Why Land Pooling Policy May Be AAP's Undoing In Punjab

A new land pooling policy in Punjab introduced by the Mann government sums up both the troubles the Aam Aadmi Party (AAP) is battling and the identity it has come to acquire.

AAP relies on the politics of discontent. It picks a loud minority voice, no matter how indefensible that is, and amplifies it to gain traction. In Punjab, it did so with protesting farmers' voices and used them to come to power.

Three years into power, two core planks of AAP, support to disruptionist forces and Delhi Model, are in conflict with each other in Punjab. To make matters worse, the Punjab unit of the party is fragmented from within due to interference from its Delhi unit. The new land pooling policy is making it worse for AAP.

Land Pooling Policy: Promises and Pitfalls

On 4 June 2025, the AAP government notified a land pooling policy under which existing landowners, primarily farmers, were given the option to voluntarily hand over their own land to the Punjab government.

The government seeks the land for two categories of development: residential and non-residential (industry and institutional use). Incentives for landowners in both categories differ and are also designed to nudge them towards providing more plots.

In lieu of one acre of land donated for residential purposes, owners would receive barely 25 per cent (1,000 sq. yards of residential plot and 200 sq. yards of commercial plot) of their original land size.

However, for nine acres, the return is 33 per cent, and for 50 acres, it is 60 per cent. Until the completion of development, landowners would receive Rs 30,000 per year, which has been increased to Rs 50,000 after protests.

The policy’s goal is to provide space for rapid urbanisation and industrialisation of the state.

Various data available in the public domain indicate that the AAP government wants to acquire more than 60,000 acres of land from around two dozen districts, cities, towns, and sub-divisions. Ludhiana alone accounts for more than 70 per cent of the land, most of which is agricultural, under the radar of the AAP government.

According to an estimate published in The Indian Express, snatching 40,000 acres of fertile land would take away 150 lakh tonnes of paddy from Punjab’s pool. Punjab produces over 220 lakh tonnes of paddy.

One major criticism of the scheme is that it is designed to bypass the strict provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 (LARR Act, 2013), which forces authorities to obtain the consent of 70 to 80 per cent of landowners, conduct social impact surveys, and provide higher compensation.

Private builders and land mafias find these provisions troubling. Even if they acquire the land, converting agricultural land into residential or commercial use is another bureaucratic nightmare awaiting them.

“As a solution, the AAP government told builders that instead of running from pillar to post, they should directly run to them. Rather than local property holders and dealers, it is now the government which wants to seize the space and sell land for big projects,” said Jag Mohan Thaken, a senior journalist who has analysed multiple such schemes in the past.

The AAP government argues that unavailability of land has been a major roadblock in pulling investment. Chief Secretary KAP Sinha informs that Dubai-based Aqua Bridge shifted to Uttar Pradesh because Punjab did not have land to offer. In its three-year reign, the Rs 2,600 crore Tata Steel plant is the only major industrial-scale achievement of the Bhagwant Mann government.

However, the problem is not about the intent; it is about execution.

For instance, the much-advertised consent aspect of the policy states that until a No Objection Certificate is received from the farmer, the land will not be sold. However, in practice, state machinery has multiple ways to arm-twist farmers for consent.

A government order available with Swarajya details that farmers in that area cannot change the category of their land, as only the government is now eligible to do so. The Tehsildar's order explicitly states that this has been done under the new land pooling policy.

Moreover, there is no clarity or guideline about the type of compensated land and the timeframe in which construction will be completed. Punjab is suffering from depopulation (total fertility rate of 1.6) and deindustrialisation, which makes it tough for new colonies to be established.

“A lot of past projects started in places like Jalandhar, Mohali and Bathinda were not successful. Families barely want to go there. Now, if that is the state of affairs for high-ticket projects, how do you expect the average farmer to earn through these lands?” said Param, a farmer’s son who is now planning to shift to Australia.

One way to solve this crisis is by importing people from other states, which in the case of Punjab generally happens on the pretext of working on farmlands. This land pooling policy, intended to grab farmers’ land, is taking it away as well.

“The other problem is lack of opportunities. Even if everything goes well with the land in approximately five years, what will the farmer survive on during that time? He or she does not have many marketable skills. How will they earn? By selling snacks and tea?” Param added.

