Chapter VI FINANCE.

Preparation, sanction etc. of local area plan.

76A. (1) Subject to the provisions of this Act or any other law for the time being in force, the appropriate authority may make one or more Local Area Plan for the development area or any part thereof, regard being had to the proposals in the final development plan, if any.

1. (2) The Local Area Plans may be made in respect of any land which is a part-of the sanctioned preliminary scheme or not. However, before making the Local Area Plan, the appropriate authority shall publish in the Official Gazette, the boundaries of area for which the Local Area Plan is to be made and in the local newspapers: 1. Chapter V-I was inserted by Guj. 11 of 2014, s. 19. Provided that for maifig the Local Area Plan in respect of any land which is not apart of the sanctioned preliminary scheme, the prior permission of the State Government shall be necessary.
2. (3) The Local Area Plan may provide provisions for any of the following matters, namely:-
   • (a) define and provide for the complete road and street pattern for the present and in the future and indicate the traffic circulation;
   • (b) lay down in detail the projected road and street funiture;
   • (c) access, make projection for the future requirements of amenities, services and utilities such as transport, electricity, water, drainage, plantation and land scape;
   • (d) prescribe in detail the foot print, height and building envelope, control over architectural features including elevation and frontage, numbers of stories, size of buildings, courtyard, pickup and drop off points, entry points to.the basement, parking and such other requirement to integrate the building envelope in the vicinity;
   • (e) indicate the phasing of the program of development and the cost of development and the share to be paid by each owner or the beneficiary;
   • (f) access the cost of works to be provided by the appropriate authority and the contribution of fees to be paid by different owners;
   • (g) make such provisions as are necessary which are enumerated in clause (m) of sub-section
3. (2) of section 12;
   • (h) indicate in the plan and other document, the land which shall vest with the appropriate authority.
4. (4) The appropriate authority, after making the draft Local Area Plan, shall-
   • (a) for the purpdse of making the Local Area Plan call a meeting or meetings of the persons affected by the Local Area Plan, by a public notice and notices to the individuals whose addresses are known, and explain the contents of the Local Area Plan for invited their objections and suggestions on the said proposal.
   • (b) Consider the objections and suggestions received under sub clause (a), and modify the plan as it thinks fit and publish it in the Official Gazette, inviting objections and suggestions from the person affected by the Local Area Plan within a period of thirty days.
5. (5) The appropriate authority may consider the objection and suggestions received under clause (b) of sub-section (4) and modify the plan if necessary and thereafter, the same shall be submitted to the State Government along with objection and suggestions; and its conclusion thereon.
6. (6) On receipt of the draft Local Area plan under sub-section (5), the State Government may, by notification,-
   • (a) sanction such local area plan with or without modification or subject to such conditions as it may think fit to impose; or
   • (b) return the plan to the appropriate authority with directions as it may think fit; or
   • (c) refuse to accord sanction]

Costs of Scheme.

1. (a) all sums payable by the appropriate authority under the provisions of this Act, which are not specifically excluded from the costs of the scheme;
2. (b) all sums spent or estimated to be spent by the appropriate authority in the making and execution of the scheme : 1[Provided that the estimates shall be with reference to the period during which the preliminary scheme is to be implemented after it is sanctioned under section 65];
3. (c) all sums payable as compensation for land reserved or designated for any public purpose or for the purposes of the appropriate authority which is solely beneficial to the owners of land or residents within the area of the scheme;
4. (d) such portion of the sums payable as compensation for land reserved or designated for any public purpose or for the purpose of the appropriate 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;
5. (e) all legal expenses incurred by the appropriate authority in the making and in the execution of the scheme;
6. (f) 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; 2[(g) 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.]

1. (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 (f) 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). 1. This proviso was added by Guj. 4 of 1986, s. 3 (a).

2. Clause (g) was inserted, ibid., s. 3. (b)

For the purpose of this 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.

