Urban Land Ceiling Act to be repealed

The Maharashtra government is set to place before the Cabinet a proposal to repeal the Urban Land Ceiling Act.

This is part of its commitments to the Union government which also include rationalising property tax rates, stamp duty rates and introducing double entry book keeping in its books of accounts.

A few months back, the state's Cabinet of ministers had cleared a diluted proposal seeking to repeal the Act in the state, while keeping Mumbai, Thane and Pune cities out of the ambit of the proposal.

The task force set up for developing Mumbai city into an international class metropolis has, however, recommended that the Act be repealed in Mumbai city as well.

According to a senior government official: "The state government has committed in writing (read memorandum of understanding) to the Union government around five months back that it would repeal the Act (as was specifically sought by the Centre, besides effecting a rationalisation in the stamp duty rates that would be brought down to a general rate of five per cent). The MoU was inked even as the state sought and was disbursed Rs 35 crore from the City Challenge Fund (CCF) of the Union government. The remaining part of the fund would become available only after the commitments made out on paper are implemented."

Currently only 0.18 per cent of the land in Mumbai declared as surplus (under the Urban Land Ceiling Act) has been acquired by the state government.

The task force made a representation before chief minister Sushilkumar Shinde, recommending repeal of the ULC Act in its entirety. It was promised that the recommendation would soon be placed before the state cabinet of ministers.

The state government is also committed to rationalising property tax rates, as per the MoU.

"Currently property tax rates in different parts of the city are based on the historical (read outdated and archaic) values of the property with little or no weightage given to the market value of the realty. The state is committed to rationalising these tax rates to reflect market rates of the property," the official said.

The state government will also introduce double entry book keeping in its accountancy practice in keeping with conventional terms of business.

Opening the gates

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• Repeal part of state's commitments to the Central government.
• Mumbai, Thane and Pune cities kept out of the ambit of the proposal.
• Task force set up for developing Mumbai city into an international class metropolis recommended the repeal of the Act in Mumbai city too.
• Property tax and stamp duty rates to be rationalised.
• State government to follow double-entry book-keeping in its books of accounts.