Week 9 PDF

Housing Legislation
Week-9
Urban Land Ceiling Act
• The Urban Land (Ceiling & Regulation) Act, 1976 (ULCRA) imposes
a ceiling on vacant land in urban agglomerations and provides for
the acquisition of such land in excess of a ceiling limit.
• The Act came into force in 1976 in 64 urban agglomerations.
• Initially States of Andhra Pradesh, Haryana, Gujarat, Himachal

Pradesh, Karnataka, Maharashtra, Odisha, Punjab, Tripura, Uttar
Pradesh and West Bengal adopted the Act.
• Thereafter, it was adopted by six more States namely Assam,

Bihar, Madhya Pradesh, Manipur, Meghalaya and Rajasthan.
The Act provided for
• imposition of a ceiling on both ownership and possession of vacant

land in urban agglomerations;
• acquisition of the excess vacant land by the state government,
• with powers to dispose the vacant land for common good;
• payment of an amount for the acquisition of the excess land;
• and granting exceptions in respect of certain specific categories of

vacant land
• In ‘A’ class cities such as Delhi, Mumbai and Kolkata, the ceiling
was 500 sq. metres (0.05 hectares or 5,382 sq. feet) per owner.
This figure was calculated on the basis that a family of four should
be entitled to 20,000 sq. feet. Land owned above this limit can be
used only if houses for the poor are built on a part of it.
• In category B, C and D cities, the ceiling was 1,000 sq. metres,
1,500 sq. metres and 2,000 sq. metres respectively.
• Excess vacant land is either to be surrendered to the competent
authority appointed under the Act for a small compensation, or to
be developed by its holder only for specified purposes.
ULCRA Objectives
• To prevent the concentration of urban property in the hands of a

few persons and speculation and profiteering therein;
• To bring about socialization of urban land in urban agglomerations

to ensure equitable distribution (make urban land available for
housing of the middle- and low-income groups)
• To discourage construction of luxury housing leading to

conspicuous consumption of scarce building material;
• To secure orderly urbanization

Urban Land (Ceiling & Regulation )
Repeal Act, 1999
• Since the objectives of the ULCRA were not being met, there
were suggestions from the National Commission on
Urbanisation (1988) and others that the Act should be
amended.
• The Cabinet decided to repeal it, in view of promoting housing
under the National Housing and Habitat Policy, 1998.
• During the process of request, the State Urban Development
Department was required to issue directions & guidelines with
regard to usage of excess vacant land that could be released
after repeal.
Land Acquisition Act, 1894
Acquisition Process
Acquisition Process
Compensation & Valuation:
The current Act requires market value to be paid for the land and
any other property on it as well as expenses for compelling the
person change place of residence or business.
The 2007 Bill requires payment highest of three items:
1. The minimum value specified for stamp duty
2. The average of the top 50% of the land sale in the vicinity
3. The average of the top 50% of the land purchased for the project
from willing sellers.
For computing recent land sale, the intended land use is to be used.
Thus, agricultural land being acquired for an industrial project will be
paid the price of industrial land.
Land Acquisition, Rehabilitation &
Resettlement Act, 2013
The principle objectives:

• Just & fair compensation
• Resettlement and Rehabilitation of those affected
• Transparent process of land acquisitions
• Informed Consultation & Participative approach
• Least Disturbance
• SIA (Social Impact Assessment) has to be undertaken in case of
every land acquisition
• Consent of atleast
- 80% of land owners is obtained when land is acquired for
private projects
- 70% of land owners is obtained when land is acquired for public-
private partnership projects
- No consent required for Infrastructure work of Govt.
- Consent of affected persons in addition to land owners.
• For compensation, market value doubled for rural area and not
for urban area.
• Acquired land if not used within 5 years, it will be returned to
land bank or land owners.
• If the acquired land is unused and transferred, 20% of the profits
shall be shared with the original land owners
• R&R necessary for all affected families.
STATE LEVEL ACTS & REGULATIONS
Rent Control Act, 1947
• The practice of imposing a legal maximum (rent ceiling) upon the
rent in a particular housing market, below the equilibrium rent is
called rent control.
• If this maximum is above that market’s equilibrium rent, then the
control is null and void.
• But if the rent is set at a level below the equilibrium rent, it will
necessarily lead to a situation of excess demand or shortage.
• In a free market, prices (rents) would rise automatically filling the
gap between the demand and the supply.
• But rent controls prevent prices from rising up to the equilibrium
level and thus, alternative rationing mechanisms such as black and
uncontrolled markets evolve.
A raging debate has been going on over the years over the pros and
cons of rent control.
While the proponents of rent control laws suggest that they prevent
landlords from charging exorbitant rents and evicting tenants at will,
the opponents suggest that rent control laws, by distorting

