West Bengal Poised to Scrap 50-Year-Old Urban Land Law; BJP Eyes Major Development Push

The decades-old Urban Land Ceiling Act of 1976, which continues to remain in force in West Bengal despite being repealed by the Centre more than two decades ago, may soon be scrapped following signals from the newly elected BJP government in the state. Industry groups and business leaders have welcomed indications from the ruling party that it is considering repealing the legislation, which many experts believe has long restricted urban development and industrial expansion in West Bengal. The move is being viewed as a potentially major shift in the state’s land and investment policy framework.

The Urban Land Ceiling Act was originally introduced to prevent concentration of urban land ownership and promote equitable distribution of land in major urban centers. The law imposed strict limits on vacant urban land holdings in designated areas such as Kolkata, Asansol, and Durgapur, with excess land acquired by the state government. While most Indian states repealed the law after the Centre enacted the Urban Land Ceiling Repeal Act in 1999, West Bengal continued to retain the legislation under successive Left Front and Trinamool Congress governments, citing concerns related to land speculation and social equity.

The possibility of repeal gained momentum after West Bengal BJP president Samik Bhattacharya addressed members of the Bengal National Chamber of Commerce and Industry and hinted at major reforms in land acquisition policies. Bhattacharya stated that the Urban Land Ceiling Act had become a significant hurdle to industrial development and suggested the government was actively considering removing it. He also spoke about introducing a new land policy modeled on practices followed in states such as Punjab, Haryana, and Maharashtra to make land acquisition for industrial projects more efficient and transparent.

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Industry bodies and real estate developers strongly supported the proposal, arguing that the law had become outdated and counterproductive for modern urban planning. Credai West Bengal president and Merlin Group chairman Sushil Mohta said the act had led to fragmented land holdings and unplanned development over the years. According to him, repealing the legislation would allow larger integrated projects, attract institutional and foreign investment, and encourage multinational companies to expand operations in Kolkata and other urban centers in the state. Developers believe the reform could significantly improve infrastructure growth and organized urban expansion.

Experts note that states which repealed the Urban Land Ceiling Act earlier witnessed greater flexibility in land use and stronger real estate and industrial growth. Haryana, Gujarat, Karnataka, Rajasthan, and Maharashtra are among the states that moved away from the legislation following the center's repeal decision. Supporters of repeal in West Bengal argue that modern economic conditions require land to be treated as a productive development resource rather than a static asset. They believe the removal of restrictive land ceilings could unlock major economic opportunities for eastern India’s urban hubs.

The debate over the act has also revived broader discussions about West Bengal’s industrial decline and economic transformation over the past several decades. Economist and Economic Advisory Council member Sanjeev Sanyal recently remarked that Kolkata’s industrial slowdown had severely affected eastern India’s economic momentum. He suggested that changing political conditions and a pro-growth policy orientation could create new opportunities for urban revival in the region. If implemented, the repeal of the Urban Land Ceiling Act could become one of the BJP government’s most significant policy changes aimed at re-energizing investment, infrastructure, and industrial development across West Bengal.

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