Everyone Except AAP Dislikes It

Sunil Jakhar, state chief of the Punjab unit of Bharatiya Janata Party (BJP), described it as a Ponzi scheme. Shiromani Akali Dal (SAD) President Sukhbir Singh termed it a land-grabbing scheme which will generate Rs 10,000 crore worth of black money.

Amarinder Singh Raja, President of the Punjab unit of Congress, termed the scheme a violation of LARR, 2013 and asked the Modi government for intervention.

More than 100 village panchayats have already registered their protests against it by passing resolutions, and dozens more are expected to join the chorus soon.

Farmers’ unions are rallying against the land pooling policy. The Samyukta Kisan Morcha (SKM) is spearheading protests through tractor marches and village meetings with its non-political wing. Sarwan Singh Pandher-led Kisan Mazdoor Morcha (KMM) is running the Zameen Bachao, Pind Bachao, Punjab Bachao campaign and will hold a motorcycle rally on 11 August 2025.

Other opposing unions include Punjab Kisan Mazdoor Union, BKU (Majhail and Khosa), BKU (Ekta Ugrahan), Kisan Naujawan Sangharsh Committee, Sher-e-Punjab Kisan Union, Jamhoori Kisan Sabha, and Kirti Kisan Union.

The discontent is so severe that grassroots-level AAP workers are facing social boycotts. In Kot Kalan village of Jalandhar, their materials and posters were burned. At other places, posters saying “AAP workers are not welcomed” have been erected.

This anger against AAP has been building for years, and none other than AAP is responsible for it.

AAP Against Farmers

Before the 2022 Assembly Elections, the party also offered to give seats to political units from these unions. The solidarity worked wonders in regions like Doaba and Malwa, where AAP won 76 (66 in Malwa and 10 in Doaba) out of 89 seats. AAP’s overall tally surged to 92, trouncing some big names from SAD, Congress, and BJP.

However, this was just the beginning of the problem. After riding on farmers’ backs to come to power, the AAP government has found it hard to keep promises made during election campaigns, one of which was ensuring Minimum Support Price (MSP) for 22 crops. In the last three years, the party has found it hard to implement it beyond paddy and wheat.

Its promise of bringing a comprehensive pro-farmer agriculture policy aimed at tackling Punjab’s chronic issues such as groundwater depletion, lack of crop diversification, and unsustainable farming practices has seen little progress.

According to Janak Singh Bhutal, the vice-president of BKU (Ugrahan), his organisation submitted its draft for a policy in July 2023, but the government instead outsourced the task to a foreign agency, a move seen as betrayal by the AAP government.

At the beginning of September 2024, thousands of farmers gathered in Chandigarh to demand the policy. Very quickly, more points of discontent emerged and farmers’ unions prepared a list of 18 core demands which the AAP government had to fulfil.

These included fair compensation for crop loss due to rain, low yields, supply of water (115 out of 153 administrative blocks in Punjab are deemed overexploited), steps to replenish groundwater reserves, pension for farmers and agricultural labourers, and no hike in electricity tariffs, among others.

Soon the farmers’ ire towards BJP, which was earlier nourished by AAP, took a U-turn. Now AAP became the target, and farm outfits started calling it the “B” team of BJP. Apparently, farmers’ recent opposition to land pooling is the sixth major protest since AAP came to power in the state.

On 13 February 2024, major outfits like KMM and SKM (Non-Political) launched a Chalo Dilli campaign. It is considered the tipping point of frustration for Bhagwant Mann and AAP leadership, which was having trouble convincing investors about trusting a hassle-free business environment.

The closed borders and diverted traffic often come with higher costs, delays, and problems for dwellers. “AAP’s think tank also got this input and none other than Kejriwal himself is believed to have conveyed his discomfort with party members,” said a professional associated with BJP.

The state’s finance minister Harpal Singh Cheema also spoke about the discomfort to traders. “AAP functionaries understand that uncertainty around the nature, timing, and scale of these protests is also stopping investors from putting their money in the state. It hit them particularly hard during the run-up to Ludhiana West by-polls, which is an urban area,” said the professional.

