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Chandigarh looks to acquire 1,750 acres in periphery

The Chandigarh Housing Board (CHB) is likely to undertake the acquisition in phases under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act

Published on: Aug 8, 2026, 09:07:11 IST
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The UT is looking at acquire nearly 1,750 acres of land in the city’s periphery for residential, institutional and commercial development.

The move comes against the backdrop of a sustained demand by farmers from 22 villages for a land pooling mechanism. (HT File)
The move comes against the backdrop of a sustained demand by farmers from 22 villages for a land pooling mechanism. (HT File)

The proposed acquisition, estimated to cost around 14,000 crore, is part of a larger pool of 2,585 acres of un-acquired land, out of which, 835 acres has been proposed to be retained as green area. Of the total area to be acquired, 555 acres has been earmarked for institutional development while another 480 acres is categorised for residential and commercial use, according to sources.

The Chandigarh Housing Board (CHB) is likely to undertake the acquisition in phases under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Farmers’ land pooling demand gains traction

The move comes against the backdrop of a sustained demand by farmers from 22 villages for a land pooling mechanism.

The villages were brought under the MC’s jurisdiction in 2018 but still lack a land-pooling policy. A delegation of farmers, led by Chandigarh Pendu Vikas Manch president Satinderpal Singh Sidhu, recently met Punjab governor and UT administrator Gulab Chand Kataria, seeking a framework that would allow landowners to participate in the city’s development while protecting their interests.

“If a land pooling policy is implemented, the lal dora issue will automatically be resolved, and planned development will be ensured,” said Sidhu.

Sources said the administration is considering a framework along the lines of land pooling models followed in Punjab and Haryana. The proposal is still at the consultation stage.

Committees of farmers are likely to be constituted in each of the 22 villages to collect suggestions and objections. These inputs will form the basis of a draft policy, which would subsequently be sent to the Ministry of Home Affairs for approval.

The administration had earlier ruled out such a policy on the ground that Chandigarh had only around 2,500 acres of vacant land, with a significant portion already designated as green or residential areas under the Master Plan-2031.

The current assessment puts the total un-acquired land at 2,585 acres, providing the administration with a larger land pool to consider for structured development.

The land is not concentrated in one location. Significant pockets are spread across Khuda Lahora, Dadumajra, Dhanas, Kaimbwala, Khuda Alisher, Sarangpur, Raipur Kalan, Khuda Jassu and Hallomajra, among other areas.

Lal dora a key issue

The proposed policy is also closely linked to the contentious Lal Dora issue. Under a January 18, 2019, notification, areas outside the abadi deh – the inhabited, built-up residential area within a village’s revenue boundary where houses, streets, and community structures are located – in 13 villages were brought within the MC limits continue to be governed by the Punjab New Capital (Periphery) Control Act, 1952, as applicable to Chandigarh.

This has resulted in overlapping planning and regulatory regimes in areas that are now part of the municipal limits.

The administration’s broader land-acquisition proposal could provide a mechanism to resolve some of these complications by bringing developable land into a common planning framework.

The administration has proposed discontinuing the process of change of land use (CLU) under Planning Area-I, stating that such permissions have resulted in haphazard development and adversely affected the planned character of Chandigarh. The proposal also seeks enhancement of the existing multiplication factor of 1.25 for land compensation, stating that the current factor requires revision.

 
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