CHANDIGARH, Dec 13 — The Punjab government has amended the Punjab Apartment and Property Regulation Act, 1995, making full ownership of project land mandatory for developers seeking permission to convert land use for housing colonies.
Under the amended Section 5 of the Act, a promoter must now hold 100% title of the land in the name of the company before applying for conversion of land use (CLU) from the competent authority, according to a notification issued by the Department of Housing and Urban Development on Dec. 5.
“Any promoter intending to develop land into a colony shall be required to furnish complete title of the project land in its favour,” the notification said, adding that a separate CLU permission will be required for each colony.
Earlier, developers were required to own at least 25% of the land, along with a registered agreement for the remaining portion with other landowners.
Officials said the amendment aims to prevent disputes between promoters and landowners that often lead to stalled projects and delayed delivery to homebuyers. “The intent is to ensure that only those developers who have clear ownership and financial capacity are allowed to take projects forward,” a housing department official said.
The move is expected to make it more difficult for developers to abandon projects midway, a recurring issue in several parts of the state, while also providing greater certainty to buyers.
