The Bihar Town Development Act, 2026

Short Title, Extent, and Commencement.—

1. (1) This Act may be called the Bihar City Development Act, 2026.
2. (2) It shall extend to the whole of the State of Bihar.
3. (3) It shall come into force from the date of publication in the official Gazette.

Definitions.-In this Act, unless the context otherwise requires: .—

1. (i) “Appellate Authority” means an authority to be notified by the State Government under which appeal shall lie under this Act.
2. (ii) "Authority" means the Bihar City Development Authority

1. (BCDA) constituted under Section 3;
   • (iii) "BUPD Act" means the Bihar Urban Planning and Development Act, 2012, as amended from time to time;
   • (iv) "Core Area" means a territory delineated by the Government within a Special Area designated for city development for commencing planning and development works;
   • (v) "Development Plan" means a plan for the development, redevelopment, or improvement of a Special Area or part thereof within the jurisdiction of the Authority, and includes a Regional Development Plan, a Metropolitan Development Plan, an Area Development Plan, a Master Plan, a Town Development Plan, a Zonal Development Plan, a District Development Plan, a Layout Plan, a Local Area Plan, a Town Planning Scheme or any other plan or scheme prepared under this Act, by whatsoever name known;
   • (vi) "Land Purchase Policy" means the Bihar Raiyati Bhumi Kray Niti, 2026, or any subsequent policy, notified by the State Government for the direct purchase of land through mutual consent;
   • (vii) "Lease Policy" means the Bihar Raiyati Bhumi Lease Niti, 2014, or any subsequent policy, notified by the State Government for the perpetual leasing of land through mutual consent;
   • (viii) "Local Authority" means a Local Authority as defined in clause (XXVIII) of section 2 of the Bihar Urban Planning and Development Act, 2012;
   • (ix) “Negotiated Settlement” means the voluntary transfer, conveyance, surrender or vesting of land, or of any legally transferable interest therein, in favour of the Authority pursuant to a written agreement entered into with the lawful owner and, where applicable, other persons having a lawful interest in such land, on mutually agreed consideration and terms, in accordance with such procedure and safeguards as may be prescribed, and otherwise than through purchase or compulsory acquisition under any law for the time being in force.
   • (x) "Planning Area" means a Planning Area as defined in clause (XXXVIII) of section 2 of the Bihar Urban Planning and Development Act, 2012;
   • (xi) "Planning Authority" means a Planning Authority as defined in clause (XXXIX) of section 2 of the Bihar Urban Planning and Development Act, 2012;
   • (xii) "Special Area" means a geographically demarcated territory notified by the Government for the purposes of planning and development under this Act and shall be known by such name as the Government may decide;
   • (xiii) "Town Planning Scheme Rules" means the Bihar Town Planning Scheme Rules, 2025 (as amended) framed under the Bihar Urban Planning and Development Act, 2012.
   • (xiv) “Transferable Development Right” means development potential, expressed in terms of additional Floor Area Ratio, Floor Space Index or permissible built-up area, granted by the Authority to the owner or other person having a lawful interest in land or built-up space, as consideration for the voluntary transfer, surrender and vesting of such land or built-up space in the Authority for a public purpose, free from all encumbrances and with vacant possession, and evidenced by a Development Rights Certificate, which may be utilised on an eligible receiving plot or transferred to another person in such manner and subject to such conditions as may be prescribed.

Constitution of the Bihar City Development Authority

1. (BCDA) .—

1. (1) The State Government shall, by notification in the Official Gazette, establish a body by the name of the Bihar City Development Authority, having perpetual succession and a common seal, with power to acquire, hold, and dispose of property and to enter into contracts, and may by that name sue and be sued.
2. (2) The Authority shall consist of the following members:
   • (a) Chairman.—Chief Secretary, Government of Bihar.
   • (b) Vice-Chairman.—Additional Chief Secretary or Principal Secretary or Secretary, Urban Development and Housing Department.
   • (c) Ex-Officio Members.—Additional Chief Secretary or Principal Secretary or Secretary of the Finance Department, Revenue & Land Reforms Department, Industry Department, Tourism Department, Environment, Forest & Climate Change Department, Water Resources Department, Road Construction Department, Energy Department, Rural Works Department and Public Health Engineering Department.
   • (d) Chief Executive Officer.—An officer appointed by the State Government not below than the rank of Special Secretary to the Government of Bihar
3. (3) The Authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings, including the quorum thereof, as may be prescribed by rules; provided that until such rules are made, the Authority may regulate its own procedure.
4. (4) No act or proceeding of the Authority shall be invalidated merely by reason of:
   • (a) any vacancy in, or any defect in the constitution of, the Authority; or
   • (b) any defect or irregularity in the appointment of a person acting as a member thereof; or
   • (c) any irregularity in the procedure of the Authority not affecting the merits of the matter.

