Kolkata Real Estate Stakeholders Welcome Potential ULCRA Repeal with Conditions
Real estate stakeholders in Kolkata have welcomed the statement from BJP state president Samik Bhattacharya that the state government is considering repealing the Urban Land (Ceiling and Regulation) Act, 1976. However, they have cautioned that any rollback must be accompanied by safeguards to prevent speculative hoarding, land monopolies, and sharp price escalation.
Key Concerns and Recommendations
- Safeguards Against Speculative Hoarding: Real estate consultant Samantak Das emphasized the need for safeguards in a repeal legislation to prevent speculative hoarding, price inflation, displacement, and land monopolies.
- Land Hoarding Prevention: Das urged the state to prevent land hoarding without development, which can artificially hike prices.
- Reserve for EWS Housing and Public Greenspace: Das recommended that any new framework should mandate a fixed percentage of any large-scale land development be reserved for Economically Weaker Section (EWS) housing and public greenspace.
- Environmental Protection: Das warned that rapid land conversion must be checked by strict adherence to the West Bengal Wetlands and Water Bodies Act.
- Industrial Land Conversion: He cautioned that industrial land released after repeal should not be permitted for conversion if it poses an ecological threat.
- Transparent Digital Land Records: Das emphasized the need for efforts to develop transparent digital land records, including title digitisation, mutation clarity, litigation tracking, and GIS-linked ownership records.
- Rationalise Circle Rates: Another consultancy representative suggested that circle rates should be rationalised in line with market realities to ensure smoother transactions and sustained investor confidence.
- Development Impact Fees: Industry representatives proposed imposing Development Impact Fees on large land aggregations to fund roads, sewage, and power infrastructure for high-density projects.
Lessons from Other States
Many states that repealed ULCRA replaced ownership ceilings with zoning regulations, development plans, floor space index controls, and land reservations for public amenities. Some also retained affordable housing obligations through mandatory affordable housing quotas, EWS/LIG reservations, inclusionary zoning, and rehabilitation obligations for slum redevelopment.