Contribution towards costs of scheme. 79. (1) The costs of the scheme shall be met wholly or in part by a contribution to be levied by the appropriate authority on each plot included in the final scheme calculated in proportion to the increment which is estimated to accrue in respect of such plot by the Town Planning Officer :

Provided that-

1. (i) (a) where the cost of the scheme does not exceed half the increment, the cost shall be met wholly by a contribution, and

1. (b) where it exceeds half the increment, to the extent of half the increment it shall be met by a contribution and the excess shall be borne by the appropriate authority;
   • (ii) where a plot is subject to a mortgage with possession or to a lease, the Town Planning Officer shall determine in what proportion the mortgagee or lessee on the one hand and the mortgagor or lessor on the other hand shall pay such contribution;
   • (iii) no such contribution shall be levied on a plot used, allotted or reserved for a public purpose or for the purpose of the appropriate authority which is solely beneficial to the owners of land or residents within the area of the scheme; and
   • (iv) the contribution levied on a plot used, allotted or reserved for a public purpose or for the purpose of the appropriate authority which is beneficial partly to the owners of land or residents within the area of the scheme and partly to the general public shall be calculated in proportion to the benefit estimated to accrue to the general public from such use, allotment or reservation.

1. (2) The owner of each plot included in the final scheme shall be primarily liable for the payment of the contribution leviable in respect of such plot. Certain amounts to be added to, or deducted from, contribution leviable from a person.

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 leviable from such person, each of such plots being estimated at its market value at the date of the declaration of intention to make a scheme or the date of the notification issued by the State Government under sub-section (1) of section 43 and without reference to improvements contemplated in the scheme other than improvements due to the alteration of its boundaries.

Transfer of right from original to final plot or extinction of such right.

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

Provided that an agricultural lease shall not be transferred from an original plot to a final plot without the consent of all the parties to such lease.

the making of a town planning scheme shall, if he makes a claim before the Town Planning Officer within the prescribed time, be entitled to be compensated in respect thereof by the appropriate authority or by any person benefitted or partly by the appropriate authority and partly by such person as the Town Planning Officer may in each case determine : Compensation in respect of property or right injuriously affected by scheme. 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 State

1. (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 provisions 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. Exclusion of compensation in certain cases.
2. (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 specified in clause (k) of sub-section (3) of section 40.

preliminary scheme or if the contribution to be levied from him under section 79 is less than the total amount to be deducted therefrom under any of the provisions of this Act, the net amount of his loss shall be payable to him by the appropriate authority in cash or in such other manner as may be agreed upon by the parties. Provision for cases in which amount payable to owners exceeds amount due from him.

85. (I) If from any cause the total amount which would be due to the appropriate authority under the provisions of this 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 Town Planning Officer shall at the request of the appropriate authority direct the owner of such plot to make payment to the appropriate authority of the amount of such excess.

Provision for

case in which value of developed plot is less than amount payable by owner.

1. (2) If such owner fails to make such payment within the prescribed period, the Town Planning Officer shall, if the appropriate 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 appropriate 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 (1) 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 appropriate authority free from all encumbrances but subject to the provisions of this Act:

All payments due to be made to any person by the appropriate authority under this Act shall, as far as possible, be made by adjustment in such account with the appropriate 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. Payment by adjustment of account. Payment of net amount due to appropriate authority. 87. (1) The net amount payable under the provisions of this 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.

1[(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 49 of the Reserve Bank of India Act, 1934, from time to time, shall be charged per annum on the net amount payable.]

II of 1934.

1. (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 appropriate authority, he shall be deemed to have exercised the option of paying contribution in installments 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.
2. (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 this 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 appropriate authority agree to a different method of distribution. Power of appropriate authority to make agreement. 88. (1) The appropriate 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 State 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.
3. (2) Such agreement shall not in any way affect the duties of the Town Planning Officer as described in Chapter V 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 Town Planning Officer: Provided that if the agreement is modified by the State Government, either party shall have the option of avoiding it, if it so elects.

1. (1) Any sum due to the appropriate authority under this Act or any regulation made thereunder 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 State Government thereon.
2. (2) Any sum due to the appropriate authority under this Act or any regulation made thereunder which is not paid on demand on the day on which it becomes due or on the day fixed by the appropriate authority shall be recoverable by the appropriate 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. H-86-11
3. (3) In lieu of the recovery of the dues of the appropriate 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. Power of appropriate authority to borrow money for development plan or for making or executing a town planning scheme.

90. (1) An appropriate authority may for the purpose of a development plan

or for the making or execution of a town planning scheme borrow moneys and if the appropriate authority is a local authority the money shall be borrowed in accordance with the provisions of the Act under which the local authority is constituted or if such Act does not contain any provision for such borrowing, in accordance with the Local Authorities Loans Act, 1914, or as the case may be, the Saurashtra Local Authorities Loans Act, 1951.

9 of 1914. Sau. XVIII of 1951.

