Punjab Approves New Rules for Private Housing Societies: Rs 20,000 Daily Fines

The Punjab government has approved amendments to its private housing society rules, with daily fines of Rs 5,000 to Rs 20,000 for illegal development work and new protections for plot buyers, ProPakistani reported on 15 October 2026. The report does not name the department or authority that issued the approval, and no effective date was given.

Changes for plot buyers

The biggest change is how societies can cancel an allotment. According to ProPakistani, a society must notify the allottee before cancelling a plot, and the notice has to go through the Housing Society Management System as well as by registered mail.

• Allottees must be given at least two chances to pay overdue plot instalments.
• A plot cannot be cancelled straight away over unpaid development charges. At least two notices must be issued first.

For anyone paying for a plot in instalments, that means a missed payment no longer leads to instant cancellation. Keep every notice and receipt, and note the dates on them.

Applications and plot sizes

Applications for new and revised housing schemes must now go through a centralised digital system. This fits a wider push in Punjab to digitise housing scheme approvals, which ProPakistani also covered in September.

In low-cost housing schemes, the maximum residential plot size is five marlas. If you are comparing a five-marla plot with what a society advertises in square feet or kanals, our plot size converter does the conversion.

Development work and fines

Societies that carry out illegal development work face fines of Rs 5,000 to Rs 20,000 per day. Electricity, internet and other utility lines must be laid underground.

ProPakistani had earlier reported (23 June) that Punjab was tightening housing society rules with fines of up to Rs 20,000 a day, so this approval appears to follow that line of reform.

Who runs a society after development

Once development is complete, a seven-member management committee looks after the society. Four members represent residents and three represent the sponsor, so residents hold the majority.

What the report does not say

The ProPakistani report does not cover land requirements, no-objection certificates (NOCs) or other approval stages, and it does not give the date from which the rules apply. Buyers and developers should check the official notification before relying on the figures above.

Buying in a registered scheme still involves transfer costs. Our stamp duty calculator shows what you would pay on a purchase.