The Aam Aadmi Party (AAP) government in Punjab has withdrawn its controversial land pooling policy, effective Monday, August 11, 2025. This decision comes amid mounting political opposition from rival parties, widespread protests by farmer organizations and landowners, and a recent interim stay order from the Punjab and Haryana High Court.
The land pooling policy, initially announced on May 14, 2025, aimed to acquire approximately 65,000 acres of agricultural land across 164 villages in Punjab for planned residential and industrial development. The government intended to consolidate land parcels to facilitate urbanization and infrastructure projects. However, the policy quickly became a subject of intense criticism and resistance.
Farmers and landowners voiced concerns over the potential loss of fertile agricultural land and their livelihoods. They argued that the policy lacked adequate provisions for fair compensation, rehabilitation, and environmental protection. Specifically, the absence of Social Impact Assessment (SIA) and Environmental Impact Assessment (EIA) studies raised concerns about the policy's long-term consequences on the environment and the social fabric of rural communities. As a result, at least 115 panchayats passed resolutions refusing to offer land under the scheme.
Political parties, including the Shiromani Akali Dal (SAD) and the Bharatiya Janata Party (BJP), also strongly opposed the land pooling policy. SAD President Sukhbir Singh Badal hailed the withdrawal as a victory for the people and pledged to continue exposing the AAP government's alleged corruption and misgovernance. BJP Punjab Chief Sunil Jakhar stated that his party strongly opposed the AAP government's land pooling policy.
The Punjab and Haryana High Court intervened and ordered an interim stay on the policy's implementation on August 7, 2025. The court cited multiple legal and procedural flaws, including the absence of environmental and social impact assessments, lack of clear timelines, inadequate grievance redressal mechanisms, and budgetary uncertainties. The court also observed that the land sought for acquisition was among the most fertile in Punjab, potentially impacting the social environment and noted that the policy appeared to have been notified in haste. Advocate Gurjeet Singh Gill pointed out that the court's pause was issued because the government had not conducted the necessary environmental and social impact assessments before attempting any land acquisition. The stay was effective until September 10, 2025.
Faced with mounting pressure from all sides, the AAP government decided to withdraw the land pooling policy. Principal Secretary of the Department of Housing and Urban Development, Vikas Garg, issued a statement announcing the withdrawal and stating that all actions taken under the policy, including Letters of Intent (LOIs) and registrations, would be reversed. Sources indicated that the government felt the backlash from the protests had overshadowed its other achievements. Chief Minister Bhagwant Mann signed the withdrawal file on Monday evening. The government will now seek the Cabinet's ex-post facto approval.
