The Punjab Government has eased the mandatory clause of map approval along with CLU for real estate projects. Developers can now apply for layout or license separately, offering major relief during the festive season.
In a major decision aimed at boosting real estate activity and simplifying administrative processes, the Punjab Government led by the Aam Aadmi Party (AAP) has provided a significant relief to the real estate sector. The government has now waived the mandatory requirement of getting maps/layouts approved along with the Change of Land Use (CLU).
Previously, developers were required to get the CLU and building maps approved simultaneously, a rule enforced since 2023. This dual-approval clause had added procedural delays and compliance issues for residential, commercial, and colony development projects.
However, as part of its continued efforts to promote investment and ease of doing business, the Urban Development Department has issued a new notification allowing developers to first obtain CLU approval and later apply separately for map or layout clearance and license.
This move comes after multiple meetings between government officials and real estate stakeholders, where repeated demands were made to decouple the two approvals. The government has also clarified that while the new system is now in effect, the option to get CLU and map passed together still remains open, including for projects under municipal corporations.
New CLU Validity Rules Introduced
According to the latest guidelines:
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The CLU will be valid for 2 years initially.
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An extension of 2 more years can be granted upon payment of an additional 20% fee.
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However, this extension is subject to changes in the Master Plan, if applicable.
This brings the total validity period to 4 years, offering flexibility and clarity to developers planning mid-to-long-term projects.
Timeline for Approvals Fixed
In an effort to further streamline the approval process:
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All project applications must be processed and approved within 3 months.
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CLU and map approval or license issuance must be decided within 23 days to 1 month.
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The government has also designated officer-level responsibilities, clearly defining which level of authority is accountable for clearing files and within what timeframe.
Objective Behind the Move
The state government emphasized that this reform is part of its broader goal to:
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Attract greater investment in Punjab’s urban infrastructure.
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Ease procedural bottlenecks that were discouraging developers.
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Foster planned urban growth and improve real estate sector confidence.
By simplifying the CLU and map approval mechanism, the Bhagwant Mann-led Punjab Government aims to provide a more conducive environment for real estate expansion during the festive season and beyond.
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