Activists oppose the Maharashtra government’s decision to sell land meant for affordable housing.

By Abhay Shah, Realty Quarter

The decision of the Maharashtra government to sell land intended for affordable housing by taking a premium did not go down well with customers. The government had issued a resolution on August 1 saying that under section 20(1) of the Urban Ceiling Act (ULCA), 1976, a builder can be granted land exemptions by charging a one-time premium of 10-15% of the market price.

In 2014, the Bombay High Court held in favour of the government of Maharashtra, stating that developers could not avoid this liability. The HC then enabled the state to retrieve from private landowners the surplus land for public housing for violations under the now-defunct statute.

The developers challenged the SC ruling but settled a deal with the state government. The state issued the GR (Government Resolution), enabling such land to be bought by paying a one-time premium.

The activists claimed that in 2014 the GR was in disregard of the court order. As part of the Nivara Abhiyan movement, the activists objected to the judgment and submitted a notice to the state government. They said the state had several hectares of land to be exempted under the Urban Ceiling Act, 1976, for affordable housing. In 2007, the statute was repealed.

The Joint Action Committee, comprising 40 major state trade unions, and Nivara Abhiyan had objected the terms of consent in the SC, stating that the state favoured land-holders and filed a court case.

“We have opposed the resolution of the government, issued a notice to the state and took legal recourse,” Vishwas Utgi of Nivara Abhiyan said. Its members said almost 2,808 hectares of land was declared as “excess” under the statute across the state. These plots, primarily in Pune, Mumbai and Thane, are prime land.

An official said the decision was based on the recommendations of a two-member committee of former justice BN Srikrishna and former IAS BN Makhija appointed in 2017.

Under the GR, the owners would no longer have to abandon the “excess” land for public housing under the now-defunct ULCA. On July 2nd, the Supreme Court accepted the terms of consent agreed between the state and the Maharashtra Chamber of Housing Industry.