Land has recently been looked upon as having substantial value in the Indian cities, especially in Mumbai. However, the allocation of land is a contested area with conflicting views and experiences. Governments intervene in land allocation through legislations for achieving equity but they do so without understanding the institutional structure and changing political, social and economic order. The Urban Land (Ceiling and Regulation) Act (ULCRA) is a piece of legislation through which Indian government made an attempt to redistribute urban land by limiting private ownership of it and confiscating the surplus. A critical review of its performance in India points to the difficulty of achieving such lofty goals in the complex real world, wherein different players actively use a variety of tactics to protect their interest, and also negotiate the outcome in the event of its repeal. The weak institutional capacity of the government and the changing governance framework render the outcomes detrimental. The experience of Mumbai city presented further points to the fact that the multiple actors thus have evolved their strategies to protect their interests through lobbying, corruption and legal wrangling. The experience of ULCRA, therefore, points to ground-level impediments to implementation of law and varied responses of the actors so as to preserve (or, even enhance) their particular interests. ULCRA also went against the decentralization of urban governance that began after the 74th Constitutional Amendment Act.