Chapter VIII DEVELOPMENT FEE AND CHARGES

(1) Subject to the provisions of the Act and rules made there under, the Authority shall levy a charge, hereinafter called development charge on:-(a) the change of use of land or building or both; (b) the carrying out of development of any land or building or both; (2) The rates of development charges, their manner of assessment and recovery shall be such as may be prescribed. (3) Notwithstanding anything contained in sub-section (1), no development charges shall be levied in case of operational constructions undertaken by the Central and State Government departments.

(1) Any person who intends to carry out any development or institution of any use or change of use of any land or building for which permission is required under the Act, whether he has applied for such permission or not, and any person who commenced or carrying out such development or instituted or changed any such use shall apply to the Metropolitan Commissioner / Vice-Chairperson, within such time and in such manner as may be prescribed, for the assessment of development charges payable in respect thereof. (2) The Metropolitan Commissioner / Vice-Chairperson shall after receipt of any application for Development Permission or if no such application is made, serve a notice on the person liable to such payment, intimate in writing the development charges to be levied and fix a date by which such payment shall be made. (3) The development charges payable in respect of any land and/or building by any person shall be a first charge on such land and/or building, subject to the condition that that there is no change in use or activity or additions or extensions in which case fresh development charges are applicable. (4) The Metropolitan Commissioner / Vice-Chairperson may allow the development charges to be remitted in phase-wise manner in case of phase-wise development, subject to the payment of the development charges as per the prevailing rates as on the date of release of phase wise permission. (5) The development charges including the penal interest for the delayed payment up to the date of realization shall be collected from such person or his successor-in-interest in such land and/or building as arrears of land revenue. For calculating the penal interest, such interest rates as being levied by the State Bank of India shall be adopted.

(1) In order to recover fully or partly, the capital and operation and maintenance expenditures incurred or likely to be incurred for the provision of utilities, amenities, services or facilities, including external trunk and other infrastructure provided by the Authority, the Metropolitan Commissioner / Vice-Chairperson may levy and collect a charge from the users, hereinafter called the user charges. (2) The amount of user charges to be levied and its manner of assessment shall be as may be prescribed. (3) The Authority may assign, on such terms and conditions, as may be agreed upon, the task of providing and maintaining any utility, amenity, service or facility, within the area of its jurisdiction, to any person or licensed developer or institution or agency including an association or body of individuals, whether corporate or not and permit them to collect such user charges from such beneficiaries and subject to such terms and conditions as may be prescribed. (4) The provisions of section 101 relating to assessment and recovery of development charges above shall mutatis mutandis apply to this section.

The Authority may levy specific cess for the implementation of specific capital infrastructure projects and upon such terms and conditions as may be prescribed.

(1) The Authority may levy a betterment charge or impact fee or Urban Infrastructure Fee as prescribed to capture some share of the increase in valuation that is likely to accrue to land owners due to a new development proposed or implemented by the Authority or Government or a third party. (2) The Authority may also levy the special impact fee in addition to the other fee and charges on the developments within the vicinity areas of the Land Pooling Scheme or Town Planning Scheme or new road formation or any other development proposed or implemented. (2) Vacation of office of member - The office of a member shall be vacated if the member becomes in any manner disqualified for membership of the Authority. (3) Disqualification from membership - No person shall be appointed or shall continue to hold office as a member if he,- (a) is mentally disordered and incapable of managing himself or his affairs; or (b) is an un-discharged bankrupt or has made any arrangement or composition with his creditors; or (c) is convicted of an offence. (4) Member’s interest to be made known - (a) A member who is in any way, directly or indirectly, interested in a transaction or project of the Authority shall disclose the nature of his interest at the first meeting of the Authority at which he is present after the relevant facts have come to his knowledge. (b) A disclosure under clause (a) shall be recorded in the minutes of the meeting of the Authority and, after the disclosure, that member,- (i) shall not take part in any deliberation or decision of the Authority with respect to that transaction or project; and (ii) shall be disregarded for the purpose of constituting a quorum of the Authority for such deliberation or decision. (c) No act or proceedings of the Authority shall be questioned on the ground that a member has contravened this section. (5) Meetings of the Authority - (a) The Chairperson shall convene meetings as often as may be required but not less than once in three months at such place within the jurisdiction of the Authority and at such time as the Chairperson may decide. (b) The quorum at every meeting of the Authority shall be one-third of the total number of members or six members, whichever is the higher. (c) Decisions at meetings of the Authority shall be adopted by a simple majority of the votes of the members present and voting; and in the case of equality of votes, the Chairperson or in his absence the Deputy Chairperson in case of Metropolitan Region Development Authority / Vice-Chairperson in case of Urban Development Authority shall have a casting vote. (d)The Chairperson or in his absence the Deputy Chairperson in case of Metropolitan Region Development Authority / Vice-Chairperson in case of Urban Development Authority shall preside at meetings of the Authority. (e) The Authority may act notwithstanding any vacancy in its membership. (f) Subject to the provisions of this Act, the Authority may make guidelines to regulate its own procedure, and, in particular, the holding of meetings, the notice to be given of such meetings, the proceedings thereat, the keeping of minutes and the custody, production and inspection of such minutes. (6) Validity of Acts of Members - The acts of a member shall be valid notwithstanding any defect that may afterwards be discovered in his appointment or qualifications.

Any sum due to the Authority under the provisions of the Act or any rule or any regulation or order made there under, shall be a first charge on the plot or land on which it is due, and if it is not paid on demand on the day on which it becomes due or on the day fixed by the Metropolitan Commissioner / Vice-Chairperson, shall be recoverable by the Metropolitan Commissioner / Vice-Chairperson, as arrears of land revenue.