Real Estate in Punjab- 2Issues and Options

Real estate Sector is known for its capacity, capability, role, relevance and importance in playing pivotal role in socio-economic development, of a community, city and state ,by promoting economy, generating employment and promoting industrialization. Sector is known to help in increasing household and government consumption. Real estate sectors remain the most vibrant sector for attracting investment both local and global . It helps in generating large revenue for the state besides making value addition to exports , capital income, and taxes. Real estate sector remains the major propeller of construction sectors , which is known to employ 35 million manpower, besides adding to economy and development. Growth of real estate sector also remains closely linked to economic development and social stability. Real estate is known to help the industrial sector migrate from secondary to tertiary sector , besides leveraging numerous other sectors. Real estate sector is also known to be major determinant of quality of life. Since all human activities are encased within four walls of built environment , accordingly real estate sector holds enormous value for human living, growth and development. Besides numerous positivities , Real estate sector is also known for large number of negativities. Real estate sector is known to be largest consumer of energy, resources and generator of waste and accordingly, has major role and impact on climate change , global warming, rising temperature to make planet earth unsustainable and prone to disasters. Sector is known to have high sensitivity to government and policies and programs. Accordingly, understanding real estate sector’s role in economy, employment, human living and climate change will remain essential for facilitating / effective regulation/promoting economic development and making Real estate sector rational, vibrant and productive for launching India on the path of sustainable leadership.

1. Real Estate Real Estate
in Punjab- in Punjab-
Issues and Issues and
OptionsOptions
Jit Kumar GuptaJit Kumar Gupta
Former Advisor , Town Planning, PUDAFormer Advisor , Town Planning, PUDA

2. Demographic ProfileDemographic Profile
•Population of state of Punjab- stood at 27.70 million
in 2011.
•Level of urbanization - recorded 37.49% as against
31.16% for India.
•Among states- Punjab ranks 8
th
in level of
urbanization.
•Punjab in population -- bigger than 150 countries of
the world.
• 1.53% of areas & 2.37% of population.
•217 urban settlements and 12789 villages.
• During 11 decades (1901-2011)
 Population increased by 3.5 times.(7.5-27.7m)
 Urban population increased by 12 times(0.9-10.39m)
 Rural pop 2.5times(6.6-17.31m)
Number of towns tripled (76-217)
• Urban population increased by 2 times – in 1
st
half of
century.
• Increased by 6 times-- in post independence period .

3. Demographic Continues….Demographic Continues….
• Urban growth rate recorded was 3 times higher than Urban growth rate recorded was 3 times higher than
rural growth rate (2.1 Vs 0.7%).rural growth rate (2.1 Vs 0.7%).
• State population estimated - 37 million by 2031 with State population estimated - 37 million by 2031 with
urbanization level -- at 47%urbanization level -- at 47%
•State heading for polarization towards large Urban State heading for polarization towards large Urban
Centres.Centres.
• State has-- 2 metropolitan centre of Amritsar, Ludhiana State has-- 2 metropolitan centre of Amritsar, Ludhiana
out of 53 in the country.out of 53 in the country.
• Metropolitan Centers holding 1/3Metropolitan Centers holding 1/3
rdrd
state Urban state Urban
population.population.
• Class I towns & II towns hold 3/4Class I towns & II towns hold 3/4
thth
of total population. of total population.
• Punjab - now only 1/7Punjab - now only 1/7
hh
of its original area with-- majority of its original area with-- majority
of area going to Pakistan (1947), Haryana & Himachal of area going to Pakistan (1947), Haryana & Himachal
(1966).(1966).
•Total Cities in Punjab by Category-2024
Statutory Towns (Cities) = 168
a) Municipal Corporations = 13
b) Municipal Councils = 93
c) Nagar Panchayats = 59
d) Cantonment Boards = 3
Census Towns = 69
Total Towns = 237

4. STATE OF STATE OF
PUNJABPUNJAB
•LEGAL FRAMEWORK

5. Legal FrameworkLegal Framework
•Critical factors for all governments. in rapid & massive
urbanization–
urban land development and
urban development process
- Planning & management of urban
settlements have far- reaching
implications on:
economic development,
social change,
Environmental sustainability,
operational efficiency of society.
•Genesis of development / administration
is-- land , use , planning & management.
•Land-use planning -emerges most powerful
element in process of urban development.
•Focus of Planning remains- how to
increase operational efficiency of land-use
planning.

