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The primary object of the Act was to prevent the concentration of urban land in the hands of a few persons and speculation and profiteering therein, and to bring about an equitable distribution of land in urban agglomerations to sub-serve the common good. Section 1 refers to the short title, application and commencement of the Act. It applies in the first instance to the whole of the States of Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Maharashtra, Orissa, Punjab, Tripura, Uttar Pradesh and West Bengal and to all the Union Territories and it shall also apply to such other State which adopts this Act. Thus, in these States including Andhra Pradesh from which many of these appeals arise, the Act came into force on 17th February, 1976. Section 2 deals with definitions. Section 2(c) defines 'ceiling limit' as the ceiling limit specified in Section 4. Section 2 (n) defines 'urban agglomeration' as under :

"2(n) 'urban agglomeration',-

(A) in relation to any State or Union territory specified in Col.(1) of Schedule I, means,-

(i) the urban agglomeration specified in the corresponding entry in Col.(2) thereof and includes the peripheral area specified in the corresponding entry in Col.(3) thereof; and

(ii) any other area which the State Government may, with the previous approval of the Central Government, having regard to its location, population (population being more than one lakh) and such other relevant factors as the circumstances of the case may require, by notification in the official Gazette declared to be an urban agglomeration and any agglomeration so declared shall be deemed to belong to category D in that Schedule and the peripheral area therefor shall be one kilometer;

(B) in relation to any other State or Union territory, means, any area which the State Government may, with the previous approval of the Central Government, having regard to its location, population (population being more than one lakh) and such other relevant factors as the circumstances of the case may require, by notification in the official Gazette, declare to be an urban agglomeration and any agglomeration so declared shall be deemed to belong to category D in Schedule I and peripheral area therefor shall be one kilometer."

"urban land" as defined under Section 2(o) means, -

"(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.