Statement Of Object And Reasons

There has been a demand for imposing a ceiling on urban property also, especially after the
imposition of a ceiling on agricultural lands by the State Governments. With the growth of
population and increasing urbanization, a need for orderly development of urban area has also
been felt. It is, therefore, considered necessary to take measures for exercising social control over
the scarce resource of urban land with a view to ensuring its equitable distribution amongst the
various sections of society and also avoiding speculative transactions relating to land in urban
agglomerations.

With a view to ensuring uniformity in approach Government of India addressed the State
Governments in this regard, eleven States have so far passed resolutions under Article 252(1) of the
Constitution empowering Parliament to undertake legislation in this behalf. The present proposal is
to enact a parliamentary legislation in pursuance of these resolutions.
Statement Of Object And Reasons
The Bill is intended to achieve the following objectives :
i. To prevent concentration of urban property in the hands of a few persons and speculation and
profiteering therein
ii. To bring about socialization of urban land in urban agglomerations to sub-serve the common
good by ensuring its equitable distribution
iii. To discourage construction of luxury housing leading to conspicuous consumption of scarce
building materials and to ensure the equitable utilization of such materials; and
iv. To secure orderly urbanization. The Bill mainly provides for the following
i. Imposition of a ceiling on both ownership and possession of vacant land in urban
agglomerations, the ceiling being on a graded basis according to the classification of the
urban agglomeration
Statement Of Object And Reasons
The Bill is intended to achieve the following objectives :
iv. To secure orderly urbanization. The Bill mainly provides for the following
ii. Acquisition of the excess vacant land by the State Government with powers to dispose of
the vacant land to sub-serve the common good;
iii. Payment of an amount for the acquisition of the excess vacant land, in cash and in bonds;
iv. Granting exemptions in respect of certain specific categories of vacant land
v. Regulating the transfer of vacant land within the ceiling limit
vi. Regulating the transfer of urban or urbanizable land with and building (whether
constructed before or after the commencement of the proposed legislation) for a period of
10 years from the commencement of the legislation of the construction of the building,
whichever is later
Statement Of Object And Reasons
The Bill is intended to achieve the following objectives :
iv. To secure orderly urbanization. The Bill mainly provides for the following
vii. Restricting the plinth area for the construction of future residential buildings; and
Preamble
The Urban Land (Ceiling and Regulation) Bill was passed by both the Houses of Parliament and came
on the statute books as the Urban Land (Ceiling and Regulation) Act, 1976 (33 of 1976).

An Act to provide for 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 person sand speculation and profiteering therein and with a view
to bringing about an equitable distribution of land in urban agglomerations to subserve the
common good.
Preamble
WHEREAS it is expedient 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 subserve the common good;

And Whereas Parliament has no power to make laws for the states with respect to the matters
aforesaid except as provided in articles 249 and 250 of the Constitution;
Preamble
AND WHEREAS in pursuance of clause (1) of article 252 of the Constitution resolutions have been
passed by all the Houses of Legislatures of the States of Andhra Pradesh, Gujarat, Haryana,
Himachal Pradesh, Karnataka, Maharashtra, Orissa, Punjab, Tripura, Uttar Pradesh and West Bengal
that the matters aforesaid should be regulated in those States by Parliament by law;

Be it enacted by Parliament in the Twenty-seventh Year of the Republic of India as

follows:-
 Chapter I Preliminary
 Chapter II Definitions
 Chapter III Ceiling On Vacant Land
 Chapter IV Regulation Of Transfer And Use Of Urban Property
 Chapter V Miscellaneous
Contents
 Chapter I – Master Plan and Zonal Development Plan
 Short title, Application and Commencement

 Chapter II – Definitions
Definitions

 Chapter III – Ceiling on Vacant Land

 Persons not entitled to hold vacant land in excess of the ceiling Limit
 Ceiling Limit
 Transfer of vacant land
Contents
 Chapter III – Ceiling on Vacant Land
 Persons holding vacant land in excess of ceiling limit to file statement
 Filing of Statement in cases where vacant land held by a Person is
situated Within the Jurisdiction of Two or more competent authorities
 Preparation of draft statement as regards vacant land held in excess
of ceiling limit
 Final statement
 Acquisition of vacant land in excess of ceiling limit
 Payment of amount for vacant and acquired
 Constitution of Urban Land Tribunal and appeal to Urban Land
Tribunal
Contents
 Chapter III – Ceiling on Vacant Land
 Second Appeal to High Court
 Mode of Payment of amount
 Ceiling limit on future acquisition by inheritance request or by sale in,
execution of desires, etc.
 Certain persons to file statements when the Act is adopted
subsequently by any State
 Power to enter upon any vacant land
 Penalty for concealment, etc., of particulars of vacant land
 Chapter not to apply to certain vacant lands
 Power to exempt
Contents
 Chapter III – Ceiling on Vacant Land
 Excess vacant land not to be treated as excess in certain cases
 Retention of vacant land under certain circumstances.
 Disposal of vacant land acquired under the Act
 Special provisions regarding disposal of vacant lands in favour of
certain persons.

