Chapter III OUTLINE DEVELOPMENT PLAN

1. (1) Every planning authority shall, as soon as may be, carry out a survey of the area within its jurisdiction and shall, not later than two years from the date of declaration of the local planning area, prepare and publish in the prescribed manner a master plan for such area and submit it to the State Government, through the Director, for provisional approval.
2. (2) If the master plan is not prepared, published and submitted to the State Government by the Planning Authority within the period specified in sub-section (1), the State Government may authorise the Director to prepare and publish such plan in the prescribed manner and direct the cost thereof to be recovered from the Planning Authority out of its funds, notwithstanding anything contained in any law relating to the said fund.
3. (3) Notwithstanding anything contained in sub-section (2), if any Planning Authority is converted into, or amalgamated with any other Planning Authority or is sub-divided into two or more Planning Authorities, the master plan prepared for the area by the planning authority so converted, amalgamated or sub-divided shall, with such alterations and modifications as the State Government may approve, be deemed to be the master plan for the area of the new Planning Authority or authorities into or with which the former Planning Authority was converted, amalgamated or sub-divided.
4. (4) A copy of the master plan with the report sent to State Government under sub-section
5. (1) or sub-section (3) shall be kept open for inspection by the public at the head office of the Planning Authority.]1 1. Section 9 substituted by Act 1 of 2005 w.e.f. 14.2.2005.

1[(1) A Planning Authority, before carrying out a survey of the area under its jurisdiction under sub-section (1) of section 9, for the purpose of preparing a Master Plan for such area, shall make a declaration of its intention to prepare such plan and shall despatch a copy of such resolution with a copy of plan showing only boundary of the entire area proposed to be included in the master plan to the State Government. The planning authority shall publish a notice of such declaration in the Official Gazette and also in one or more local newspaper in the prescribed manner calling suggestions from the public within a period of sixty days:

Provided that no such declaration of intention need be made when the masterplan is prepared and published by the Director under sub-section (2) of section 9.]1

¹ Substituted by Act 1 of 2005 w.e.f. 14.2.2005.

1. (2) If within two months from the date of publication of the declaration under sub-section (1) any member of the public communicates in writing to the Planning Authority any suggestion relating to such plan, the Planning Authority shall consider such suggestion and may, at any time, before sending the Plan to the State Government make such modification in the plan as it thinks fit. 1[(3) A copy of the plan showing the boundaries of the area included in the master plan shall be opened to public at all reasonable hours at the office of the Planning Authority or Local Authority.]1

¹ Inserted by Act 1 of 2005 w.e.f. 14.2.2005.

For the purpose of carrying out a survey for preparation of an outline development plan and for the purpose of preparing of such plan, any person authorised by the Director or the Planning Authority or any public servant or person duly authorised or appointed under this Act may, after giving such notice as may be prescribed to the owner, occupier or other person interested in the land, enter upon, survey and mark out such land and do all things necessary for such purpose.

(1) The Master Plan shall consist of a series of maps and documents indicating the manner in which the development and improvement of the entire planning area within the jurisdiction of the Planning Authority are to be carried out and regulated, such plan shall include proposals for the following, namely:- (a) zoning of land use for residential, commercial, industrial, agricultural, recreational, educational and other purposes together with Zoning Regulations; 2[(aa) Present land use maps and proposed land use map prepared for the local planning area, local authority jurisdiction and for every ward within the local authority boundaries.]2 (b) a complete street pattern, indicating major and minor roads, national highways, and state highways, and traffic circulation pattern, for meeting immediate and future requirements with proposals for improvements; (c) areas reserved for parks, playgrounds, and other recreational uses, public open spaces, public buildings and institutions and area reserved for such other purposes as may be expedient for new civic developments; (d) areas earmarked for future development and expansion; (e) reservation of land for the purposes of Central Government, the State Government, Planning Authority or public utility undertaking or any other authority established by Law, and the designation of lands being subject to acquisition for public purposes or as specified in Master Plan or securing the use of the landing in the manner provided by or under this Act; (f) declaring certain areas, as areas of special control and development in such areas being subject to such regulations as may be made in regard to building line, height of the building, floor area ratio, architectural features and such other particulars as may be prescribed; (g) stages by which the plan is to be carried out. Explanation: (i) “Building Line” means the line up to which the plinth of a building adjoining a street may lawfully extend and includes the lines prescribed, if any, in any scheme; (ii) “Floor Area Ratio” means the quotient of the ratio of the combined gross floor area of all the floors, excepting areas specifically exempted under the regulations, to the total area of the plot. (2) The following particulars shall be published and sent to the State Government through the Director along with the masterplan, namely:- (i) a report of the surveys carried out by the Planning Authority before the preparation of such plan; (ii) a report explaining the provisions of the Master Plan; (iii) regulations in respect of each land use zone to enforce the provisions of such plan and explaining the manner in which necessary permission for developing any land can be obtained from the Planning Authority; (iv) a report of the stages by which it is proposed to meet the obligations imposed on the Planning Authority by such plan. (3) Master Plan shall indicate “Heritage Buildings” and “Heritage Precincts” and shall include the regulations made therein for conservation of the same.]1 1. Substituted by Act 1 of 2005 w.e.f. 14.2.2005. 2. Inserted by Act 47 of 2020 w.e.f. 20.10.2020