6. Legal FrameworkLegal Framework
•Planned growth / development-- requires a
well- defined legal regime
•Planning legislation-- critical for urban
development because it :
Defines system - of urban government.
Establishes systems- of urban planning &
regulation of land development.
Delimits - role / power of urban planners &
managers.
Defines - procedure for preparation,
approval & implementing plans
•Legal framework - vital for society/cities –
•for planned growth, functioning /
development.
•Behind every law lies political/ policy issues &
not merely technical agenda.

7. Legal Framework Continues…..Legal Framework Continues…..
•With increasing urbanizations
•- number of laws enacted/deleted
• - to control, regulate & promote planned urban
development.
•Urban development – being state subject -
states enacted number of laws.
•Each law has its
Objectives
Basic framework-permits / prohibits
Management system and
Operational system
•Accordingly, States have :
Multiplicity of laws.
Multiplicity of agencies
Multiplicity of rules/ regulations .
•Indian laws -- characterized by
bureaucratization with bureaucrats ruling the
system.

8. Legal Framework Continues…..Legal Framework Continues…..
•These urban development laws relate to:
land acquisition,
land development,
Promoting Planned Development
Controlling unplanned/haphazard Development
Creating Housing
preparation of Regional Plans/ Master Plans,
Setting up Institutional Framework-ULB’s, Dev.Auth
Setting up agricultural produce markets,
Promoting industrial areas,
controlling development along schedule roads/NH
 licensing of private colonies,
ownership of houses / apartments
creating new townships
controlling pollution
registration of promoters/developers / estate agents,
change of land use.
Regulating Built Environment-Buildings
•Accordingly, Punjab has multiplicity of laws related to
urban planning, development and management

9. STATE OF PUNJABSTATE OF PUNJAB
•URBAN DEVELOPMENT LAWS

10. • The Land Acquisition Act, 1894/2013
• The Punjab Municipal Act, 1911.
• The Punjab Town Improvement Act, 1922.
• The Punjab Damaged Areas Act, 1951.
• The Punjab New Capital (Development and Regulation)
Act, 1952.
• The Punjab New Capital (Periphery Control) Act, 1952.
• The Punjab New Mandi Township Act, 1961.
• The Punjab State Agricultural Produce Markets Act, 1961.
• The Punjab State Cooperative Societies Act, 1961.
• The Punjab Slum Areas (Improvement) Act, 1961.
• * The Punjab Scheduled Roads and Controlled
Areas (Restrictions of Unregulated Development) Act, 1963.
• * The Punjab Urban Estate Act, 1963.
• The Punjab Ancient and Historical Monuments and
Archaeological Sites and Remains Act, 1964.
• * The Punjab Housing Development Board Act,
1972.
• ** The Punjab Regulation of Colonies Act, 1975.
• *** The Punjab Regional and Town Planning
Ordinance, 1976.
URBAN DEVELOPMENT LAWS OF PUNJABURBAN DEVELOPMENT LAWS OF PUNJAB

11. •The Punjab Municipal Corporation Act, 1976.
•Urban Land (Ceiling and Regulation) Act, 1976.
• The Punjab (Air) Pollution and Control Act.
• Punjab Water Supply and Sewerage Board Act.
• Punjab Regional and Town Planning and
Development Act, 1995.
•Punjab Apartment and Property Regulation Act, 1995.
• Punjab Apartment Ownership Act, 1995.
• Punjab Infrastructure Development Board Act
• Pepsu Control Board Act
• Real Estate (Regulation and Development) Act,
2016
•The Punjab Laws (Special Provisions For
Regularization Of Unauthorized Colonies) Act, 2018
•* Laws at serial no. xii, xiii, xv have been
repealed by the Punjab Regional and Town Planning
and Development Act, 1995.
•** Law at serial no. xvi has been repealed by the
Punjab Apartment and Property Regulation Act, 1995.
•*** Ordinance at serial no. xvii lapsed after six
months as bill was not made a law.
URBAN DEVELOPMENT LAWS Cont…..URBAN DEVELOPMENT LAWS Cont…..

