URBAN LAND CEILING ACT-1976

Legistlation Date:21-07-2014 Madhavi P.Patil

History of the Urban Land Ceiling

Act, 1976

• The Urban Land ceiling Act (ULCRA) was introduced during Prime Minister Indira Gandhi’s regime as a means for lower income sections to fulfill their dreams for a home.

• The main purpose of the Act was to prevent hoarding or excessive holding of land in urban agglomerations by few people so as to facilitate proper distribution and uniform development of all sectors of urban areas.

• It had been noticed that private dealings were leading to speculation and profiteering and prevention of this kind of trade was one of the objectives of the UCLRA.

• The Act applied to large cities because the shortage of land was felt more grievously there as there was a constant influx of population.

• Urban Agglomerations were covered in their entirety by the Act and the peripheral areas were specially considered to prevent haphazard growth

The Urban Land (Ceiling And Regulation) Act,

1976

• THE URBAN LAND (CEILING AND REGULATION) ACT, 1976

ACT NO. 33 OF 1976 [ 17th February, 1976.]

• As per the Preamble of the Act:

An Act to provide for the imposition of a ceiling on vacant land in urban

agglomerations, for the acquisition of such land in excess of the ceiling limit, to

regulate the construction of buildings on such land and for matters connected

therewith, with a view to preventing the concentration of urban land in the

hands of a few persons and speculation and profiteering therein and with a view

to bringing about an equitable distribution of land in urban agglomerations to sub

serve the common good.

Major Provisions of the Act

• The ULCRA was enacted by the Government of India and came into force on

17February 1976 simultaneously in 11 states of India: Andhra Pradesh,

Gujarat,Haryana, Himachal Pradesh, Karnataka, Maharastra, Orissa, Punjab, Tripura.Uttar

Pradesh and West Bengal, and all the Union Territories.

• The Act had been made applicable to all cities with a population of 0.3 million and

above and in a few other smaller cities which have had high growth rates. Significantly, the

Act was applied not just to the city but the city agglomeration, generally identified by a 5

km belt around the city and within which the conflict between prime agricultural land and

future urbanisation is most prominent.

Objectives of the Act

• The basic objectives of this Act, were to ensure orderly urban development, to

check speculation and price escalation in land, and to promote the production

of low income housing.

• These objectives were to be implemented through:

• (1) imposition of a ceiling on the vacant land holdings of individuals or companies;

• (2) limiting the size (in terms of plinth area) of the dwelling units to be built in the future

on lots; and

• (3) regulating the transfer of urban property.

• A separate department known as the "competent authority" is set up to implement the

Act. The competent authority is vested with all powers of the civil court.

Ceiling limit.

• Subject to the other provisions of

this section, in the case of every

person, the ceiling limit shall be,-

• For category A areas, peripheral

area is 8 kms., for category B areas

and category C areas its 5 kms and

its 1 km for category D areas.

Land Ceiling Limits

Class B

Class C Class D

Class A

• Class A (Delhi, Bombay, Calcutta,

Madras) -500 sq. m;

• Class B (Cities with a population

of over a million, e.g. Bangalore,

Hyderabad, Ahmedabad,

Kanpurand Pune) - 1,000 sq. m;

• Class C (Cities with a population of

0.3 to 1 million)- 1,500 sq. m;

• Class D (Smaller cities with a

population of 2-300,000) -

2,000sq. m.

Important sections of ULCRA-1976 Some of the most important provisions of the Urban Land (Ceiling and Regulation) Act, 1976 are:

• Section 6: Filing of statement by persons holding vacant land in excess of the ceiling limit.

• Section 6(1): Liability to file statement before CA for all vacant land & other ceiling limit.

• Section 6(2): Issue of notice upon a person directing him to file statement of his holding as referred to in sub-section (1).

• Section 8: Preparation of draft statement as regards vacant land held in excess of ceiling limit.

• Section 9: Preparation of final statement as regards vacant land in excess of ceiling limit.

• Section 10: Acquisition of vacant land in excess of ceiling limit.

• Section 10(1): Issue of Notification in respect of particulars of vacant land held by the person in excess of the ceiling limit as shown .

• Section 10(3): Declaration by the CA that the excess vacant land referred to in the Notification published under sub-section (1) be deemed to have been acquired by the State Govt.

• Section 10(5): Taking over possession of Govt. land vested under sub-section (3), by the person authorised by the CA within stipulated period as provided in this sub-section.

• Section 11: Payment of compensation for vacant land acquired.

• Section 20: Exemption of certain category of vacant land from the preview of the Act — power of the State Govt.

• Section 22: Retention of vacant land emergency upon destruction or demolition of any holding or any holding or any for redevelopment in accordance with the master plan furnished by the applicant/returnee.

• Section 26: Notice to be given before transfer of vacant lands.

• Section 27: Prohibition on transfer of urban property.

• Section 29: Regulation on construction of building with dwelling units (certain restriction imposed).

Compensation

• The compensation payable for the excess land is fixed at 8.3 times the net average annual income

from land, if any, derived during the preceding 5 consecutive years (Section 11). In case no income was

derived from such land, the government could fix a price taking into account various factors

such as location, price of land in the past 20 years and so on. For this purpose, the state

government would divide the urban agglomeration into various zones and fix the rate per sq. m of vacant

land in each zone; but the rates are not to exceed Rs. 10 per sq. m for categories A and B, and

Rs. 5 per sq. M for categories C and D cities.

• In Ahmedabad, for example, the rates of compensation varied between 50 paise to Rs. 10 per sq. m for

land in various zones (Wadhva, 1983, p. 77).