1. (a) zoning of land use for residential, commercial, industrial, agricultural, recreational, educational and other purposes together with Zoning Regulations; 2[(aa) Present land use maps and proposed land use map prepared for the local planning area, local authority jurisdiction and for every ward within the local authority boundaries.]2
2. (b) a complete street pattern, indicating major and minor roads, national highways, and state highways, and traffic circulation pattern, for meeting immediate and future requirements with proposals for improvements;
3. (c) areas reserved for parks, playgrounds, and other recreational uses, public open spaces, public buildings and institutions and area reserved for such other purposes as may be expedient for new civic developments;
4. (d) areas earmarked for future development and expansion;
5. (e) reservation of land for the purposes of Central Government, the State Government, Planning Authority or public utility undertaking or any other authority established by Law, and the designation of lands being subject to acquisition for public purposes or as specified in Master Plan or securing the use of the landing in the manner provided by or under this Act;
6. (f) declaring certain areas, as areas of special control and development in such areas being subject to such regulations as may be made in regard to building line, height of the building, floor area ratio, architectural features and such other particulars as may be prescribed;
7. (g) stages by which the plan is to be carried out. Explanation:
   • (i) “Building Line” means the line up to which the plinth of a building adjoining a street may lawfully extend and includes the lines prescribed, if any, in any scheme;
   • (ii) “Floor Area Ratio” means the quotient of the ratio of the combined gross floor area of all the floors, excepting areas specifically exempted under the regulations, to the total area of the plot.

1. (2) The following particulars shall be published and sent to the State Government through the Director along with the masterplan, namely:-
   • (i) a report of the surveys carried out by the Planning Authority before the preparation of such plan;
   • (ii) a report explaining the provisions of the Master Plan;
   • (iii) regulations in respect of each land use zone to enforce the provisions of such plan and explaining the manner in which necessary permission for developing any land can be obtained from the Planning Authority;
   • (iv) a report of the stages by which it is proposed to meet the obligations imposed on the Planning Authority by such plan.
2. (3) Master Plan shall indicate “Heritage Buildings” and “Heritage Precincts” and shall include the regulations made therein for conservation of the same.]1

¹ Substituted by Act 1 of 2005 w.e.f. 14.2.2005.

² Inserted by Act 47 of 2020 w.e.f. 20.10.2020

(1) On receipt of the Master Plan with the reports referred to in section 12 from the Planning Authority under sub-section (1) of section 9, or after such plan and reports are prepared and published under sub-section (2) of section 9, the State Government after making such modifications as it deems fit or as may be advised by the Director, shall return through the Director, the plan and the reports to the Planning Authority, which shall thereupon publish, by notification, the plan and the reports inviting public comments within sixty days of such publication 2[Simultaneously, the plan and reports shall be forwarded to the local authorities within the local planning area, which shall, within sixty days from the date of receipt thereof, forward to the Planning Authority, its approval or any observations to be considered by the Authority, failing which the approval of the local authority shall be deemed to have been given.]2

1. (2) If within sixty days of the publication under sub-section (1), any member of the public communicates in writing to the Planning Authority any comments on the plan and the reports, the Planning authority shall consider such comments and resubmit the plan and the reports to the State Government, through the Director with recommendations for such modifications in the plan and reports as it considers necessary in the light of the public comments made on the plan and reports.
2. (3) The State Government, after receiving the plan and the reports and the recommendations for modifications from the Planning Authority, shall, in consultation with the Director, give its final approval to the plan and the reports with such modifications as the Director may advice in the light of the comments and the recommendations of the Planning authority or otherwise.
3. (4) The Planning Authority shall then publish in the prescribed manner the Master Plan and the reports as finally approved by the State Government. The plan and the reports shall be permanently displayed in the offices of the Director and the Planning Authority and a copy shall be kept available for inspection of the public at the office of the Planning Authority.]1 1[13-A. Interim Master Plan.- (1) Pending the preparation of Master Plan, a Planning Authority may, where it considers it expedient, and shall, when so directed by the State Government, prepare and publish the Interim Master Plan for the entire area within the jurisdiction of the Planning Authority, or for any part thereof; and their upon, the provisions of section 13 shall, so far as may be, but subject to the provisions of this section, apply in relation to such Interim Master Plan as they apply in relation to the preparation and publication of the Master Plan.
4. (2) The Planning Authority shall prepare and publish such plan not later than one year from the date of notice in the official Gazette of its declaration of intention to prepare a Master plan or not later than such further period not exceeding one year as may be extended by the State Government.
5. (3) The Interim Master Plan shall provide only for matters mentioned in clauses (a), (b) and (c) of section 12 and if necessary, such other matters specified in that section as the Planning Authority may decide to include or as may be directed by the State Government.
6. (4) The Interim Master Plan shall consist of such maps and such descriptive matters as the Planning Authority may consider necessary to explain and illustrate the proposals made in such plan. 13-B. Preparation of Master Plan for Additional Area. – If at any time after a Planning Authority has declared its intention to prepare a Master Plan or after a Master Plan prepared by a Planning authority has been sanctioned the jurisdiction of the Planning Authority is extended by inclusion of an additional area, the Planning Authority after following the provisions of this Act for the preparation of a Master Plan, prepare and publish a Master Plan for such additional area either separately or jointly with the provisional or final Master Plan prepared or to be prepared for the area originally under its jurisdiction, and submit it to the State Government for sanction after following the same procedure as it followed for submission of a Master Plan to the State Government for approval: Provided that, where a Master Plan for the additional area requires modification of the final Master Plan or where the State Government directs any such modifications, the Planning Authority shall revise the final Master Plan after following the procedure laid down in section 9, so far as may be relevant. 13-C. Existing Outline Development Plan or Comprehensive Development Plan deemed to be Master Plan - (1) The declaration of intention of making an Outline Development Plan published by the State Government under sub-section (1) of section 10 immediately prior to the commencement of the Karnataka Town and Country Planning (Amendment) Act, 2004 (hereinafter in this section referred to as the Amendment Act), shall be deemed to be the declaration of intention of making Master Plan under this Act.
7. (2) The Outline Development Plan or Comprehensive Development Plan prepared by any Planning Authority and provisionally or finally approved by the State Government under section 13, or as the case may be, under section 22 prior the commencement of the Amendment Act shall be deemed to be the Master Plan provisionally, or as the case may be, finally approved under this Act.
8. (3) The Comprehensive Development Plan prepared by any Planning Authority revised under section 25 prior to the commencement of the Amendment Act shall be deemed to be Master Plan revised under this Act. 13-D. Revision of Master Plan. – At least once in every ten years from the date on which the Master Plan has come into force, subject to the provisions of section 13-C, the Planning Authority may and if directed so by the State Government shall, carryout a fresh survey of the area within its jurisdiction, with a view to revising the existing Master Plan and the provisions of section 9 to section 12 (both inclusive) shall mutatis mutandis apply in respect of such revision of the Master Plan.” 13-E. Amendment to Regulations. - The State Government may, after previous publication of the draft for not less than one month by notification make amendments to regulations.]1 1. Sections 13-A to 13-E inserted by Act 1 of 2005 w.e.f. 14.2.2005.