 Chapter IV – Regulation of Transfer and Use of Urban Property

 Definition
 Notice to be given before transfer of vacant lands.
 Prohibition on transfer of urban property
Contents
 Chapter IV – Regulation of Transfer and Use of Urban Property
 Regulation of registration of documents in certain uses
 Regulation of construction of buildings with dwelling units
 Demolition and stoppage of buildings in certain cases and appeal

 Chapter V – Miscellaneous
 Powers of competent authority
 Jurisdiction of competent authorities and Tribunals in special cases
 Appeal
 Revision by State Government
Contents
 Chapter V – Miscellaneous
 Power of State Government to issue orders and directions to the
competent authority
 Power to give directions to State Government
 Returns and reports
 Offences and punishments
 Offences by companies
 Indemnity
 Cognizance of offences
 Act to override other laws
 Court-fees
Contents
 Chapter V – Miscellaneous
 Power of State Government to issue orders and directions to the
competent authority
 Certain officers to be public servants
 Correction of clerical errors.
 Power to make rules
 Power to remove difficulties
Ceiling limit on vacant lands
It was applicable to urban agglomerations i.e. cities having a population of 2 lakhs or more.
The count was 64 when the Act was repealed in 1999
 Category ‘A’ is 500 sq. meters : Ceiling limit on vacant lands for urban
agglomerations of metropolitans of Delhi, Bombay, Calcutta and Madras.

 Category ‘B’ is 1,000 sq. meters : for urban agglomerations with a population
exceeding ten lakhs and above.

 Category ‘C’ is 1,500 sq. meters : for an agglomeration having population between
three to ten lakhs.

 Category ‘D’ is 2,000 sq. meters : for agglomerations having population between
two to three lakhs.

The primary purpose of the Act was to acquire the land so that it could be used to prevent
hording and bring about equitable distribution of the land in the urban economy.
Agriculture Land Ceiling
Agricultural Land Ceiling Act, restricts a person from owning agricultural land beyond a certain limit
and it further empowers government to acquire surplus land from such owners.
 The Maharashtra Agricultural Lands. (Ceiling on Holdings) Act, 1961
 Gujarat Agricultural Lands Celling Act, 1961
 Andhra Pradesh Land Reforms (Ceiling On Agricultural Holdings) Act, 1973
 The Assam Fixation of Ceiling On Land Holdings Act, 1956

The ceiling on land holdings was intended to –

i. Meet the land needs of the landless
ii. Reduce the glaring inequalities in land ownership so that it may lead to development of co-
operative rural economy, and
iii. Enlarge self-employment in owned land as distinguished from subletting and tenant cultivation.
Articles
Article 249 : The parliament has power to legislate over an issue in national interest, notwith-
standing that such issue is enumerated in the state list of Schedule 7.

Article 250 : It is the power of parliament to legislate with respect to any matter in the state list if a
proclamation of emergency is in operation.

Article 252 : The parliament has power to legislate over an issue which is referred by the state or
states by their consents. And also any other state can adopt the same legislation.
Abbreviations
C. Corporation N.A.C. Notified Area Committee
Cantt. Cantonment N.A. Notified Area
C.B. Cantonment Board N.M. Non-Municipal
C.T. Census Town N.P. Nagar Panchayat
E.O. Estate Officer O.G. Outgrowth
G.P. Gram Panchayat P. Panchayat
M. Municipality S.B. Sanitary Board
M.B. Municipal Board S.A. Special Area
M.C. Municipal Committee T.A. Town Area
M. Corp. Municipal Corporation T.B. Town Board
N. or N.C. Notified Committee T.C. Town Commitee
Abbreviations
T.P. Town Panchayat
T.S. Township
U.C. Union Committee
U.A. Urban Agglomeration
V.P Village Panchayat
Chapter I Preliminary
1. Short title, application and commencement :–(!) This Act may be called the Urban Land (Ceiling and Regulation)
Act, 1976.

(2) It applies in the first instance to the whole of the States of Andhra Pradesh, Gujarat, Haryana, Himachal
Pradesh, Karnataka, Maharashtra, Orissa, Punjab, Tripura, Uttar Pradesh and West Bengal and to all Union
territories and it shall also apply to such other State which adopts this Act by resolution passed in that behalf under
clause (1) of article 252 of the Constitution.