12. 7474
thth
constitutional amendment Act-1992 constitutional amendment Act-1992
•Urban planning including town planning
•Regulation of land use and construction of buildings.
•Planning for economic and social development.
•Roads and bridges ; Urban poverty alleviation
•Water supply for domestic,/industrial / commercial purposes
•Public health/ sanitation conservancy / solid waste
•Fire services; Slum improvement and up-gradation
•Urban forestry, protection of environment /ecologicaly
•Safeguarding the interests of weaker sections of society, including
the handicapped and mentally retarded
•Provision of urban amenities and facilities
•Promotion of cultural, educational and aesthetic aspects.
•Burials and burial grounds, cremations, cremation grounds
•Cattle ponds and preventions of cruelty to animals
•Vital statistics including registration of births and deaths
•Public amenities - street lighting, parking lots, bus-stops and
public convenience
•Regulation of slaughterhouses and tanneries.

13. • 1995 watershed in planning legislation-- when three
important laws enacted and made operational:
–PRTPA, PAPRA & PAOA
• PRTPA aims at promoting development through:
–Better planning,
–Regulating development / use of land in
planning areas.
–Preparation /Implementation of --Regional Plans
/ Master Plans,
–Effective / panned development of planning
areas.
–Undertaking urban development and housing
programmers.
–Undertaking establishment of new towns and
It also involves setting up of :
Regional & Town Planning Board,
State Level Authority known as PUDA.
Special Area Planning and Development
Authorities
New Town Planning and Development Authorities
State level RTPB and PUDA set up in 1995
Dev Auth like-GMADA, GLADA, PDA, JDA, ADA, BDA
The Punjab Regional & TP & Development Act, 1995The Punjab Regional & TP & Development Act, 1995

14. Act, aims at:
• . Regulating Construction.
•Regulating Sale, transfer; management of
apartments on ownership basis.
•Regulating colonies & property transactions.
•Registration of promoters / estate agents.
•Enforcing obligations on promoters & estate agents,
•matters connected therewith / incidental thereto
The Punjab Apartment and Property Regulation Act, 1995The Punjab Apartment and Property Regulation Act, 1995
The Punjab Apartment Ownership Act, 1995. The Punjab Apartment Ownership Act, 1995.
• granting ownership to flatted
development and
•providing / managing common
infrastructure / services
•Law given impetus to development of
flatted commercial/ residential
development.

15. • The Regional and Town Planning Board.
• The Punjab Urban Planning and Development
Authority.
• The Greater Mohali Urban Planning and
Development Authority.
• The Greater Ludhiana Urban Planning and
Development Authority.
• The Amritsar Urban Planning and Development
Authority.
• The Jalandhar Urban Planning and Development
Authority.
• The Bathinda Urban Planning and Development
Authority.
• The Patiala Urban Planning and Development
Authority.
• Pepsu Development Board.
• 28 Improvement Trusts.
• Punjab Infrastructure Development Board
• Punjab State Industries and Export Corporation.
• Punjab State Mandi Board./Market Committees
• Goindwal Industrial Investment Corporation
DEVELOPMENT AGENCIES OPERATING IN STATEDEVELOPMENT AGENCIES OPERATING IN STATE

16. •State Public Works Depart (Building and Road).
•Punjab Water Supply and Sewerage Board.
•Municipal Corporations/Municipal Committee.
•Directorate of Colonization.
•The Co-operative Housing Federation.
•Competent Authority under Apartment and
Property Regulation Act.
•Air Pollution Control Board.
•Development Board for Important/ Historic
Towns.
•Tourism Development Corporation.
•Police Housing Corporation
•Irrigation Department.
•State Health Corporation.
•Department of Civil Aviation.
•Punjab State Electricity Board.
•Technical Education Department.
•Transport Department..
•Department of Industries.
DEVELOPMENT AGENCIES OPERATING IN STATEDEVELOPMENT AGENCIES OPERATING IN STATE

17. DEVELOPMENT AGENCIESDEVELOPMENT AGENCIES

18. PLANNING AGENCIESPLANNING AGENCIES
•DEPARTMENT OF
TOWN AND COUNTRY
PLANNING PUNJAB

19. Department undertakes activities including:
• Providing technical support / guidance in TP
• Preparing Regional Plans.
• Preparing the Master Plans .
• Identifying Regional & Local Planning Area for
preparation of Regional/Master Plans.
• Acting as Planning Agency under the PRTPA.
• Planning of various schemes in cities/districts.
• Preparing layout plans for residential, commercial and
industrial areas.
• Preparing plans for New Mandi Townships.
• Acting as Prescribed Authority under the PAPRA.
• Undertaking scrutiny of Layout Plans submitted by the
colonizers and promoters.
• Selecting sites for different projects
• Scrutiny Building Plans outside municipal area.
• Processing of applications for change of landuse.
• Granting NOCs- for petrol pumps/cinemas, etc.
• Aiding , advising / assisting government on town
planning/urban development
• Evolving policy framework on urban development
Town & Country Planning Department Town & Country Planning Department

20. URBAN DEVELOPMENTURBAN DEVELOPMENT
• URBAN PLANNING
AND DEVELOPMENT
AUTHORITIES IN
PUNJAB- PUDA,
GMADA, GLADA,ADA,
JDA, PDA, BDA

21. functions performed by PUDA:
• Promoting / securing better planning / development of any
area of the state and acquiring land by:
– Purchase/ transfer/ exchange or gift
– to hold/ manage/ plan/ develop and dispose off property
– Itself / in collaboration/ through any agency and
– operations related to supply of water,
– disposal of sewage,
– control of pollution,
– provision of services/amenities.
• Preparing and implementation of
–Regional Plans,
–Master Plans and
–Town Improvement Schemes .
• Provision of amenities / services in urban areas.
–Promotion of urban development and construction
of houses.
–Promoting R & D in
–planning,
–development of land,
–construction of houses and
–manufacturing of building materials.
–Promoting –companies for Urban Development.
Punjab Urban Planning and Development Authorities Punjab Urban Planning and Development Authorities

22. LOCAL GOVERNANCELOCAL GOVERNANCE
•DEPARTMENT
OF LOCAL
GOVERNMENT

23. •Department most critical in state
•Regulates operation of:
• 168 Urban Local Bodies s
28 Improvement Trusts and
Water Supply and Sewerage Board.
Main functions are:-
–To direct, supervise, regulate, coordinate and
control the functioning of all the Municipal
Corporations, Municipal Councils, Nagar
Panchayats and Improvement Trusts
–To implement State/Centrally sponsored
schemes through urban local bodies.
–To ensure water supply and sewerage
schemes executed through Punjab Water
Supply and Sewerage Board .
•Three main enactments governing the
local bodies :-
The Punjab Municipal Act, 1911,
The Punjab Municipal Corporation Act, 1976,
The Punjab Town Improvement Act, 1922.
Department of Local GovernmentDepartment of Local Government

24. CONCLUSIONSCONCLUSIONS
•State urban development scenario
indicates:
–Multiplicity of urban laws
–multiplicity of development agencies
–duplication & overlapping of
–operational area / functional domain.
•Concentration of development agencies in
large urban areas
•Absence in small urban settlements
•Excess of laws / multiplicity of agencies—
•- needs to be avoided
•-for rationalization of
•- urban development process.
•.

25. Real Estate – Definition, Real Estate – Definition,
Role & Importance-Role & Importance-

26. Real Estate-DefinedReal Estate-Defined
•Real estate defined as
•-  land , permanent structures attached to
land and includes
•- improvements made to land–- both
natural /man-made. 
•- RE excludes personal property-- not
permanently attached to land -vehicles,
jewelry, furniture, equipment
•Includes- Residential, commercial,
Industrial,
Institutional, Healthcare structures etc.,
•Primarily connected with use of land & Built
Environment
•Construction /sale/purchase of plots/ built
environment.

27. RE- Role & ImportanceRE- Role & Importance
 Real Estate Sector hold enormous capacity/capability to -plays
critical role in-
- Promoting economic growth,
-Leveraging numerous sectors of economy
-Generating Wealth-
-Contributing to GDP
-Generating Revenue
-Promoting industrialization,
-- Generating employment,
-Rationalizing & Making Urbanization qualitative
-Promoting planned development
-Eradicating poverty
-Making cities slum-free,
-- Overcoming challenges of quality, cost, time
- Minimising Global warming & climate change,,
- improving quality of life,- -attracting multi-nationals
- Achieving agenda defined SDG11,

28. RE- Role & ImportanceRE- Role & Importance
• RE
ranked among top sector of nation’s economy
•increases
household /government consumption, investment
•RE
Growth - linked to economic development /social stability
•-
RE Sector involves
major Investment –
• Market value- - 2022- $ 477 billion -2030- $ 1 Trillion
•- 2047- $ 5.7 Trillion
•Promotes consumption /production of large number of
goods/services
Holds
Critical role in socio-economic development
•Serves basic needs of humanity/ communities
•Has both positivity / negativities
•-Critical for sustainability
•Consumer of large energy/ resources
•Generator of large waste
•Responsible for global warming, climate change, rising
temperature, increasing carbon footprints

29. BUILDINGS & RESOURCES
•Built environment impact environment /
consumption of resources:
16% of world’s fresh water withdrawal.
25% of wood harvested.
30% of consumption of raw material.
45% of global energy consumption.
35% of world's CO2 emission
40% of Municipal solid waste.
50% of Ozone depleting CFC’s still in use.
30% of the residents having sick building
syndrome
( Roodman and Lenssen, 1995)
•70% global warming--outcome of buildings /
transportation
•Existing buildings--low concern for energy
conservation.
•Considering annual addition of- 700-900msqmts-
energy/ environment implications can be critical.
•Building- need to be designed /constructed and
operated with utmost care
• for considerations–
•energy/sustainability/ resources

30. Factors Leveraging -Real Factors Leveraging -Real
Estate Estate

31. Factors -Leveraging Real EstateFactors -Leveraging Real Estate
Real
estate positively sector driven by
•-
Governmnet policies / Missions/ Programs
-
PMAY, Smart city mission, , SBM,NULM, HRIDAY
Higher
Economic growth,
 -
Surplus individual income
 -
Aging population
•-
Rapid urbanization- Growth of Industries,
•-
Growth of Soft skill Sector - Vibrant Economy
•-Opening
of Banking Sector- Globalization
•-Liberalization
of economy- Incentives provided by
GovernmentDemand and supply

•Profitability
•Real
estate - crucial for driving economic growth

32. Factors- Leveraging Real EstateFactors- Leveraging Real Estate
Pulls & Push effects-- of economy.
Pull
-


development of other sectors
-requires
more factories / collateral,
-
creating demand for real estate products,
“pulling”
development of real estate.
Push
-With
prosperity of real estate industry
- ----more
diverse housing products / diversified
development
-- support further development of
other
industries-
-
“
pushing”
development of other sectors.

33. Real Estate-- Issues Real Estate-- Issues

34. Real Estate-Issues Real Estate-Issues
Although real estate play a vital role economy,
employment, growth / development-
-Not rationally organized, managed, regulated- by
both Governmnet & Real Estate Sector
- Absence of Comprehensive Policy on RE
Sector Largely managed by unskilled manpower
Largely dictated by subjectivity- Focusing on profit
Ignores reasonably priced housing options, -LIG/MIG
 High costs of land; construction materials, labor –
makes it expensive
.Existing legal framework related to RE faces several
weaknesses /challenges
 Inadequate Provisions for compensation of aggrieved
buyers .
 Enforcement mechanisms -often weak -inconsistent,
-Lacking in resources
- allowing for malpractices /violation- persisting
without adequate accountability.
- Delayed project approvals-Lack of accountability

35. Real Estate-Issues Real Estate-Issues
 Large scale disputes – land /ownership
 - Mushroom of illegal/unapproved colonies
-- Multiplicity of laws
- Multiplicity of agencies
- Cumbersome procedures - Lack of transparency
-- Marginalizing Quality
-Non –involvement in implementing Master Plans
- Non- availability of Master Plans
Segregation of Urban development & Local
Government.
Large population in slums
High degree of speculation
High degree of government Charges fees/taxes
Duality of controls /accountability- RERA&
Consumers Court