¹ Substituted by Act 1 of 2005 w.e.f. 14.2.2005.

² Inserted by Act 47 of 2020 w.e.f. 20.10.2020.

¹ Substituted by Act 1 of 2005 w.e.f. 14.2.2005.

1[(1) On and from the date on which a declaration of intention to prepare a Master Plan is published under subsection (1) of section 10, every land use, every change in land use and every development in the area covered by the plan subject to section 14-A shall conform to the provisions of this Act, the Master Plan and the Report, as finally approved by the State Government under sub-section (3) of section 13.]1 (2)1[x x x]1, no such change in land use or development as is referred to in sub-section (1) shall be made except with the written permission of the Planning Authority which shall be contained in a commencement certificate granted by the Planning Authority in the form prescribed.

¹ Omitted by Act 14 of 1964 w.e.f. 26.03.1964

1[Provided that where the use or change of land use under this section needs the diversion of agricultural land to non-agricultural purposes, such use or change of use shall not be permitted unless permission is obtained in accordance with the provisions of the Karnataka Land Revenue Act, 1964 for such diversion.]1

¹ Inserted by Act 2 of 1991 w.e.f 20.03.1991.

Explanation.— For the purpose of this section,—

1. (a) the expression “development” means the carrying out of building or other operation in or over or under any land or the making of any material change in the use of any building or other land;
2. (b) the following operations or uses of land shall not be deemed to involve a development of any building or land, namely:—
   • (i) the carrying out of works for maintenance, improvement or other alteration of any building, being works which affect only the interior of the building or which do not materially affect the external appearance of the building; 1[XXX]1 1. (ii) and (iii) omitted by Act 23 of 2004 w.e.f. 3.06.2004
   • (iv) the use of any building or other land within the curtilage of a dwelling house for any purpose incidental to the enjoyment of the dwelling house as such;
   • (v) when the normal use of land which was being temporarily used for any other purpose on the day on which the declaration of intention to prepare the outline development plan is published under sub-section (1) of section 10 is resumed;
   • (vi) when land was normally used for one purpose and also on occasions for any other purpose, the use of the land for that other purpose on similar occasions.

1. (3) Every application for permission under sub-section (2) shall be accompanied by a plan, drawn to scale showing the actual dimensions of the plot of land in respect of which permission is asked, the size of the building to be erected and the position of the building upon the plot and such other information as may be required in this behalf by the Planning Authority.

