Should Delhi Repeal the Urban Land Ceiling Act?

Nipun Vaid, CCS Intern

The right to shelter is enshrined in the Indian Constitution by virtue of Article 21. Therefore, it’s the duty of the state to provide adequate housing provisions for the citizens of the country. This was one of the reasons for which the Urban land Ceiling Act was enacted in 1976. The objectives of the Act clearly mentioned that excess land would be taken from landowners and used for construction of dwelling units for the marginalized sections of the society. It was also adopted by New Delhi. But like most social welfare acts, this law also failed to deliver and therefore, led to a glut in the markets, wherein the excess land was being acquired from owners for minimal compensation and then not being re-used for housing purposes and therefore, leading to artificial shortage of land leading to spiraling land and housing costs.

This was sought to be remedied by the repeal of the law in 1999, but it being a state subject, the centre could not force the states to repeal the act at their level. This is the reason the Act is still applicable to states of Maharashtra, Delhi etc. But the issue is whether its time for these states to also repeal the Act? The argument taken in favor of keeping the Act is that it allows state to intervene and regulate the flow of land in the markets making sure that all sections of the society get an opportunity. But realities speaks differently from the arguments, with excess land not being used and lower sections of the society still not being able to afford decent living units.

Section 21 is largely to blame for the exploitation of the Act. It allows a person to seek exemption from Section6-14 of the Act and therefore, retain their excessive vacant land on the declaration of the intention to make dwelling units for the poor. But this is never done and the land lies for ages without any proactive measures being taken. Also Section 11- 14 have prescribed such low compensation rates that they amount to fines. In Delhi, due to land speculation, already land is going at very high rates. In such cases when the government steps in to acquire land at the rate o Rs. 10 per sq. meter, it would definitely be a loss for the owner who will surely not be of a philanthropic bend of mind. Section 6 places duty upon the landowner to declare excess land. With such minimal compensation, the landowners would never declare excess land and it would just go to waste, with it not being used for any constructive purposes. Therefore, the Act needs to be realistic about the compensation rates.

The need of the day is to increase supply of dwelling units. It’s been 30 years since the Act was passed but its performance has been pathetic and it is not wise to wait for another 30 years to see if it will pick up and perform. Also, the inherent structure of the Act is flawed as it places too much reliance on participation of the landowners in the process of declaring surplus land. Extensive amendments are not possible. Therefore, the need of the day is to repeal the Act.

One can argue that the state is responsible for its citizens and if the Act is repealed it will not allow the state to intervene and regulate, but this can be refuted by introducing the idea of public private collaboration. The state can offer subsidies to the private sector to provide low- cost housing schemes and this would surely work as private sector is profit driven and will not dilly dally over the process like the government has done till date and this will truly unclog the markets and improve the housing standards currently in Delhi.