Builder see no windfall

Builders termed ULCRA, implemented in February 1976 to exercise some control over surplus vacant land, a failure. Under the act no individual was allowed to own more than 500 sq m of land. However, both builders and the government exploited the Act to the full and today many builders own large tracts of land where development has been stayed because of ULCRA.

Builders own upto 50 lakh sq ft of land in the suburbs and developed very few acres where government clearance was obtained. Even where ULCRA clearance was issued land is going abegging, say builders.“There will be no statemonoploy on licencing and the major constraint on land supply will go. More land will be available and construction work will become more professional as competition will thrive on profit margins,” said noted builder and president of Maharashtra Chamber of Housing Industry, Niranjan Hiranandani.

“The real estate market has already corrected itself in the last six months when the ground was prepared to repeal ULCRA. The construction industry will become professional too,” he said. “Today anyone with money is a part-time or full-time builder,” he observed adding, “You don’t see prices going down in the aviation or telecom industry because of liberalisation do you. The same holds true in case of housing industry now.”

State Housing Department officials agree with the builders. On the contrary they foresee few hands owning large tracts of land defeating the very purpose of the legislation. “Repeal of the act alone will not ensure low-cost housing for the masses,” said a housing department secretary.The state sponsored free housing scheme is already in troubled waters with dearth of open space. The Centre is yet to issue an ordinance after which each state is free to formulate its own land policy.

Meanwhile, Maharashtra has failed to acquire surplus land from indivuduals and corporates. Where it did, the land was used for low cost housing schemes with many projects yet to be completed. For instance, out of 345 projects to build around 60,000 houses, only 250 are complete and less than 30,000 built till date.