Chapter X TOWN PLANNING SCHEMES

(1) Subject to the provision of this Act or any other law for the time being in force, the Authority may make one or more town planning schemes for the capital region or any part thereof, regard being had to the proposals in the sanctioned development plans under 38, if any. (2) Town planning scheme may be in accordance with the provisions of this Act in respect of any land which is:- (a) in the course of development; (b) likely to be used for residential or commercial or industrial or for building purposes; or (c) already built upon. Explanation: For the purpose of this sub-section, the expression “land likely to be used for building purposes” shall include any land likely to be used as, or for the purpose of providing, open spaces, roads, streets, parks, pleasure or recreation grounds parking spaces or for the purpose of executing any work upon or under the land incidental to a Town Planning Scheme, whether in the nature of a building work or not. (3) The reservation and allotment of land for various purposes in the Town Planning Scheme shall be in accordance with sanctioned development plans and as specified in section 53 (1).

(1) Before making any town planning scheme under the provisions of the Act in respect of any (1) area, the Authority may, by resolution, declare its intention to make such a scheme in respect of such area.

(2) Within Fifteen days from the date of such declaration (hereinafter referred to as the declaration of intention to make a scheme), the Authority shall publish it in the prescribed manner.

(3) A copy of the plan shall be kept open at the office of the Authority during the office hours for the inspection of the public.

(4) The town planning scheme shall be mandatory and all the land owners shall invariably participate in such town planning scheme on declaration of intention to make the scheme by the Authority.

Within six months from the date of the declaration of intention to make a scheme under section 62, the Authority shall make a draft town planning scheme of the area in respect of which, the said declaration has been made and publish the notification, along with the draft regulations for carrying out the provisions of the scheme calling for objections or suggestions from the land owners whose lands are included in the draft town planning scheme within thirty days from the date of the publication of the draft town planning scheme.

If any person affected by such scheme communicates in writing to the Authority, any objections relating to such scheme, the Authority shall consider such objections and may at any time before submitting the draft town planning scheme to the Government as hereinafter provided modify such scheme as it thinks fit. (3) The President shall be a person who is or has been a District Judge or a Judge of the City Civil Court. (4) The terms of appointment of the President of the Board of Appeal and conditions of service shall be such as may be prescribed. (5) The Board of Appeal constituted under sub-section (1) shall stand dissolved as soon as a copy of its decision in appeal is sent to the Planning Officer under sub-section (2) of section 79. (6) The Government may, if it thinks fit, remove for incompetence or misconduct or for any other good or sufficient reason any assessor appointed under sub-section (1). (7) If any assessor is removed or dies or refuses or neglects to act or becomes incapable of the acting, the authority who appointed such assessor shall appoint forthwith a fit and proper person in his place.

(1) The Authority shall, within Sixty days from the date of the publication of the draft town planning scheme in the manner as prescribed, submit the draft town planning scheme with any modifications that may have been made therein under section 64 together with the objections which may have been communicated to it, to the Government for sanction.

(2) After receiving the draft town planning scheme, the Government may, within thirty days from the date of its receipt by notification, sanction such scheme with or without modifications or subject to such conditions as it may think fit to impose or refuse to sanction it.

(3) If the Government sanctions such scheme, it shall in such notification state at what place and time the draft scheme be open for the inspection of the public.

(1) Where a draft town planning scheme has been sanctioned by the Government under sub-section (2) of section 65, (hereinafter in this section, referred to as ‘sanctioned draft scheme’), all lands required by the Authority for the purposes in clauses (3), (5), (6), (7) and (8) of section 44 shall vest absolutely in the Authority free from all encumbrances.

(2) Nothing in sub-section (1) shall affect any right of the owner of the land vesting in the Authority under that sub-section.

(3) The provisions of sections 85 and 86 shall mutatis-mutandis apply to the ‘sanctioned draft scheme’ as if; ‘sanctioned draft scheme’ was a preliminary scheme.

