Land Pooling Policy 2025 Punjab | What is LOI ? Why Investment is Best in Land Pooling

Land Pooling Policy 2025 Punjab | What is LOI ? Why Investment is Best in Land Pooling #realestate

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1. Land Pooling Policy 2025
Government of Punjab, Department of Housing & Urban Development has notified a land pooling policy on 04.06.2025 amended on 25.07.2025 with following features: -
2. Objective of the Policy
The main Objective of the policy is to
• Promote planned urban development in the State of Punjab by developing Planned Urban Estates
• Consolidate fragmented land parcels
• Avoid compulsory acquisition
• To enrich the land owners by providing share of Developed residential and land to the land Owners
• Landowners shall become partners in the Development of the State
3. Share of Landowners in the Developed land

Area of land Acquired in acres Residential land allotted to the land owner in Square Yards Commerci al land allotted to the land owner in Square yards Number of Plots
1 Acre (8 Kanal) 1000 200 One Plot of 500 Square Yard + 2 Plots of 250 Square Yards or 4 Plots of 250 Square Yards
0.875 Acre (7 kanal) 875 175 One Plot of 500 Square Yard + 1 Plot of 250 Square Yards + 1 Plot of 125 Square Yards
0.75 Acre (6 kanal) 750 150 One plot of 500 Square Yard + 1 Plot of 250 Square Yards or 3 Plots of 250 Square Yards or 1 Plot of 500 Square Yards + 2 plots of 125 Square Yards
0.625 Acre (5 kanal) 625 125 One plot of 500 Square Yard + 1 Plot of 125 Square Yards or 2 Plots of 250 Square Yards +1 Plot of 125 Square Yards
Area of land Acquired in acres Residential land allotted to the land owner in Square Yards Commercial land allotted to the land owner in Square yards Number of Plots
0.5 Acre (4 kanal) 500 100 One Plot of 500 Square Yard or 2 Plots of 250 Square Yards
0.375 Acre (3 Kanal) 375 75 One Plot of 250 Square Yard or 1 Plot of 125 Square Yards
0.25 Acre (2 Kanal) 250 50 1 Plot of 250 Square Yard
0.125 Acre (1 kanal) 125 25 1 Plot of 125 Square Yard
4. Commercial Site Breakup
Type of
Commercial Property Size and Area FAR
SCO 24*75=200 Square Yards 1:3
Shop 18*50=100 Square Yards 15*45=75 Square Yards 12*37.5=50 Square Yards 1:3
1:2
1:2
Booth 10*22.5=25 Square Yards 1:1

5. Stamp Duty Exemption Options
• Option 1: No stamp duty on the registration of Developed plots based on collector rate.
• Option 2: Exemption from Stamp Duty for the registration of purchased anywhere in the State.
6. Financial Benefits
• Loan against LOI through banks
• Subsistence Allowance:
Rs. 50,000 per acre per annum from the time of issue of LOI up to the date of taking possession of land by the Authority
and
Rs. 1,00,000 per acre per annum with 10% increase per year from the date of taking of possession of the land to the date of offer of the Developed land to the land owners
7. Infrastructure & Charges
• For the Acquisition of 50 Acres land External Development Charges only shall be payable by the land owners and no other charges shall be payable
• No charges for construction of zonal roads within 30 acres
8. Land Conversion Flexibility
• Option to receive only residential plots
•In lieu of commercial entitlement: 3 times residential area can be taken by land owners
9. Summary & Way Forward
• Fair returns to landowners
•Transparent development process
•Financial security during transition
• Encourages voluntary participation in city expansion


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