Urban Land Ceiling Act repealed

The Union Cabinet had decided to repeal the Act on December 29.The ordinance incorporates an important provision that will allow court cases under the original law to continue. It is expected to boost housing activity and the development of infrastructure through the free availability of land. Thus, it is expected to revive the stagnant housing industry and provide affordable living accommodation to the people across the country.

With the issuance of the ordinance, two lakh hectares of land will immediately be available for development, in which the private sector will play an important role.

With thepromulgation of the ordinance, land assembly, development and disposal of excess vacant land will be facilitated. This will set off speedy growth in industry, transport and infrastructure and attract investments in housing-related sectors like cement and steel. Sources in the Ministry said the Act, which was passed nearly 25 years ago with a laudable social objective in mind, failed to achieve what was expected of it. On the contrary, it pushed land prices up, practically brought the housing industry to a standstill and provided opportunities for corruption, they said.

When Ram Jethmalani took over the Urban Affairs Ministry, he promised to do away with the Act, which he described as an 8220;ulcer8221;. When the Bill was referred to the Parliamentary Standing Committee for repeal, the Minister was infuriated. 8220;The best way to kill a bill is to refer it to a standing committee,8221; he remarked.

Jethmalani then tried to take the matter up at a Cabinet meeting but his proposal for an ordinance to scrap the Act wastorpedoed on the ground that it could invite the Election Commission8217;s wrath since the election process in four states had begun.

In the meantime, the Standing Committee submitted its report, giving a green signal to the Act8217;s repeal.

The Cabinet had decided in principle to withdraw a Bill pending in the Lok Sabha seeking to repeal the original Act. A Standing Committee of Parliament, to which the repeal Bill was referred, had recently recommended that the Act be scrapped to ensure easy availability of land at cheaper rates.

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