It is widely believed that Kejriwal was informed about traders’ discomfort when he attended Vipassana at Dhama Dhaja Vipassana Centre in Hoshiarpur’s Anandgarh village in the first week of March this year.

By this time, the Mann government had already started its crackdown on protesting farmers. Thousands of police forces were deployed to arrest, detain, and remove protesting farmers. A series of prohibition orders were also issued asking farmers not to gather at designated protest sites, including Chandigarh.

The crackdown on the Chandigarh Chalo campaign in the first week of March 2025 is considered a major flashpoint in the straining relations between AAP and farmers.

Mann is often accused by farmers’ bodies of imposing his own will rather than listening to their demands at the negotiation table. There have been reports of multiple meetings in which he stormed out after realising that farmers would not bow down to his demand for ending the protest.

When quizzed, Bhagwant Mann spoke in an inclusive manner and said, “I am a custodian of 3.5 crore people of the state. I have to look after everyone’s interests. Punjab is losing economically... and is being nicknamed as a state of dharnas (agitations). My softness should not be considered my weakness... I have been telling them (protesting farmers) not to indulge in traffic and rail blockades. But they have not been listening.”

For the party’s think tank, Mann’s unpopularity made it difficult to involve him in the land pooling policy.

In the fourth week of June, KAP Sinha, chief secretary of the state, was transferred control of all urban development authorities in the state. He is now the final signing authority.

The appointment was made under the pretext of efficiency. However, people watching the power corridors in Chandigarh openly acknowledge that it was done at the behest of AAP’s top leadership.

“To protect Mann, AAP has given the final signing power to KAP Sinha, chief secretary of the state. Whatever order is being passed regarding the land pooling, the onus has now shifted to Sinha, while Mann has been sidelined. Shifting the blame on bureaucracy is a win-win for both Sinha and AAP,” said the professional.

Delhi vs Punjab in AAP

Sinha’s appointment is also a virtual announcement of the triumph of AAP’s Delhi (or central leadership) over its state unit. This is another major point of concern within the party ranks.

Although discussions of Kejriwal overriding Mann are not new, they have gained significant traction after AAP’s defeat in the Delhi assembly elections. None of the Punjab-based stalwarts of AAP, including Bhagwant Mann, could convince Punjabi voters with their own record.

“When Punjabis based in Delhi used to call us about AAP leaders boasting about their Punjab story there, we used to provide the reality check. They knew about AAP’s failures here, so did not pivot in that direction,” said Saksham, a Punjab-based activist.

AAP lost by large margins in more than a dozen seats where Mann and his team had campaigned. BJP secured 17 seats, which is 15 more than its 2015 and 2020 tally, out of 20 such seats.

The loss also forced AAP to reconsider the feasibility of continuing with the Delhi Model, since it is something AAP has also promoted to Punjabis.

There is now a sense of neurosis in the party unit about the possibility of losing the 2027 Punjab elections. A loss would also strip AAP of its national party status.

This explains why most of the Delhi unit seniors have been sent to resurrect the party’s prospects in Punjab. On 21 March 2025, Manish Sisodia and Satyendra Jain were made in-charge and co-in-charge of the party’s Punjab affairs.

“They are working as supervisors of various ministries. The party’s main unit and both senior leaders have their own policy teams, where outsiders run the roost. Virtually everything is managed by imported professionals,” said the professional associated with BJP.

Not just politicians, but bureaucrats, including Sinha, are also believed to be Kejriwal’s loyalists.

Here is a list of key Delhi influences in the Punjab government, prepared with input from local sources and Punjab News Express.

Amidst this outsider versus Punjabi backdrop, the portal being used for the land pooling policy has deepened a significant trust deficit. This is largely due to its links to AAP's Delhi-based leaders.

The Punjab government is using the 'Dharni' portal, which was developed by a foreign company named TerraCIS Technologies. This company was previously accused of illegally transferring farmers’ lands to industrialists when it developed a similar portal for the Telangana government under the chief ministership of K. Chandrashekar Rao.

The fact that Rao's daughter, Kalvakuntla Kavitha, is part of the South Group in the Delhi liquor scam involving Kejriwal himself is further fuelling the fire of distrust.

Trust deficit with AAP

The dominance of Delhi in Punjab is adding to the perception that Aam (common) leaders of AAP are becoming Khaas (special) after electoral victories.