incentives, lead to deterioration of existing housing stock, increased
pullout of apartments from the rental housing market and thus
reduced overall supply.
The Rent Control Act has been advantageous to the tenants in protecting
the tenant rights in many ways.
Fixation of 'fair' or 'standard' rent
Providing protection to the tenants from indiscriminate eviction
Chalking out the duties of the landlord with respect to the maintenance
of the rented properties
Formalizing a Leave and License Agreement
Stating the right of legal heirs of the tenants

The Rent Control Act in India came out in 1947 and post these
respective states have taken amendments/ modifications to the Act
primarily states like Maharashtra, Karnataka and New Delhi and the
others are more or less following the similar system as these states.
• Delhi Rent Control Act
• Karnataka Rent Control Act 2001
• Maharashtra Rent Control Act, 1999

Karnataka Rent Control Act 2001
Landlord’s Perspective
The fixation of rent as a percentage of the cost of construction is a major
disincentive for those wanting to invest in rental housing as it gives a very low rate
of return as compared to other assets.
Calculation of Rent
Standard rent calculated on the basis of 10 per cent of the aggregate of the actual
cost of construction of the premises and the price of the land on the date of
commencement of the construction. A tenant shall also be liable to pay the
landlord the related charges besides the standard rent.
Permission to construct additional structures
The landlord may propose to make any improvement, in or construct any
additional structure on, any building, which has been let to a tenant.
Rules for eviction
Tenant’s perspective
Rights of Tenants
Inheritance of Tenancy
Duties of tenants
Rent Control Laws in India were introduced as a welfare mechanism to allow the
acquisition of houses and protect tenants’ rights. Though the Karnataka Rent
Control Act 2011 has received a much needed overhaul but to prevent frivolous
litigation, a judicial procedure must be established.
DEVELOPMENT CONTROL REGULATION
DEVELOPMENT CONTROL REGULATION
• Development controls have been defined as the mechanism
through which entire process of urban development is regulated
to achieve the objective of promoting overall benefit of the
society and creating a distinct image of the city.
• It includes guiding the development and use of land, curbing
misuse of land and promoting rational and orderly development
of built environment.
• Development controls are required to meet situations and
contexts which are generally static. In this context they tend to
become to rigid and complex.
• Because of the impact and implications of the development
controls on the growth and development, character, fabric and
personality of a city, they need to be framed with great care and
abundant caution.
• Considering the larger public interest and general welfare of the
community, formulation of the development control should
satisfy the basic requirements of the health, safety convenience,
economy and amenity.
Learning Objective:
• To provide an understanding of the concept of Zoning
regulation and development of city with appropriate design
standards
• To provide a step by step tool for facilitating adoption of
Development Control Regulation

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Housing Legislation

• The Act came into force in 1976 in 64 urban agglomerations.

• Initially States of Andhra Pradesh, Haryana, Gujarat, Himachal

• Thereafter, it was adopted by six more States namely Assam,

• imposition of a ceiling on both ownership and possession of vacant

• acquisition of the excess vacant land by the state government,

• with powers to dispose the vacant land for common good;

• payment of an amount for the acquisition of the excess land;

• and granting exceptions in respect of certain specific categories of

• To prevent the concentration of urban property in the hands of a

• To bring about socialization of urban land in urban agglomerations

• To discourage construction of luxury housing leading to

• To secure orderly urbanization

The principle objectives:

the opponents suggest that rent control laws, by distorting

Fixation of 'fair' or 'standard' rent

Providing protection to the tenants from indiscriminate eviction

Formalizing a Leave and License Agreement

Stating the right of legal heirs of the tenants

• Karnataka Rent Control Act 2001

• Maharashtra Rent Control Act, 1999

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