• The Act specifies a cash compensation to the tune of 25% of total compensation, subject to a

ceiling of Rs. 25,000, and the rest in negotiable bonds redeemable after 20 years but

carrying an annual interest of 5% (Section 14).The land, thus acquired, can be disposed of in any

manner at the discretion of the state government (Section 23). The state could also reserve this land for

public benefit or for some future use.

Limitations due to Master Plans

• After the circulation of Model Town and Country Planning Act, 1961 by the national

government, the state governments initiated activities to prepare master plans for the

development of urban areas under their jurisdictions. So far, more than 575

conventional master plans have been prepared, of which only a few have been

implemented. But unless the Master Plan of a city declares any land as vacant land. It is not

treated as such by the urban Land (Ceiling and Regulation) Act of 1976. Consequently, a

substantial part of land, which is used for agricultural purposes in many cities,

gets exempted from the provisions of the Act. Exemptions are also granted to

those pieces of land where construction of buildings is prohibited by the

master plan. This provision of the Act is inconsistent in the sense that not many master

plans have legal backing. But under this provision. lands designated for utility networks

and social services will have to be acquired under different laws and Acts.

Jurisdictional limitations • Although the Act is applied not just to the city but also to the city

agglomeration generally identified by a 5 km belt around the city,

there are some jurisdictional limitations on the applicability of this

Act.

• The problem arises in respect of peripheral areas or urban

agglomerations in one state which fall within the

boundaries of another state. For example. this Act excluded

peripheral areas of Delhi agglomerations which fell within the

boundaries of Haryana.

• Another consequence of this jurisdictional concern is that the Act

appears to be causing large distortions in the physical

development of cities. Land is developed outside the ULCRA

limits because closer land is not available.

• Furthermore, the pursuance of a growth centre strategy by the

urban development authorities maybe for a need to be outside the

limits of the Act where land can be acquired (for example, the Draft

Development Plan of the Ahmadabad Urban Development

Authority calls for the development of 4 growth centres in its

jurisdictional area at Kalol, Sanand, Dehgam and Mlehmdabad;

Shape of the vacant land

• There is a practical difficulty relating

to the shape of the vacant land which

would be available to the government. The

Act gives the option to the landowner to

decide upon the shape, dimensions and the

relative location of the plot which he could

retain within the ceiling limits.

• The landowner is thus in a position to

leave with the government excess

land in a shape which may be difficult

for building construction.

Consequences of densification

• As the Act encourages fragmentation of vacant land in excess of the

ceiling, it will also affect the existing densities in built-up areas. This

may have both the positive as well as negative effects on the

community as a whole.

• The positive result is obtained if the development leads to achieving

an optimum density through densification.

• But the negative results such as overcrowding, traffic congestion.

lack of open space, and burden on the already overloaded urban

services are likely to overweigh the positive results.

The Urban Land ( Ceiling and Regulation ) Repeal Act

1999 [22nd march 1999]

• Rationale For Repeal

• "The Urban Land (Ceiling & Regulation) Act has failed to achieve its objectives due to its poor performance. Out of 2,20,675 ha75. Of estimated excess vacant land, 50,046 ha. Of vacant land vested in the State Governments76. Physical possession was acquired only of 19,020 ha. of vacant land by the State Governments.

• There has been a demand to repeal this Act so that the stock of urban land increases and development of urban land for various sectors, namely, housing, transport, industry, etc. may be available.

• The Government has decided to repeal this Act. Repeal of this Act will also facilitate the availability and affordability of urban land, by increasing supply of urban land.

• With the repeal of the ULCRA, the greater availability of land would naturally push down the price effectively.

• The competent authorities also misused their powers while determining excess vacant lands.

• The compensation rates are unrealistically low, almost amounting to fines and therefore, discouraging people from declaring excess land and therefore, the objectives of the Act are not being fulfilled.

The Urban Land ( Ceiling and Regulation ) Repeal Act

1999 [22nd march 1999]

An Act to repeal the Urban Land (Ceiling and Regulation ) Act 1976. Be it enacted by Parliament in the Fiftieth Year of the Republic of India as follows:-

Short title, application and commencement. • This Act may be called the Urban Land (Ceiling and Regulation) Repeal Act, 1999. • It applies in the first instance to the whole of the States of Haryana and Punjab and to all

the Union territories; and it shall apply to such other State which adopts this Act by resolution passed in that behalf under clause (2) of article 252 of the Constitution.

• It shall be deemed to have come into force in the States of Haryana and Punjab and in all

the Union territories on the 11th day of January, 1999 and in any other State which adopts this Act under clause (2) of article 252 of the Constitution on the date of such adoption; and the reference to repeal of the Urban Land (Ceiling and Regulation) Act, 1976 shall, in relation to any State or Union territory, mean the date on which this Act comes into force in such State or Union territory.

• Repeal of Act 33 of 1976 The Urban Land (Ceiling and Regulation) Act, 1976 (hereinafter referred to as the principal Act) is hereby repealed.

Provisions of the Repeal ULCA Act-1999

The repeal of the principal Act shall not affect-

• (a) the vesting of any vacant land under sub-section (3) of section 10, possession of which has been taken over by the State Government or any person duly authorised by the State Government in this behalf or by the competent authority;

• (b) the validity of any order granting exemption under sub-section (1) of section 20 or any action taken there under, notwithstanding any judgment of any court to the contrary;

• (c) any payment made to the State Government as a condition for granting exemption under sub-section (1) of section 20.

Where-

• (a) any land is deemed to have vested in the State Government under sub-section (3) of section 10 of the principal Act but possession of which has not been taken over by the State Government or any person duly authorised by the State Government in this behalf or by the competent authority; and

• (b) any amount has been paid by the State Government with respect to such land, then, such land shall not be restored unless the amount paid, if any, has been refunded to the State Government.

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