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Ceiling limit on vacant land is fixed at 500 sq. metres for the urban agglomerations of the metropolitan areas of Delhi, Bombay, Calcutta and Madras having a population exceeding ten lakhs falling under category 'A', at 1,000 sq. metres for urban agglomerations with a population of ten lakhs and above, excluding the four metropolitan areas, falling under category 'B', at 1,500 sq. metres for urban agglomerations with a population between three lakhs and ten lakhs falling under category 'C' and at 2,000 sq. metres for urban agglo merations with a population between two lakhs and three lakhs falling under category 'C': vide s.4 read with Schedule I of the Act. The said Schedule does not mention the urban agglomerations having a population of one lakh and above but if a particular State which passed a resolution under Art. 252 (1) (first part) or if a State which subsequently adopts the Act by passing a resolution under Art. 252 (1) (second part) wants to extend the Act to such areas, it could do so by a Notification under s. 2 (n) (A)

(ii) allotment for the purpose of construction of houses for the employees of an industry specified in item (i) above and

(iii) disposal to subserve the common good which would include allotment of vacant land for governmental purpose or local authorities or for institutions etc. In other words, it is after the disposal of such excess vacant land for items (i) and (ii) above that the balance thereof can be disposed of "to subserve the common good" which means private purposes have precedence over public purposes, and this is clear from the fact that disposal under sub-s. (4) is "subject to" the prior disposal under sub-s. (1) for purposes of industry. In fact, disposal of excess vacant land for subserving the common good is last in the priorities Sub. s (5) undoubtedly has an overriding effect over sub-ss. (1) to (4) but that provision deals not with disposal or distribution of excess vacant land but with retention and reservation of such vacant land by State Government for the benefit of the public like social housing and provision for basic arenities etc. Having regard to the aforesaid peculiar features that energe from a consideration of the provisions contained in s.23, counsel for the petitioners contended that the acquisition of excess vacant land in urban agglomerations cannot be said for a public purpose at all and hence the ehactment which is primarily for compulsory acquisition of private property runs counter to a valid exercise of the State's power of 'eminent domain'. He pointed out that no scheme for any industrial development for any urban agglomeration has been indicated in the Act, nor any such scheme seems to have been prepared by any State Government or even by the Union Government before undertaking the legislative measure in hand and no definite public purpose of industrialisation with any plan or blue print with set specifications or standards seems to have been within the contemplation of the sponsoring States or the Union Government; at any rate no material in that behalf has been placed on record before the Court and, therefore, according to counsel, compulsory acquisition of all excess vacant land in all urban agglomerations throughout the Union Territories and the 17 States of the country for achieving a bald, indefinite and unspecified objective of an 'industry' would not be a valid exercise of the power of eminent domain. Alternatively, counsel contended that even if it were assumed for the purpose of argument that a bald, indefinite and unspecified objective of 'industry' is a public purpose, when that concept of 'industry' is widely defined so as to include any business, trade or profession in private sector, the purpose sheds its character as a real public purpose, which position is further componded by the priorities laid down in the section and the acquisition becomes acquisition for private purpose amounting to an invalid exercise of the States's power of eminent domain. Counsel, therefore, urged that s. 23 flagrantly violates Art. 31 (2) and is, therefore, ultra vires and unconstitutional and since it is a pivotal provision having an impact on the entire Ceiling scheme and at the same a non-severable provision from the rest of the provisions contained in that chapter, the whole of Chapter III must fall with it.

The legislative competence of Parliament to enact the Urban Land (Ceiling and Regulation) Act, 1976 having been upheld by this Court in Union of India etc- v. Valluri Basavaiah Chaudhary,(1) there remains the question of its constitutional validity.

Schedule I to the Act lists out all States, irrespective of whether or not they have passed a resolution under Art. 252(1) authorizing the Parliament to enact a law imposing a ceiling on urban immovable property, and the urban agglomerations in them having a population of two lace or more. The ceiling limit of vacant land of metropolitan areas of Delhi, Bombay, Calcutta and Madras having a population exceeding ten lacs falling under category 'A' is 500 sq. metres, urban agglomerations with a population of ten lacs and above, excluding the four metropolitan areas falling under category 'B' is 1000 sq. meters agglomerations with a population between three lacs and ten lacs falling under category 'C' is 1500 sq. metres and urban agglomerations with a population between two lacs and three lacs falling under category 'D' is 2000 sq. metres. The schedule does not mention the urban agglomerations having a population of one lac and above; but if a particular state which passed a resolution under Art. 252(1), or if a State which subsequently adopts the Act, wants to extend the Act to such areas, it could do so by a notification under s.2(n) (B) or s.2 (n) (A) (ii), as the case may be, after obtaining the previous approval of the Central Government.

Although the impugned Act is enacted with a laudable object, to subserve the common good, in furtherance of the Directive Principles of state policy under Art, 39 (b) and

(c), it appears from the terms of sub-ss.(1), (2) and (3) of s. 23 that it would be permissible to acquire vacant land in urban agglomerations and divert it for private purpose. The whole emphasis is on industrialisaton. The opening words in s. 33 (4) "subject to the provisions of sub-sections (1), (2) and (3)" make the provisions of s. 23 (4) subservient to s. 23 (1) which enables the Government to allot vacant land in an urban agglomeration to any person for any purpose relating to, or in connection with, any industry or for providing residential accommodation of such type as may be approved by the state Government to the employees of any industry. It further makes it lawful for the allottee that is, the industrialist, to hold such land in excess of the ceiling limit. The definition of the word 'industry' in Explanation (b) to s. 23 (1) is wide enough to include any business, profession, trade, undertaking or manufacture, and necessarily includes the private sector. The proviso to s. 23 (2) fortifies that construction of mine. It is incomprehensible that vacant lands in all urban agglomerations throughout the country should be acquired for the purpose of setting up industries. More so, that it should permissible to allow setting up of industries for private gain. There is no material placed before us showing that the Government has prepared any blue print for industrialisation of all the urban agglomerations in India in the public sector.