(3) It shall come into force in the States of Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka,
Maharashtra, Orissa, Punjab, Tripura, Uttar Pradesh and West Bengal and in the Urban territories at once and in any
other State which adopts this Act under clause (1) of the article 252 of the Constitution, on the date of such
adoption; and, save as otherwise provided in this Act, any reference .in this Act to the commencement of this Act
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.
Chapter II Definitions
2. Definitions :– In this Act, unless the context otherwise requires,-
(a) "appointed day" means,-
(i) In relation to any State to which this Act applies in the first instance, the date of introduction of the
Urban Land (Ceiling and Regulation) Bill, 1976 in Parliament; and
(ii) In relation to any State which adopts this Act under clause (1) of article 252 of the Constitution, the
date of such adoption;

(b) "building regulations" means the regulations contained in the master plan, or the law in force governing the
construction of buildings;

(c) "ceiling limit" means the ceiling limit specified in section 4;

Chapter II Definitions
(d) "competent authority" means any person or authority authorized by the State Government, by notification in
the Official Gazette, to perform the functions of the competent authority under this Act for such area as may be
specified in the notification and different persons or authorities may be authorized to perform different functions;

(e) "dwelling unit", in relation to a building or a portion of a building, means a unit of accommodation, such
building or portion, used solely for the purpose of residence;

(f) "family", in relation to a person, means the individual, the wife or husband, as the case may be, of such
individual and their unmarried minor children.

(g) "land appurtenant", in relation to any building means-

Chapter II Definitions
(i) in an area where there are building regulations, the minimum extent of land required under such
regulations to be kept as open space for the enjoyment of such building, which in no case shall exceed five hundred
square meters; or

(ii) in an area where there are no building regulations, an extent of five hundred square meters contiguous to the
land occupied by such building, and includes, in the case of any building constructed before the appointed day with
a dwelling unit therein, an addition extent not exceeding five hundred square meters of land, if any, continuous to
the minimum extent referred to in sub-clause (i) or the extent referred to in sub-clause (ii), as the case may be;

(h) "master plan", in relation to an area within an urban agglomeration or any part thereof, means the plan

(by whatever name called) prepared under any law for the time being in force or in pursuance of an order made by
the State Government for the development of such area or part thereof and providing for the stages by which such
development shall be carried out;
Chapter II Definitions
Comments
Merely because the land was entered in the revenue records and shown in Master Plan as agricultural, it would not
mean that it was being mainly used for agricultural purposes. It is unmaterial if a small portion of the land was
being used for the purpose of agriculture as well. State of U.P. us. Nand Kumar Agarwal.
Development & town planning are ongoing processes and they go on changing from time to time depending upon
the local needs. State of A.P. vs. N. Audikesava Reddy.

(i) "person" includes an individual, a family, a firm, a company, or an association or body of individuals, whether
incorporated or not;

(j) "prescribed" means prescribed by rules made under this Act;

Chapter II Definitions
(k) "State" includes a Union territory and "State Government", in relation to any land or building situated in a Union
territory or within the local limits of a cantonment declared as such under Section 3 of the Cantonments Act, 1924
(2 of 1924), means the Central Government ;

(L) "to hold" with its grammatical variations, in relation to any vacant land, means-
(i) To own such land; or
(ii) To possess such land as owner or as tenant or as mortgage or under an irrevocable power of attorney
or under a hire-purchase agreement or partly in one of the said capacities and partly in any other of
the said capacity or capacities.

(m) "Tribunal" means the Urban Land Tribunal constituted under section 12;
Chapter II Definitions
(n) "urban agglomeration",-
(A) in relation to any State or Union territory specified in column (1) of Schedule I, means,-

i. the urban agglomeration specified in the corresponding entry in column (2) thereof and includes'the
peripheral area specified in the corresponding entry in column (3) thereof; and

ii. any other area which the State Government may, with the previous approval of the Central Government,
having regard to its location, population (population being more than one lakh) and such other relevant
factors as the circumstances of the case may require, by notification in the Official Gazette, declare to be
an urban agglomeration and any agglomeration so declared shall be deemed to belong to category D in
that Schedule and the peripheral area therefor shall be one kilometer;
Chapter II Definitions
(n) "urban agglomeration",-
(B) in relation to any other State or Union territory, means any area which the State Government may, with the
previous approval of the Central Government, having regard to its location, population (population being more
than one lakh) and such other relevant factors as the circumstances of the case may require, by notification in
the Official Gazette, declare to be an urban agglomeration and any agglomeration so declared shall be deemed
to belong to category D in Schedule I and the peripheral area there shall be one kilometer;

(o) "urban land" mearis,-

i. any land situated within the limits of an urban agglomeration and referred to as such in the master
plan; or
ii. in a case where there is no master plan, or where the master plan does not refer to any land as urban land,
any land within the limits of an urban agglomeration and situated in any area included within the land local
limits of a municipality (by whatever name called), a notified area committee, a town area committee, a city
and town committee, a small town committee, a cantonment board or a panchayat,
Chapter II Definitions
but does not include any such land which is mainly used for the purpose of agriculture.

(p) "urbanisable land" means land, situated within an urban agglomeration, but not being urban land;

(q) "vacant land" means land, not being land mainly used for the purpose of agriculture, in an urban agglomeration,
but does not include-
i. Land on which construction of a building is not permissible under the building regulations in force in the
area in which such land is situated;
ii. In an area where there are building regulations, the land occupied by any building which has been cons-
tructed before, or is being constructed on, the appointed day with the approval of the appropriate
authority and the land appurtenant to such building; and
iii. In an area where there are no building regulations, the land occupied by any building which has been
constructed before, or is being constructed on, the appointed day and the land appurtenant to such
building: