Landowners to Get 50% of Developed Land, ₹1 Lakh Annual Support
By The Realty Times | Real Estate News Services
CHANDIGARH : The Haryana government has approved a
major change in its land development framework with the introduction of the
Land Pooling Policy-2026, replacing the existing Land Pooling Policy-2022. The
new policy aims to encourage landowners to voluntarily participate in planned
urban and industrial development projects while ensuring that they receive a
substantial share of the benefits generated from their land.
The decision was taken at a Cabinet meeting chaired by Chief
Minister Nayab Singh Saini on November 3, 2026. The revised framework is
expected to have significant implications for Haryana's real estate sector,
particularly in emerging urban development destinations such as Gurugram,
Faridabad and Panchkula.
Under the new policy, landowners will receive 50 per cent of
the total saleable area of a development project in the form of developed
plots, while the remaining 50 per cent will be retained by the concerned
government development agency.
This represents an important shift from the earlier policy,
under which the landowners' entitlement was linked to the market value of their
undeveloped land.
Landowners to Receive 50% of Developed Saleable Area
One of the most significant provisions of the Land Pooling
Policy-2026 is the allocation of half of the project's total saleable area to
participating landowners.
The remaining 50 per cent will be retained by the
development organisation responsible for executing the project.
The landowners' share will include commercial sites
according to prescribed entitlements. The remaining portion will be allocated
as residential, industrial or institutional plots, depending on the nature and
purpose of the development project.
The revised arrangement is intended to provide landowners
with a direct stake in the value created through planned development rather
than limiting their returns to compensation based on the value of agricultural
land.
₹1 Lakh Annual Financial Assistance for Four Years
To provide financial support during the development period,
the new policy introduces annual interim financial assistance of ₹1 lakh per
acre.
This assistance will be calculated proportionately to the
land contributed and will be provided for four years from the date of
registration of the sale deed.
The government has also introduced a provision to protect
landowners against payment delays. If the financial assistance is not
transferred within 15 days of the sale deed registration, the landowner will be
entitled to simple interest at 9 per cent per annum for the period of delay.
This provision is expected to provide additional financial
security to participating landowners.
Faster Project Completion: Deadline Reduced to Four Years
Another important change is the reduction in the project
completion timeline from five years to four years.
Under the revised policy, the development agency will be
responsible for completing the necessary infrastructure facilities within four
years from the date of final project approval.
These facilities will include essential infrastructure
required to make the developed plots suitable for their intended use.
Importantly, if the development agency fails to complete the
infrastructure within the stipulated four-year period, the land will revert to
the original landowners, subject to the policy provisions.
The policy also provides for an additional compensation of
₹5 lakh per acre in the event of such a failure. A one-year extension may be
granted if 75 per cent of the participating landowners agree.
Minimum Plot Sizes Fixed for Different Categories
The government has prescribed minimum plot sizes for
landowners receiving developed plots under the new framework.
- Residential
plots: 100 square metres.
- Industrial
plots: 250 square metres.
- Institutional
plots: 500 square metres.
The actual area allotted will depend on the proportion of
land contributed by individual landowners.
Landowners contributing more than 2,000 square metres may
also qualify for commercial plots in the form of kiosks or booths, according to
prescribed entitlements.
Those contributing less than 999 square metres will receive
monetary compensation under the Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement Act, 2013, or at the reserve
price of the plot, whichever is higher.
Landowners Can Combine Entitlement Certificates
The policy introduces another useful provision for
landowners who receive Land Entitlement Certificates.
Such certificate holders will be permitted to combine their
entitlements and jointly apply for larger developed plots.
This could help smaller landowners pool their benefits and
obtain more commercially viable land parcels instead of holding several small
plots individually.
The period within which the development agency can buy back
allotted plots has also been extended from one year to three years.
New Rules for Land Aggregators
The revised policy also specifies remuneration for land
aggregators involved in facilitating land pooling.
Registered land aggregators will receive remuneration
equivalent to 0.5 per cent of the agricultural collector rate applicable to the
concerned revenue estate.
The payment will be made by the development agency after
completion of the sale deed process.
However, the new policy excludes land pooling through the
e-Bhoomi portal.
How Will the New Policy Work?
Under the framework, government development organisations
such as the Haryana Shehri Vikas Pradhikaran (HSVP) and Haryana State
Industrial and Infrastructure Development Corporation (HSIIDC) can identify
land parcels required for development projects.
Landowners can also voluntarily offer their land through
registered land aggregators.
The development agency must publicly announce the proposed
project through advertisements in four leading newspapers, its official website
and other designated public platforms.
Once the project receives in-principle approval, details of
the identified land, ownership and individual land contributions will be
published.
Landowners will then be informed of their respective
entitlements and will have 30 days to communicate their consent.
Following final approval, sale deeds must be executed in
favour of the development agency within the prescribed 60-day period.
The framework is intended to introduce greater transparency
and provide landowners with a clearly defined process for participating in
government-led development.
What Does This Mean for Haryana's Real Estate Market?
The Land Pooling Policy-2026 could become an important
instrument for Haryana's future urban expansion.
Gurugram, Faridabad and Panchkula are witnessing increasing
demand for residential, commercial and industrial development. The expansion of
employment centres, infrastructure projects and connectivity networks has
increased the need for planned urban development around these cities.
However, acquiring large land parcels through conventional
methods can involve lengthy negotiations, compensation disputes and legal
complications.
Land pooling offers an alternative approach by allowing
landowners to contribute land and receive a share of the developed saleable
area.
For developers and government agencies, this could
facilitate the creation of organised residential townships, industrial estates,
institutional zones and commercial developments.
For landowners, the opportunity to receive developed plots
instead of only monetary compensation could provide access to the potential
value appreciation created through infrastructure development.
A New Chapter in Haryana's Land Development Strategy
The approval of the Land Pooling Policy-2026 marks an
important development in Haryana's real estate and urban planning framework.
By offering landowners 50 per cent of the saleable area,
introducing annual financial assistance and reducing the infrastructure
completion deadline to four years, the government is attempting to create a
more participatory model of urban development.
The success of the policy will ultimately depend on
transparent implementation, timely infrastructure delivery, clear land
entitlement procedures and the willingness of landowners to participate.
If effectively implemented, the revised framework could
accelerate planned urban expansion, encourage organised real estate development
and create new investment opportunities across Haryana's emerging property
markets.

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