Important Land Laws of West Bengal

In the last 15 years Real Estate development activities have gone to the suburbs of the city of Kolkata and it is necessary to understand the legal implications, requirements and limits for such developments. Click for more:

For a better understanding of the above, it is necessary to note a few salient points which are :

1) The West Bengal Estate Acquisition Act, 1953(the “EA Act”) has become largely redundant due to the Land Reforms Act 1955(the “LR Act”). Still it is relevant as though it was enacted to abolish the Zamindaris, but large tracts of land held by individuals for the Purpose of factories etc. were exempted from vesting under this Act only till such time these lands would be continued to be used for the purpose for which it was exempted from vesting. These factory areas may now be developed or used for any purpose other than the factory only with the permission of the West Bengal Government. Otherwise, when a factory ceases to operate the Government becomes entitled to vest the land comprising in such factories under the EA Act.

2) Under the LR Act no person can hold land exceeding 17 Acres in irrigated areas and 24 Acres in non-irrigated areas areas (the “LR Ceiling”). It is not applicable to areas within the 100 Wards of the Kolkata Municipal Corporation (the “KMC”). Areas added since 1981 to the KMC, which are within its Ward Nos. 101 to 140, and the rest of the state is within its purview.

2.1) The West Bengal Government (the “Government”) has authority to allow holdings larger than the LR Ceiling only in certain cases like tea gardens, factories etc. The Government can also grant permission to hold larger areas for ‘townships’ but only if such land is in a ‘planning area’ within the meaning of the Town and Country Planning Act, 1979 (the “TCP Act”). Apart from this, the Government cannot allow any person to hold more than the LR Ceiling.

2.2) There is another provision of LR Act providing that for change of user of the land e.g., from agricultural to homestead, permission of the Collector is required.

3) The Urban Land Ceiling (the “ULC Act”) is applicable to Kolkata, Siliguri, Asansol and certain townships near Kolkata. The areas within a certain radius of these townships are also included. The holding limit (the “ULC Ceiling”) in Kolkata is 500 Square Meters and a little more in Asansol and Siliguri.

4) Under the Town and Country Planning Act, 1979 (the “TCP Act”) areas are notified as a planning area and plans are made for development of such areas. A development authority is formed to control the development and ‘land use’ within the planning area. A township of more than the LR Ceiling can be developed only in a planning area but not outside.

4.1) The development authority in respect of each planning area is empowered to sanction the plans for construction within it and can also delegate the power to any other authority.

4.2) With respect to the KMC Area, the development authority is the KMDA who has delegated this sanctioning power to KMC. Such power is generally delegated to the corporation and municipalities falling within any planning area.

5) In the context of the aforesaid the position regarding various types of developments appear to be as follows :

5.1) Construction of housing complexes of agricultural land : house with large compounds can be constructed on agricultural land as like houses on homestead land with the permission of the relevant authorities.

5.2) Even in case of agricultural comprised within the KMC area no change of land use is required when KMC sanctions the plans. With the sanction of the plan, the change of user of land is automatic.

6) Development of Complexes :

6.1) Large tracts of land within any planning area and also covered by the ULC Act other than “homestead’ land, of more than the ULC Ceiling but less than the LR Ceiling may be acquired as there is not limit of holding of non-homestead land under the ULC Act but LR Ceiling covers land of all nature, including water bodies. If the development authority of the planning area grants permission to construct on such land, no ULC clearance is then required.

6.2) Some methodology can also be applied for lands outside a planning area but within the ULC area. A permission to construct if granted by the concerned Municipality of Zilla Parishad under whose jurisdiction such land is situated, the permission to hold land in excess of ULC limit can be deemed to have been granted. Some of these authorities however, before granting permission to construct, ask for conversion of usage of the land to homestead.

6.3) To construct a complex outside a planning area having an area more than the LR ceiling limit one of the following methodologies can be adopted :

a) Purchase adjacent lands in the names of more than one individual or company in such a manner so that the holding of none of them is ever more than the LR Ceiling. Construct is respective portions of these individuals or companies in such a fashion so that the internal roads are connected. Sell the Flats and plots in such a manner so that the ownership of the inside roads and drains etc. remain with the individuals or companies. After completion of the project, gift these internal roads, drains etc to the concerned municipality or Zilla Parishad or Panchayet for future maintenance.

b) Purchase a large tract, but within the LR ceiling limit, adjacent to a main road in the name of one person. After developing by making internal roads etc sell its portions as plots or buildings in such a manner so that the ownership of the inside roads and drains etc. are not sold. As these portions are sold purchase adjacent inner lands in such a manner so that the total holding of the person never exceeds the LR Ceiling. Gift the inner roads, drainages etc. for future maintenance in phases and form the side of the main road, which should first be developed.

7) Development of Townships :

7.1) Townships can only be developed within a planning area. Permission has to be first obtained from the Government for holding land of more than the LR Ceiling. After such permission is obtained land can be acquired and developed into a township.

7.2) With the present state of affairs in this State, without the umbrage of the Government embarking on such projects in unadvisable. But if umbrage of the Government can be had, lands can first be acquired by the Government with the funds provided by the organization desiring to make the township. After acquisition the Government can grant a long term lease. Plots, buildings, flats etc can then be sub-leased. The internal roads and common facilities can either be maintained by the organization itself or gifted to the concerned Zilla Parishad / Municipality for maintenance.