Punjab Congress Delegation Urges Governor to Reject Punjab Town Improvement Amendment Bill 2025

A Punjab Congress delegation led by Partap Singh Bajwa has urged Governor Gulab Chand Kataria to withhold assent to the Punjab Town Improvement Amendment Bill, 2025, citing concerns over its impact on Improvement Trusts and constitutional issues.

The Punjab Congress delegation recently approached Governor Gulab Chand Kataria, urging him not to approve the Punjab Town Improvement Amendment Bill, 2025. They argue that this Bill undermines the foundational principles of Improvement Trusts and poses significant constitutional issues. The Punjab Assembly had passed this Bill on September 29, with Local Government Minister Dr. Ravjot Singh stating its purpose was to allow urban local bodies to access funds from Improvement Trusts.

The delegation, led by Leader of Opposition Partap Singh Bajwa, included MLAs Aruna Chaudhary and Vikramjit Singh Chaudhary, as well as former deputy chief minister O P Soni and former speaker Rana K P Singh. They met the governor at Raj Bhavan to express their concerns. In their memorandum, Bajwa highlighted that the original Punjab Town Improvement Act of 1922 established Improvement Trusts as quasi-autonomous entities responsible for urban development projects within specific municipal areas.

Concerns Over Financial Management

Bajwa explained that these Trusts were designed to have ring-fenced finances, with revenues from land disposals and other local sources being reinvested into the same locality. This ensured that scheme liabilities were met and promised civic assets delivered. However, the new Bill introduces a municipal development fund (MDF), requiring a portion of Trust property proceeds to be transferred to this state-level budgetary pool.

This change effectively transforms locally earmarked resources into state-controlled funds, allocated at the executive's discretion. Bajwa claimed this shift raises several constitutional and administrative issues. The Bill allows for core fiscal decisions regarding Trust property proceeds to be made through rule-making without statutory safeguards, leading to potential unequal treatment of Trusts and beneficiaries.

Potential Impact on Local Resources

Although presented as a municipal development initiative, Bajwa argued that the Bill diverts locally generated funds into a state-level pool. This pool could be used anywhere in the state, including areas not connected with the originating Trust or even non-municipal regions. Such a move departs from the basic principles of the original Act and grants excessive discretion to the executive.

Bajwa urged Governor Kataria to withhold his assent to the Bill and instead reserve it for consideration by the President of India. He cited constitutional concerns and the risk of misusing local Trust funds across the state as reasons for this request. The delegation believes that these issues warrant further scrutiny before any approval is granted.

With inputs from PTI