Govt decides to dump ULC Act

Tuesday May 9 2006

HYDERABAD: Notwithstanding the reservations of the Revenue department, the Municipal Administration officials have prepared ground for repealing the Urban Land Ceiling (Regulation) Act by March 2007.

Even the World Bank has been insisting on scrapping of the Act if the State government wanted further loans.

According to informed sources, financial analysis has been completed and consultation with stakeholders should be over by June. After this, a draft Bill will be prepared.

By August, a Cabinet note will be circulated among Municipal Administration, Finance, Revenue and General Administration departments. The Bill will be introduced and passed in the winter session in December this year itself.

“If things go as per schedule, a notification for repealing the Act will be issued in January 2007 and it will be scrapped with effect from April next,” sources told to this website’s newspaper.

The anxiety of the Municipal Administration department over this matter is understandable as repealing the ULC Act is mandatory for availing of funds under the Centrally-sponsored Jawaharlal Nehru National Urban Renewal Mission (JNNURM) over a period of five years.

Though Andhra Pradesh was allotted a lion’s share in the Central funds under the scheme this year, one is not sure about the quantum of money that would be released from next year.

Terming the Municipal Administration department’s move as ‘not feasible,’ the Revenue officials said that repealing of the Act from April next would make the State Government lose about Rs 200 crore expected through regularisation of surplus lands.

The State Government expected around Rs 500 crore through regularisation but it could net around Rs 300 crore till March this year.

"Even if it is practicable, the State Government will lose the expected revenue as no applicant will apply for regularisation or exemption by paying amounts once it is known that the law would be repealed from a future date," a senior Revenue official told this website’s newspaper.

They also dismissed as untenable the suggestion of the MAUD officials that a sun set clause to cover the pending applications should be inserted in the proposed legislation to repeal the Act.