Bengal FM pushes to scrap 1976 Urban Land Act

Real estate's contribution to India's GDP is projected to double to about 13% by 2030 and employment to reach 30 million

Kolkata: West Bengal finance minister Swapan Dasgupta said the Urban Land (Ceiling and Regulation) Act, 1976, has to go as the state is looking to unlock land for development and attract investments.

"We have certain laws which date back to the 70s, which the rest of India has scrapped. It is an impediment and a deterrent to development. It has to go," Dasgupta said at real estate industry body Credai's national conclave. While the central government repealed the 1976 law and most states adopted the cancellation, Bengal still enforces it. Developers said due to the Act, it becomes difficult to acquire large land parcels in the state, resulting in leakage of revenue and restricting institutional funding.


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"For nearly 50 years, we unfortunately fell off the map of India. Now we are back. We will make up for the lost time," Dasgupta said. "I would not hesitate to say that Kolkata and West Bengal present the greatest opportunity. It is a state which is crying out for modernisation. It is crying out for upgrade, and it is crying out to get back to the 21st century."

The BJP government in West Bengal is expected to trigger a spurt in real estate activity in Kolkata and nearby cities of West Bengal, with developers betting on land reforms.

"We have to form several companies to acquire land here as the law restricts acquisition of more than 5,000 sq metres. We also need a township policy to grow like other metro cities. The city has a lot of potential," said Saket Mohta, managing director of the Merlin Group and president of Credai, West Bengal.

According to a joint report by Credai and real estate consultancy Anarock, India's real estate market has grown from $120 billion in 2017 to around $600 billion in 2025 and is projected to reach $1 trillion by 2030 and nearly $5.8 trillion by 2047.