Powers and Functions of the Authority.—The Authority shall have the power to:

1. (a) identify Special Areas and Core Areas.
2. (b) acquire, hold, and dispose of property, both movable and immovable.
3. (c) prepare and implement Development Plans for Special Areas or part thereof.
4. (d) formulate and implement Public-Private Partnership
5. (PPP) frameworks or establish Special Purpose Vehicles
6. (SPVs) for the purpose of executing, developing, or managing projects within a Special Area.
7. (e) raise money in the form of grants, subventions, allocations, loans, bonds, debentures or any other financial instrument as approved by the government.
8. (f) levy and collect fees, charges, cesses, premiums or penalties.
9. (g) prepare and implement Form Based Codes, Street Design guidelines or any other regulation or guidelines for planned development of Special Areas.
10. (h) plan, develop, operate and maintain urban infrastructure including roads, water supply, sewerage, drainage, solid waste management, power distribution, digital infrastructure, public transport, social infrastructure and other public and semi-public buildings.
    • (i) The Authority may, with the approval of the Government, delegate any of its functions to the Local Authority, Planning Authority within its jurisdiction.
11. (j) Subject to the provisions of this Act, the Authority shall carry out such functions and exercise such powers as are prescribed under the Act or the Rules.
12. (k) perform such other functions as may be assigned by the Government.

Offices and Staff of the Authority.—

1. (1) The Authority shall have its offices at such place as the State Government may specify in this behalf.
2. (2) Subject to the prior approval of the State Government, the Authority may engage necessary officers and employees through direct appointment, deputation, or on a contractual basis, whose designations, grades, salaries, or contract remuneration, and conditions of service shall be such as may be determined by the State Government or the Authority, as the case may be.
3. (3) The Authority may engage or consult any expert or consultant whose assistance or advice it may desire for performing any of its functions under this Act, and pay them such remuneration or fees as the Authority may decide.
4. (4) The Authority may constitute any committee it considers necessary for performing any function assigned to it under this Act or prescribed by rules made thereunder.

Declaration of Special Area.—

1. (1) The State Government may, in consultation with the Authority, by notification in the Official Gazette, declare any area to be a Special Area.
2. (2) The notification issued under sub-section (1) shall clearly define the boundaries, revenue villages, administrative units, the total spatial extent of the Special Area, and the specific delineation of the Core Area.
3. (3) Upon notification of Special Area under sub-section (1), the Bihar City Development Authority shall assume exclusive regulatory, planning, and developmental jurisdiction over such area.
4. (4) The Authority, by notification in the Official Gazette, impose such conditions or restrictions on the transaction, transfer, or change of use of land within a Special Area or part thereof, for such period as may be specified, to ensure the orderly preparation and implementation of the Development Plan.

Acquisition and Disposal of Land.—

1. (1) Any land required, reserved, or designated in a Development Plan, prepared under this Act shall be deemed to be land needed for a public purpose. Such land may be procured by the following ways:
   • (a) acquisition by way of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, or The National Highways Act, 1956, or any other land acquisition law in force from time to time.
   • (b) acquisition by way of Land Purchase Policy.
   • (c) acquisition by way of Negotiated Settlement.
   • (d) acquisition by way of Transferable Development Right.
   • (e) acquisition by way of Lease Policy.
   • (f) acquisition by way of Town Planning Scheme.
   • (g) acquisition of Land and Built-Up Space by way of Accommodation Reservation.
2. (2) The Authority may allot, lease, license, transfer or otherwise dispose of land in accordance with regulations made under this Act; land shall ordinarily be allotted on long-term leasehold basis; and the Authority may permit conversion of leasehold rights into freehold rights subject to payment of the prescribed charges.

Preparation of Development Plan.—

1. (1) The Authority shall prepare and, with the prior approval of the State Government adopt, Development Plan for the Special Area, including the Core Area designated within it, notified under sub-section (1) of section 6 of this Act; and every such Development Plan shall strictly conform to the planning and development standards prescribed under law.
2. (2) The Authority may, with the prior approval of the State Government, adopt any Development Plan already prepared by Local Authority, or Planning Authority, or Town and Country Planning Organization, with or without modifications; and such plan shall be deemed to be the Development Plan for the purposes of this Act.
3. (3) For the implementation of Town Planning Schemes, the provisions of the Town Planning Scheme Rules shall apply; provided that the Authority shall function as the Planning Authority for the purposes of the said rules.

