Punjab Government Considers Another Extension for Mega Housing Projects
The Punjab government is considering granting another one-year extension for 19 mega housing projects that remain incomplete despite previous extensions. The proposal will be discussed during the Cabinet meeting in Chandigarh on February 10. If approved, it would mark the third consecutive extension, making an exception under Section 5(5) through Section 44 of the Punjab Apartment and Property Regulation Act.
In January 2023, the Punjab government granted a one-year extension due to a slowdown in the real estate sector. Another extension followed in 2024, but most projects remained unfinished. Several developers have now requested additional time to complete their projects, citing financial and logistical challenges.
Developers have faced multiple obstacles, including difficulties in acquiring land from farmers and weak market demand. Many projects were initiated between 2002 and 2012, during the tenures of former Chief Minister Amarinder Singh and the subsequent SAD-BJP government. These projects were granted exemptions and completion deadlines, but many are still incomplete.
Under existing regulations, developers must obtain completion certificates from housing authorities by submitting required documents. Once certified, the projects are handed over to Residents Welfare Associations (RWAs) for maintenance. With delays in completion, residents have been approaching SDM offices to take control of RWAs, leading to pending cases.
Government rules allow for the cancellation of project licenses for non-completion within the stipulated timeframe. However, authorities have refrained from taking action due to concerns over the real estate slowdown. Instead, repeated extensions have been granted to facilitate completion and prevent financial strain on developers and homebuyers.
Several major developers, including Emaar, TDI, Omaxe, Ireo Waterfront, Ansal Infra, Puma Realtors, JLPL, and Ritesh Properties, were among those granted extensions in the past. These firms have cited economic conditions and land acquisition issues as reasons for construction delays.
The delay in completion affects homebuyers who have invested in these projects. Many await possession, while others struggle with incomplete infrastructure. The lack of timely handover to RWAs has created maintenance issues in several housing projects. An additional extension may provide relief to developers but raises concerns about prolonged uncertainty for residents.
The upcoming Cabinet meeting will determine whether the government will approve another extension. The decision will impact homebuyers, developers, and the overall real estate sector in Punjab. The government will analyze the benefits of supporting project completion against the risks of further delays in housing delivery.
