Repeal ULCA, get funds: Centre tells states
The urban development ministry has asked states such as Maharashtra, West Bengal, Andhra Pradesh and Jharkhand to repeal the Urban Land Ceiling Act (ULCA) within three years.
By Rajat Guha & Mayur Shekhar Jha, TNN |
NEW DELHI: The urban development ministry has asked states such as Maharashtra, West Bengal, Andhra Pradesh and Jharkhand to repeal the Urban Land Ceiling Act (ULCA) within three years, failing which the states would loose out on funds under Jawaharlal National Urban National Renewal Mission (JNNURM). This could lead to a massive release of about 7,000 hectares of urbanisable land.
The ULCA was introduced in 1976 with the intention of preventing hoarding of land in private hands and facilitating the government in executing social and common welfare schemes. The law was scrapped by the Centre in 1999. However, some states like Maharashtra have continued to legislate on land issues as is a state subject.
Sources said that huge chunks of land would be made available for housing and commercial development once the ULCA is repealed. About 2000 hectares of land is locked in Maharashtra alone.
“Large land tracts in urban centres of Maharashtra would open up for development once the ULCA is repealed and this could have a major impact on the real estate prices. The repeal of the law would also encourage affordable housing and commercial development on these locked land masses,” a senior government official said.
In case of Maharashtra, failure to repeal the law would impede the progress of Rs 30,000 worth infrastructure projects including in Mumbai.
The idea behind implementation ULCA was to prevent speculation and profiteering and to ensure equitable distribution of land in urban settlements to serve the common good. In ‘A’ class cities such as Delhi and Mumbai, this was no more than 500 square metres. The excess land identified was to have been acquired by the government after compensating the owners and used to provide housing to various sections of the people. Delhi repealed the Act five years ago.
“ The ULCA has been exploited over the years by handful of people in states like Maharashtra. There have been cases where a single person has acquired different chunks of land in different names. So a repeal is very necessary to cut these benami transactions. On the other hand, the states have also not been able to build houses for poor as promulgated by them during the implementation of ULCA. If unlocked land is given to developers for construction, they could create housing for poor also,” real estate consultancy firm DTZ MD (India) said.
The ULCA was introduced in 1976 with the intention of preventing hoarding of land in private hands and facilitating the government in executing social and common welfare schemes. The law was scrapped by the Centre in 1999. However, some states like Maharashtra have continued to legislate on land issues as is a state subject.
Sources said that huge chunks of land would be made available for housing and commercial development once the ULCA is repealed. About 2000 hectares of land is locked in Maharashtra alone.
“Large land tracts in urban centres of Maharashtra would open up for development once the ULCA is repealed and this could have a major impact on the real estate prices. The repeal of the law would also encourage affordable housing and commercial development on these locked land masses,” a senior government official said.
In case of Maharashtra, failure to repeal the law would impede the progress of Rs 30,000 worth infrastructure projects including in Mumbai.
The idea behind implementation ULCA was to prevent speculation and profiteering and to ensure equitable distribution of land in urban settlements to serve the common good. In ‘A’ class cities such as Delhi and Mumbai, this was no more than 500 square metres. The excess land identified was to have been acquired by the government after compensating the owners and used to provide housing to various sections of the people. Delhi repealed the Act five years ago.
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“ The ULCA has been exploited over the years by handful of people in states like Maharashtra. There have been cases where a single person has acquired different chunks of land in different names. So a repeal is very necessary to cut these benami transactions. On the other hand, the states have also not been able to build houses for poor as promulgated by them during the implementation of ULCA. If unlocked land is given to developers for construction, they could create housing for poor also,” real estate consultancy firm DTZ MD (India) said.
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