Punjab: Regularization of 30 thousand illegal colonies raises fears of disorderly urbanization

Punjab: The piecemeal approach adopted by the Punjab government to deal with over 30,000 illegal colonies in the state has further complicated the issue of haphazard urbanisation. The recent order of the Punjab and Haryana High Court quashing the amendment brought in the Punjab Apartment and Property Regulation (Amendment) Act, 1995, to allow registration of properties without a no objection certificate (NOC) from the urban development authority has further added to the troubles of hundreds of hapless buyers who want to own a home. By adding sub-section 5 to section 20 of the Act, the state housing department had allowed registration of properties without an NOC for plots measuring up to 500 sq yards in unauthorised colonies. The permission was granted provided that an agreement or power of attorney or a similar document is executed between the parties by July 2024. The relaxation was given under a specific time period from December 2024 to August 2025. Section 20 of the Act prohibits authorities from registering sale deeds of any plot in any unauthorised colony without an NOC. However, the state government brought in the amended Punjab Apartment and Property Regulation (Amendment) Act, 2024, to allow such sale deeds. By the time the high court orders came in April this year, a large number of plot owners had got their properties registered without an NOC. Many more were in the process of doing so. Now, uncertainty looms over the legality of such registries as the state government’s move to circumvent the law, possibly for its vote bank politics, has come under the court’s scrutiny. Officials say that between December 2024 and March 2025, most such plot holders have got their properties registered in and around urban clusters in Ludhiana, Amritsar, Jalandhar, Patiala, Kharar and Zirakpur. There appears to be a strong correlation between the politics and timing of the steps taken by successive state governments to benefit illegal colonies. The various laws introduced in the last 20 years to benefit property owners have done little to create a mechanism that not only holds builders accountable but also protects the interests of buyers. Given the financial position of municipal bodies, especially in smaller towns, there is a big question mark over providing basic amenities in these colonies. The government is yet to come up with a roadmap for managing financial resources to provide these services to plot holders. In many areas, such colonies do not even fall within the municipal limits of municipal bodies but are under the state housing department. The real problem is that the government has failed to formulate an affordable housing policy to meet the growing needs of the people. As a result, unauthorised colonies are mushrooming in and around urban centres. When construction takes place in such colonies, the buyer has to bear the brunt as most builders wash their hands of all responsibility after taking the money. But the biggest scourge—the practice of selling plots in unauthorised colonies—is still unaddressed.

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