CREDAI Urges Bengal Government to Repeal Urban Land Ceiling Act
The Confederation of Real Estate Developers' Associations of India (CREDAI) has urged the Bengal government to repeal the Urban Land (Ceiling and Regulation) Act (ULCA), citing it as a serious issue that impedes real estate construction.
CREDAI's Stance on ULCA
CREDAI, the apex body of real estate developers, has strongly criticized the Mamata Banerjee government for implementing ULCA in Bengal. The organization noted that Bengal is one of the few states in India where ULCA is still in force.
Impact of ULCA on Real Estate
According to property developers, ULCA severely hampers the construction of real estate projects. CREDAI's Mr. Lalit Kumar Jain expressed surprise that Bengal continues to enforce the urban land ceiling act, despite the rest of the country having abolished it.
Mr. Jain pointed out that states without urban land ceiling acts have experienced stability in real estate prices and increased supply. He stressed that land being a state subject, it is imperative for the state government to introduce reforms and repeal ULCA to foster real estate development.
Comments at the Urban Infrastructure Conclave
Mr. Jain was speaking at a three-day conclave on urban infrastructure development in Bengal. His remarks followed a statement by Partha Chatterjee, the state Industry Minister, who dismissed land issues as 'no issue.' Mr. Chatterjee stated during the conference that there was no land issue in Kolkata.
Demand for Higher Floor Area Ratio
CREDAI's all-India President, Mr. Lalit Kumar Jain, suggested to the media that the state should increase the floor area ratio (FAR). He explained that raising FAR would enable real estate builders to construct taller buildings, which is necessary to meet higher demand for space. He proposed that the FAR should be revised to 5, as the current ratio ranges from 1.5 to 3, making it unfeasible to construct tall residential buildings.
Proposals for Tax Policy Reforms
At the same event, Mr. Jain called for the rationalization of tax policies in the state. He proposed lowering taxes to stimulate real estate development.
Government's Response
Responding to the concerns raised by the real estate developers, Bengal Chief Minister Mamata Banerjee said the government would review their problems. She announced the formation of a task force to investigate their issues and grievances, with the task force responsible for reporting on urban infrastructure.