The Urban Land Ceiling Act of 1976, a law introduced in the 1970s that has remained in force in West Bengal despite being repealed by the Government of India in January 11, 1999, may finally be scrapped by the newly elected BJP government. According to reports from NDTV, West Bengal BJP President Samik Bhattacharya hinted at this potential change while addressing members of the Bengal National Chamber of Commerce and Industry (BNCCI) on Tuesday. The law targets the concentration of urban land by capping private holdings in designated agglomerations like Kolkata, Asansol, and Durgapur, and strictly limits vacant land ownership to 500 sqm or 7.5 cottahs. Unlike most states that repealed the Act, West Bengal maintains it to prevent land speculation and ensure equitable distribution, with land acquired under the 1976 Act vesting with state governments and only state governments able to dispose of such land as per provisions contained in Section 23.
Industry bodies are welcoming the potential move, with Sushil Mohta, chairperson of Merlin Group and president of Credai West Bengal, telling NDTV that the act has become a major hurdle in state development. Mohta explained that the law, instead of benefiting the public, has created barriers to development. He emphasized that land is no longer an asset to be held but rather a raw material for development, and that scrapping the act will enable large-scale development and attract FDI, institutional investment, and multi-national companies to Kolkata and other Bengal cities. He noted that during the Left Front regime and Trinamool regime, the act continued to remain in force although by 2000, almost all states in the country had scrapped it, but even after so many years, this has continued to be a major hurdle in the development of the state.
Bhattacharya outlined a new land acquisition model similar to successful practices in Punjab, Haryana, and Maharashtra. As reported by NDTV, he stated that if 1,000 acres of land are needed, acquire 1,100 acres and return the excess properly after development. This approach aims to address the fragmented land ownership that has resulted in chaotic, unplanned development and underutilization of land potential. The model would eliminate the current requirement for state acquisition of excess land under the 1976 Act, with states like Haryana, Punjab, Uttar Pradesh, Gujarat, Karnataka, Madhya Pradesh and Rajasthan immediately repealing it after the Centre passed the Urban Land (Ceiling & Regulation) Repeal Act, 1999, while Maharashtra repealed the act in November 2007.
According to NDTV reports, both the Left Front and Trinamool Congress, which cumulatively ruled the state for 50 years, refused to roll back the law that had become an anachronism. Bhattacharya addressed the historical context, stating that while the BJP has made landless owners, the cooperative movement was not implemented. He assured that no political party worker will approach anyone seeking money for future industrial projects, emphasizing that there will be no land hurdles under the new policy framework. Speaking to BNCCI members, Bhattacharya said: "We have made the landless, owners here. This is a social change; it was social engineering. But unfortunately, we failed to implement the next stage, which was to bring in a cooperative movement."
Speaking at the NSE, Sanjeev Sanyal, member of the Economic Advisory Council to the Prime Minister, highlighted the potential for high-growth urban hubs in Eastern India. As reported by NDTV, Sanyal noted that Kolkata has not been generating high growth for at least half a century and emphasized that the current political configuration in Eastern India, with a pro-growth regime at both state and central levels, presents an opportunity to re-energize urban hubs in West Bengal. Sanyal said: "A few high-growth urban hubs are critical to generating high growth. Eastern India's problem is that its heavyweight Kolkata has not been pumping for half a century at least." He added that after a very long time, there is actually a political dispensation in Bengal and the centre at the same, with the underlying economic philosophy of the regime being pro-growth, which is critical for getting eastern half of India to fire again.
