It’s red-tapism at its worst

The Urban Land Ceiling (Regulation) Act (Ulcra), considered a masterpiece legislation, was introduced during Prime Minister Indira Gandhi’s regime in 1976 with the objective of facilitating housing options for the lower-income group people. This was to be applicable only in urban areas.

However, the government took control over all the land but did nothing much towards the objective. The land, which was easily available earlier became scarce with the result that land deals became tougher to come by.

A new lobby of bureaucrats, politicians and builders emerged on the horizon. The government took 10 per cent of flats built or land allocated as part of the chief minister’s quota. This pool was mostly used by bureaucrats and others who were close to the government.

Thus Ulcra distorted land markets in urban areas, exacerbated the growth of slums and limited the rise of private enterprises.  While the real estate industry has been pressing for the removal of this Act, the government has been avoiding doing so, more because of its potential political ramifications. Outdated laws like the Ulcra are impediments to growth, emphasised property developers.

The central government repealed this Act in January 1999, while the Maharashtra government adopted a resolution for its repeal on Wednesday during the winter session of the assembly in Nagpur.