As the objectives of the ULCRA 1976 were not being met, there were suggestions that the Act be amended. Hence, it was decided to repeal it, in view of promoting housing under the National Housing and Habitat Policy, 1998. With the passing of the Urban Land (Ceiling and Regulation) Repeal Bill, 1999, the ULCRA was repealed in certain States.
The Urban Land (Ceiling & Regulation) Repeal Act, 1999 repealed the Urban Land (Ceiling and Regulation ) Act 1976. It applied in the first instance to the whole of the States of Haryana and Punjab and to all the Union territories. It shall apply to such other State which adopts this Act by resolution passed in that behalf under clause (2) of article 252 of the Constitution.
The repeal Act is in force in the States of Haryana, Punjab, Uttar Pradesh, Gujarat, Karnataka, Madhya Pradesh, Rajasthan, Odisha and all the Union Territories. The Urban Land (Ceiling & Regulation) Act, 1976 is still in force in the States of Andhra Pradesh Assam, Bihar, Maharashtra and West Bengal.
ULCRA,1976 has been repealed by the government to facilitate more availability of land for housing activity. Government has also suggested rationalisation of stamp duty and registration charges. The Repeal Act, however, shall not affect the vesting of the vacant land, which has already been taken possession by the State Government or any person duly authorised by the State Government in this regard under the provisions of ULCRA.
The repeal of ULCRA has been a significant step towards reform in the urban land market. The repeal, it is believed, has eliminated the large amount of and released huge chunks of land into the market. However the repeal of the Act has not been carried out in all states.