, the policy enhances the entitlement for commercial-category projects, raising the allotment from 800 square yards to 840 square yards per acre.

Further measures include:

• Stamp Duty Exemption: Original landowners will be exempt from paying stamp duty and registration charges during the execution of conveyance deeds for their developed plots.

• Oustee Policy Upgrades: Landowners with one acre of acquired land will receive 200 square yards; those with up to 2.5 acres get 300 square yards; and those with over 2.5 acres are entitled to 500 square yards.

• Sahuliyat Certificate: The validity of the 'Sahuliyat Certificate' (facilitation certificate) has been extended from two years to four, giving farmers more flexibility in their planning.

Regularization of Illegal Colonies

In a parallel move, the Cabinet approved amendments to Rule 31 of the Punjab Apartment and Property Regulation Rules to facilitate the regularization of unauthorized colonies. Colonies with at least 25% construction will now be eligible for regularization, provided the promoters pay a compounding fee—5% of the collector rate for residential/industrial areas and 10% for commercial zones.

Applications under this rule must be submitted by September 30, 2026, with the government aiming to dispose of these cases within six months.

Official Sources

The policy changes were confirmed by Finance Minister Harpal Singh Cheema following the Cabinet meeting held in Chandigarh. Detailed administrative orders are expected to be published by the Department of Housing and Urban Development.

Quote Section

"It has been decided that landowners will get a commercial plot of 210 square yards as against 200 square yards now for giving every one acre of land under the land pooling policy," stated Finance Minister Harpal Singh Cheema during his media briefing.

Why It Matters

The amendment is a critical attempt by the Aam Aadmi Party (AAP) government to restart planned urban development after the collapse of its previous policy. By increasing compensation and streamlining processes, the government hopes to reduce friction with farmers. However, the move has already drawn criticism, with Shiromani Akali Dal (SAD) president Sukhbir Singh Badal announcing plans to oppose the "revised" scheme, labeling it a continuing threat to farmer land ownership.

Key Facts at a Glance

• Commercial Plot Increase: Now 210 sq. yards per acre, up from 200.

• Residential Plot Increase: Increased to 1,630 sq. yards for those opting out of commercial plots, up from 1,600.

• Stamp Duty Relief: Original landowners are fully exempt from registration fees on developed plots.

• Application Deadline: Regularization applications for unauthorized colonies must be filed by September 30, 2026.

FAQ

What happens to those who reject the commercial plot?

Landowners who choose not to take the 200-square-yard commercial plot are entitled to a 1,630-square-yard residential plot instead.

Are there benefits for small farmers?

Yes, the government has introduced a special Letter of Intent (LoI) provision for small farmers and extended the validity of facilitation certificates to four years.

What is the status of unauthorized colonies?

Colonies with at least 25% construction can now be regularized upon payment of a 5% or 10% compounding fee, depending on the land use.

Source: Daily Excelsior, Indian Express, Punjabi Tribune