1. (1) At any time after the date on which the outline development plan for an area comes into operation, the Planning Authority may, with the previous approval of the State Government, allow such changes in the land use or development from the outline development plan as may be necessitated by topographical cartographical or other errors and omissions, or due to failure to fully indicate the details in the plan or changes arising out of the implementation of the proposals in outline development plan or the circumstances prevailing at any particular time, by the enforcement of the plan: Provided that,(a) all changes are in public interest; (b) the changes proposed do not contravene any of the provisions of this Act or any other law governing planning, development or use of land within the local planning area; and
   • (c) the proposal for all such changes are published in one or more daily newspapers, having circulation in the area, inviting objections from the public within a period of not less than fifteen days from the date of publication as may be specified by the Planning Authority.
2. (2) The provisions of sub-section (2) and (3) of section 14 shall apply mutatis mutandis to the change in land use or development from the outline development plan.]1 4[3[2[(3) Notwithstanding anything contained in this Act, whenever any land is procured by the Planning Authority, Local Authority, Karnataka Housing Board, Karnataka Slum Development Board, Karnataka Industrial Area Development Board, Karnataka Small Scale Industries Development Corporation or Rajiv Gandhi Rural Housing Corporation Limited for any public purpose, the land use of such land, excluding lands reserved under clauses (b), (c) and (f) of sub-section (1) of section 12 shall be deemed to be the land use for the purpose for which it has been procured. ]2]3
3. (4) The Planning Authority shall levy such fee as may be prescribed by the Government before allowing such change of land use from the Master Plan.]4 2. Sub-section (3) Inserted by Act 1 of 2005 w.e.f. 14.2.2005. 2[1[14B. Benefit of development rights.-(1) In a Local Planning Are if any Public Authority requires any 'Area' for the public purpose, it shall notify the same in such manner as may be prescribed and the owner of such 'Area' hands over possession of such 'Area' free from all encumbrances to such Public Authority in lieu of any compensation, under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (central Act 30 of 2013) or any other law, he shall, notwithstanding anything contained in this Act or regulations, be entitled to be granted Development Rights (DR) under this section subject to conditions specified below. The Planning Authority shall issue Development Rights 3[in the form of Notional land]3 to such persons not more than the extent specified in table below, subject to such terms and conditions as may be prescribed. 3[The site remaining after surrender shall have same floor area which was available before surrender for the original site or land as per regulation.]3 3[Provided that, any ‘Area’ surrendered in the above manner before 03.06.2004 shall not be eligible for Development Rights.]3
4. (2) The provisions of this section shall be applicable to the Local Planning Areas having City corporation and may be extended to other Local Planning areas as and when required by the State Government by notification from time to time. 4[(3) No Development Rights shall be granted under this section unless the Public Authority deposits the amount with Local Authority equal to one percent of the market value of the area required: Provided that, the State or Central Government Agencies for the development of affordable housing projects, slum redevelopment projects, Local Authority and Planning Authority are exempted from such deposition.]4 4[(4) whenever, the Public Authority intends to procure any ‘Area’ for any public purpose under sub-section (1), it shall follow the prescribed procedure to,-
   • (i) notify the details of the Area, seeking consent or objection from the owners of the Area or interested persons, to surrender the Area by availing Development Rights, instead of monetary compensation, within thirty days from the date of publication of the notification in the Official Gazette and in two daily newspapers;
   • (ii) get the consent of the owners to surrender the ‘Area’ by availing Development Rights;
   • (iii) issue Provisional Acceptance Order and take physical possession of the ‘Area’ agreed to be surrendered by the owner;
   • (iv) get the Relinquishment deed executed and registered in favour of the Public Authority; and
   • (v) recommend to the Planning Authority to issue Development Rights Certificate to the owners for the Area surrendered with a certificate that no development rights certificate or compensation had been issued in this regard by any Public Authority or Planning Authority: Provided that, in case the land owner or interested persons submit the claim to surrender the remaining portion of the land notified under clause (i) as the land is rendered unfit for the beneficial use of the land owner or interested persons, the Public Authority shall conduct the enquiry and pass suitable order to procure the remaining portion of the land and obtain the registered relinquishment deeds from the land owners.]4 4[(5) on receipt of the recommendation from the Public Authority, the Planning Authority shall, after verification that no Transferable Development Right has been issued before by that Planning Authority on the same parcel of land, within thirty days from the date of receipt of recommendations issue Development Right Certificate to the owner in the prescribed form, under intimation to the Public Authority specifying the extent of notional land as Development rights admissible subject to such terms and conditions as may be prescribed. Any liability with respect to the issue of Development right arising out of the action of the Public Authority under sub-section (4) shall be limited to the Public Authority and the Planning Authority shall not be held responsible for the same.]4
5. (6) If the owner does not agree to surrender his 'Area" required by a public Authority for any public purpose, for the Development Rights and demands for monetary compensation, then the public Authority may acquire such 'Area' by providing compensation as per the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (central Act 30 of 2013) or any other law prevailing.
6. (7) Any 'Area owned by Public Authority required for public purpose by a Local Authority shall also be eligible to obtain Development Right if such 'Area is surrendered to the Local Authority in lieu of any compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (central Act 30 of 2013).