(1) With thirty days from the date on which the sanction of the Government to a draft scheme is notified, the Government shall appoint a Planning Officer possessing such qualification as may be prescribed, for the purpose of such scheme and provide him with such number of officers and staff as may be considered necessary and his duties shall be as hereinafter provided: Provided that the Government may, on the request made by the Authority, appoint a Planning Officer within thirty days from the date of the publication of the draft town planning scheme under section 63.

(2) The Government may, if it thinks fit, at any time, remove, on the ground of incompetence or misconduct or any other good and sufficient reason, a Planning Officer appointed under this section and shall forth with appoint another person in his place and any proceeding pending before Planning Officer immediately before the date of his removal shall be continued and disposed of by the new Planning Officer appointed in his place: Provided that no Planning Officer shall be removed under this sub-section expect after an inquiry in which he has been informed of the charges against him and a reasonable opportunity of being heard in respect of those charges has been given to him.

(3) Subject to the provisions of sub-section (2), a Planning Officer appointed under sub-section (1) for the purpose of any scheme shall cease to hold office with effect from the date on which the final town planning scheme is sanctioned is sanctioned under section 82.

Within a period of six months from the date of his appointment, the Planning Officer shall, after following the prescribed procedure, sub divide the ‘sanctioned draft scheme’ into a preliminary scheme and a final scheme: Provided that the Government may, from time to time, by order in writing, extend the said period by such further period or periods as may be specified in the order and any such order extending the period may be made so as to have retrospective effect.

(1) In a preliminary scheme, the Planning Officer shall,- (a) after giving notice in the prescribed manner and in the prescribed form to the persons affected by the scheme, define and demarcate the areas allotted to, or reserved for, any public purpose, or for the purpose of the Authority and the reconstituted plot/land; (b) after giving notice as aforesaid, determine in a case in which a reconstituted plot/land is to be allotted to persons in ownership in common, the shares of such persons; (c) provide for the total or partial transfer of any right in an original plot to a reconstituted plot or provide for the transfer of any right in an Original Plot in accordance with the provisions of the Act; (d) determine the period within which the works provided in the scheme shall be completed by the Authority.

(2) The Planning Officer shall submit the preliminary scheme so prepared to the government for sanction and shall thereafter prepare and submit to the government the final scheme in accordance with the provisions of sub-section (3).

(3) In the final Scheme, the Planning Officer shall,- (a) fix the difference between the total of the values of the original plots and the total of the values of the plots included in the scheme in accordance with the provisions of clause (c) of sub-section (1) of section 95; (b) determine whether the areas used, allotted or reserved for a public purpose or purposes of the Authority are beneficial wholly or partly to the owners or residents within the area of the scheme; (c) estimate the portion of the sums payable as compensation on each plot used, allotted or reserved for a public purpose or for the purpose of the Authority which is beneficial partly to the owners or residents within the area of the scheme and partly to the general public, which shall be included in the costs of the scheme; (d) calculate the contribution to be levied under sub-section (1) of section 97, on each plot used, allotted or reserved for a public purpose or for the purpose of the Authority which is beneficial partly to the owners or residents within the area of the scheme and partly to the general public; (e) estimate the increment to accrue in respect of each plot included in the scheme in accordance with the provisions of section 96; (f) calculate the proportion of the contribution to be levied on each plot in the final scheme to the increment estimated to accrue in respect of such plot under sub-section (1) of section 97; (g) calculate the contribution to be levied on each plot included in the final scheme; (h) determine the amount to be deducted from, or added to, as the case may be, the contribution to be levied from a person in accordance with the provisions of section 97; (i) estimate with reference to claims made before him after notice has been given by him in the prescribed manner and in the prescribed form, the compensation to be paid to the owner of any property or right injuriously affected by the making of the Town Planning Scheme in accordance with the provisions of section 100; (j) draw in the prescribed from the preliminary and the final scheme in accordance with the draft scheme: Provided that the Planning Officer may make variation from the ‘sanctioned draft scheme’, but no such variation, if it is of a substantial nature, shall be made except with the previous sanction of the Government, and except after hearing the Authority and any owners who may raise objections.

