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State repeals Urban Land Ceiling Act
MUMBAI: In a major decision, the State government repealed the Urban Land (Ceiling and Regulation) act of 1976 on Thursday.
The move will free nearly 30,000 hectares of land for development in Mumbai, Thane and Pune and attract funds to the tune of over Rs 20,000 crores under the Jawaharlal Nehru National Urban Renewal Mission.
The Legislature passed a resolution to
the effect moved by Chief Minister Vilasrao Deshmukh by a voice vote amidst protests by Shiv Sena during the winter session in Nagpur.
Deshmukh also announced a slew of measures to ensure that the land under the ULCA would be used to provide affordable houses. The resolution was also tabled in the Assembly during the budget and the monsoon sessions, but could not be passed.
“It is a welcome move. We expect that nearly 30,000 hectares of land would be available for development in Mumbai, Thane and Pune. The housing stock will increases in Mumbai and Pune,” Builders’ Association of India President Anand Gupta said.
“Several hurdles in the infrastructure development will be removed and huge funds are expected to come to Mumbai and Pune under the JNNURM. Also, more land will be available for middle income groups,” Property Redevelopers Association General Secretary Pujit Aggarwal, said and added foreign investment will also be made in the real estate.
Housing expert and former legislator Chandrashekhar Prabhu however said property rates will jack up. “Housing will become unaffordable,” he said and added before repealing the ULCA, the state could have come out with a law to protect the interests of middle and lower income groups.
City’s realty check
PUNE: In Pune around 9,500 hectares land will be released. The general perception was that builders would grab this land. However, there is no official data available on how much land could actually be used for residential purpose. “There would be water bodies and other things making the land not useful for housing purposes,” an official from district administration said and added the decision won’t affect the land already acquired by the government. It will continue to remain with the government.
Although the Act removed extra lands from the clutches of rich people, it failed to serve the purpose. Corrupt politicians restricted the administration to go by the provisions of the Act resulting in the acquisition of only 10 per cent of the actual extra land holdings.
MAKING & SCRAPPING
The ULCA was introduced in 1976 with the intention to check concentration of land in private hands and facilitate the government in executing welfare schemes by the then Indira Gandhi government. The centre, under the Atal Bihari Vajpayee-led NDA government, scrapped the law in1999. However, land being a state subject, Maharashtra, West Bengal and Andhra Pradesh held on to the law. Now nine cities in the State will benefit extensively.
Houses for the poor
PUNE: The ULCA repeal comes as a boon for the PMC. More land will be available for the low cost housing projects for the poor sections.
Observing that the scraping of the ULCA is one of the best things to have happened, Municipal Commissioner Pravinsinh Pardeshi told the Herald that since land prices would come down, more small houses would be available. In turn, prices of such houses will come down. Development projects proposed in the will pick up momentum.
It would also help in implementing projects under the JNNURM. Currently, lands meant for housing projects for the poor, are stuck in ULCA clearance.
PMC opposition leader Vikas Matkari said the congress-led alliance delayed the decision eyeing financial benefits from the real estate price rise. The state has Okayed lands from the urban land ceiling in last two months in Pune.
‘Speed up infrastructure’
PUNE: City builders have unanimously welcomed the State’s ‘belated’ decision to repeal the ULCA. But they are skeptical about the immediate fall in land prices.
Promoters and Builders Association of Pune (PBAP) President Lalitkumar Jain said, “More land would be available to meet the growing demand for housing. However there would not be an immediate impact on the land prices. With the ULCA repeal, the government has to get the development plan ready and start the infrastructure development.”
Gera Developments, Executive Director Rohit Gera said, “Because of the government holding the land under the Act, there was an artificial shortage of land resulting in high prices. It will take another 15 to 18 months for the land prices to come down but not till infrastructure is ready.”
Gera Developments CMD Kumar Gera said at president, there is 30 to 35 per cent increase in the flat prices, which will reduce to 5 to 10 per cent. “Lands under ULCA will be cleared. Prices will soften. However, this varies with city,” he said.
5-Year Warranty on Real Estate