7. (8) The Authority competent to approve Building plan shall not approve utilization of the Development Right unless an entry to that effect is made in the Development Rights Certificate and in the register/database maintained by the Planning Authority as prescribed. 5[(9) XXX]5 Provided that no such application shall be rejected without giving opportunity of hearing to the public Authority and the owner of such land.
8. (10) The Development Rights shall be calculated based on the land area or building area surrendered by the owner to any Public Authority free from all encumbrances and without claiming any compensation. The Land or building area so surrendered shall be converted into 'Notional Land' to extent specified in the Table below based on the value of the land determined on the basis of Market value notified by the State Government under the Karnataka Stamp Act, 1957. 3[Provided that, in cases where land has been procured and possession has been taken by the Public Authority five years or more prior to the date of commencement of the Karnataka Town and Country Planning (Amendment) Act, 2021 for the purpose specified above but no Development Right Certificate has been issued till the commencement of the said amendment Act, in such procurement process land owners shall be eligible for benefit of Development Rights as per the said amendment Act.]3
9. (11) The Deposition amount or fee amount received by the Planning Authority under sub section (3) or sub section (27) shall be kept in a separate account called Transferable Development Rights Fund of the Planning Authority and shall be granted and utilized in the concerned Local Planning Area by the concerned Local Authority or Planning Authority in the prescribed manner.
10. (12) The Development Rights so issued shall be utilized within the same Local planning Area to which it is issued. 4[(13) The Development rights may be utilized within the same plot or in other area in the same Local Planning area or as notified by the Government, by the owner or the owner of such Development Rights may transfer the Development rights to a transferee as Transferable Development Rights which may be sold or utilized in any area as prescribed within the Local Planning Area or as notified by the Government.]4
11. (14) The utilisation of Development Rights at the receiving plot shall be subject to limitations, as may be prescribed.
12. (15) Whenever the owner sells the Development Rights, it shall be registered in the Planning Authority after due entry in the register/database and on the Development Rights Certificate.
13. (16) No transfer or utilization of the Development Right shall be valid unless it is registered by the Planning Authority.
14. (17) The Planning Authority shall maintain a register/database and shall make entry of issue, transfer or utilization of Development Rights granted under this section in such manner as may be prescribed.
15. (18) Issue, transfer or utilization of the Development Rights may be done through electronic form and through internet in such manner as may be prescribed.
16. (19) The State Government shall establish a State level Development rights monitoring authority consisting of such number of members as may be prescribed to keep track of all transactions of Development Rights. It shall also have power to inspect, verify the records of concerned planning Authority 3[and Public Authority]3 pertaining to these transactions. It shall also have power to prosecute persons responsible for illegal or fraudulent transactions in contravention of the provisions of this section 3[and for stocking, banking and trading of Development Rights or Transferrable Development Rights in the State.]3
17. (20) No person shall be eligible for the Development Rights for the surrender of the areas earmarked for road, parks or common open spaces and Civic Amenity sites to the Planning Authority or Local Authority while obtaining permission for formation of layouts or development any land under section 15 or 17.
18. (21) The Planning Authority shall periodically publish total number of Development Rights issued, transferred and the balance remaining in each Local Planning Area and the name of the holder in such manner as may be prescribed.
19. (22) Any person aggrieved by any 4[decision of the Public Authority or Planning Authority]4 may appeal to such Appellate Authority, in such manner, as may be prescribed. The appellate Authority may dispose the application with such direction as it deems fit. The decision of the appellate Authority shall be final.
20. (23) Any person who fraudulently create any Development Rights Certificate or fraudulently transfers Development Rights shall on conviction be liable for an imprisonment for not less than one year which may be extended to three years and to a fine which may extend to double the value of amount cheated by him.
21. (24) The member secretary of the Planning Authority 3[or the Chief Executive Officer of the Public Authority, as the case may be]3, shall be responsible to file complaint before the Court regarding the offences committed under this section.
22. (25) In case of any dispute arising over the ownership of the 'Area' surrendered, where the Development Rights Certificate issued for such 'Area' is already transferred and utilized by any person other than the person who has surrendered the 'Area', such claims shall be restricted only to the extent of eligibility of compensation from the person who has surrendered the 'Area' for Development Right. The Public Authority which verified the claims shall also be responsible for the wrong recommendation for issue of Development Right. It shall make good the loss occurred by it.
23. (26) All Development Rights issued before the commencement of the Karnataka Town and Country Planning (Amendment) Act, 2015 shall also be entered in the register/database maintained under this section in the same manner specified herein.
24. (27) Necessary fees as prescribed shall be collected by the Planning Authority for registering any transaction of issue, transfer or utilization of Development Rights Certificate.
25. (28) Every Transaction pertaining to issue, utilization or transfer of Development Rights and the Transferable Development Rights Fund of the Planning Authority created under sub-section (11) shall be audited every year by such officer as may be prescribed. The audit report alongwith compliance shall be sent to the Government by the concerned planning authority and the Government shall place the same before both the houses of the State legislature. 4[Table [see sub-section (1)] QUANTUM OF DEVELOPMENT RIGHTS PERMITTED