Explanation:- (i) For the purpose of this proviso “variation of a substantial nature” means a variation which is estimated by the Planning Officer to involve an increase of ten percent in the costs of the scheme as stated in section 95, on account of the provisions of new works or the allotment of additional sites for public purposes included in the preliminary scheme drawn up by the Planning Officer. (ii) If there is any difference of opinion between the Planning Officer and the Authority as to whether a variation made by the Planning Officer is of substantial nature or not, the matter shall be referred by the Authority to the Government whose decision shall be final.

Expect in matters arising out of clauses (c), (d), (e), (f), (g) and (i) of sub-section (3) of section 69, every decision of the Planning Officer shall be final and binding on all persons.

Any decision of the Planning Officer under clauses (c), (d), (e), (f), (g) and (i) of sub-section (3) of section 69 shall forthwith communicated to the party concerned in the prescribed from and any person aggrieved by such decision may within fifteen days from the date of communication of decision, present an appeal to the Board of Appeal constituted under section 72.

(1) The Government shall, from time to time by an order published in the Andhra Pradesh Gazette, constitute a Board of Appeal for hearing and deciding appeals under section 71.

(2) The Board of Appeal shall consist of three members, one of whom shall be its President and two persons, possessing such qualifications and experience as may be prescribed, as assessors.

(1) The Planning Officer shall be present at the proceedings before the Board of Appeal. (2) The Planning Officer shall not be required to give evidence in such proceedings but the President may require him to assist the Board in an advisory capacity.

The Board of Appeal may sit either at the headquarters of the President or at any other place within the local limits of his jurisdiction which he may deem convenient for the consideration and decision of any matter before such Board.

All questions of law and procedure shall be decided by the President and all other questions shall be decided by the President and the two assessors or by a majority of them.

(1) After making such inquiry as it may think fit, the Board of Appeal may either direct the Planning Officer to reconsider its proposals, or accept, modify, vary or reject the proposals of the Planning Officer. (2) Every decision of the Board of Appeal shall be final and binding on all persons.

Nothing contained in this Act shall be deemed to constitute the Board of Appeal to be a court.

(1) The assessors shall, save where they are salaried Government Officers, be entitled to such remuneration either by way of monthly salary or by way of fees or partly by way of salary and partly by way of fees, as the Government may, from time to time, determine. (2) The salary of the President of the Board of Appeal or an Assessor who is a salaried Government Officer and any remuneration payable under sub-section (1) and all expenses incidental to the working of the Board of Appeal shall, unless the Government otherwise determines, be defrayed out of the funds of the Authority and shall be added to the costs of the scheme.

(1) Where no appeal has been presented under section 71, in respect of a matter arising out of clause (c), (d), (e), (f), (g) and (i) of sub-section (3) of section 69, the decision of the Planning Officer shall be final and binding on all the parties. (2) The Board of Appeal shall send a copy of its decision in appeal to the Planning Officer who shall, if necessary, make any variation in the scheme in accordance with such decision and shall forward the Final Scheme together with a copy of his decision under section 70 and a copy of the decision of the Board of Appeal in appeal to the Government for the sanction of the Final Scheme. (2) On receipt of the application for Development Permission under sub-section (1), the Commissioner, after making such enquiry as consider it necessary in relation to any matter concerning the master plan, infrastructure plan, development plan and regulations, area development plan, notified development scheme, layout regulations, development promotion regulations, aesthetics, architectural and urban design control briefs, landscaping stipulations or in relation to any other matter, may issue a development permission order either,- (a) granting permission unconditionally, or (b) granting permission subject to such conditions and as it may consider necessary, or (c) refuse permission citing the grounds of such refusal which shall be recorded in writing in the order. (3) No compensation shall be payable for the refusal of a permission or for the imposition of modifications or conditions in granting permission. (4) If within sixty days after the receipt of such application made under this section for development permission for layout or such similar land development scheme or construction of building or of any information or further information required, the Commissioner has neither granted or refused permission, such permission shall be deemed to have been granted and the applicant after intimating the Commissioner in writing, may proceed to carry out the development but not so as to contravene any of the provisions of the Act or plans or schemes or any rules or regulations made under the Act. (5) If any person carries on any development work or retains the use of any building or work or continues the use of land in contravention of the provisions under the Act, or of any development permission granted under the Act, the Commissioner may direct such person, by notice in writing, to stop further progress of such work or to discontinue any use and may, after making an inquiry in the prescribed manner, remove or pull down any building or work carried out and restore the land to its original condition or as the case may be, take any measure to stop such use. (6) Any expenses incurred by the Commissioner under sub-section (5) shall be a sum due to the Authority under the act from the person in default. (7) The development permission order may among other conditions contain the implementation of master plan and infrastructure plan and regulations, area development plan, notified development scheme, layout regulations, development promotion regulations layout regulations, development promotion regulations, road network and other communication network system and the area of land affected and to be surrendered free of cost to the Authority for development in accordance with such sanctioned Plan or regulations. (8) In such layouts and such other similar site development,- (a) such development permission shall be considered only if the same is undertaken through a licensed developer; (b) the licensed developer shall be required to mortgage fifteen percent of the plotted saleable land to the Authority as surety for carrying out the developments and complying with other conditions as per specifications and in the given time period, in the failure of which, the Commissioner shall be empowered to sell away the mortgaged plots and utilize the amount so realized for completion of the development works.

