4 min readChandigarhJul 3, 2026 12:27 AM IST
First published on: Jul 3, 2026 at 12:26 AM IST
The Punjab Cabinet has decided to regularise illegal colonies where 25 per cent construction has taken place. It also gave approval to amend the land pooling policy to offer more benefits to landowners, Finance Minister Harpal Cheema on Thursday said.
The Cabinet, which met under the leadership of Chief Minister Bhagwant Mann Wednesday, approved an amendment to Rule 31 of the Punjab Apartment and Property Regulation Rules to simplify the regularisation process for eligible unauthorised colonies across the state. This will enable regularisation of unauthorised colonies where 25 per cent of plots have been built upon, Cheema said.
For the regularisation of residential and industrial colonies, a compounding fee equivalent to 5 per cent of the prevailing collector rate on the gross area of the colony will be payable. For commercial colonies, this is 10 per cent, he said.
Where applications are submitted by Resident Welfare Associations (RWA), the provisions of RERA will not apply. However, the promoter or the RWA will be responsible for obtaining all necessary approvals and No Objection Certificates from the competent authorities and completing the pending development works within the stipulated period, it said.
Cheema said the amended provisions will also apply to eligible colonies situated within notified Local Planning Areas and on agricultural land earmarked under Master Plans, except those falling under the Regional Plan of GMADA. The last date for submission of applications under the amended Rule has been fixed as September 30, 2026. Unauthorised colonies whose applications were rejected under previous regularisation policies will also be eligible to apply under the amended Rule.
Provisional regularisation certificates will be issued within 30 days, while all applications received under the amended Rule will be disposed of within six months.
Land pooling
The Cabinet also approved several changes to land pooling policy to address the concerns and practical difficulties being faced by stakeholders.
Cheema said it has been decided that landowners will now get a commercial plot of 210 square yards as against 200 square yards for every one acre of land given under the land pooling policy. Under the existing policy, a land owner is entitled to 1,000 square yards of a residential plot for an acre of agricultural land.
As per the amendment, if a land owner does not want to take the 200 square yard commercial plot, they will be entitled to a 1,630 square yard residential plot, as against the earlier provision of a 1,600 square yard plot. The entitlement for commercial-category projects has been enhanced from 800 square yards to 840 square yards per acre, Cheema said.
The Cabinet has approved amendments to the Oustee Policy under which landowners whose one acre of land is acquired will be entitled to a 200-square-yard plot, those whose acquired land is above one acre and up to 2.5 acres will receive a 300-square-yard plot, while those whose acquired land exceeds 2.5 acres will be entitled to a 500-square-yard plot.
The Cabinet has also approved a special Letter of Intent provision for small farmers and extended the validity of the ‘Sahuliyat Certificate’ from two years to four years. Besides this, 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. Alternatively, they may avail the benefit of stamp duty exemption while purchasing land anywhere in Punjab up to the value calculated on the collector rate of the acquired land.
Eligible landowners will also receive one priority tubewell connection, while farmers participating in the policy will be eligible for allotment of plots at preferential locations.
Punjab Finance Minister Harpal Singh Cheema. (File Photo) 
Share