¹ Inserted by Act 17 of 1991 w.e.f. 19.04.1991.

³ Omitted by Act 38 of 2015 w.e.f 10.09.2015.

⁴ Inserted by Act 46 of 2020 w.e.f. 20.10.2020

1. (i) Any road widening/any road; formation as proposed in Master Plan or as proposed by the Local Authority or Developing Authority.; (ii) Any Infrastructure Projects approved by the Government (Transportation, Water Supply, Sewage, Electricity, etc.,).; (iii) Providing for parking, Parks, playgrounds, and open spaces, or any other public places proposed in the Master Plan or proposed by Local Authority and redevelopment projects on private land; (iv) Providing EWS/LIG/ affordable housing/Slum redevelopment project on private land; (v) Any other public purpose notified by the Government from time to time. DR in the form of notional land which shall be equal to two times of the Area surrendered.

]4

Note.- The Development Rights in the form of 'Notional Land' shall be multiplied by the permissible Floor Area Ratio of the plot where Development Rights or transferable Development Rights is proposed to be utilized, to derive the additional Floor Area eligible for that plot due to utilization of Development Rights or Transferable Development Rights.

Explanation.- for the purpose of this section,-

1. (a) "Area" means land/plot or land and building/portion of building thereon.
2. (b) "Deposition Amount" means the amount to be remitted by any Public Authority intending to acquire the area falling within the jurisdiction of the Local Planning Area. 5[XXX]5
3. (c) "Development Rights (DR)" means the right given for development of land within the Local Planning Area in the form of "Notional Land" to an owner who surrenders the area of land or building required for public purpose without claiming any compensation.
4. (d) "Development Right Certificate (DRC)" means the certificate of Development Rights issued to owner;
5. (e) "EWS/LIG" means such class of person as may be notified by the State Government from time to time;
6. (f) "Floor Area" means the floor area defined in the respective Zonal Regulations;
7. (g) "Market value" means the value determined as per the guidance value of land in accordance with a section 45B of the Karnataka Stamp Act, 1957;
8. (h) "Notional Land" means the Development Rights in the form of theoretical land area and not in the form of real/physical land area, in lieu of compensation;
   • (i) "Public Authority" means the Planning Authority, Local Authority or an authority or a body owned and controlled by the State Government, Central Government or by both State and Central Government jointly having Authority by laws to acquire, hold and dispose of property together;
9. (j) "Public purpose", means and includes for the purposes of,-
   • (i) Any road widening/any road formation as proposed in Master Plan or as proposed by the Local Authority;
   • (ii) Any Infrastructure projects approved by the Government (Transportation, Water Supply, Sewage, Electricity, etc.,..)
   • (iii) Providing for parking, parks, playgrounds and open spaces or any other public places proposed in the master plan or proposed by Local Authority except cases under Section 15 and 17;
   • (iv) Providing EWS/LIG/affordable housing; and
   • (v) Any other public purpose notified by the Government from time to time." 4[(k) “Transferable Development Rights” (TDR) means the Development Right in the form of notional land transferred by the owner to a transferee, which may be sold or disposed or utilized elsewhere in the Local Planning Area or any other area notified by the Government. The DR of the ‘Area’ surrendered in the form of Notional land, shall be permitted to be utilized as TDR, only after factorizing the market value of the originating plot and the receiving plot, as specified in the terms and conditions; and]1]2]4 3[(l) “Transferred Development Rights Certificate’” (TDRC) means the certificate of Development Rights transferred by the DRC holder as TDR. TDRC shall also be issued for the TDR transferred by any subsequent TDRC holder.]3 1. Section 14B Inserted by Act 23 of 2004 w.e.f 3.6.2004. 3. Deemed to have been Subsituted by Act 31 of 2021 w.e.f. 12.08.2021. 4. Deemed to have been Inserted by Act 31 of 2021 w.e.f. 12.08.2021. 5. Deemed to have been Omitted by Act 31 of 2021 w.e.f. 12.08.2021.

² Substituted by Act 38 of 2015 w.e.f 10.09.2015.

1. (1) On receipt of the application for permission under section 14, the Planning Authority shall furnish to the applicant a written acknowledgment of its receipt and after such inquiry as may be necessary either grant or refuse a commencement certificate: Provided that such certificate may be granted subject to such general or special conditions as the State Government may, by order made in this behalf, direct.
2. (2) If the Planning Authority does not communicate its decision to the applicant within three months from the date of such acknowledgment, such certificate shall be deemed to have been granted to the applicant. 1[Provided that the land use, change in land use or the development for which permission was sought for is in conformity with the outline development plan and the regulation finally approved under sub-section (3) of section 13.]1
3. (3) Subject to the provisions of section 16, no compensation shall be payable for the refusal of or the insertion or imposition of conditions in the commencement certificate.
4. (4) If any person does any work on, or makes any use of, any property in contravention of section 14 or of sub-section (1) of this section, the Planning Authority may direct such person by notice in writing, to stop any such work in progress or discontinue any such use; and may, after making an inquiry in the prescribed manner, remove or pull down any such work and restore the land to its original condition or, as the case may be, take any measure to stop such use.
5. (5) Any expenses incurred by the Planning Authority under sub-section (4) shall be a sum due to such Authority under this Act from the person in default or from the owner of the land. Explanation.—The power to grant necessary permission under this section for a change of user of land shall include the power to grant permission for the retention on land of any building or work constructed or carried out thereon before the date of the publication of the declaration of intention to prepare an outline development plan under sub-section (1) of section 10 or for the continuance of any use of land instituted before the said date. 1[(6) Any person aggrieved by the decision of the Planning Authority under sub-section (1) or sub-section (4) may, within thirty days from the date of such decision, appeal to such authority as may be prescribed.
6. (7) The prescribed authority may, after giving a reasonable opportunity of being heard to the appellant and the Planning Authority, pass such orders as it deems fit, as far as may be, within four months from the date of receipt of the appeal.]1 1. Sub-sections (6) and (7) Inserted by Act 17 of 1991 w.e.f. 19.4.1991

¹ Inserted by Act 17 of 1991 w.e.f. 19.04.1991.

1. (1) Where permission for change of land use of the kind referred to in the explanation to section 15 is refused or is granted subject to conditions, then, if any owner of the land claims,—
   • (a) that the land has become incapable of reasonable beneficial use in its existing state, or
   • (b) in a case where permission for such use is granted subject to conditions, that the land cannot be rendered capable of reasonable beneficial use, by carrying out the conditions of the permission, he may within the time and in the manner prescribed by regulations made by the Planning Authority, serve on the Planning Authority a notice (hereinafter referred to as a ‘purchase notice’), requiring the Planning Authority to purchase his interest in the land in accordance with the provisions of this section.
2. (2) Where a purchase notice is served on a Planning Authority under this section, the Planning Authority shall forthwith transmit a copy of the notice to the State Government through the Director, and the State Government shall, if it is satisfied that the conditions specified in paragraph (a) or (b) of sub-section (1), as the case may be, are fulfilled, confirm the notice, and thereupon, the Planning Authority shall be deemed to be authorised to acquire the interest of the owner compulsorily in accordance with the provisions of this Act, and to have served a notice to acquire in respect thereof on such date as the State Government may direct.
3. (3) If, within the period of six months from the date on which the purchase notice is served under this section, the State Government has not confirmed the notice, the notice shall be deemed to be confirmed at the expiration of that period, and the Planning Authority on which the notice was served shall be deemed to be authorised to acquire the interest of the owner compulsorily in accordance with the provisions of this Act at the expiration of the said period.
4. (4) The compulsory acquisition of the interest of the owner of a land under this section shall be deemed to be acquisition of land needed for a public purpose within the meaning of the Land Acquisition Act, 1894 (Central Act I of 1894).

