Punjab Cooperative Societies Face Property Registration Deadline Amid Legal Uncertainty
The Punjab government has remained silent on extending the mandatory property registration deadline for cooperative housing societies, despite ongoing legal challenges and public pressure. With January 31, 2026, marking the final day to avail special stamp duty concessions, thousands of apartment owners face uncertainty as no official announcement regarding extension has been made.
High Court Proceedings and Government Deliberations
The Punjab and Haryana High Court is scheduled to hear the case challenging the notification on Friday, January 30. During the previous hearing on January 27, the court noted that the state government's counsel had submitted that "the impugned notification is being reconsidered" and that a decision was expected within two days. However, as of Thursday evening, no formal announcement had been issued by the administration.
Sources within the government revealed that the Department of Cooperatives had recommended making registration mandatory only for prospective buyers, rather than applying it retroactively. The file was forwarded to Chief Minister Bhagwant Mann, who was traveling to Ahmedabad and Goa on Thursday. According to insiders, Chief Minister Mann has sent the file to Chief Secretary KAP Sinha for comments and is expected to sign it upon his return to Chandigarh.
Notification Details and Financial Implications
The controversial notification, dated November 21, 2025, was issued under the Punjab Co-operative Societies Act 1961. It mandates that all property transfers in housing cooperative societies must be registered under the Registration Act 1908. This requirement applies retroactively, affecting approximately 50,000 apartment owners across 600 cooperative housing societies.
Key provisions of the notification include:
- Registration must be completed within 90 days of transfer of membership or possession, whichever occurs earlier.
- Properties must be registered at the prevailing collector rate, with stamp duty determined by the revenue department.
- Failure to register within the stipulated period will attract a penalty of 0.5% per month on outstanding stamp duty or registration fees, capped at 100% of the dues.
Stamp Duty Concessions and Amnesty Window
The government has introduced several concessions to ease the financial burden on property owners:
- Special Offer Until January 31: Non-original allottees can register properties by paying only 1% stamp duty.
- February Concession: Registration between February 1 and 28 will require 2% stamp duty.
- March Window: A 3% stamp duty rate applies for registrations completed between March 1 and 31.
- Normal Rates After March 31: From April 1 onward, the standard 6% stamp duty will be enforced.
Additionally, the government has provided a 120-day amnesty period for existing property holders, offering a 50% rebate on stamp duty if registration is completed by March 20, 2026. Original allottees are exempt from stamp duty but must pay a registration fee of 1%, with a maximum limit of ₹2 lakh.
Societies Voice Concerns Over Retrospective Application
Cooperative housing societies have strongly opposed the retrospective application of the notification. In a letter to the Chief Minister, society managements highlighted that "for over 75 years, cooperative housing societies in Punjab have enjoyed complete exemption from compulsory registration and stamp duty." They argued that this exemption had enabled middle-income families to afford homes without relying on private developers.
The notification now forces members to revalidate long-held titles acquired decades ago under a tax-free regime. Existing society members wishing to transfer their shares must execute two conveyance deeds, incurring substantial stamp duty costs—first in their own name and then in the purchaser's name.
Four cooperative societies, led by Highland Cooperative House Building Society Private Limited in Baltana, have formally requested an extension of the deadline for availing stamp duty concessions. The legal challenge against the notification was filed by the IAS/PCS Cooperative House Building Society, which contends that the retrospective application places an unfair financial burden on residents.
Broader Implications and Awaiting Government Action
The issue has significant implications for Punjab's real estate sector and middle-class homeowners. With the deadline approaching and no clarity on an extension, cooperative society residents are caught in a dilemma—whether to proceed with registration under the current terms or await a possible government revision.
As the High Court prepares to hear the case and the government deliberates its next move, stakeholders remain hopeful for a resolution that balances regulatory requirements with the financial realities of property owners. The outcome will not only affect thousands of families but also set a precedent for how cooperative housing societies are regulated in the state.
