Before introducing the Bill, Urban Affairs Minister Ram Jethmalani moved for leave to withdraw the repeal Bill introduced in the Lok Sabha on June 11, 1998.

Jethmalani said the new Bill had been modified after incorporating suggestions of Parliament's standing committee on urban and rural affairs to protect interests of economically weaker sections and low income group in urban housing.

The statement of objects and reasons of the Bill says the proposed repeal is expected to revive the stagnant housing industry and facilitate construction of dwelling units both in public and private sector to meet targets contemplated under the national agenda of governance.

The standing committee had felt that land, which is yet to be put to use for the original purposes stated in the Act,under possession of the Government should not be restored to previous owners as it may lead to avoidable discrimination.

It had also suggested that the repeal Bill should contain a provision for abatement of proceedings in different courts.

The original act of 1976 was passed to prevent concentration of urban land in a few hands and to provide affordable housing to economically weaker sections but on the contrary it pushed up land prices and practically brought the housing industry to a stop providing opportunities for corruption.