(1) After a Planning Officer has been appointed under section 67, the Authority may apply to him to split up the ‘sanctioned draft scheme’ into different sections and to deal with each section separately as if such action were a separate sanctioned draft scheme. (2) On receipt of an application under sub-section (1), the Planning Officer may, after making such inquiry as thinks fit, split up the ‘sanctioned draft scheme’ into sections. (3) The provisions of the Act and the rules made there under shall, so far as may be, apply to each of such sections as if it were a separate ‘sanctioned draft scheme’

(1) The Planning Officer shall submit to the Government for sanction the preliminary scheme also before the final scheme is submitted to the Government under sub-section (2) of section 69, together with copy of his decision under section 70.

(1) On receipt of the Preliminary Scheme or as the case may be, the Final Scheme, the Government may,- (a) in the case of Preliminary Scheme, within a period of thirty days from the date of its receipt, and (b) in the case of final scheme, within a period of sixty days from the date of its receipt, by notification, sanction the preliminary scheme or the final scheme or refuse to give sanction, provided that in sanctioning any such scheme, the Government may make such modifications as may, in its opinion, be necessary for the purpose of correcting an error, irregularity or informality. (2) Where the Government sanctions the preliminary scheme or the final scheme, it shall state in the notification.- (a) the place at which the scheme shall be kept open for inspection by the public, and (b) a date on which all the liabilities created by the scheme shall come into force: Provided that the Government may, from time to time, extend such date by notification, by such period, not exceeding thirty days at a time, as it thinks fit. (3) On and after the date fixed in such notification, the Final Scheme shall have effect as if it were enacted in this Act.

(1) If at any time before the Preliminary Scheme is forwarded by the Planning Officer to the Government, a representation is made to the Planning Officer by the Authority and if the owners of the majority of the land extent in the scheme area represent that the Scheme should be withdrawn, the Planning Officer shall, after inviting from all persons interested in the scheme objections to such representation, forward such representation together with the objections, if any, to the Government. (2) The Government after making such inquiry as it may deem fit, may, if it is of opinion that it is necessary or expedient so to do, by notification, direct that the scheme shall be withdrawn and upon such withdrawal no further proceedings shall be taken in regard to such scheme.

On the day on which the Preliminary Scheme comes into force,- (1) all lands required by the Authority shall unless it is otherwise determined in Town Planning Scheme/any Special Development Scheme, vest absolutely in the State Government and Authority acting on behalf of the Government free from all encumbrances;. (2) all rights in the original plots which have been re-constituted into re-constituted plots / land shall be determined and the re-constituted plots / land shall become subject to the rights settled by the Planning Officer.

On and after the date on which a Preliminary Scheme comes into force, any person continuing to occupy any land which he is not entitled to occupy under the Preliminary Scheme shall, in accordance with the prescribed procedure, be summarily evicted by the Authority.

