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Chandigarh | October 7, 2025 – In a significant development for Punjab’s real estate and industrial landscape, the Punjab and Haryana High Court has ordered a status quo on over 469 acres of land in Rajpura, following allegations that a private company sold government-acquired land worth over ₹117 crore, originally earmarked for industrial development.
The case, which dates back more than three decades, has once again highlighted the complexities surrounding land acquisition and transfer in Punjab’s industrial corridors, including Rajpura and adjoining zones near Mohali and Patiala.
The bench of Justice Deepak Sibal and Justice Lapita Banerji issued the order, directing that no changes in construction, possession, or alienation be made with regard to the disputed 469.37 acres, until further hearing. The order pertains to the land covered under a share purchase agreement dated October 11, 2024.
Background: From Industrial Vision to Legal Battle
The roots of the dispute trace back to 1993, when the Government of Punjab signed a Memorandum of Understanding (MoU) with M/s Shriram Industrial Enterprises Limited (SIEL Ltd) to develop a large-scale industrial area in Rajpura. The state agreed to acquire 1,000 acres of private farmland to facilitate this industrial expansion.
According to court records, 446 acres were handed over to SIEL in 1995, followed by 91.79 acres in 1998, and 57.6 acres in 2007. However, petitioners – including original landowners represented by counsel Amrindra Pratap Singh – argued that the company had used only a portion of the land for the intended industrial project.
They alleged that SIEL Ltd sold off a substantial portion of the land, violating the purpose for which it was acquired. The company reportedly executed a sale deal for 469.37 acres, amounting to a transaction worth over ₹117 crore, triggering concerns about misuse of government-acquired land.
Court Intervention and Current Status
Responding to these allegations, the High Court issued an interim directive to maintain the existing status of the property until a final decision is reached. The order effectively freezes any new development or ownership transfer over the disputed acres, protecting the interests of both the original landowners and the state.
Legal observers note that this decision could delay or halt ongoing real estate and industrial development activities in Rajpura’s peripheral zones. The status quo is expected to remain until the court examines whether the land disposal violated acquisition terms.
Meanwhile, sources familiar with the matter told CityNest Realty that private developers and investors in the Rajpura–Banur–Derabassi belt have expressed concern about regulatory uncertainty, as similar industrial-to-commercial conversions have been under scrutiny by Punjab RERA and GMADA in recent years.
Local Impact: Ripple Effects on Rajpura and Mohali Real Estate
Rajpura has long been considered a strategic industrial and logistics hub due to its connectivity via NH-44 and proximity to Mohali’s IT City and Aerocity. The uncertainty surrounding this land deal could impact future land pricing and buyer sentiment across the Tricity’s emerging industrial corridors.
Real estate analysts at CityNest Realty observe that the court order may slow short-term land transactions in Rajpura but could eventually restore investor confidence if transparency improves. “Buyers today seek legal clarity before entering large-scale land deals, especially in regions influenced by GMADA or state-backed development projects,” said a senior analyst from CityNest Realty.
Additionally, landowners in Rajpura and nearby villages are now more cautious about joint ventures and acquisition promises, recalling past instances where industrial projects did not materialize as proposed.
Expert View: A Test Case for Land Accountability in Punjab
Legal experts believe the Rajpura case could become a precedent for future land acquisition reviews in Punjab. If the court determines that land earmarked for public or industrial use was misused for profit, it could prompt policy tightening by GMADA and the state’s Industries Department.
Urban development consultants say this episode underscores the need for robust post-acquisition monitoring. “The SIEL Rajpura dispute exposes the gap between acquisition intent and ground execution,” one Mohali-based legal expert noted. “Without periodic audits, such lapses can undermine investor trust in Punjab’s industrial corridors.”
CityNest Realty Insight
The Rajpura land case highlights how legacy acquisition decisions continue to shape Punjab’s industrial and real estate future. For investors and homebuyers across the Mohali–Rajpura–Banur belt, due diligence and RERA-backed verification remain crucial before entering any land-linked transactions.
Author Credit: Written by CityNest Realty
The Punjab and Haryana High Court has ordered a status quo, preventing any change in construction, possession, or sale until further hearing.
The land was acquired by the Punjab government in the 1990s for SIEL Ltd to develop an industrial project. However, much of it was later sold privately.
The ruling may slow land deals near Rajpura and Banur temporarily, but long-term transparency could strengthen investor trust in Mohali’s extended industrial belt.
