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The ULC Act received assent of the President on 17th February, 1976. The primary object and the purpose of the ULC Act is to provide for the imposition of a ceiling on vacant land in urban agglomerations, for the acquisition of such land in excess of the ceiling limit, to regulate such land and for matters connected therewith, with a view to preventing the concentration of urban land in the hands of a few persons and speculation and profiteering therein, and with a view to bringing about an equitable distribution of land in urban agglomerations to subserve the common good, in furtherance of the directive principles of Article 39(b) and

(i) any land situated within the limits of an urban agglomeration and referred to as such in the master plan; or

(ii) in a case where there is no master plan, or where the master plan does not refer to any land as urban land, any land within the limits of an urban agglomeration and situated in any area included within the local limits of a municipality (by whatever name called), a notified area committee, a town area committee, a city and town committee, a small town committee, a cantonment board or a panchayat, but does not include any such land which is mainly used for the purpose of agriculture. Explanation.- For the purpose of this clause and Cl.(q),-

"2.(h) "master plan", in relation to an area within an urban agglomeration or any part thereof, means the plan (by whatever name called) prepared under any law for the time being in force or in pursuance of an order made by the State Government for the development of such area or part thereof and providing for the stages by which such development shall be carried out."

Section 4 fixes different ceiling limits with respect to vacant land falling in categories A, B, C and D. By Section 4(1)(c), the ceiling limit placed on such land situated in an urban agglomeration falling within category C specified in Schedule I is fixed at 1500 square meters. Section 5 prohibits certain transfers of vacant land. Section 5(3), inter alia, provides that transfer made in contravention of the said provision shall be deemed to be null and void. Section 6 provides for the filing of statements before the competent authority by persons holding vacant land in excess of ceiling limit. Section 8 provides for preparation of draft statement as regards vacant land held in excess of ceiling limit. The particulars of the statement shall contain details as enumerated in sub-section (2). Sub-section (3) provides for service of the draft statement on the person concerned and also for calling from him objections to the draft statement. Sub-section (4) provides that the competent authority shall duly consider any objection received from such person and it shall, after giving such person a reasonable opportunity of being heard, pass such orders as it deems fit. After disposal of the objections, if any, received under sub-section (4) of Section 8, final statement is prepared under Section 9 of the Act. Section 10 provides for acquisition of vacant land in excess of the ceiling limit whereas Section 11 provides for the payment for such acquired land. Section 15 provides that where any person acquires by inheritance etc. any vacant land which, together with the vacant land, if any, already held by him, exceeds in aggregate the ceiling limit, such person will have to file a statement before the competent authority and the provisions of Sections 6 to 14 shall, so far as may be, apply to the statement filed under this section and to the vacant land held by such person in excess of the ceiling limit. Section 20 empowers the Statement Government to exempt any vacant land in public interest and also in cases where such exemption is considered to be necessary to avoid undue hardship to any person.

Schedule 1-A sets out terms and conditions subject to which a person may be permitted to continue to hold excess vacant land under sub-section (1) of Section 21. The said conditions also make it clear that the construction of dwelling units has to be consistent with the master plan. Condition No.1 of Schedule 1-A reads thus :

1. The construction of dwelling units for the accommodation of the weaker sections of the society in the vacant land, in relation to which the declaration of the competent authority is sought or made under sub-section (1) of Section 21 shall be consistent with the Master Plan, if any, for the urban agglomeration or that part of the urban agglomeration wherein such land is situated or, if there is no Master Plan for the urban agglomeration or such part thereof such directions as the State Government may give in relation to land used in the urban agglomeration, or such part have regard to the planned development of the urban agglomeration or any part thereof."