(1) On and after the date on which Preliminary Scheme comes into force, the Authority shall, after giving the prescribed notice and in accordance with the provisions of the scheme,- (a) remove, pull down, or alter any buildings or other work in the area included in the scheme which is such as contravenes the scheme or in the erection or carrying out of which any provision of the scheme has not been complied with; (b) execute any work which it is the duty of any person to execute under the scheme in any case where it appears to the Authority that delay in the execution of the work would prejudice the efficient operation of the scheme. (2) Any expenses incurred by the Authority under this section shall be recovered from the person in default or from the owner of the plot in the manner provided for the recovery of sums due to the Authority under the provisions of the Act. (3) If any question arises as to whether any building or work contravenes a town planning scheme or whether any provision of a town planning scheme is not complied with in the erection or carrying out of any such building or work, it shall be referred to the Government and the decision of the Government shall be final and binding on all persons. (4) No person shall be entitled to compensation in respect of any damage, loss or injury resulting from all action taken by the Authority under the provisions of this section expect in respect of the building or work begun before the date referred to in sub-section (1) and only in so far as such building or work has proceeded until that date: Provided that any claim to compensation, which is not barred by this sub-section shall be subject to the condition of any agreement entered into between the claimant and the Authority. (5) The provisions of this section shall not apply to any operational construction undertaken by the Central Government or a State Government.

(1) If after the preliminary scheme or the final scheme has come into force, the Authority considers that the scheme is defective on account of an error, irregularity or informality, the Authority may apply in writing to the Government for the variation of the scheme. (2) If on receiving such application or otherwise, the Government is satisfied that the variation required is not substantial, the Government shall publish a draft of such variation in the prescribed manner so that any person affected thereby may communicate in writing his objections to such variation to the Government through the Authority within thirty days of the date of publication of the draft variation. (3) The draft variation published under sub-section (2) shall state every variation proposed to be made in the scheme and if any such variation (3) relates to a manner specified in any of the sub-sections (1) to (8) of section 44, the draft variation shall also contain such other particulars as may be prescribed. (4) The draft variation shall be open to the inspection of the public at such officers as published under sub-section (2). (5) After receiving the objections, the Government may, after consulting the Authority and after making such inquiry as it may think fit, by notification- (a) appoint a Planning Officer and thereupon the provisions of this Chapter shall so far as may be, apply to such draft variation as if it were a draft scheme sanctioned by the Government, or (b) make the variation with or without modification, or (c) refuse to make the variation. (6) From the date of the notification making the variation, with or without modification, such variation shall take effect as if it were incorporated in the scheme.

If at any time after the final town planning scheme comes into force, the Authority is of the opinion that the purpose for which any land is allotted in such scheme under any of the clause (a) and (c) of section 61 requires to be changed to any other purpose specified in any of the said clauses, the Authority may make such change after following the procedure relating to amendment of regulations, specified in section 90 as if such change were an amendment of regulations.

Notwithstanding anything contained in section 87, a Town Planning Scheme at any time be varied by a subsequent scheme made, published and sanctioned in accordance with the provisions of the Act.

(1) If at any time after the Final Town Planning Scheme comes into force, the Authority is of the opinion that the regulations relating to a town planning scheme require to be amended, it may publish the requisite draft amendment in the prescribed manner and invite suggestions or objections thereto from any person to submit within thirty days from the date of publication of the draft amendment; (2) if any suggestions or objections relating to such amendment are received, the Authority shall consider such suggestions or objections and may, at any time before submitting the draft, amendment to the Government as hereinafter provided, modify such amendment as it thinks fit; (3) the Authority shall within a period of sixty days from the date of its publication, submit the draft amendment along with the suggestions or objections to the Government and shall at the same time apply for its sanction; (4) after receiving such application and after making such inquiry as it may think fit, the Government may sanction the amendment submitted with or without modifications as it deems necessary or refuse to sanction the amendment; (5) if the amendment is sanctioned by the Government, the Final Town Planning Scheme shall be deemed to have been varied in accordance with the amendment.