1. (2) The Planning Authority may, within the prescribed period, sanction such plan either without modification or subject to such modifications and conditions as it considers expedient or may refuse to give sanction, if the planning authority is of the opinion that such plan is not in any way consistent with the proposals of the Master Plan. Provided that where the Master Plans are not finally approved, in such cases the Planning Authority may sanction the layout plan as per the guidelines issued by the Government from time to time. (2A) If the Authority decides to sanction the layout plans under sub-section (2), it shall sanction provisional layout plan in accordance with such rules as may be prescribed for demarcation and development purposes showing the sites, street alignment, 3[park and play ground]3 and civic amenity area and any other infrastructure facility including the arrangement to be made for leveling, paving, metalling, flagging, channeling, sewering, draining, street lighting and water supply to the satisfaction of the Planning Authority and local authority. One copy of such plan shall be marked to the jurisdictional local authority. The owner shall relinquish the roads, 3[parks and play ground]3 to the local authority and Civic Amenity areas to the Planning Authority through registered relinquishment deed free of cost without claiming any compensation. (2B) The Planning Authority shall ensure the completion of all development works including all infrastructure facilities as mentioned in sub-section (2A) under the supervision of the concerned Authority/ Agency/Department. On obtaining the certificate of completion from the concerned Authority/Agency/Department on having completed all the development works and on relinquishment of the roads, parks to the local authority and Civic Amenity areas to the Planning Authority and handing over the same, the Planning Authority may issue the final layout plan affixing the seal of the Planning Authority for registration purpose. Provided that no Commencement Certificate or licence shall be sanctioned or issued for buildings on sites in the layout unless the final layout plan is issued.]2 5[4[(2-C) The Planning Authority, if a person so desires, may also permit the release of sites in two stages. In such a case, the Planning Authority on approval of the provisional layout plan release forty percent of the sites in the layout in the first stage and shall release the remaining sixty percent of the sites on completion of all development works in the following manner, namely:-
   • (i) On approval of the provisional layout plan in the prescribed manner before releasing forty percent of sites, the Planning Authority shall,-
   • (a) obtain the registered relinquishment deed, in the prescribed form, from the applicant to relinquish the areas reserved and demarcated for park, playground and the roads in the layout to the Local Authority and the area reserved and demarcated for civic amenities to the Planning Authority without claiming any compensation;
   • (b) shall also obtain the registered mortgage agreement of all the corner sites in the layout to the Planning Authority; and
   • (c) ensure that the project is registered under the Real Estate (Regulation and Development) Act, 2016 (Central Act 16 of 2016).
     • (ii) After obtaining above documents the planning Authority shall release forty percent of the sites scattered in the layout showing the building sites released affixing the seal of the Authority on the provisionally approved layout plan which shall be sent to the Local Authority for issue of khata of such sites for registration purpose under the Karnataka Stamps Act, 1957 (Karnataka Act 34 of 1957) and the Registration Act, 1908 (Central Act XVI of 1908).
     • (iii) The Planning Authority shall ensure the completion of all development works including all infrastructure facilities as specified under sub-section (2-A), on conducting inspection by the concerned Authority or Agency or Department within three years from the date of approval of the provisional layout plan. In case the completion certificates for completion of all development works are not obtained within three years from the date of approval of the provisional layout plan, the Planning Authority may for the reasons to be recorded extend the period for completion of development by a further period of one year.
     • (iv) On completion of all development works and obtaining the completion certificates within three years or within the extended period and obtaining the certificate of completion from the concerned Authority or Agency or Department including the development of the park, playground and civic amenity sites, the Planning Authority shall approve the final layout plan releasing the remaining sixty percent of the sites along with the corner sites mortgaged to the Authority. A copy of the finally approved layout plan, affixing the seal of the Planning Authority, showing the building sites released shall be sent to the Local Authority for issue of khata of such sites for registration purpose under the Karnataka Stamps Act, 1957 (Karnataka Act 34 of 1957) and the Registration Act, 1908 (Central Act XVI of 1908): Provided that, in case the development works are not completed within the period specified under clause (iii), the corner sites mortgaged to the Planning Authority shall be forfeited to the Planning Authority.]4]5 6[(2-D). In case of layout provisionally approved under sub-section (2-B), the development works specified under sub-section (2-A) shall be completed within a period of three years from the date of approval of the provisional layout plan: Provided that, the Planning Authority may, on application made in this behalf, for reasons to be recorded in writing, extend the period for development of the layout to such further period not extending one year, as it considers necessary. In case the development works are not completed within such specified period, the permission granted by the Planning Authority shall lapse. The applicant shall thereafter seek fresh approval following due procedure. (2-E). Any building site which has not been released by the Planning Authority under this Act shall not be issued any Khata or given property index number (e-khata) under the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964), the Karnataka Municipal Corporations Act, 1976 (Karnataka Act 14 of 1976), the Karnataka Gram Swaraj and Panchayat Raj Act, 1993 (Karnataka Act 14 of 1993)or the Bruhat Bengaluru Mahanagara Palike Act, 2020 (Karnataka Act 53 of 2020) as the case may be.]6
2. (3) No compensation shall be payable for the refusal or the insertion, imposition or modification or conditions in the grant of sanction.
3. (4) If any person does any work in contravention of sub-section (1) or in contravention of the modifications and conditions of the sanction granted under sub-section (2) or despite refusal for the sanction under the said sub-section (2), the Planning Authority may direct such person by notice in writing to stop any work in progress and after making an inquiry in the prescribed manner, remove or pull down any work or restore the land to its original condition.
4. (5) Any expenses incurred by the Planning Authority under sub-section (4) shall be a sum due to the Planning Authority under this Act from the person in default. 1[(6) Any person aggrieved by the decision of the Planning Authority under sub-section (2) or sub-section (4) may, within thirty days from the date of such decision appeal to such authority as may be prescribed.
5. (7) The prescribed authority may after giving a reasonable opportunity of being heard to the appellant and the Planning Authority, pass such order as it deems fit, as far as may be, within four months from the date of receipt of the appeal.]1 1. Sub-sections (6) and (7) Inserted by Act 17 of 1991 w.e.f. 19.4.1991 5. Deemed to have been Substituted by Act 31 of 2021 w.e.f. 05.07.2021. 6. Deemed to have been Inserted by Act 31 of 2021 w.e.f. 05.07.2021.

