Chandigarh: On Monday, the Punjab government revoked the controversial land pooling policy 2025 which had snowballed into a major political issue in the state. The policy was formulated in May by the Bhagwant Mann government to acquire over 65,500 acres of largely agricultural land for urbanisation.
While the opposition parties hailed the government’s unexpected u-turn as a vindication of their strong resistance, the ruling AAP said it had decided to “bow” before the wishes of land-owning farmers who did not want to part with their land.
The Punjab and Haryana High Court, had, last week, stayed the implementation of the policy for four weeks after affected land owners had approached the court. The petitioners had flagged multiple flaws in the policy including inclusion of fertile and productive land for pooling, absence of a rehabilitation policy for farm labourers and the government not having undertaken environmental impact assessment of the policy.
“Government hereby withdraws the land pooling policy dated May 14, 2025 and its subsequent amendments. Consequently, all action like LOIs (letters of intent) issued, registration done or any other action taken there under shall be reversed henceforth,” a statement made by the Principal Secretary, Department of Housing and Urban Development, Punjab, on Monday, read.
The AAP said it was revoking the policy due to opposition from farmers. “The land pooling policy had been brought to benefit the farmers. If the farmers themselves do not want the policy then why should we force it on them? Respecting the voice of the farmers, we are revoking the policy,” wrote the party spokesperson Neel Garg on X.
किसानों के हित में लाई गई थी ਲੈਂਡ ਪੂਲਿੰਗ नीति ✅
आम आदमी पार्टी हमेशा किसानों के साथ खड़ी है 💪🌾
अगर किसानों को यह नीति पसंद नहीं, तो हम क्यों थोपें?
इसीलिए, किसानों की आवाज़ का सम्मान करते हुए — यह नीति वापस ले रहे हैं!#AAP #KisanKiAwaz #Punjab
— Neel Garg (@GargNeel) August 11, 2025
After over three years in power, this was the AAP government’s first major effort to acquire land across the state to create land banks and offer these for urban development. The move was more ambitious than any other by previous governments, with an unprecedented 24,000-plus acres to be acquired in Ludhiana alone.
Since it would have been impossible for the cash strapped government to acquire huge chunks through the Land Acquisition Policy 2013 because of the costs involved, the government decided to revamp its 2013 land pooling policy that offered developed residential and commercial plots to land owners who voluntarily gave up their land to the government under the scheme.
Also read: Punjab’s most ambitious land acquisition exercise yet faces Oppn resistance, SAD promises agitation
What is the policy
The policy notified on 4 June and amended on 25 July states that it is aimed
at promoting planned urban development in Punjab by developing urban estates; consolidating fragmented land parcels; avoiding compulsory acquisition and enriching land owners by providing a share of developed residential and commercial land to make them partners in the development of the state.
Principal Secretary, urban housing and development, Vikas Garg told ThePrint last month that the entire exercise of gathering land by the government under the land pooling policy was voluntary and there was no coercion involved at any stage.
He said the policy was a win-win for both the land owner and the government as any bit of land, even the smallest plot could be given to the government by the land owner in lieu of a developed plot. “There is not even a single percent of land which has to be acquired by force in the policy,” said Garg.
Under the policy, a land owner parting with an acre of land would get 1,000 square yards of residential land and 200 square yards of commercial land. The residential land could be in as many as four chunks of 250 square yards each, or one of 500 square yards and two of 250 square yards. For half an acre of land acquired by the government, the land owner would get a 500 square yard residential plot and a 100 square yard commercial plot. “Broadly, a land owner would get 125 square yards of residential land and 25 square yards of commercial land for every kanal of land given to the government,” said Garg.
Landowners surrendering the commercial component of the compensatory plots would receive residential area three times in size in return. For instance, if a landowner contributing one acre opted out of a 200-square-yard commercial plot, they would receive a 600-square-yard residential plot. In such a case, the farmer would be allotted a total of 1,600 square yards of residential land in the urban estate for each acre contributed.
“If multiple land owners pooled together 50 acres of land for the government, they would receive 30 acres of fully developed land in return,” said Garg adding that no charges other than External Development Charges (EDC) would be levied in such cases.
The policy provided that there would be no stamp duty on the registration of developed plots and there would be exemption from stamp duty for the registration of purchases anywhere in the state.
The 2025 policy was a refurbished version of a 2013 land pooling policy under which the housing department had acquired almost 5,000 acres of land in the past 12 years. The government had issued advertisements listing out areas where it intended to encourage land owners to offer their land under the policy.
But following intense opposition from farmers, on 22 July the cabinet approved an amendment to the policy. Addressing a joint press conference Chief Minister Bhagwant Mann along with the chief secretary KAP Sinha, explained the amendments. “Once the landowner gives consent for giving land to the government, the government will issue a Letter of Intent (LOI) to them within 21 days. For the convenience of farmers, the LOI can be sold or used to obtain loans. Furthermore, until development work actually begins, farmers can continue cultivating their land and will receive an additional Rs 50,000 per year from the government as subsistence allowance. Throughout the process, there will be no restrictions on the sale or purchase of land. Farmers will be free to buy, sell, or register their land at any time,” said the CM.
He added that once the government had taken possession of the land, the landowner would receive an annual livelihood allowance of Rs 1 lakh until they got their developed plots. This annual amount would increase at a rate of 10% per year, starting from the date of acquisition of land until the developed plots were handed over to the land owners.
Stiff opposition despite hardsell
Since its inception in May, cabinet approval on 2 June and notification on 4 June, the government had been at pains to defend the policy. Apart from cabinet ministers who had been holding weekly press conferences to explain the benefits of this policy to the farmers and land owners, the Chief Minister Mann and AAP convener Arvind Kejriwal had been praising the policy at public functions. A media blitzkrieg was also launched with the government’s public relations department releasing pictures of prominent landowners meeting senior officers of the housing department and handing over papers of their property to be included in the pooling.
