Land pooling: HC order relief for AAP dissenters, setback for cash-strapped Punjab govt

The High Court directions to the Punjab Government, asking it to withdraw its land pooling policy or face a stay, has brought relief to many ruling AAP leaders, who were fearing political consequences of the farmers’ unrest over the initiative.

It has also brought cheer to farmers of 116 villages, where the land acquisition is to be undertaken under the initiative.

Ever since the policy was announced by the government in June, farm unions had been opposing it. While the Opposition parties had been protesting against its implementation, the dissent had been growing against it within ruling AAP.

Many party leaders tendered resignations from their posts while many asked the government to talk to farmers. But in the government, the court order on this policy is expected to cut short its aim of raking in the moolah through the sale of land acquired through the initiative.

It also means that the government’s plan of offering this land to investors is shelved, at least for the time being. The money thus earned was to be used by the cash-strapped state government to fund its various development projects and fulfil pre-poll promise of providing Rs 1,100 monthly stipend to women aged 18 and above.

When the Punjab Budget for 2025-26 was presented in March, the government had claimed that it would acquire land through land pooling and hoped to rake in Rs 8,000 crore through its sale during this fiscal alone. Punjab’s fiscal health has been on the decline. With revenue receipts growing much slower than the expenditure, the state’s reliance on raising money through market borrowings has been growing, leaving very little fiscal space for carrying development works.

‘Will have to go back

to drawing board’

“After the court order, we will have to go back to the drawing board to decide on how to raise resources for development work, especially as 55 per cent revenue goes only towards fulfilling the committed liabilities of the state,” said a senior government functionary.

AAP spokesperson Neel Garg said the government was yet to examine the detailed order. “The government has full faith in the wisdom of the court. However, the policy as framed, was voluntary and did not require any forcible acquisition. Those who wanted to be part of the state’s development story were asked to come forward to pool land,” he said.

Meanwhile, the farmer unions have lauded the court for stepping in to save their land. Prem Singh Bhangu, president of the All-India Kisan Federation, said farmers’ stand had been vindicated as they were continuously asking the government if social impact assessment of acquiring 64,533 acres through land pooling, was done. All Opposition parties too have welcomed the decision.