Punjab Cabinet nod to partial surrender, cancellation of colonies’ licences

The Punjab Council of Ministers has given its nod for conditional, partial surrender and cancellation of licences issued to colonies. The decision was taken at a Cabinet meeting chaired by Chief Minister Bhagwant Mann here this afternoon.

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Besides approving partial surrender and cancellation of licences issued to colonies under the Punjab Apartment and Property Regulation Act (PAPRA), the Cabinet also gave the go-ahead to 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 PAPRA and approvals for industrial parks.

The decision allows for partial surrender of licensed areas, subject to certain conditions, and partial suspension or cancellation of licences for such projects.

The Cabinet also approved certain incentives for allottees making lump sum payments for plots. To encourage allottees and bidders of residential, commercial and other plots to make lump sum payment of 75 per cent of the total amount, the Cabinet approved a series of incentives. A 15 per cent discount on the cost of plot/site would be offered to allottees for making lump sum payment. The measure is expected to ensure consolidated revenue for the state, besides reducing the number of defaulters.

The Cabinet okayed a hike in external development charges (EDC), change of land use charges (CLU), licence fee, 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 per cent annually.

The government, however, waived the annual hike for several years. The charges have been increased from April 1, 2020, and these have gone up by around 77 per cent since 2016. Going forward, CLU charges, EDC and licence fee will be increased by 10 per cent annually, compounded from April 1, 2026.

Another meeting

A meeting of the Punjab Council of Ministers has been convened again on Tuesday. Sources say the issue of merger of some departments may be taken up for discussion.