In an effort towards easing approvals for real estate and industrial projects, the Punjab government has delinked Change of Land Use (CLU) permission from the combined approval for layout plans and licence to develop colonies.
Issuing a fresh notification on Wednesday, the Punjab department of housing and urban development partially amended its March 2023 orders that had merged the three approvals under a single application process.
Under the revised framework, developers will now have the option to either seek CLU separately in the first stage and apply for a licence to develop a colony later, or continue with the previous integrated application system.
Officials said the decision was taken after representations from the real estate industry, particularly the Confederation of Real Estate Developers’ Associations of India (CREDAI), which had sought greater procedural flexibility to facilitate faster execution of projects.
The government also noted that CLU was a prerequisite for obtaining a licence under the Punjab Apartment and Property Regulation Act, while the other approvals were governed by separate legislations.
The notification further states that the government is in the process of implementing the proposed Punjab Unified Building Rules, 2025, which envisage third-party self-certification for building plans up to 21 metres in height. In view of the proposed reforms, the government considered it appropriate to restore standalone CLU approvals at the initial stage for eligible projects.
{{/usCountry}}The notification further states that the government is in the process of implementing the proposed Punjab Unified Building Rules, 2025, which envisage third-party self-certification for building plans up to 21 metres in height. In view of the proposed reforms, the government considered it appropriate to restore standalone CLU approvals at the initial stage for eligible projects.
{{/usCountry}}However, the standalone CLU approval will apply only to projects falling within the jurisdiction of the housing and urban development department, while projects under the local government department will continue to follow the existing delegation of powers.
The revised notification also rationalises the delegation of powers for granting approval for CLU, layout plans, zoning plans, building plans, completion certificates and occupancy certificates across various departments, including GMADA and PUDA and other urban development authorities.
It specifies competent, appellate and revisional authorities for different categories of residential, commercial, industrial and standalone projects.
CLU valid for 2 years
In another key reform, the government has fixed the validity of CLU permissions at two years from the date of issuance. Applicants who fail to utilise the permission within this period will be allowed a one-time extension of another two years on payment of an additional fee equivalent to 20% of the prevailing CLU and Social Infrastructure Fund charges, provided the request is made before the expiry of the original validity period.
The notification also introduces a defined standard operating procedure (SOP) for colony approvals. Under the new timelines, standalone CLU approvals are to be issued within 23 working days, while layout plan approvals and licences to develop colonies are to be processed within 30 working days each, subject to compliance with statutory requirements. The revised norms have come into force with immediate effect, while applications already pending before the earlier competent authorities will continue to be processed under the previous arrangement.