If at any time after the date on which the scheme has come into force, such scheme is varied, and any person who has incurred any expenditure for the purpose of complying with such scheme shall be entitled to be compensated by the Authority for the expenditure, if such expenditure is rendered abortive by reason of the variation of such scheme.

In the event of a town planning scheme being withdrawn, the Government may direct that the costs of the scheme shall be borne by the Authority or be paid to the Authority by the owners concerned in such proportion as the Government may in each case determine.

Every party to any proceedings before the Planning Officer or before the Board of Appeal shall be entitled to appear either in person or by his recognized agent.

For the purpose of the Act, the authority under sub-section (1) of section 50 or the Planning Officer or the Board of Appeal shall have the same powers of a Civil Court while trying a suit under the Code of Civil Procedure, 1908 (Act No.XVI of 1908) in respect of the following matters, namely,- (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of any document; (c) receiving evidence on affidavits; (d) issuing commissions for the examination of witness or documents.

(1) In addition to the requirements as stated in section 47 of the Act, the costs of a town planning scheme shall include the following, namely,- (a) all sums payable as compensation for land reserved or designated for any public purpose or for the purposes of the Authority which is solely beneficial to the owners of land or residents within the area of the scheme; (b) such portion of the sums payable as compensation for land reserved or designated for any public purpose or for the purpose of the Authority which is beneficial partly to the owners of land or residents within the area of the scheme and partly to the general public, as is attributable to the benefit accruing to the owners of land or residents within the area of the scheme from such reservation or designation; (c) any amount by which the total amount of the values of the original plots exceeds the total amount of the values of the plots included in the final scheme, each of such plots being estimated at its market value at the date of the declaration of intention to make a scheme, with all the buildings and works thereon at the said date and without reference to improvements contemplated in the scheme other than improvements due to alteration of its boundaries. (d) twenty percent of the amount of the cost of infrastructure provided in the area adjacent to the area of the scheme as is necessary for the purpose of and incidental to the scheme. (2) If in any case the total amount of the values of the plots included in the final scheme exceeds the total amount of the values of the original plots, each of such plots being estimated in the manner provided in clause (c) of sub-section (1), then the amount of such excess shall be deducted in arriving at the costs of the scheme as defined in sub-section (1).

For the purpose of the Act, the increments shall be deemed to be the amount by which at the date of the declaration of intention to make a scheme the market value of the plot included in the final scheme estimated on the assumption that the scheme has been completed would exceed at the same date the market value of the same plot estimated without reference to improvements contemplated in the scheme: Provided that in estimating such value, the value of buildings or other works erected or in the course of erection on such plot shall not be taken into consideration.

The amount by which the total value of the plots included in the final scheme with all the buildings and works thereon allotted to a person falls short of or exceeds the total value of the original plots with all the buildings and works thereon of such person shall be deducted from, or, as the case may be, added to, the contribution to be levied from such person, each of such plots being estimated at its market value at the date of declaration of intention to make a scheme or the date of the notification issued by the Government under sub-section (5) of section 43 and without reference to improvements contemplated in the scheme other than improvements due to the alteration of its boundaries.

Any right in an original plot which in the opinion of the Planning Officer is capable of being transferred wholly or in part, without prejudice to the making of a Town Planning Scheme, to a reconstituted plot shall be so transferred and any right in an original plot which in the opinion of the Planning Officer is not capable of being so transferred shall be extinguished:

The owner of any property or right which is injuriously affected by the making of a Town Planning Scheme shall, if he makes a claim before the Planning Officer within the prescribed time, be entitled to be compensated in respect thereof by the Authority or by any person benefited or partly by the Authority and partly by such person as the Planning Officer may in each case determine:

Provided that the value of such property or rights shall be deemed to be its market value at the date of the declaration of intention to make a scheme or the date of the notification issued by the Government under sub-section (5) of section 43 without reference to improvements contemplated in the scheme, as the case may be.

