The Department of Industries and Commerce, Govt. of Punjab on July 03, 2026, issued the amendments to the Conversion Policy, 2025, issued vide Notification No. INDUOMISC/120/2025-SA-2/477, dated July 09, 2025.
The key amendments are as follows:
• Industrial plots/sheds mortgaged to banks or financial institutions can now be converted from leasehold to freehold, subject to applicable rules, provided the mortgagee issues a No Objection Certificate (NOC) and undertakes to return the original lease deed to PSIEC after execution of the conveyance/sale deed.
• Clause 5(ii) has been amended to provide 75% remission, making the applicable conversion charge 5% of the Current Reserve Price (CRP) or Collector Rate, whichever is higher, for allottees/lessees whose title documents do not contain any clause relating to unearned increase.
• A new provision clarifies that unearned increase shall not be charged in cases of family transfers, including transfers due to the death of the allottee. However, conversion of such plots will continue to be governed by the provisions of the conversion policy.
• The amended policy repeals all previous policies governing the conversion of leasehold industrial plots/sheds to freehold. However, approvals already granted under earlier policies will remain valid unless specifically modified or revoked under the new policy.
• Where the seller and purchaser have completed all formalities for transfer or obtained Permission/NOC to Sell, the purchaser is now permitted to complete the leasehold-to-freehold conversion process. After payment of the applicable processing fee, PSIEC will issue a transfer letter for the freehold property, and the purchaser shall execute the Conveyance Deed within 90 days.
• A new note clarifies that unearned increase will not be levied on plot holders who had already converted their industrial plots/sheds from leasehold to freehold before the notification of the policy dated July 9, 2025, providing retrospective relief to all such allottees.
[Notification no. - IND-INDUOMISC/120/2025-SA-2/I/1362480/2026]
