Punjab govt withdraws land policy: How AAP govt's sweeteners failed to convince farmers, and then came court's wrath
Policy was defended dearly by top AAP leaders but was facing continued political opposition and widespread protests by farmer unions
The Aam Aadmi Party (AAP) government in Punjab has withdrawn its much-publicised and much-opposed Land Pooling Policy 2025 under which it proposed to acquire a massive 65,533 acres of land, predominantly agricultural, across the state.
The withdrawal on Monday came just days after the high court ordered an interim stay on it.
On Monday, a two-line note was shared by the principal secretary, housing, Vikas Garg, that said: “Government hereby withdraws the land pooling policy dated May 14, 2025 and its subsequent amendments. Consequently, all action like LOIs (letters of intent) issued, registration done or any other taken there under shall be reversed henceforth”.
The policy, defended dearly by Chief Minister Bhagwant Mann and other top AAP leaders, was already facing political opposition and widespread protests by farmer unions who saw it as potentially damaging to their way of life. As resentment grew, the main opposition party Congress, as well as the Shiromani Akali Dal and the BJP, launched a series of protests.
When AAP govt tried to defend its policy
The government tried to find acceptance for the policy by deputing land revenue staff to convince the farmers at the local level too.
CM Bhagwant Mann then announced the government would do whatever the farmers would say.
Reacting, farm union leaders said scrapping the policy was the only resolution.
It was to be the biggest acquisition of land by the government since the state of Punjab got its current form in 1966. But only 115 owners — 15 from Ludhiana and 100 from Mohali — came forth to adopt the scheme since its formal launch on June 2. It was to stay open till September 30.
How govt tried to convince farmers
The AAP government had even sought to make the deal better for farmers with an increase in the compensation.
Protests continued as farmers said the policy would destroy their way of life. In Ludhiana, where the largest area was proposed to be acquired, at least 2,000 owners registered strong opposition.
On July 22, the government approved amendments, and CM Mann said the farmers would now receive an annual livelihood allowance of ₹1 lakh until their land was developed — a fivefold increase from the ₹20,000 given by previous governments.
This and other sweeteners failed too; such as a 10 per cent annual increment in the ₹1 lakh livelihood allowance, and that there would be no restrictions on the sale or purchase of land.
Why farmers saw parallels with 2020-21 farm laws
Farmers, however, drew parallels between this policy and the three farm laws that were introduced in 2020 by the BJP-led Union government and were repealed after a year-long protest.
They said taking away farmland for urban housing and commercial use would change the very character of Punjab, and that too when earlier schemes also had holes.
Many of them feared they would lose control over their land and then receive much less than what it would otherwise be worth.
The AAP seemed to be a divided house, too, over the issue. Its Anandpur Sahib MP Malwinder Singh Kang wrote on X that the government needed to earn farmers’ trust — a post he later deleted.
Then, the issue reached the high court.
Can't acquire fertile land, HC had observed
The Punjab and Haryana high court last week said the policy appeared to have been notified in haste.
"The land which is sought to be acquired is amongst the most fertile land in the state of Punjab, and it is possible that it may impact the social milieu," said the HC division bench of Justices Anupinder Singh Grewal and Deepak Manchanda last Thursday.
In its detailed order, released on Saturday, the court noted that the Land Acquisition Act 2013 bars the acquisition of multi-cropped land unless there are exceptional circumstances.
Ludhiana-based petitioner Gurdeep Singh Gill had sought directions to quash the policy and the relevant orders.
The court ruled, “As an interim measure, lest any rights are created, the impugned Land Pooling Policy, 2025, notified on May 14 and June 6 and subsequently amended on July 25 shall remain stayed.” It set September 10 as the next date.
'What about labourers, artisans?'
The HC said it was apparent that no timelines had been prescribed nor any mechanism provided to address grievances.
"Payment of subsistence allowance has been provided to the land owners, but there is no provision for rehabilitation of those landless labourers, artisans and others who are dependent on the land," it said.
The court noted that the government submitted that it would develop the land but no budgetary provisions appeared to have been made, nor did it show that it had enough resources for it.
The amicus curiae (lawyer appointed to aid the court) had said the costs for such development would be around ₹1.25 crore an acre. Considering that, a budget of more than ₹10,000 crore would have to be allocated for the development in one district alone.
The counsel appearing for the Punjab government submitted that concerns would be looked into at an appropriate stage.