² Substituted by Act 38 of 2015 w.e.f 10.09.2015.

³ Substituted by Act 34 of 2020 w.e.f 22.05.2020.

⁴ Inserted by Act 34 of 2020 w.e.f 22.05.2020.

¹ Substituted by Act 23 of 2004 w.e.f. 03.06.2004.

2[1[(1A) Where an application for permission for development of building or land or sanction for sub-division of plot or layout of Private Street is submitted under section 15 or 17 to any Planning Authority, such Planning Authority shall levy and collect an additional prescribed fee for rejuvenation of lakes or tanks, if any, in that local planning area.]1]2

² Substituted by Act 38 of 2015 w.e.f 10.09.2015.

1. Deemed to have been Inserted by Act 6 of 2012 w.e.f. 03.10.2009.

1. (2) Any person aggrieved by the levy of fee under sub-section (1), may within such period as may be prescribed, appeal to the District Court having jurisdiction on the ground that the change or development is not capable of yielding a better income to the owner. The decision of the District Court on such appeal shall be final. 1[(3) The State Government may exempt any Board, Authority or body constituted by or under any law and owned or controlled by the State Government or Central Government or an infrastructure Project promoted or implemented by any Company or person and approved by the State Government or Central Government from the payment of fee specified under sub-section (1). Explanation:- For the purpose of this section and section 18A “Infrastructure Project “ means,-
   • (a) road, bridge, air port, port, inland water ways and inland ports, rail system or any other public facility of a similar nature as may be notified by the State Government from time to time;
   • (b) a highway project including housing or other activities being an integral part of that project;
   • (c) water supply project, irrigation project, sanitation and sewerage system.”
   • (d) a tourism project with an investment of not less than Rupees one hundred crores as may be notified by the State Government from time to time]1

¹ Inserted by Act 23 of 2004 w.e.f. 3.06.2004.

(1) Notwithstanding anything contained in this Act, the Planning Authority may while granting permission for development of land or building levy and collect from the owner of such land or building:-

1. (i) a cess for the purpose of carrying out any water supply scheme;
2. (ii) a surcharge for the purpose of formation of ring road;
3. (iii) a cess for the purpose of improving slums; and
4. (iv) a surcharge for the purpose of establishing Mass Rapid Transport System. at such rates but all the above levies together not exceeding one-tenth of the market value of the land or building as may be prescribed. 3[2[(v) XXX]2]3

1. (2) The cess and surcharge levied under sub-section (1) shall be assessed and collected in such manner as may be prescribed.
2. (3) Any person aggrieved by the levy, assessment and collection of cess or surcharge munder this section may within thirty days from the date of the order appeal to the prescribed authority whose decision shall be final.
3. (4) The prescribed authority may after giving a reasonable opportunity of being heard to the appellant and the planning Authority pass such order as it deems fit.
4. (5) The State Government may exempt any Board Authority or Body constituted by or under any law and owned or controlled by the State Government or the Central Government or an infrastructure Projects promoted or implemented by any company or person and approved by the State Government or Central Government from the payment of cess or surcharge leviable under sub-section (1)]1 1. Deemed to have been inserted by Act 23 of 2004 w.e.f. 19.10.1992. 2. Deemed to have been inserted by Act 6 of 2012 w.e.f. 03.10.2009. 1[18-B. Levy of premium charges for grant of Premium Floor Area Ratio.-
5. (1) The Authority may grant permission for premium floor area ratio in the areas identified for the purpose in the Zonal regulations of the master plan.
6. (2) Where an application is made for grant of permission for utilization of premium floor area ratio for the development of a building under section 15, the Authority may levy premium charges, at such rate, not less than fifty percent of the estimated increase in value of land and building as may be prescribed by the Government from time to time, for grant of premium floor area ratio, not exceeding the limits as specified in the zonal regulations of the master plan. Explanation: For the purpose of this section, “premium floor area ratio” means additional floor area ratio permitted over and above the ordinary permissible floor area ratio]1 1. Deemed to have been Inserted by Act 25 of 2020 w.e.f. 31.07.2020.

³ Omitted by Act 38 of 2015 w.e.f 10.09.2015.

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