Farmhouse Rules in Punjab (2026): New Chandigarh, Mohali and PAPRA

There is no single farmhouse law in Punjab

Buyers often ask "what is Punjab's farmhouse policy?" and expect one document. We did not find one that is settled and published in a form we could read. What exists is a stack of rules, each answering a different question.

For the state-level land law read agricultural land rules in Punjab first. For national context see farmhouse rules in India.

The kandi belt policy of November 2025

The Tribune reported on 16 November 2025 that the Punjab cabinet had cleared a "Policy for approval/regularisation of low-impact green habitat". It applies to the lower Shivalik "kandi" belt from Mohali to Pathankot, in land excluded (delisted) from the Punjab Land Preservation Act, 1900, with about 55,000 hectares reported as excluded statewide. The report gives these terms:

• A minimum of one acre (4,000 sq yards) for a low-impact residential unit.
• No commercial activity.
• Mandatory planting of indigenous species, sustainable materials, rainwater harvesting and solar energy.
• Limits on floor area ratio and site coverage; ground plus one floor only; no basements and no subdivision of plots.
• A No Objection Certificate from the Forest Department for land in the delisted area.

The report did not state fees or penalties. It says the land may be used only for bona fide agricultural purpose or to sustain livelihood, in line with Supreme Court guidance near forests, and it names the Periphery Act and a proposed Sukhna eco-sensitive zone as obstacles.

Earlier, on 25 September 2025, the Tribune had reported that a sub-committee suggested farmhouses of up to one acre, that the Forest Department objected on grounds of forest cover and wildlife, and that existing rules permit farmhouses on 2.5 acres of agricultural land. That report also states that nearly 100 farmhouses had been built without formal approval and that GMADA had issued at least 62 show-cause notices since 2023.

PAPRA: when a farmhouse scheme is a colony

PAPRA matters when someone divides land into plots and sells them, which is how many "farmhouse communities" are structured. From the text recorded in our legal library: section 2(i) defines a colony as land of not less than 1,000 square metres divided or proposed to be divided into plots (the library notes 500 sq m after a 2021 amendment); section 4(1) bars a promoter from advertising plots without the required licence or registration; section 5 sets a licence validity of three years; and section 36(1) provides imprisonment up to three years for offences. We have not re-opened the Act for this page, so confirm the current text.

The practical lesson: a "farmhouse plot" in an unlicensed layout is a colony problem before it is a farmhouse problem. Compare with how to spot unapproved plotting, farmhouse communities in India and how to check RERA registration.

The Chandigarh Periphery Act

Our research register records the Punjab text of the Punjab New Capital (Periphery) Control Act, 1952 as follows: the controlled area is within ten miles on all sides of the land acquired for the Capital (section 2(2)); building or excavation needs written permission (section 5); the Deputy Commissioner grants or refuses, with appeal to the Commissioner (sections 6 and 7); and section 15 exempts residential or agricultural-support buildings in a village abadi and some agricultural works. The Haryana-applicable text differs, so never mix them. The Punjab penalty provision (section 12(1)) is recorded as up to two years' imprisonment and a fine.

A 2024 Tribune report quoted the Union Territory administration as saying building outside the lal dora near Chandigarh needs Deputy Commissioner permission under the Act. We did not re-open the Act itself. If your plot is near Mohali, Kharar, Zirakpur or Mullanpur, ask whether it is inside the periphery and get the permission order on file.

Land Preservation Act and the kandi belt

The Punjab Land Preservation Act, 1900 allows notified areas to be protected for soil and water conservation. In the text recorded in our library, section 3 provides for notification, section 4 allows the government to regulate or prohibit clearing, breaking up or cultivating land not ordinarily under cultivation, quarrying and tree-cutting, and section 5 allows special orders for named villages. Land inside a notified area is where most farmhouse trouble begins, and the 2025 policy is aimed at land taken out of the notification.

So the first check is whether your khasra is inside or outside the notified area. Do not rely on a broker's statement: ask for the notification and the delisting order and match the khasra numbers. Related environmental limits are explained in eco-sensitive zones and land purchase.

Farm stay is a different thing

Our guide to farmhouse rules in India reports a Punjab Farm Stay Policy 2026 announced on 12 May 2026, with a one-acre minimum, up to 10 per cent ground coverage and a waiver of the CLU fee for compliant units. We have not opened the policy, so we cannot confirm those figures. What can be said safely is that a farm-stay registration is a tourism-type approval; it is not a licence to build a residence on land where building is otherwise restricted, and it does not replace the checks above.

Who can buy and how much

The Punjab Land Reforms Act, 1972, as recorded in our library, bars holding land above the permissible area (section 4) and makes contravening transfers void (section 12(2)); first quality land with assured irrigation and two crops is seven hectares. We did not find a state law limiting purchase to farmers, but a press demand for one is not law, and we could not confirm every later amendment. See land ceiling limits by state.

NRIs and OCIs cannot buy agricultural land, a farm house or plantation property under rule 24 of the FEM (Non-debt Instruments) Rules, 2019; see NRI farmhouse buying.

How to check a specific parcel near Chandigarh

1. Get the jamabandi and fard and match the khasra, owner and area; see Jamabandi Punjab.
2. Ask whether the khasra is in a Land Preservation Act notified area or was delisted, with the notification numbers.
3. Ask GMADA whether the land is in its planning area and what zone it falls in.
4. Check the Periphery Act position and any permission order.
5. If the plot is part of a layout, check PAPRA licence and RERA registration of the layout.
6. Check for forest, wildlife and eco-sensitive zone proposals around Sukhna and the Shivaliks.
7. Look at existing nearby buildings: are they sanctioned, or have show-cause notices been issued?
8. Run the full due diligence checklist.

What is unconfirmed

We could not confirm: the notified text, guidelines, fees and application form of the November 2025 kandi belt policy; the Farm Stay Policy 2026 terms; any statewide farmhouse definition; the current text of PAPRA and the Periphery Act after amendments; and how GMADA applies the 2.5-acre figure. Treat all press-reported figures as leads for a written enquiry, not as rules.

Frequently Asked Questions

Sources

• The Tribune: Punjab cabinet clears policy to regularise farmhouses on Chandigarh outskirts (16 November 2025)
• The Tribune: Proposed kandi farmhouse policy hits forest cover hurdle (25 September 2025)
• The Tribune: Punjab all set to bring farmhouse policy in eco-fragile kandi area (14 November 2025)
• PRS: Punjab Apartment and Property Regulation Act, 1995
• India Code: Punjab Land Reforms Act, 1972