Kolkata: For better utilisation of land for urban development, the state government has decided to exempt certain land parcels from the Urban Land (Ceiling and Regulation) Act, 1976.
The Urban Development and Municipal Affairs department is learnt to have issued an order to implement the decision. The order, under Section 20(1)(a) of the Act, applies to lands allotted by the state government, its parastatal bodies, or urban local authorities, in accordance with the state’s land allotment policy.
The exemption pertains specifically to chapter-III of the Urban Land (Ceiling and Regulation) Act, which governs the ceiling on vacant urban land holdings. The newly issued order allows the specified lands to be utilised for public interest
purposes without being subject to these ceiling provisions. However, the exemption is conditional. First, the use of the land as defined in the original lease deed or Deed of Conveyance must not be altered without prior approval from the state government. Second, the allotted or leased land must be put to its designated use within three years of the deed’s execution.
The order also applies retrospectively to previously approved allotments by the state Cabinet, provided the original land use remains unchanged without formal approval and the land was utilised within three years of the deed’s execution.
In the event of non-compliance with the stated conditions, the state government reserves the right to withdraw the exemption. Before doing so, however, lessees or allottees will be given a reasonable opportunity to present their case. Upon withdrawal, the provisions of the Act will again become applicable to the affected land.
An official said that conditions such as land use restrictions and the three-year utilisation timeline prevents misuse and speculative holding while the retrospective application of the exemption to past allotments will regularise compliant projects, reducing legal uncertainties.
Welcoming the decision, Sushil Mohta, president, CREDAI West Bengal said: “However, urban land ceiling is still applicable in many areas in West Bengal on private lands, if the same are more than 500 sq. metres. CREDAI has requested the state government to either scrap the ULC laws or bring some enabling provisions which may help in development of those lands. If the same is implemented, it will go a long way to enhance the image of West Bengal as an investor friendly state.”