Real estate
The State of Maharashtra has repealed its Urban Land (Ceiling and Regulation) Act, 1976, which limited landholdings by a single person to 0.5 hectares in Mumbai and one to two hectares in other urban areas.
The legislation, which curbed construction of homes and offices, contributed to a surge in real estate prices. Its repeal could open up more than 25,000 hectares in Mumbai and thousands more in cities such as Pune, Nasik and Nagpur, where the demand for residential and office space is high.
The repeal should also bring transparency and efficiency to the land acquisition process, further encouraging foreign investment in real estate and helping to stabilize property prices in the state.
The wrap is compiled by Nishith Desai Associates, a Mumbai-based law firm that provides legal and tax counselling. The authors can be contacted at nishith@nishithdesai.com. The wrap is designed to provide general information on key legislative and regulatory developments. Readers should not act on the basis of this information without seeking professional legal advice.
