The Local Bodies Department’s failure to enforce steeply hiked development-related charges for all new real estate projects, even nearly six months after the Punjab government had on June 4 notified, triggered accusations of bureaucratic “inaction”, political “shielding” and an “open-ended favour” to influential builders operating within municipal limits.The notification issued by the Housing & Urban Development Department and published in the Punjab Government Gazette on June 6, 2025, revised CLU, EDC and Licence/Permission Fee (LF/PF) across all potential zones, clearly states the revised charges apply to all new real estate projects, including Change of Land Use (CLU), External Development Charges (EDC) and Licence/Permission Fee (LF/PF), across Punjab and the extensions of ongoing projects.Local Bodies Department officials are, however, tight-lipped. When contacted, Local Bodies Minister Dr Ravjot Singh also did not respond. ScreenshotHike hits GMADA the mostThe increase in charges affected the Greater Mohali Area Development Authority (GMADA) region the most, especially in master plan areas such as SAS Nagar, Zirakpur, Mullanpur, Kharar, and Dera Bassi, with significant impact on Group Housing (Residential) and commercial projects.For instance, as per the revised development-related charges (2025), Group Housing EDC in the SAS Nagar/GMADA zone shot up to Rs 308.25 lakh per gross acre against the previous (before the notification on June 4, 2025) Rs 87 lakh, while commercial EDC climbed as high as Rs 212.59 lakh per acre against the previous Rs 60 lakh, marking one of the highest slabs in the state.Similarly, the LF Public PF for commercial in the SAS Nagar/GMADA zone is Rs 146.15 lakh against the previous Rs 3.75 lakh, and CLU is Rs 79.72 lakh to Rs 106.29 lakh against the previous Rs 7.50 lakh to Rs 10.50 lakh.In the master plan areas of Kharar, Dera Bassi and Banur, the EDC for residential group housing shot up to Rs 265.73 lakh against the previous Rs 75 lakh; and for commercial, it is Rs 199.30 lakh against the previous 56.25 lakh; and CLU for commercial ranged between Rs 66.43 lakh to Rs 93.01 lakh against the previous Rs 18.75 lakh to Rs 26.25 lakh, and LF Public PF is Rs 106.29 lakh against the previous Rs 30 lakh.Story continues below this adSimilar is the situation in other parts of the state, where the charges have been increased manifold. Developers outside the municipal limits paying hiked charges. The delay in enforcement by the Local Bodies Department, which is responsible for municipal areas, raised eyebrows in administrative circles and among developers operating outside municipal limits and paying the increased charges.Developers in non-municipal areas of GMADA alleged that they have been paying the new hefty charges since the notification came, whereas those operating under municipal limits of Zirakpur, Kharar and Dera Bassi are continuing under the old regime, saving crores of rupees.Builders and colonisers with active projects under municipal limits are believed to be benefiting from the non-implementation.According to officials in the real estate ecosystem, some influential developers have been lobbying to delay the enforcement, citing “technical alignment issues” between the Housing and Local Bodies departments.Story continues below this ad“Projects falling merely a few hundred metres apart, one under GMADA and another under municipal limit, are being charged drastically different rates, creating what many call a policy failure and a revenue loss for an already cash-strapped state government,” said a coloniser.According to sources with the Housing and Urban Development Department, 15 to 25 colony licences have been granted within municipal limits from June to date — all at pre-hiked rates, which were redefined in June 2017. “This implies a loss of crores of rupees in potential state revenue, developers securing approvals at significantly lower costs, and a widening gap between municipal and non-municipal real estate,” said a senior officer in the Punjab Housing Department.Officials fear earlier applicants may now rush to seek backdated approvals or freeze their projects before the new rates are enforced.An official of the Housing Department, requesting anonymity, said, “The notification is crystal clear and applicable to the entire Punjab, June 6 onwards, but the Local Bodies Department has not implemented it. This is not an administrative delay. This is deliberate, even as Punjab is facing a revenue crunch and cannot afford such a leak in revenue to benefit some people.”Story continues below this ad“The higher CLU/EDC/LF structure was meant to shore up resources for infrastructure and urban development, but the implementation was stuck. The government’s silence only deepens suspicion,” said a senior officer, adding: “Whether the Punjab chief minister has been briefed on the delay and a corrective step is underway, remains unclear.”Another senior officer said, “Repeated reminders have been ignored, even as files have moved and notes issued. No action was taken. A few powerful groups operating under municipal limits stand to gain enormously. If the delay continues for a year, the state may lose several crores of rupees easily.”