Indian legislators have scrapped a law that has held back development in the financial capital of Mumbai, boosting shares of developers, construction companies and land-rich groups. Financial Times

The state of Maharashtra legislative assembly, which governs Mumbai, repealed the Urban Land (Ceiling & Regulatory) Act, which, say analysts, could free up 17,000 acres in space deprived Mumbai in the long term.

Pranay Vakil, chairman of Knight Frank in India, said: 'It’s a win for the middle class because now we will see some more development.'

The law is one of a series of anachronistic regulations that critics believe are delaying large-scale development in Mumbai, in which commercial land values have risen by almost 50 per cent in the past year.