KOLKATA: Adi Godrej, the chairman of Godrej Group, wants the Urban Land Ceiling Act in Bengal repealed.
"This is not doing good to anybody. Not only us, I believe that a lot of other industries too have suffered due to the existing act," Godrej said, during an interaction with the journalists on Tuesday. He added that most of the state governments except for two or three have already done away with the land ceiling act.
It may be noted that as per the section 14(y) of Urban Land Ceiling Act, no industry can retain more than 24 acres of land in the rural areas for any unit. The ceiling of land in urban areas is seven acres. The Mamata Banerjee government had repealed the act to a certain extent by saying that if any company holds more than the limit stated in the act, it will have to inform the government which will vest the land in excess of it and will again lease out the same. However, this moderation of the act did not attract many takers because through this, the owner of the land will become a lessee.
The Jindal project — one of the biggest projects ever signed in Bengal — faced the urban ceiling act block as they occupied more than 4300 acres and a portion of the land had to be vested and is now being leased out to them again.
It was a long-standing demand of the industry to repeal the act. At different industry forums, the apex chambers and other major chambers in the state had raised their voices against the act. It has been learnt that more than 10,000 acres have not been disclosed following fears that it would be vested.