Archive · 19 Nov 2025
Punjab's Local Bodies Department Fails to Enforce Hiked Real Estate Charges
The Punjab government increased real estate charges in June 2025.
However, six months later, the Local Bodies Department has not enforced these changes in municipal areas.
This means builders in these areas are still paying old rates, while those outside municipal limits pay the new, higher rates.
Some officials think this might be deliberate and could lead to a big loss of money for the state.
Punjab government hiked development charges in June 2025, affecting CLU, EDC, and LF/PF
Local Bodies Department has not enforced the hike, even after six months
GMADA region, especially SAS Nagar and other master plan areas, is most affected
Builders in municipal limits continue paying old rates, while those outside pay new rates
Housing Department officials allege deliberate inaction, potential revenue loss, and favoritism
- Who
- Punjab's Local Bodies Department, Housing & Urban Development Department, real estate developers, and builders
- What
- Failed to enforce hiked real estate charges
- When
- June 2025 to present
- Where
- Punjab, especially Greater Mohali Area Development Authority (GMADA) region
- Why
- Alleged inaction, political shielding, and favoritism towards influential builders
Local Bodies Department & Builders in Municipal Limits
Housing Department & Developers Outside Municipal Limits
Enforcement of Hiked Charges
Local Bodies Department & Builders in Municipal Limits
Has not enforced the hiked charges
Housing Department & Developers Outside Municipal Limits
Has been paying the increased charges since the notification
Revenue Loss
Local Bodies Department & Builders in Municipal Limits
Potential revenue loss for the state
Housing Department & Developers Outside Municipal Limits
Builders securing approvals at significantly lower costs
- Notification Date
- June 4, 2025
- Affected Charges
- CLU, EDC, LF/PF
- Most Affected Region
- GMADA, especially SAS Nagar
- Potential Revenue Loss
- Crores of rupees
- Colony Licenses Issued at Old Rates
- 15 to 25 since June 2025