This perception began with the swearing-in ceremony itself. It was alleged that the Bhagwant Mann administration cut crops spread over 100 acres of land to make space for two lakh people to attend Mann’s event, which also included nearly two dozen giant screens.

Very soon, Members of the Legislative Assembly disappeared from their constituencies, and the contact numbers shared before election campaigns became inaccessible. Complaints emerged that none of them even returned to thank the locals. AAP workers could not provide a satisfying answer for their absence, possibly because they themselves could not get in touch with their MLAs.

High-profile private events, such as the marriage-related ceremonies of Raghav Chadha and Arvind Kejriwal’s daughter, added significant mileage to the Aam versus Khaas narrative surrounding AAP.

The second major issue, loosely connected to the elitism of AAP MLAs, concerns the party’s unfulfilled promises. In its bid to win elections, the party made numerous commitments without working out how to deliver them.

Take, for example, the poll promise of providing Rs 1,000 per month to adult women in Punjab. More than three years later, the scheme has yet to materialise. AAP, or any political party, needs strong reasons to antagonise women voters, who are increasingly becoming decisive.

In this case, the obstacle is the state’s finances, which have forced populism to take a back seat.

The debt crisis

The AAP government would need to allocate Rs 12,000 crore annually to fulfil its free cash promise. The yearly cost of providing free cash to women, along with the power subsidy bill, would amount to around Rs 35,000 crore. For context, the state’s annual budget for 2025–26 is Rs 2.36 lakh crore.

Raising Rs 35,000 crore is a daunting task for a state that spends over 40 per cent of its revenues on repaying principal and interest.

According to Professor Ghuman, Professor of Eminence (Economics) at Guru Nanak Dev University, Amritsar, Punjab spends well over 20 per cent of its revenue on power subsidy. Combined revenue expenditure exceeds actual revenue by 22 per cent.

However, the state government does not appear to be slowing down. With pending liabilities exceeding Rs 15,500 crore, it sought to raise Rs 47,076 crore under the open market borrowing limit. This request was not accepted by the Union government, which reduced the limit by Rs 16,676 crore.

In addition, the Centre has imposed certain restrictions on government spending.

The Centre's denial partly explains why the AAP government is moving swiftly with its proposed policy. Within weeks, the system was ready for land transfer and acquisition, while investors remained prepared. Estimates suggest these deals will generate approximately Rs 20,000 to Rs 25,000 crore for the government.

Shiromani Akali Dal (SAD) President Sukhbir Badal places this figure at Rs 30,000 crore, primarily from Delhi-based builders.

This amount is more than sufficient to fund the promise of free cash to women for the next seventeen months. This time frame coincides with the period after which the Model Code of Conduct will be enforced by the Election Commission of India.

However, the opposition alleges that a substantial portion of the revenue collected by the government will be diverted to fund AAP’s internal expenditure. According to Badal, AAP will generate Rs 10,000 crore through bribes, which will then be used to finance its core operations. Several BJP workers echoed this claim on the condition of anonymity.

If only AAP had acted earlier

The protests against land pooling conceal stories of betrayal, takeovers, greed, politicisation, deception, and above all, distrust. If only the Mann government had not tried to strike a balance between disruptors and development agents, the outcome might have been different.

Had the policy been introduced soon after AAP came to power, it would have been easier to convince farmers. Instead, the issue was allowed to simmer for years. Now, the government is left to protest about the smoke that has gathered from the fire it ignored.

By the time it realised that something significant had slipped away, it was already too late. AAP’s cadre is losing support among farmers, which is bad news for the party. This comes amid reports of an internal conflict between the Delhi and Punjab units of AAP.

The pressing question is how AAP will reconcile this divide, when one strand of its politics is in direct conflict with another. The party’s appeal based on civic amenities has been compromised by its previous support for disruptions.

At this stage, AAP is uncertain about both its urban and rural voter bases. If it proceeds with the policy, its core support base may be alienated.

If it does not, industry and urban infrastructure, such as cleanliness, schools, roads, and other amenities, will suffer in the long term.

This dilemma arises at a time when the state is grappling with serious debt, and the Punjab unit of AAP is increasingly seen as unrecognisable by Punjabis due to interference from Delhi.