Power of Local Development Authority to require local authority to assume responsibilities in certain cases

Power of Local Development Authority to require local authority to assume responsibilities in certain cases.

1. (1) Where any area has been developed by the Local Development Authority, it may require the local authority within whose local limits the area so developed is situated, to assume responsibility for the maintenance of the amenities which have been provided in the area by the Local Development Authority and for the provisions of the amenities which have not been provided by the Local Development Authority but which in its opinion should be provided in the area, on terms and conditions agreed upon between the Local Development Authority and local authority, and where such terms and conditions cannot be agreed upon, then on a reference of the matter to the State Government by the Local Development Authority on terms and conditions settled by the Government in consultation with the local authority.
2. (2) The transfer of a developed area shall take effect immediately after five years after completion of development works or as may be decided by the Local Development Authority and it shall be obligatory on the part of local authority to take over the area under sub-section
3. (1) above.
4. (3) If the local authority recovers taxes from such an area prior to the period of five years, the transfer shall take effect from the date of recovery of taxes.