The Punjab Regional and Town Planning and Development Act (PRTD Act) was introduced to regulate land development and planning in Punjab, aiming to ensure orderly and planned growth of urban areas. The Act empowers the Punjab government to create development plans for various regions and to impose development charges on developers who wish to undertake construction in these areas.

What does Section 45 (4) of PRTD Act implies?

Section 45 (4) states “After considering the cause if any, shown by the transferee in pursuance of a notice under sub-section (3), and any evidence that he may produce in respect of the same and after giving him a reasonable opportunity of being heard in the matter, the Estate Officer may, for reasons to be recorded, in writing, make an order resuming the land or building or both, as the case may be, and direct the forfeiture as provided in subsection (3) of the whole or any part of the money paid in respect of such transfer”. Section 45(4) of the PRTD Act is an important provision that outlines the guidelines for the recovery of development charges from developers. It ensures that the development charges are recovered promptly and efficiently.

What are the projects that are recently resumed under section 45(4) of the Act?

The two mega projects are resumed by the GMADA under sec 45(4) of the Act.

The official notice by the authoritarian state that the allotment of two projects named as “Beverly Golf Avenue” situated near Mohali Golf Range and “World Trade Centre Chandigarh” has been cancelled as per the provisions of Section 45(4) of the Punjab Regional and Town Planning And Development Act, 1995.

What is the implication of this recent cancellation on buyers?

The recent notice by the authorities at this stage when the buyers has already acquired the space has created animosity among the buyers as there hard-earned money is invested in this project. Here are some major implications of this step taken by GMADA:

  1. Uncertainty about project completion: The resumption of a project due to non-payment can create uncertainty about whether the project will be completed at all, leaving consumers unsure about the future of the project and their investments in it.
  2. Financial loss: Consumers may face financial loss as they have already invested a significant amount of money in the project and are unable to get their money back due to the project being stalled or discontinued.
  3. Legal issues: Resumption of a project due to non-payment can lead to legal issues between consumers and developers, which can cause further delay and uncertainty.
  4. Quality issues: Resumption of a project due to non-payment can lead to developers cutting corners in order to complete the project quickly, resulting in poor quality of construction and substandard products or services.


In conclusion, Section 45(4) of the PRTD Act plays a crucial role in regulating land development and planning in the state of Punjab. The provision ensures that the development charges are collected in a timely and efficient manner, which helps to promote the planned growth of urban areas. The provision also helps to ensure that the burden of paying for infrastructure development is shared by all stakeholders, including the developers who benefit from the development.

Surbhi Singla

Associate at Aggarwals & Associates


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