1. This sub-section was substituted by Guj. 4 of 1986, s. 4,.

1. (2) Any expenses incurred by an appropriate authority or the State Government under this Act in connection with a development plan or a town planning scheme may be defrayed out of the funds of the appropriate authority. 91. (1) An appropriate authority shall have and maintain its own fund to which shall be credited- Fund of the appropriate authority.
   • (a) all moneys received by the authority by way of grants, loans, 1[advances, fees, development charges or otherwise;]
   • (b) all moneys derived from its undertakings, projections and other sources;
   • (c) such amount of contributions from local authorities as the State Government may specify from time to time to be credited to the fund of the authority.
2. (2) The fund of an appropriate authority shall be applied towards meeting-
   • (a) expenditure incurred in the administration of this Act;
   • (b) cost of acquisition of land for the purposes of this Act;
   • (c) expenditure for any development of land in the development area;
   • (d) expenditure for such other purposes as the State Government may direct.
3. (3) An appropriate authority may keep in current account with the State Bank of India or any other bank approved by the State Government in this behalf, such sums of money out of its fund as may be prescribed and any money in excess of the said sum shall be invested in such manner as may be approved by the State Government.
4. (4) The State Government may, make such grants, advances and loans to an appropriate authority as the State Government may deem necessary for the performance of its functions under this Act and all grants, loans and advances so made shall be made on such terms and conditions as the State Government may determine. 2[91A. (1) Notwithstanding anything contained in this Act and the rules or regulations made thereunder, any amount received towards development charge and fees collected under clause (vii-a) of sub- section (1) of section 7, or under clause (m) of sub- section (2) of section 12, or fees collected under clauses (vi-a) and (ix-a) of sub- section (1) of section 23, as the case may be, shall be credited to a fund called the "Consolidated Infrastructure Fund" which shall be held by the appropriate authority in the trust for the purposes' of augmentation, improvement or creation of any infrastructure facility.
5. (2) The State Government, may by specific or special order, may utilise the fund in such proportion as it may think fit for any of the Establishment of Consolidated Infrastructure Fund. purposes provided under subjection (1).]

or for making or executing a town planning scheme. 41

rate of interest and for such period and upon such terms, as the State Government may approve, any sum of money necessary for the purpose of— Power of authority to borrow money.

1. (a) meeting expenditure debitable to the capital amount;
2. (b) repaying any loan previously taken under this Act.

for the repayment of, loans shall be made in priority to all other payments due from the said authority.

Priority of

payment for interest and repayment of loans.

time, every year, as may be prescribed, a budget in respect of the financial year next ensuing, showing the estimated receipts and expenditure of the authority and shall forward to the State Government such number of copies thereof, as may be prescribed.

Budget of

authority. 1. These words were substituted for the words "advances or otherwise" by Guj. 3 of 1995, s. 11. 2. section 91A was inserted by Guj. 11 of 2014, s. 20.

1. (1) An appropriate authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the balance sheet in such form as the State Government may prescribe.
2. (2) The accounts of an appropriate authority shall be subject to audit annually by the Accountant General of the State and any expenditure incurred by him in connection with such audit shall be payable by the authority to the Accountant General.
3. (3) The Accountant General or any person appointed by him in connection with the audit of accounts of an appropriate authority shall have the same rights, privileges and authority in connection with such audit as the Accountant General has in connection with Government accounts and in particular shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the office of the appropriate authority.
4. (4) The accounts of an authority as certified by the Accountant General or any other person authorised by him in this behalf, together with the audit report thereon, shall be forwarded annually to the State Government.

An appropriate authority shall prepare for every year, a report of its activities during the year and submit the report to the State Government in such form and on or before such date as may be prescribed.

1. (1) An appropriate authority shall constitute, for the benefit of its salaried wholetime members and of its officers and other employees in such manner and subject to such conditions as may be prescribed, such pension and provident funds as it may deem fit.
2. (2) Where any such pension or provident fund has been constituted, the State Government may declare that the provisions of the Provident Funds Act, 1925, shall apply to such fund as if it were a Government Provident Fund. 19 of 1925. Offences and penalties.

condition imposed under clause (b), of sub-section (1) of section 49 shall, on conviction, be punished with fine which may extend to five thousand rupees and the court shall, in such order of conviction, direct that if such contravention continues after the date of the order

of conviction, a fine not exceeding one hundred rupees per day for the period during which the contravention continues shall be recovered from the person so convicted: Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the Court, the fine shall not be less than five hundred rupees and in the case of a continuing contravention, the fine shall not be less than fifty rupees, per day.