Punjab Government Reverses Course on Cooperative Society Property Registration
In a significant policy reversal, the Punjab government has officially rescinded its earlier notification that mandated retrospective property registration for all apartment owners in cooperative housing societies. This decision comes as a major relief to approximately 50,000 apartment owners across roughly 600 cooperative housing societies who were facing substantial financial obligations under the previous framework.
Revised Framework Offers Concessional Registration
Under the newly revised framework announced on Monday, members whose names appeared in the official records of cooperative housing societies as of November 20, 2025, will now be eligible for concessional registration of a single conveyance or transfer deed. The most substantial benefit of this revised policy is that eligible members will not be required to pay any stamp duty or other statutory levies, including infrastructure cess.
Instead, these members will only need to pay a nominal registration fee of 1%, subject to a maximum cap of Rs 2 lakh. This represents a dramatic reduction from the previous requirements that would have imposed significant retrospective financial burdens on property owners.
Government's Legal Commitment and Policy Review
The government had previously informed the Punjab and Haryana High Court on Friday that it would be modifying its earlier notification. The fresh notification, issued under Section 38 of the Punjab Co-operative Societies Act, 1961, states that the Department of Cooperation conducted a comprehensive review of notifications dated November 20 and 28, 2025, and January 12, 2026.
This review aimed to remove anomalies, ensure uniform treatment of society members, facilitate formal registration, and provide certainty in future state revenue. The government has effectively eased the burden on existing members while withdrawing time-linked and phased registration conditions that were part of the earlier framework.
Key Provisions of the Revised Notification
The concession will apply regardless of when the deed is presented for registration, provided eligibility is determined with reference to the cut-off date of November 20, 2025. Importantly, the benefit will extend to registration in favor of:
- Spouses
- Dependent children
- Legal heirs
- Certain blood relatives as permitted under existing rules
Simultaneously, the government has withdrawn all earlier time-bound or phased concessional provisions, stating that registration of eligible cases will now be governed solely by the revised notification. However, any subsequent transfer of such properties to third parties will attract normal stamp duty and registration charges applicable on the date of transfer.
Previous Requirements and Their Impact
The original notification dated November 21, 2025, had made it mandatory for owners of all apartments in cooperative housing societies to get their units registered by paying stamp and collector's duties retrospectively. This order affected thousands of apartment owners who would have faced substantial financial obligations.
The previous framework required registration to be completed within 90 days of transfer of membership or possession, whichever was earlier. Failure to register within this period would have attracted a penalty of 0.5% per month on applicable stamp duty or registration fee arrears, subject to a maximum of 100% of such dues.
Under the earlier system, the government had provided a 120-day amnesty window for existing holders, offering a 50% rebate on stamp duty if registered by March 20, 2026. Subsequent notifications had created complex phased structures with varying stamp duty rates based on registration dates, creating confusion and financial uncertainty for property owners.
Legal Basis and Implementation Details
The original notification had stated that properties should be compulsorily registrable under clauses (b) and (c) of subsection (1) of Section 17 of the Registration Act 1908. Registration was to be carried out at the prevailing collector rate of the property and at the stamp duty determined by the revenue department, together with applicable registration fees.
The government's reversal represents a significant policy shift that acknowledges the practical challenges and financial burdens the earlier framework would have imposed on cooperative housing society members across Punjab. This decision aligns with the government's stated objectives of providing relief to citizens while maintaining proper documentation and revenue certainty for the state.
