Chandigarh: Cabinet Minister for Industries & Commerce, Investment Promotion, Power and Local Government, Sanjeev Arora, announced that the Government of Punjab has approved path-breaking reforms in the policy for conversion of leasehold industrial plots and sheds to freehold, along with a comprehensive rationalisation of post-allotment services for freehold plot holders.
These reforms, formulated after extensive consultations with industry stakeholders and recommendations of the Group of Ministers, reaffirm the Government’s commitment to strengthening Ease of Doing Business and building a transparent, investor-centric industrial ecosystem.
Major Reform: Leasehold to Freehold Conversion*
Highlighting key decisions, Sanjeev Arora stated:
Conversion fee fixed at only 5%
100% exemption on stamp duty for conversions completed up to April 30, 2026
Significant relief through remission of charges where unearned increase clause is not applicable
One-time fee structure replaces recurring charges in select cases
Annual renewal charges discontinued for several services
To promote faster conversion and clear legacy issues:
Time-bound disposal of pending transfer and conversion cases
One-time stamp duty waiver to encourage early conversion
Simplified documentation:
Bank letter sufficient in case of mortgaged lease deeds
Clarity on Unearned Increase Clause
Addressing a long-standing industry concern, the Minister clarified:
No unearned increase will be charged:
Where clause is not present in title documents
In family transfers, inheritance, or death cases
Where plots already converted to freehold prior to notification
“This brings long-awaited clarity and protects industrialists from unjustified financial liability,” he added.
