Chapter VII AREA DEVELOPMENT SCHEME

Preparation of Area Development Scheme.-Subject to the provisions of this Act or any other law for the time being in force, the Planning Authority may, not later than six months after the Development Plan/s has been approved by the Government, invite Area Development Schemes the purpose of implementing the proposals contained in the Development Plan from eligible developers for the area or areas within its jurisdiction or any part thereof. Explanation –

1. (i) Eligible Developer for the purposes of aforesaid section shall include:

1. (a) Individual or Partnership Firm or Body of Individuals or Association of Persons including Registered Societies and Trusts;
2. (b) Company incorporated under Companies act, 1956;
3. (c) Government Undertaking such as Board, Corporation, Authority or any other entity incorporated under any law for the time being in force.
   • (ii) Government may prescribe qualification criteria for the eligible developers through notification, if required. Provided that when the declaration of a Development Plan has been notified in the official Gazette under Chapter-V, the Government may direct a Planning Authority to prepare or invite Area Development Schemes for the areas contained within the Planning Area.

Application for Area Development Scheme.-(1) The eligible developers shall in the prescribed form make an application before the Planning Authority for approval of the Area Development Schemes.

1. (2) The application shall be accompanied by the following documents ---
   • (a) detailed project report of the Area Development Scheme comprising details as mentioned in the section-48
   • (b) consent of 80 percent of land owners and 80 percent of the total plot area in form of registered title documents or registered power of attorney or registered development agreement in the favour of developer.

Scope and contents of the Area Development Scheme.-(1)An Area Development Scheme may be made in accordance with provisions of this Act in respect of any land which is:-

1. (a) in the process of development,
2. (b) likely to be used for any development including building purposes, or
3. (c) already built upon. Explanation :- 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 recreational grounds, parking spaces, or for the purpose of executing any work upon or under the land incidental to a scheme, whether in the nature of a building work or not.

1. (2) An Area Development Scheme may make provisions for any or all of the following matters, namely :-
   • (a) the area, ownership and tenure of all existing plots covered by the scheme;
   • (b) the laying out or relaying out of land, either vacant or already built upon;
   • (c) the filling up or reclamation of low-lying swamp or unhealthy areas or leveling up of land;
   • (d) layout of new streets or roads, construction, diversion, extension, alteration, improvement, closure or relocation of streets, roads and communications;
   • (e) the reconstitution of plots;
   • (f) the construction, alteration and removal of buildings, bridges and other structures;
   • (g) the allotment or reservation of land for roads, open spaces, gardens, parks, recreation grounds, schools, markets, residential purposes, industrial and commercial activities, green belts and dairies, transport facilities and public purposes of all kinds, the portion of land which can be acquired;
   • (h) undertaking housing schemes for different income groups, including housing for economically weaker sections (EWS), commercial areas, industrial estates, provision of community facilities like schools, hospitals, and similar types of developments;
     • (i) drainage, sewerage, surface or sub-soil drainage and sewage disposal;
   • (j) lighting;
   • (k) water supply;
   • (l) the preservation and protection of objects of historical importance or of natural beauty and of buildings actually used for religious purposes;
   • (m) the imposition of conditions and restrictions in regard to the open space to be maintained around buildings, the percentage of building area for a plot, the number, height and character of buildings allowed in specified areas, the purposes for which buildings or specified areas may or may not be appropriate, the sub-division of plots, the discontinuance of objectionable uses of land in any reasonable periods, parking space and loading and unloading space for any building and the size of projections and advertisement signs;
   • (n) the suspension, so far as may be necessary, for the proper carrying out of the scheme, of any rule, bye-law, regulation, notification or order made or issued under any Act which the State Legislature is competent to amend;
   • (o) acquisition by purchase, exchange or otherwise of any property necessary for or effected by the execution of the scheme;
   • (p) the reservation of land for development of infrastructure, parks, common amenities, parking etc, shall be made from the total area covered under the scheme, as prescribed in the Rules.
   • (q) such other matters not inconsistent with the objects of this Act, as may be directed by the Government or as may be prescribed by the Rules.

Land Owner to be a Permanent Stakeholder in the Area Development Scheme In an Area Development Scheme, referred in Section-47, while reconstituting the plots, the developer shall ensure that every land owner shall get back at least 10 percent of his land area in the scheme.

Approval of the Area Development Scheme.-The Planning Authority shall examine the Area Development Scheme in the light of the guidelines prescribed and objections that may be received from the land owners, giving reasonable opportunity of being heard to all such interested persons who have filed objections and who have made request for being so heard in the manner prescribed. Further, the Planning Authority may direct the developer to make such amendments in the draft of the Area Development Scheme as it considers proper and shall, as soon as may be, but not later than the time prescribed by the Rules, approve the Area Development Scheme through an order published in Official Gazette, with or without modifications and it shall also provide a copy of the objections received by it and its decisions thereon.