36. Real Estate-OptionsReal Estate-Options

37. Options- for Real EstateOptions- for Real Estate
•Addressing existing challenges requires
- a comprehensive and collaborative approach
-involving policymakers, regulatory bodies,
developers, and other stakeholders.
- modernizing /strengthening -legal framework,
- Improving enforcement mechanisms and
consumer protection,
- streamlining the regulatory environment,
- addressing speculative investments / price
unpredictability,
- resolving land ownership disputes /Defining
property rights- Making land market efficient
- Enforcing master plans
- Combating unethical practices
--Promoting transparency,
-Granting permissions on time bound basis
Rationalising administrative structures

38. Options for Real EstateOptions for Real Estate
 Leveraging and involving Real Estate sector in;
-Promoting Planned Development
 Eliminating Unregulated /unauthorized construction
Establishing coordinated / streamlined regulatory system,
 enhancing implementation, monitoring , Enforcement,,
Controlling aggressive marketing / false claims.
 Promoting transparency, accountability, sustainable
development in the real estate sector- benefiting all
stakeholders, including developers, consumers, anD
broader economy.
Avoiding multiplicity of agencies
Rationalising Administrative structures
Rationalising fees/taxes levied- profit charged
Empowering Urban local bodies
Rationalising Legal Framework-Using Technologies
Eliminating fly- by -night developers
Preparing master plans for all cities- 37/168
Rationalising planning norms/standards- using land o
24x7x365 basis

39. Options- RE- UrbanisationOptions- RE- Urbanisation
1. RE sector – to be closely linked with social welfare
-- for promoting long-term development
- overall improving economy,
- promoting specialization,


improving industrial efficiency, and social service quality.
2. RE Sector- leveraged for making
-Urabanisation more qualitative /productive
- promoting orderly growth/ development of urban centres.
- effectively implementing Master Plans
-integrated development of city /communities.
•Town Planners /Town Planning profession
-need to act positively, objectively professionally
- --use their knowledge, expertise , skill
---to ensure that Real Estate Sector
-- made professional , more qualitative, productive , efficient.

40. Options-Sustainability & REOptions-Sustainability & RE

Considering Real Estate Sector - important role to
play in - launching state of Punjab on path of
rapid/sustained economic growth,
-rationalizing and making urbanization
qualitative /more productive - overcoming global
warming , climate change,, improving quality of
life,- minimising consumption of resources
- generating minimum waste
- optimising energy/water resources
- achieving agenda of SDG11,
 Punjab government should Come out with a
comprehensive policy for empowering/managing
RE sector- mandating that - all
buildings/townships shall be embedded with
sustainability

41. Advantages of Green BuildingsAdvantages of Green Buildings

42. Benefits of Green BuildingsBenefits of Green Buildings

43. SDG 11- Make cities and human SDG 11- Make cities and human
settlements inclusive ,safe, settlements inclusive ,safe,
resilient and sustainable resilient and sustainable

44. RERA & Real EstateRERA & Real Estate
1. –- for minimizing litigations &
-allow Real estate sector to perform effectively / efficiently,
-- Real estate sector should be governed exclusively by
RERA
- ambit of The Consumers Protection Act.2019 must be
excluded
2.Structure & composition of RERA needs to be redefined-
by including -professionals - having knowledge,
experience, skill, expertise, commitment -- in planning,
design, construction, management of RE -- for making
operation, functioning ,management of RE Sector more
sustainable
3. Besides regulating Real Estate Sector, -RERA must
-- aid, advise, assist , guide state government in;evolving
policies for-- resolving issues - removing road blocks
facing real sector -defining strategies/ options to make
sector more qualitative & productive.

46. RERA -ObjectivesRERA -Objectives
•Regulation and promotion of the Real Estate sector
•To facilitate the growth and promotion of a healthy,
transparent, efficient and competitive real estate
sector
•Sale of plots, apartments etc. in a transparent and
efficient manner
•To protect the interest of the consumers in the real
estate sector
•To provide an adjudicating mechanism for speedy
dispute redressal
•To publish and maintain a website of records for
public viewing for real estate projects and agents
which have been registered
•To provide online facility of registration of real estate
projects, agents as well as filling of complaints by
aggrieved persons