Bengal: CREDAI Urges Land Ceiling Removal

Kolkata, Jun 2 (PTI) Real estate developers' body CREDAI on Tuesday urged the West Bengal government to scrap urban land ceiling provisions, rationalise land-related regulations and introduce township and slum redevelopment policies to boost investments.

At a pre-budget consultation organised by the finance department here, CREDAI West Bengal president Sushil Mohta presented policy suggestions aimed at unlocking land for housing, industrial and infrastructure projects while generating employment and increasing government revenues.

Among its key recommendations, the developers' body sought scrapping of the Urban Land (Ceiling and Regulation) Act provisions, arguing that easing ceiling limits would facilitate the development of large townships, housing projects, commercial and industrial hubs, and IT parks.

It said such a move would attract investments, create jobs and help bring down housing costs through lower compliance burdens.

CREDAI also called for correction and deletion of outdated 'Barga' (sharecropping) records in urban areas, contending that many such entries remain despite the absence of cultivation for years and often impede ownership transfer and comprehensive development of land parcels.

The body suggested that lands within urban agglomerations and areas covered by land use and development control plans be reclassified as non-agricultural land where applicable, enabling planned development and improving revenue collection.


Highlighting the absence of a comprehensive township and land pooling framework in the state, CREDAI urged the government to formulate policies on the lines of Maharashtra, Gujarat, Delhi and Madhya Pradesh to encourage integrated township projects and organised urban growth.

It said a structured policy would help consolidate fragmented landholdings, improve infrastructure planning and curb unregulated developments that lead to revenue leakages.

The developers' body also proposed a slum and housing redevelopment policy based on public-private partnership models, with incentives such as transferable development rights, higher floor area ratios and fast-track approvals to encourage rehabilitation projects.

According to CREDAI, such a policy could help address housing shortages, particularly for economically weaker sections and low-income groups, while improving living conditions in urban areas.

The industry body further sought changes in the implementation of Section 6(3) of the West Bengal Estates Acquisition Act, 1953, including rationalisation of valuation methodologies for land conversion and redevelopment projects.

It argued that the existing valuation framework often results in assessments that are significantly higher than prevailing market prices, increasing costs for developers and applicants.

The suggestions were presented ahead of the state budget, which is scheduled to be tabled on June 22. The budget session of the Assembly will commence on June 18.