Discuss how land-use planning in Indian metropolitan cities can balance revenue needs against citizens' right to open spaces and shelter.
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The Twelfth Schedule, added by the 74th Amendment, makes urban planning and regulation of land-use municipal functions [1]. Cash-strapped metros now treat land as a revenue source, which puts parks and affordable shelter at risk. Planning can balance the two if land is held as a public trust and not only as an asset.
Revenue logic: why cities monetise land
- Land as a resource: Maharashtra's 2004 resolution funds Dharavi's rehabilitation by letting developers sell incentive FSI (extra floor area) on the open market [2].
- Shelter without budget outlay: eligible residents get free 350 sq ft flats [3]. Private capital pays for what the state cannot.
- Premiums on FSI and Transferable Development Rights (TDR) add to municipal income that is otherwise weak.
Costs to open spaces and shelter
- Commons diverted: the Supreme Court refused to let Worli land, leased in 1927 to house the poor, go to a mill company. It called commercial exploitation of such land an "affront" to the law's purpose [5].
- Shelter gap persists: the urban housing shortage is about 18.78 million homes, 95% of it among low-income households. Around 6.2 million people live in Mumbai's slums [4].
- Crowding harms health: WHO recommends policies to reduce household crowding [6].
- Rights dimension: Olga Tellis (1985) read the right to livelihood into Article 21. Evictions must follow a fair procedure [7].
Balancing mechanisms
- Public trust test: M.C. Mehta v. Kamal Nath holds that the State keeps natural resources in trust for the public [8]. Apply the same test before changing a plot's reservation from park or playground.
- Transparency: publish proposed zoning and reservation changes and invite ward-level objections, as the spirit of the 74th Amendment intends [1].
- Phased obligations: issue occupancy certificates for saleable towers only after promised parks, schools and rehab units are delivered.
- Ring-fenced value capture: earmark FSI and TDR premiums for affordable housing and for acquiring open space.
- In-situ upgrading where it is cheaper and keeps livelihoods in place [4].
- Outcome metrics: track living space and open space per person, not the number of towers [6].
Land can pay for the city without consuming its commons. With transparent rules, ring-fenced revenue and the public trust principle, metros can raise revenue while protecting the Article 21 guarantee of shelter and SDG 11's goal of inclusive, green cities.
Sources
- 1Ministry of Housing and Urban Affairs: The Constitution (Seventy-Fourth Amendment) Act, 1992: Twelfth Schedule functions (urban planning, land-use regulation)
- 2Dharavi Redevelopment Project, Govt. of Maharashtra: About the Project (GR of 4 Feb 2004): land as a resource, incentive FSI for open-market sale
- 3Dharavi Redevelopment Project: Entitlement: free 350 sq ft flats for eligible residents
- 4ORF: India's Enduring Urban Housing Shortage: The Case for Upgrading Informal Settlements: 18.78 million shortage, Mumbai slum population, case for in-situ upgrading
- 5Supreme Court of India: Municipal Corporation of Greater Mumbai v. Century Textiles and Industries Ltd. (7 Jan 2025): Worli land under the poorer-classes housing scheme
- 6WHO Housing and Health Guidelines (2018): recommendation to reduce household crowding
- 7Supreme Court of India: Olga Tellis v. Bombay Municipal Corporation (1985): right to livelihood under Article 21, fair eviction procedure
- 8Supreme Court of India: M.C. Mehta v. Kamal Nath (1997) 1 SCC 388: public trust doctrine