What is ULC (Land Ceiling Act)
What is ULC (Land Ceiling Act)
The Urban Land Ceiling Act (ULC Act) was introduced in India in 1976 with the objective of regulating the ownership of vacant land within urban areas. The primary aim of the act was to achieve a more equitable distribution of land and
to discourage the accumulation of land by a select group of affluent individuals or entities. It established ceiling limits on vacant land holdings based on the size of the urban area and empowered the government to acquire land exceeding the ceiling limit
Despite its repeal, complexities have emerged due to exemptions granted under Section 20 of the ULC Act. These exemptions may have involved one-time premium payments for development purposes.
Section 20 of the ULC Act allowed exemptions from land acquisition under specific conditions, potentially involving one-time premium payments.
The calculation method for these premiums could have varied based on factors such as the location, size, and purpose of the land.
Legal disputes have arisen regarding these exemptions, leading to recent developments in the interpretation and application of the Act.
In March 2023, the Bombay High Court ruled in the case of “Salim Alimahomed Porbanderwalla vs. The State of Maharashtra,” providing clarification that the government cannot charge premiums for land retainable under the ULC Act, i.e., land not exceeding the ceiling limit.
This ruling addresses the disputes surrounding the exemptions and provides guidance on the application of the ULC Act in the current legal landscape.
ULC Act is no longer in effect, there might be effects of past exemptions. Consulting a lawyer can help you for understand your options
Regards,
9819992310 – Sushant Bhilare
9819997500 – Atul Borse
help@midcwala.com
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