Chapter VIII Chapter VIII

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

FINANCE, ACCOUNTS AND AUDIT

1. (1) Every Planning Authority shall have and maintain a separate fund to which shall be credited,—
   • (a) all moneys received by the Planning Authority from the State Government by way of grants, loans, advances or otherwise;
   • (b) all charges or fees received by the Planning Authority under this Act or rules, regulations or bye-laws made thereunder;
   • (c) in the case of a Planning Authority constituted under section 4C, such contributions from the Fund or Funds of the local authority or local authorities of the area included in the planning area, as such local authority or local authorities may from time to time be required by the State Government to make to such Planning Authority;
   • (d) all moneys received by the Planning Authority from any other source.
2. (2) The Fund shall be applied towards meeting,—
   • (a) the expenditure incurred in the administration of this Act;
   • (b) the cost of acquisition of land in the planning area for the purposes of development;
   • (c) the expenditure for such other purposes as the State Government may direct.

Every Planning Authority shall prepare in

such form and at such 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 Planning Authority in respect of the administration of this Act and shall forward to the State Government and the Board, such number of copies thereof as may be prescribed.

1. (1) Every Planning Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the balance sheet in such form as may be prescribed.
2. (2) The accounts of every Planning Authority shall be subject to audit annually by the Controller of State Accounts.
3. (3) The accounts of every Planning Authority as certified by the Controller of State Accounts together with the audit report thereon shall be forwarded annually to the State Government and the Board. 1[(4) The audited accounts and the report of every Planning Authority shall be laid before each House of the State Legislature, as soon as may be, after it is received by the Government]1

¹ Inserted by Act 10 of 2014 w.e.f. 22.02.2014.

(1) Every Planning Authority shall prepare for every year a report of its activities under this Act during that year and submit the report to the State Government and the Board in such form on or before such date as may be prescribed. (2) Every such report of the Planning Authority shall be laid before each House of the State Legislature, as soon as may be, after it is received by the Government".]1]2 LAND ACQUISITION 2[1[69. Acquisition of land designated for certain purposes in a Master Plan.- (1) The Planning Authority may acquire any land designated in the Master Plan for "public purposes" by agreement or under the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013 (Central Act 30 of 2013) as in force in the State. Explanation.- For the purpose of this section land "designated for public purpose" means designated for the purpose of providing parks, open spaces, public or semi public utilities and infrastructure relating to transport. (2) If the land designated for public purpose, as under sub-section (1), except land designated for purpose of clause (b) of sub-section (1) of section 12 is not acquired either by agreement within five years from the date of publication of the Master Plan under subsection (4) of section 13 nor the proceedings under the Right to Fair Compensation and Transparency in land Acquisition, Rehabilitation and Resettlement Act, 2013(Central Act 30 of 2013) are commenced within period of five years, the designation shall be deemed to have lapsed. (3) When the designated land use lapses under sub-section (2), the Authority may consider the new land use sought by the land owner of such land, based on the surrounding developments, in the meeting of the Authority, after previous publication in one or more daily newspapers of which at least one shall be in local language having wide circulation in the area and call for objections and suggestions in this regard. (4) The Planning Authority shall after considering the proposals to assign land uses and objects and suggestions received in that behalf in the meeting of the Authority, the Authority may convey the assignment of new land use to the owner or reject the proposal for the reasons recorded there in.]1]2 1. Substituted by Act 1 of 2005 w.e.f. 14.02.2005. 2. Substituted by Act 10 of 2014 w.e.f. 22.02.2014. CHAPTER IX 1. Substituted by Act 1 of 2005 w.e.f. 14.02.2005. 2. Substituted by Act 38 of 2015 w.e.f 10.09.2015.

1. (2) Every such report of the Planning Authority shall be laid before each House of the State Legislature, as soon as may be, after it is received by the Government".]1]2 LAND ACQUISITION 2[1[69. Acquisition of land designated for certain purposes in a Master Plan.- (1) The Planning Authority may acquire any land designated in the Master Plan for "public purposes" by agreement or under the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013 (Central Act 30 of 2013) as in force in the State. Explanation.- For the purpose of this section land "designated for public purpose" means designated for the purpose of providing parks, open spaces, public or semi public utilities and infrastructure relating to transport.
2. (2) If the land designated for public purpose, as under sub-section (1), except land designated for purpose of clause (b) of sub-section (1) of section 12 is not acquired either by agreement within five years from the date of publication of the Master Plan under subsection (4) of section 13 nor the proceedings under the Right to Fair Compensation and Transparency in land Acquisition, Rehabilitation and Resettlement Act, 2013(Central Act 30 of 2013) are commenced within period of five years, the designation shall be deemed to have lapsed.
3. (3) When the designated land use lapses under sub-section (2), the Authority may consider the new land use sought by the land owner of such land, based on the surrounding developments, in the meeting of the Authority, after previous publication in one or more daily newspapers of which at least one shall be in local language having wide circulation in the area and call for objections and suggestions in this regard.
4. (4) The Planning Authority shall after considering the proposals to assign land uses and objects and suggestions received in that behalf in the meeting of the Authority, the Authority may convey the assignment of new land use to the owner or reject the proposal for the reasons recorded there in.]1]2

¹ Substituted by Act 1 of 2005 w.e.f. 14.02.2005.

² Substituted by Act 10 of 2014 w.e.f. 22.02.2014. CHAPTER IX

¹ Substituted by Act 1 of 2005 w.e.f. 14.02.2005.