Power of the Government to require the Planning Authority to make Area Development Scheme.-(1) Notwithstanding anything contained in this Act, the Government may, in respect of any Planning Area after making such enquiry as it deems necessary, direct the concerned Planning Authority to make and publish in the prescribed manner, an Area Development Scheme in respect of any land in regard to which a development scheme may be made.

1. (2) If the Planning Authority fails to make the Area Development Scheme within three months from the date of direction made under Sub-Section (1), the Government may direct the Town and Country Planning Organization
   • (TCPO) to make and publish and submit the Area Development Scheme to the Government, and thereupon the provisions of this Act shall, as far as may be applicable, apply to the making of such Area Development Scheme.

Power of Government to suspend rules, bye-laws or regulations.

1. (1) Where the Planning Authority has approved the Area Development Scheme through order published in Official Gazette under Section 50, the Government may, on an application by the Planning Authority, suspend by order published in the Official Gazette to such extent only as may be necessary for the purpose of carrying out of the Area Development Scheme, any rule, bye-law, regulation, notification or order made or issued under any law which the Legislature of the State is competent to amend.
2. (2) Any order issued under sub-section (1) shall cease to operate in the event of the Area Development Scheme being withdrawn by the Planning Authority either on its own or under the directions of the Government.

Appeal against matters determined by the authority.- From every decision of the Planning Authority in matters arising out of aforesaid provisions, an appeal shall lie within one month from the date of the decision, to the Tribunal constituted under this Act.

Exclusion or Limitation of Compensation in Certain Cases.

1. (1) No compensation shall be payable in respect of any property or private right of any sort which is alleged to be injuriously affected by reason of any provisions contained in the Area Development Scheme, if under any other law for the time being in force applicable to the area for which such Area Development Scheme is made, no compensation is payable for such injurious affection.
2. (2) Any property or a private right of any sort shall not be deemed to be injuriously affected by reason of any provision contained in an Area Development Scheme securing the amenity of the area included in such Area Development Scheme or any part thereof or imposing any conditions and restrictions in regard to any of the matters specified in clause (m) of sub-section (2) of Section 48.

Decision of Planning Authority to be final in certain matters.

1. (1) Where no appeal has been made under Section 53, the decision of the Planning Authority shall be final and binding on the parties.
2. (2) Where an appeal has been made under Section 53 and a copy of the decision in appeal is received by the Planning Authority, it shall then, where necessary, make variation in the Area Development Scheme in accordance with such decision and may also rectify such errors or omissions, if any, as may have been brought to its notice after publication of the Area Development Scheme and shall also forward such Area Development Scheme together with copies of its decisions and copies of the decisions in appeal to the Board.

Power to Vary Scheme on ground of error, irregularity or informality.-

1. (1) If after the Area Development Scheme has come into force, the Planning Authority considers that the Area Development Scheme is defective on account of an error, irregularity or informality or that the Area Development Scheme needs variation or modification of a minor nature, the Planning Authority shall, by notification in the Official Gazette, prepare and publish a draft of such variation in the prescribed manner.
2. (2) The draft variation published under Sub-Section (1) shall state every amendment proposed to be made in the Area Development Scheme, and if any such amendment relates to a matter specified in any of the sub-clauses of sub-section (2) of section 48, the draft variation shall also contain such other particulars as may be prescribed.
3. (3) The draft variation shall be open to the inspection of the public at the office of the Planning Authority during office hours for one month.
4. (4) Not later than one month from the date of the publication of the draft variation, any person affected thereby may communicate in writing his objections to the Planning Authority.
5. (5) After receiving the objections under sub-section (4) the Planning Authority shall after making such enquiry as it may think fit, notify the variation with or without modification by notification in the Official Gazette.
6. (6) From the date of the notification of the variation, with or without modifications, such variation shall take effect as if it were incorporated in the Area Development Scheme.

Power to vary Area Development Scheme.-Any Area Development Scheme may at any time be varied by a subsequent Area Development Scheme made, and published in accordance with this Act : Provided that, when an Area Development Scheme is so varied, the provisions of this Act shall, so far as may be applicable, apply to such variation and making of subsequent Area Development Scheme; and the date of publication of the varied Area Development Scheme shall be deemed to be the date of publication of the Area Development Scheme referred in the relevant Sections.

Execution of Works in the Area Development Scheme by Developer.-

1. (1) The developer shall complete all the works provided in an Area Development Scheme within the period prescribed; Provided that, in exceptional circumstances on application by the developer, the Planning Authority may, by an order in writing specifying these circumstances, grant to the developer in this behalf, further extension of time as it may think fit.
2. (2) If the developer fails to complete the work within the prescribed period or within the period extended under sub-section (1), the Planning Authority may, notwithstanding anything contained in sub-section (1), require the developer to complete the works within a further period as it may consider reasonable or appoint other agency/agencies to complete such works at the cost of the developer and may imposed such penalties on the developer as prescribed.