Punjab Cabinet, Led by Chief Minister, Approves Key Initiatives to Boost Business in the State

One-Time Settlement Scheme Introduced for Recovery of Pending Dues

Chandigarh, Sept 2025 : Under the leadership of Chief Minister Bhagwant Singh Mann, the Punjab Cabinet today approved several important initiatives aimed at accelerating the state’s economic growth and promoting business. These decisions were taken during the cabinet meeting chaired by the Chief Minister here.

A spokesperson from the Chief Minister’s Office informed that, in order to reduce the burden of pending cases and to encourage compliance with rules by industries and businesses, the Cabinet has approved the Punjab One-Time Settlement Scheme 2025 (OTS). This scheme will be applicable from October 1, 2025, till December 12, 2025. Taxpayers whose assessments have been finalized up to September 30, 2025, and whose assessment orders (including corrections/amendments) under relevant Acts such as Punjab General Sales Tax Act, 1948; Central Sales Tax Act, 1956; Punjab Infrastructure Development and Regulation Act, 2002; Punjab VAT Act, 2005; Punjab Entertainment Duty Act, 1955; and Punjab Entertainment Tax on Cinema Shows Act, 1954 have been passed by September 30, 2025, will be eligible to apply under this scheme.

Under the OTS:

• For cases where the tax liability is up to ₹1 crore, there will be 100% waiver on interest and penalty, and 50% waiver on tax.
• For cases with tax dues between ₹1 crore and ₹25 crore, there will be 100% waiver on interest and penalty, and 25% waiver on tax.
• For cases with tax dues above ₹25 crore, there will be 100% waiver on interest and penalty, and 10% waiver on tax.

OTS for Rice Mill Owners
The Cabinet also approved a separate One-Time Settlement Scheme 2025 for rice mills. Every mill owner is required to settle accounts with state procurement agencies after completion of milling to qualify for paddy allotment for custom milling in the next season. Many mill owners failed to clear dues, were declared defaulters, and faced legal action, with cases pending in various courts/legal forums for years.

The new OTS scheme seeks to minimize such disputes across all agencies and ensure settlement of cases under this policy, thereby reactivating “defaulter” rice mills. This move will generate employment opportunities in the state, ensure smooth procurement operations in mandis during the season, and benefit farmers.

Approval for Amendment to Punjab Apartment and Property Regulation Act, 1995
The Cabinet also approved amendments to Sections 5(1), 5(3)(2), and 5(8) of the Punjab Apartment and Property Regulation Act, 1995. These changes will help ensure proper and planned development of colonies/areas, thereby reducing problems faced by the general public.

Punjab Goods and Services Tax (Amendment Bill), 2025 Approved
To simplify compliance and facilitate taxpayers, the Cabinet approved amendments to the Punjab GST (Amendment Bill), 2025. The Finance Act, 2025 has already amended provisions of the Central GST Act, 2017 as per GST Council recommendations, and similar amendments will now be incorporated into the Punjab GST Act, 2017.

Special NIA Court Approved in Mohali
To avoid delays in hearing National Investigation Agency (NIA) cases, the Cabinet approved the establishment of a special court at SAS Nagar, Mohali, under Section 22 of the NIA Act. One post of District and Sessions Judge/Senior District and Sessions Judge will be created in Mohali to head this Executive Special Court. Apart from NIA cases, the court will also have jurisdiction to hear cases from the Enforcement Directorate (ED), CBI, and other special cases.

Prosecution of Former Minister Sadhu Singh Dharamsot Recommended
The Cabinet also approved the recommendation to prosecute former minister Sadhu Singh Dharamsot under Section 197(1) of the Code of Criminal Procedure (Section 218 of BNSS 2023), and Section 19 of the Prevention of Corruption Act, 1988, as amended under the PC (Amendment) Act, 2018 and CrPC amendments. This recommendation will be sent to the Governor of Punjab.