A spokesperson of the government had in a statement issued on 2 June said that the new policy would be a game changer for the state as it would provide major benefits for farmers. “There will be no more exploitation of farmers and under this policy, farmers will directly benefit crores of rupees, no private developers or land mafia can exploit farmers as complete authority lies with the farmer. It will be 100% their decision whether to give land to the government or not. Farmers can either keep their land and continue farming or choose to sell it. There will be no forced acquisition as used to happen earlier.”
“The value of the developed plots will be four times the market rate. This policy stipulates end of land mafia rule and there will be a complete ban enforced on illegal colonies,” added the spokesperson.
Though the government tried its best to implement the policy it was met with stiff resistance from landowners, mainly farmers, who believed the government was trying to take away their land by force.
The farmers’ belief was cemented when the government issued advertisements listing out specific pockets of land across Punjab where it intended to encourage land owners to offer their land under the policy.
Supported by farmer unions, land owners announced that they would not part with their land at any cost, launching state wide protests. All opposition parties, including the Congress, BJP and the Shiromani Akali Dal supported the farmers, with the Akalis launching a multi-site campaign against what they termed the “land grabbing policy” of the government.
Village panchayats put up banners outside villages announcing that not a single inch of land was available for land pooling. Other panchayats banned entry of AAP leaders. Hundreds of affidavits were given to various urban development agencies by land owning farmers opposing the policy.
Farmers held a tractor march against the policy on 30 July across Punjab. Balbir Singh Rajewal, president of the BKU (Rajewal), who led the march in Ludhiana said the government had implemented the policy without taking expert opinion or conducting a survey. “The chief minister claims to represent 3 crore Punjabis. He should take steps for the common good of the people of the state and not serve the interest of his party’s leaders in Delhi,” said Rajewal, adding that in case the government did not withdraw the policy by 24 August, farmers would intensify their agitation.
The revocation itself came on a politically charged day with the farmers led by the Kisan Mazdoor Morcha (KMM) carrying out motorcycle protests across the state and SAD holding a well-attended rally in Patiala.
Why the sudden retraction?
The policy hit a roadblock within days of its announcement. Taking a cue from some protesting landowners, the Akali Dal was the first to announce an agitation against the scheme.
“In the past two months the policy snowballed into a major political issue. AAP convener Arvind Kejriwal is a practical and shrewd politician and knows that retraction is better than pushing an idea endlessly if it is politically damaging,” said Dr Kanwalpreet Kaur of the department of political science, DAV College, Chandigarh.
AAP’s MP and spokesperson Malvinder Singh Kang hailed the withdrawal of the policy. He wrote on X: “BhagwantMann ji led Punjab Govt has stood tall with our annadaatas. The decisive withdrawal of the Land Pooling Policy is yet another reflection of an unshakable commitment towards Punjab’s soil, farmers, and public sentiment. @AamAadmiParty Govt has shown it is a government that listens, respects, and acts in the true spirit of Punjab.”
@BhagwantMann ji led Punjab Govt has stood tall with our annadaatas. The decisive withdrawal of the Land Pooling Policy is yet another reflection of an unshakable commitment towards Punjab’s soil, farmers, and public sentiment. @AamAadmiParty Govt has shown it is a government… pic.twitter.com/yamB5GlqLE
— Malvinder Singh Kang (@kang_malvinder) August 11, 2025
Health minister Balbir Singh too supported the government’s decision. “Yes, there has been a loss of face for the AAP for the time being but it has stolen a major political issue from the opposition. The land pooling scheme was becoming a major source of revival for the Shiromani Akali Dal which has started gathering crowds after years of being politically marginalised.”
CM @BhagwantMann ji has demonstrated great empathy by withdrawing the land pooling policy. Trying ambitious policy proposals to transform the economy is a laudable leadership quality, but being sensitive to feedback is the true mark of a statesman.
— Dr Balbir Singh (@AAPbalbir) August 11, 2025
Apart from the Akalis, the Congress and even the BJP had vociferously opposed the policy. Congress state chief Amarinder Singh Raja Warring thanked Congress workers for working towards pressuring the government to withdraw the scheme.
Farmers stand victorious and vindicated 👍
Welcome the withdrawal of the ill conceived and the ill advised Land Pooling Policy by the @AAPPunjab Government.
Farmers stand vindicated in their opposition to the land pooling policy which would not only have turned them into… pic.twitter.com/rZJeEpjbMJ
— Amarinder Singh Raja Warring (@RajaBrar_INC) August 11, 2025
According to Dr Kanwalpreet Kaur, the other big reason for the AAP withdrawing the scheme was the growing alienation of the farmers by AAP. “The farmers were the major force that supported the party in Punjab following the farmers’ agitation and that was largely responsible for them coming to power in the state. However, in the past few months, the stand of the AAP vis a vis the farmers has taken a complete about-turn. Some months ago, Mann made it clear that he will not allow the various Kisan unions to run the state and become a parallel government. While doing so, the immediate benefit the government saw was to cater to the urban vote bank of Ludhiana where a by-election was due. The AAP realised that needless and sustained agitations by the farmers by blocking roads and businesses had led to an urban rural divide and they could antagonise them,” said Kaur.
However, with the election now over, the party does not see any point in pushing a policy which is being seen as anti-farmer, added Kaur. “The government believes that if they give in to some extent to what the farmers are demanding, they will be able to woo them back politically,” she said.
(Edited by Viny Mishra)
Also read: Punjab govt withdraws land pooling policy. Here’s what it said & why HC stayed its implementation