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Repeal of urban land act expected to push prices down, boost housing

The President on Monday night promulgated an ordinance to repeal the Urban Land (Ceiling and Regulation) Act or ULCRA ,1976, which is expected to go a long way in promoting housing activity and bringing down the land prices all over the country.

The decision to repeal the Act was taken by the Union Cabinet a fortnight back.

The repealing of the 22-year-old Act will immediately benefit Punjab, Haryana, Delhi and other Union Territories.

The Bharatiya Janata Party-led coalition government had in its national agenda for governance promised to repeal the law, which is likely to release nearly 200,000 hectares of land.

According to official sources, the repealing of the Act would bring down the prices of land. The government also expected a growth in housing, industry, transport and other infrastructure segments due to better availability of land.

The sources said the state governments would have the option of repealing local land ceiling laws and the principal law, enacting a law suited to their needs or allowing the ULCRA to continue.

The sources said the views of the parliamentary standing committee on urban and rural development have been incorporated in the ordinance, drafted by the law ministry.

The urban affairs and employment ministry would in due course send detailed guidelines to the states suggesting safeguards for protecting the interests of the weaker sections and low-income groups.

The sources said whenever the government would release land, there would be reservation for weaker sections and low-income groups.

The state governments would also be entitled to impose vacant land tax for non-utilisation of land.

The sources said all cases relating to ULCRA pending in courts would become null and void with the promulgation of the ordinance.

UNI

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