Bengal may amend land ceiling law

West Bengal is considering modification of Urban Land Ceiling Act (ULCA) to unlock land for real estate development in the state, Ashoke Bhattacharya, minister for urban development and municipal affairs, said in Kolkata today.

Addressing a seminar organised by Confederation of Real Estate Developers Association of India (CREDAI), the minister said a draft proposal has been formulated and sent to the chief minister for consideration.

"We are not going to scrap the law altogether. But it will be made more flexible. We have taken suggestions from the developers. The idea is to unleash the land for development. We hope to introduce the modification within two-three months," he said.

However, the relaxation comes with a rider. The state will ensure the land is used for projects relating to the urban poor and low income group (LIG) categories, the minister added.

The Centre had asked all states to repeal ULCA. Four states - West Bengal, Maharashtra, Jharkhand and Tamil Nadu - have chosen to retain ULCA. Maharashtra recently modified the act.

Repeal of ULCA has been a long lasting demand from the industry which argued that ULCA was encouraging fly-by-night developers.

Bhattacharya further said government was planning to make the building rule more liberal. A plan has already been made for Kolkata while that for other municipalities would also be developed soon, the minister informed.

The minister also announced that government has taken in principle decision to rationalise the property tax. "So far it was taken on the basis of rent. Now it will be made unit linked," he informed.

So far property tax was 57 per cent on rental for commercial property and 43 per cent on residential housing. If this new guidelines come into place, property will become cheaper.

Others who spoke on the seminar was Kumar Gera, president of CREDAI. Santosh Rungta, vice president of CREDAI among others.

In his speech, Gera mentioned the association was in talks with nine banks, housing finance companies and financial institutions for making loans available for housing project in the country. "We expect a breakthrough soon," he noted.