Parliament to discuss contentious ULCRA draft today

Since the Bill was referred to the Standing Committee of Parliament on Urban and Rural Affairs, the Urban Affairs and Employment Minister Ram Jethmalani recently said an ordinance would be promulgated soon to repeal the act whose provisions had brought to a grinding halt housing activities in urban areas.

Expressing his strong reservations about sending the Bill to Parliament’s Standing Committee, Jethmalani had said at a recent national seminar on safer cities that “the best way to kill a legislation is to send it to a standing committee.”

The Government’s efforts to repeal ULCRA are aimed at giving a boost to housing activities as the present act does notallow freedom in building and construction work as a result of which 1000s of hectares are lying unutilised in the country.

Sources in the ministry hoped that repeal of the Act would result in a sharp fall in land prices across the country and a faster growth in construction activities in the 64 urban agglomerations to which ULCRA applies today.

Repealing of the Act implies that those holding land excess of 500 square metres in category "A" cities like Delhi and Mumbai will no longer be asked to either give it up or get the ULCRA permission if they wish to develop the land. For category "B" cities the limit is 1,000 square metres, for "C" it is 1,500 square metres and 2,000 square metres for "D".

This is expected to free up large tracts of land across the country and result in sharp lowering of prices.

It is also proposed that a large tax or levy be imposed on land kept vacant for more than a certain period. This is to discourage the practice of keeping land vacant and benefit from the appreciation inits price.

Another reason behind repealing the act is that states have almost failed in acquiring surplus land or ensuring its use for development purposes.

Records reveal that of the 2.2 lakh hectares of land declared surplus till march 1997, states have acquired barely nine per cent.

Repealing of the Act does away with the earlier proposal of the Urban Affairs Ministry that 20 per cent of the value of the land freed under the ULCRA be given to government to create a shelter fund for housing of the Economically Weaker Sections (EWS).

So far 17 State Assemblies have passed necessary resolutions authorising Parliament to repeal the Act.