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In Retrospect: Ulcra, 1976
Dickenson Intellinetics Private Ltd, September 2008, Pages: 4
The Urban Land (Ceiling & Regulation) Act, 1976 came into force on February 17, 1976. Under ULCRA, no one was allowed to hold land in excess of 2,000 square metres. However, ULCRA was repealed through an Ordinance in January, 1999 in all the states except Maharashtra, Andhra Pradesh, Assam, Bihar and West Bengal. With the Act in force, those who owned vast tracts of land had to obtain permission from the government to develop them and also hand over a sizeable chunk of excess land to the Government. Both, the growth of the real estate industry and the pace of urbanization in Maharashtra were retarded. On 29th November 2007, the Legislative Assembly adopted a resolution moved by the Chief Minister, Mr. Vilas Rao Deshmukh to repeal the archaic statute. The resultant land released is bound to be absorbed by the immense demand for real estate and infrastructure. As the write-up reveals, it is the repeal of a redundant mindset which brings the applause and augurs good times ahead for the real estate industry.
Capturing the Indian Market Dynamics
The repeal of Urban Land Ceiling & Regulation Act, 1976 is a welcome move in Maharashtra, India as vast tracts of land will become available in the heavily industrialised State of Maharashtra where land supply is perpetually anaemic. The statute enforced to limit land hoarding, as it disallowed an individual to hold land in excess of 2000 square metres, had become an impediment in the growth of infrastructure and overall urbanisation.
Its readership base could comprise developers, capital market players, consultants to investors, from the VC/PE communities, merchant bankers and managers of the evolving REITs and REMFs.
Towards Optimal Solutions
- 25,000 acres of land will be freed in the financial capital of Mumbai, India with the repeal of the archaic law.
- The benefits of repeal of ULCRA may not be too visible in mega metros. But Tier II and Tier III towns would witness hectic land purchase and transfer of priorities as reputed national and international developers are keen on venturing into smaller towns.
About the Authors
The article has been co-authored by Ashutosh Limaye, Vice President, Consulting Practice, Western Region, and Subhankar Mitra, Deputy General Manager, Consulting and Land Services(West), both from Jones Lang LaSalle Meghraj, India. Holding a Post Graduate Degree in Planning with specialisation in Urban Planning, Ashutosh has remarkable insight and experience, his ideas on Urban Land Management are noteworthy. Subhankar, a Gold Medallist in M. Tech (Urban Planning) has over 10 years’ experience in real estate markets of India and Gulf countries. He has hands on experience in urban development and planning.
1. Supply of Land in Urban India: A Constraint
2. Inequity in Urbanisation: Cause of Concern
3. Urban Land Ceiling and Regulation Act, 1976: A Retrospective
4. The Scrapping of ULCRA
- Chesterton Meghraj
- Oxford And IBH Publishing Co Pvt Limited