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

Land needed for purpose of a Town Planning scheme or 1[Master Plan]1 shall be deemed to be land needed for a public purpose within the meaning of the Land Acquisition Act, 1894.

¹ Substituted by Act 1 of 2005 w.e.f. 14.02.2005.

1. (1) If, at any time, the State Government is of opinion that any land included in a Town Planning scheme is needed for a public purpose other than that for which it is included in the scheme, it may make a declaration to that effect in the Official Gazette in the manner provided in section 6 of the Land Acquisition Act, 1894. The declaration so published shall, notwithstanding anything contained in the said Act, be deemed to be a declaration duly made under the said section.
2. (2) On the publication of a declaration under sub-section (1) the Deputy Commissioner shall proceed to take order for the acquisition of the land and the provisions of the Land Acquisition Act, 1894, as amended by section 72 of this Act, shall, so far as may be, apply to the acquisition of the said land.
3. (3) In the proceedings under the Land Acquisition Act, 1894, the Planning Authority concerned shall be deemed to be a person interested in the land acquired and in determining the amount of compensation to be awarded to the Planning Authority, the Deputy Commissioner or the Court, as the case may be, may take into consideration the value, if any, paid by the Planning Authority for the acquisition of the said land under section 70 or otherwise and the proportionate cost of the scheme, if any, incurred by the Planning Authority and rendered abortive by reason of the variation of the scheme on account of such acquisition.
4. (4) On the land vesting in the State Government under section 16 or section 17 of the Land Acquisition Act, 1894, as the case may be, the scheme shall be deemed to have been suitably varied by reason of acquisition of the land.

When any land is compulsorily acquired for the purposes of a Town planning scheme or a development plan under this Act,

1. (a) for section 23 of the Land Acquisition Act, 1894, the following shall be substituted, namely:- “23. Matters to be considered in determining compensation.— 1[(1)]1 In determining the amount of compensation to be awarded for the land or any interest therein acquired under this Act, the Court shall take into consideration the following:— 1. Re-numbered by Act 14 of 1964 w.e.f. 26.03.1964. 1[2[(1) the market value.-
   • (i) in case of acquisition of the designated land referred to in sub-section (2) of section 69 of the Karnataka Town and Country Planning Act, 1961 (hereinafter in this section referred to as the said Act), on the date the Master Plan is published under sub-section (4) of section 13 of the said Act; and
   • (ii) in the case of acquisition of any land included in a town planning scheme under the said Act, on the date on which such scheme comes into force under subsection (2) of section 45 of the said Act:]1

¹ Substituted by Act 14 of 1964 w.e.f. 26.03.1964 and again substituted by Act 1 of 2005 w.e.f. 14.02.2005.

1. (2) use to which the land was put on the date of publication of the declaration under section 6;
2. (3) the damage sustained by the person interested by reason of the taking of any standing crops or trees which may be on the land at the time when the possession was taken from him;
3. (4) the damage, if any, sustained by the person interested at the time of the possession being taken from him by reason of severing such land from his other land;
4. (5) the damage, if any, sustained by the person interested at the time of the possession being taken from him of the land, by reason of the acquisition injuriously affecting his other property, moveable or immovable, in any other manner or his earnings;
5. (6) if, in consequence of the acquisition of the land the person interested is compelled to change his residence or place of business, the reasonable expenses, if any, incidental to such change.” 1[(2) In addition to the market value of the land as provided in sub-section (1), the Court shall in every case award a sum of 2[thirty per centum]2 on such market value, in consideration of the compulsory nature of the acquisition.]1 1[(3) In addition to the market value of the land, as provided above, the court shall in every case, award an amount calculated at the rate of twelve percent per annum, such market value, for the period from the date of publication of the notification under sub-section (1) of section 4, to the date of award of the Deputy Commissioner or date of taking possession of the land, whichever is earlier. Explanation. - In computing the period referred to in this sub-section, any period or periods during which the proceedings for the acquisition of the land were held up on account of any stay or injunction by the order of any court shall be excluded.]1 1. Sub-section (3) inserted by Act 1 of 2005 w.e.f. 14.02.2005.
   • (b) For section 24 of the Land Acquisition Act, 1894, the following shall be substituted, namely:— “24. Matters to be neglected in determining compensation.—The Court shall not take into consideration of the following:—
6. (1) the degree of urgency which led to the acquisition;
7. (2) any disinclination of the person interested to part with the land acquired;
8. (3) any damage sustained by him which, if caused by a private person, would not render such person liable to a suit;
9. (4) any change which is likely to be caused to the land acquired, after the date of the publication of the declaration under section 6, by or in consequence of the use to which it will be put;
10. (5) any increase to the value of the land acquired likely to accrue from the use to which it will be put when acquired;
11. (6) any increase to the value of the other land of the person interested likely to accrue from the use to which the land acquired will be put;
12. (7) any outlay or improvements on, or for the disposal of the land acquired, commenced, made or effected with the sanction of the local authority after the date of the publication of the notification under section 6;
13. (8) the special suitability or adaptability of the land for any purpose, if that purpose is a purpose to which it could be applied in pursuance of any law or for which there is no market apart from the special needs of the local authority;
14. (9) any increase in the value of the land by reason of the use thereof or any premises thereon in a manner which could be restrained by any court, or is contrary to law or is detrimental to the health of the inmates of the premises or to the public health.”

¹ Inserted by Act 14 of 1964 w.e.f. 26.3.1964

² Substituted by Act 1 of 2005 w.e.f. 14.02.2005.