The Punjab government on Monday withdrew the Land Pooling Policy 2025, days after the Punjab and Haryana High Court stayed its implementation.

Under the 2025 policy, the Aam Aadmi Party-led government was planning to acquire thousands of acres of land across districts in Punjab for urban development. The government was offering landowners developed residential and commercial plots in exchange for their land.  

However, the policy was criticized by many for being anti-farmer.

In an order passed on August 9, the High Court had observed that the policy was notified in haste without carrying out any social or environmental impact studies. The State was proposing to take over tens of thousands of acres of fertile land for proposed development works without the requsite studies, the Court had noted.

Through a press note issued today, the Department of Housing and Urban& Urban Development of Punjab announced that it was withdrawing the policy.

"Government hereby withdraws the Land Pooling Policy dated 14.05.2025 and its subsequent amendments. Consequently, all actions, like LOIs issued, registrations done or any other action taken thereunder shall be reversed henceforth," the press release said.

The stay order dated August 7 was passed by Justice Anupinder Singh Grewal and Justice Deepak Manchanda on a petition moved by a resident of Ludhiana, who owns six acres of land that had been allotted to his father as a displaced person from Pakistan.

It was argued by him that the policy was arbitrary and irrational. There is no provision for providing compensation at the time of acquisition and only an annual livelihood allowance of ₹50,000 per acre would be paid but it would be too meager for the sustenance of families of small and marginal farmers, the Court was told.

The State argued that no Social Impact Assessment study was required to be carried out at this stage under Chapter II of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, because neither the development work had commenced nor any compulsory acquisition was to be carried out.

It was also argued that the policy was purely voluntary in nature and aimed to boost the planned urban development without the complications of compulsory land acquisition. 

However, Amicus Curiae Senior Advocate Shailendra Jain had submitted that land was proposed to be taken not only through direct acquisition but by way of compulsory acquisition as well.

Jain had also submitted that the policy does not have a legal framework defining any timelines and that it also lacks any grievance redressal mechanism.

Considering the State’s submission that all concerns of the Court would be addressed by the next date of hearing, the bench had stayed the policy and listed the matter for hearing on September 10.

However, the government chose to withdraw the policy before the hearing.