The Punjab Cabinet, led by Chief Minister Bhagwant Mann, has approved a policy allowing the conditional and partial surrender or cancellation of licences issued to residential colonies and industrial park projects. The decision was taken during a Cabinet meeting held this afternoon.
This move applies to colonies licensed under the Punjab Apartment and Property Regulation Act (PAPRA) and also includes partial cancellation of approvals granted to industrial parks. A formal policy for this was notified on March 10, 2025.
Under the new policy, developers can partially surrender licensed areas, but only under certain conditions. Similarly, licences can be partially suspended or cancelled if required.
To boost revenue and reduce defaults, the Cabinet also approved incentives for plot allottees and bidders who make lump sum payments. Those paying 75% of the total cost in one go will receive a 15% discount on the price of their plot or site. This is expected to help the government collect more funds upfront and cut down on payment delays.
Additionally, the Cabinet has approved a hike in various charges for real estate promoters. These include external development charges (EDC), change of land use (CLU) fees, licence fees, and other charges. The last increase was in 2016, with a rule for a 10% annual rise — but the government had paused those hikes for several years. Now, charges have gone up by around 77% since 2016 and will continue to rise 10% annually from April 1, 2026, on a compounded basis.
Another Cabinet meeting has been scheduled for Tuesday, where, according to sources, the possible merger of certain government departments may be discussed.
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