Enforcement and Regulation.—

1. (1) The Authority shall enforce applicable regulations, and shall have the power to grant, modify, or revoke development permissions, building permits, layout permits, and any other approvals required under this Act.
2. (2) The Authority shall dispose of every application for a development permission or building permit within such period as may be prescribed.
3. (3) The Authority shall exercise such powers as may be prescribed by the rules relating to deviations during development or undertaking of layout works, and unauthorized development or construction.
4. (4) The Authority may, by notification in the Official Gazette sanction a change of land use within a Special Area, either suo motu or on an application made by the Authority or by any person having an interest in any land or building within the Special Area.

City Development Fund.—

1. (1) There shall be established a permanent, non-lapsable fund to be known as the Bihar City Development Fund, which shall be vested in and administered by the Authority.
2. (2) The fund shall be credited with:
   • (a) all grants, subventions, loans, and financial allocations made by the Central Government or the State Government.
   • (b) all sums raised by the Authority from the debt market through Municipal Bonds, debentures, commercial borrowings, or public-private partnership
   • (PPP) frameworks.
   • (c) all fees, charges, premiums, cesses, or penalties collected by the Authority under this Act.
3. (3) The monies credited to the Fund shall be utilized exclusively for the purposes of executing Development Plans, infrastructure development, debt servicing, and meeting the operational expenses of the Authority within the Special Areas; provided that where monies have been raised through bonds or debentures, they shall be utilized in accordance with the terms of the instrument under which they were raised.
4. (4) The Authority shall, in consultation with the State Government, ensure prudent financial management of the Fund, including investment of surplus funds in term deposits, Government securities, bonds, debentures, or such other instruments as may be approved by the State Government from time to time.

Audit.—

1. (1) The accounts of Authority shall be subject to audit annually by the Finance Department of the State or a Chartered Accountant empanelled by the Controller and Auditor General or such other authority as decided by the Government, and any expenditure incurred by it in connection with such audit shall be payable by the Authority.

Appeal.—

1. (1) Any person aggrieved by an order or decision of the Authority made under this Act, may prefer an appeal to the Appellate Authority, notified by the State Government, within sixty days of the date of communication of such order.
2. (2) The Appellate Authority may, for sufficient cause shown, condone a delay in preferring an appeal under sub-section (1).
3. (3) On receipt of an appeal, the Appellate Authority shall, after giving the appellant and the Authority a reasonable opportunity of being heard, pass such order as it thinks fit, confirming, modifying, or setting aside the order appealed against.

Power to Make Rules and Regulations.—

1. (1) The State Government may, by notification in the Official Gazette, make rules and Development Control Regulations consistent with this Act for carrying out the purposes and provisions contained herein.
2. (2) The Authority may, with the prior approval of the State Government, make regulations consistent with this Act and the rules made thereunder to carry out the purposes of this Act.

Overriding effect and savings.—

1. (1) The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in the Bihar Urban Planning and Development Act, 2012, the Bihar Municipal Act, 2007, or any other State law for the time being in force, and any Development Plan notified under the provisions of this Act shall supersede any other Development Plan sanctioned prior to it under any such State law.
2. (2) All actions taken and approvals granted in respect of the Special Area prior to the notification under section 6
3. (1) shall be saved as follows: —
   • (a) all development permissions, building permits, layout approvals, and change of land use orders validly granted shall continue in force for the period for which they were granted, and works lawfully commenced thereunder may be completed in accordance with their terms;
   • (b) all pending applications, appeals, and other proceedings relating to the Special Area shall stand transferred to and be decided by the Authority or the Appellate Authority constituted under section 12, as the case may be, in accordance with the law under which they were initiated; provided that pending applications for development permissions shall, until a Development Plan under section 8 comes into force, be decided in accordance with the regulations in force immediately prior to such notification.
   • (c) all contracts entered into by any prior authority in connection with the Special Area and subsisting as on the date of such notification shall continue to bind the parties, and the Authority shall be subrogated to the rights and obligations of such authority to the extent they relate to the functions assumed by it under this Act.
4. (3) Any question arising as to whether any provision of any other law is inconsistent with this Act, or any difficulty arising in giving effect to the provisions of this section, shall be referred to and resolved by the State Government, whose decision thereon shall be final and binding.

Directions by Government .—

1. (1) The Authority shall carry out such directions and guidelines as may be issued to it from time to time by the Government for the efficient discharge of its responsibilities and functions under this Act.
2. (2) If in connection with, the exercise of its powers, responsibilities and discharge of its functions by the Authority, any dispute arises between the Authority and Planning Authority or any committee or Local Authority, the matter shall be resolved by the Government and the decision of the Government shall be final and binding.