(1) No compensation shall be payable in respect of any property or private right which is alleged to be injuriously affected by reason of any provision contained in the Town Planning Scheme, if under any other law for the time being in force applicable to the area for which such scheme is made no compensation is payable for such injurious affection.

(2) Any property or private right shall not be deemed to be injuriously affected by reason of any provision inserted in a town planning scheme which imposes any conditions and restrictions in regard to any of the matters related to the construction of buildings such as development control/promotion regulations, zoning regulations or building rules / bye-laws.

If the owner of an original plot is not provided with a plot in the preliminary scheme or if the contribution to be levied from him under section 97 is less than the total amount to be deducted there from under any of the provisions of the Act, the net amount of his loss shall be payable to him by the Authority in cash or in such other manner as may be agreed upon by the parties.

(1) If from any cause the total amount which would be due to the Authority under the provisions of the Act from the owner of a plot to be included in the final scheme exceeds the value of such plot estimated on the assumption that the scheme has been completed, the Planning Officer shall at the request of the Authority direct the owner of such plot to make payment to the Authority of the amount of such excess.

(2) If such owner fails to make such payment within the prescribed period, the Planning Officer shall, if the Authority so requests, acquire the original plot of such defaulter and apportion the compensation among the owner and other persons interested in the plot on payment by the Authority of the value of such plot estimated at its market value at the date of the declaration of intention to make a scheme or the date of a notification under sub-section (5) of section 43 and without reference to improvements contemplated in the scheme; and thereupon the plot included in the final scheme shall vest absolutely in the Authority free from all encumbrances but subject to the provisions of the Act:

Provided that the payment made by the Authority on account of the value of the original plot shall not be included in the costs of the scheme.

All payments due to be made to any person by the Authority under the Act shall, as far as possible, be made by adjustment in such account with the Authority in respect of the plot concerned or of any other plot in which he has an interest and failing such adjustment, shall be paid in cash or in such other manner as may be agreed upon by the parties.

(1) The net amount payable under the provisions of the Act by the owner of a plot included in the final scheme may at the option of the contributor be paid in lump-sum or in annual installments not exceeding ten.

(2) If the owner elects to pay the amount by installments, interest at such rate as is arrived at by adding two percent to the bank rate published under section 50 of the Reserve Bank of India Act, 1934 from time to time, shall be charged per annum on the net amount payable.

(3) If the owner of a plot fails to exercise the option on or before the date specified in a notice issued to him in that behalf by the Authority, he shall be deemed to have exercised the option of paying contribution in instalments and the interest on the contribution shall be calculated from the date specified in the notice, being the date before which he was required to exercise the option.

(4) Where two or more plots included in the final scheme are of the same ownership the net amount payable by such owner under the provisions of the Act shall be distributed over his several plots in proportion to the increments which is estimated to accrue in respect of each plot unless the owner and the Authority agree to a different method of distribution.

(1) The Authority shall be competent to make any agreement with any person in respect of any matter which is to be provided for in a Town Planning Scheme, subject to the power of the Government to modify or disallow such agreement and unless it is otherwise expressly provided therein, such agreement shall take effect on and after the day on which the Town Planning Scheme comes into force.

(2) Such agreement shall not in any way affect the duties of the Planning Officer as described under section 68 or the rights of third parties but it shall be binding on the parties to the agreement notwithstanding any decision that may be passed by the Planning Officer:

Provided that if the agreement is modified by the Government, either party shall have the option of avoiding it, if it so elects.

(1) Any sum due to the Authority under the Act or any regulation made there under shall be a first charge on the plot on which it is due, subject to the prior payment of land revenue, if any, due to the Government thereon.

(2) Any sum due to the Authority under the Act or any regulation made there under which is not paid on demand on the day on which it becomes due or on the day fixed by the authority shall be recoverable by the Authority by distress and sale of the goods and chattel of the defaulter as if the amount thereof were a property tax due by the said defaulter.

(3) In lieu of the recovery of the dues of the Authority in the manner provided in sub-section (2), any sum due or the balance of any sum due, as the case may be, by such defaulter may be recovered from him by a suit in any court of competent jurisdiction.