Constitution of Development Fund

(1) Every promoter to whom a licence has been granted under section 78p to develop a colony shall deposit the service charges as may be prescribed. (2) The amount of service charges levied under sub-section (1) if not paid within the stipulated period, shall be recoverable as arrears of land revenue or the Director may cancel his licence after giving him an opportunity of being heard. (3) The amount of service charges deposited by the promoter under sub-section (1) or recovered under sub-section (2) shall constitute a fund to be called “the Development Fund” (hereinafter referred to as the “Fund”) and shall vest with the Director. (4) The fund shall be utilized by the Director for the benefit of the allottees, for development of the colonies, to promote research and development in town and country and urban affairs and for such other similar purposes as may be prescribed. (5) The State Government shall publish annually in the Official Gazette the report of the activities financed from the Fund and the statement of accounts.