Chapter V CHAPTER V

1[(1)]Subject to the provisions of this Act or any other law for the time being in force-

1. (a) a Planning Authority may for the purpose of implementing the proposals in the final Development plan 2[or in respect of any land which is likely to be in the course of development or which is already built upon], prepare one or more town planning schemes for the area within its jurisdiction, or any part thereof;
2. (b) a town planning scheme may make provision for any of the following matters, that is to say-
   • (i) any of the matters specified in section 22 ;
   • (ii) the laying out or re-laying out of land, either vacant or already built upon, including areas of comprehensive development ; 3[(ii-a) the filling-up or reclamation of low-lying, swampy or unhealthy area, or levelling-up of land ; (ii-b) layout of new streets or roads, construction, diversion, extension, alteration, improvement and closing up of streets and roads and discontinuance of communications ; (ii-c) the construction, alteration and removal of buildings, bridges and other structures ; (ii-d) the allotment or reservation of land for open spaces, gardens, recreation grounds, schools, markets, green-belts, dairies, transport facilities and public purposes of all kinds; (ii-e) drainage, inclusive of sewerage, surface or sub-soil drainage and sewage disposal ; (ii-f) lighting ; (ii-g) water supply ; (ii-h) the preservation of objects of historical or national intrest or natural beauty, and of building actually used for religious purposes ;]
   • (iii) the suspension, as far as may be necessary for the proper carrying out of the scheme, of any rule, bye-law, regulation, notification or order made or issued under any law for the time being in force which the Legislature of the State is competent to make ;
   • (iv) such other matter not inconsistent with the object of this Act, as may be directed by the State Government. 4[(2) In making provisions in a draft town planning scheme for any of the matters referred to in clause (b) of sub-section (1), it shall be lawful for a Planning Authority with the approval of the Director of Town Planning and subject to the provisions of section 68 to provide for suitable amendment of the Development plan.]

1. (1) A Planning Authority may by resolution declare its intention to make a town planning scheme in respect of any part of the area within its jurisdiction.
2. (2) Not later than thirty days from the date of such declaration of intention to make a scheme (hereinafter referred to as the declaration), the Planning Authority shall publish the declaration in the Official Gazette, and in such other manner as may be prescribed and despatch a copy thereof (together with a copy of the plan showing the area to be included in the scheme) to the State Government and also to the Director of Town Planning.
3. (3) A copy of the plan shall be open to the inspection of the public at all reasonable hours at the head office of the Planning Authority.

Making and publication of draft scheme 1[by means of notice].- (1) Not later than 2[nine months] from the date of the declaration, subject, however, to sub-section (3), the Planning Authority shall, in consultation with the Director of Town Planning, make a draft scheme for the area in respect of which the declaration was made, 3[and publish a notice in the Official Gazette, and in such other manner as may be prescribed stating that the draft scheme in respect of such area has been made. The notice shall state the name of the place where a copy thereof shall be available for inspection by the public and shall also state that copies thereof or any extract therefrom certified to be correct shall be available for sale to the public at a reasonable price.]

1. (2) If the Planning Authority fails to 4[make a draft scheme and publish a notice regarding its making] within the period specified in sub-section (1) or within the period extended under sub-section (3), the declaration shall lapse, unless the State Government appoints an Officer to prepare 5*** and submit the draft scheme to the State Government on behalf of the Planning Authority not later than 6[nine months] from the date of such appointment or the extended period under sub-section (3); but any such lapse of declaration shall not debar the Planning Authority from making a fresh declaration any time in respect of the same area.
2. (3) The State Government may, on application made by the Planning Authority or, as the case may be, the officer, 7*** by notification in the Official Gazette, extend the period specified in sub-section (1) or (2) by such period not exceeding 8[three months] as may be specified in the notification.

If at any time before a draft scheme is prepared and submitted to the State Government for sanction, the Planning Authority or the officer is of the opinion, or on any representation made to it or him that an additional area be included within the said scheme, the Planning Authority or the officer may, after informing the State Government and giving notice in the Official Gazette, and also in one or more local newspapers, include such additional area in the scheme; and thereupon, all the provisions of sections 59, 60 and 61 shall apply in relation to such additional area as they apply to any original area of the scheme and the draft scheme shall be prepared for the original area and such additional area and submitted to the State Government for sanction.

1. (1) Notwithstanding anything contained in this Act, the State Government may, in respect of any Planning Authority after making such inquiry as it deems necessary, direct that Authority to make 1* * * * and submit for its sanction, a draft scheme in respect of any land in regard to which a town planning scheme may be made 2[after a notice regarding its making has been duly published in the prescribed manner.]
2. (2) If the Planning Authority fails to make the declaration of intention to make a scheme within three months from the date of direction made under sub-section (1), the State Government may by notification in the Official Gazette, appoint an officer to make 3* * and submit the draft scheme for the land to the State Government 4[after a notice regarding its making has been duly published as aforesaid] and thereupon the provisions of sections 60, 61 and 62 shall, as far as may be applicable, apply to the making of such a scheme.

A draft scheme shall contain the following particulars so far as may be necessary, that is to say,-

1. (a) the ownership, area and tenure of each original plot ;
2. (b) reservation, acquisition or allotment of land required under sub-clause (i) of clause (b) of section 59 with a general indication of the uses to which such land is to be put and the terms and conditions subject to which, such land is to be put to such uses;
3. (c) the extent to which it is proposed to alter the boundaries of the original plots by reconstitution ;
4. (d) an estimate of the total cost of the scheme and the net cost to be borne by the Planning Authority ;
5. (e) a full description of all the details of the scheme with respect to such matters referred to in clause (b) of section 59 as may be applicable ;
6. (f) the laying out or re-laying out of land either vacant or already built upon including areas of comprehensive development ;
7. (g) the filling up or reclamation of low lying swamp or unhealthy areas or levelling up of land; 1[(g-1) the allotment of land from the total area covered under the scheme, to the extent of,-
   • (i) the reservation of land to the extent of ten per cent. of the total area covered under the scheme, for the purpose of providing housing accommodation to the members of economically weaker section and for lower income group and for persons dispossessed in the scheme ;
   • (ii) the allotment of land to the extent of forty per cent. of the total area covered under the scheme, in the aggregate, for any or all of the following purposes, namely:-
8. (A) for roads;
9. (B) for parks, playgrounds, garden and open spaces;
10. (C) social infrastructure such as schools, dispensary, fire brigade and public utility place;
11. (D) sale by Planning Authority for residential, commercial or industrial use depending upon the nature of development : Provided that,-
    • (I) the proceeds from the sale of land referred to in sub-clause (D) of this clause shall be used for the purpose of providing infrastructural facilities in the area covered under the scheme ;
    • (II) the use of land alloted for the purposes referred to in sub-clause (B)of this clause shall not be changed by variation of scheme for a purpose other than the purpose for which it is so alloted ;
    • (III) the land alloted for the purposes referred to in sub-clause (C) of this clause may be allowed to be developed, without variation of scheme, for any public purpose not contrary to the intent of the provisions of the draft scheme;]
12. (h) any other prescribed particulars.

1. (1) In the draft scheme, the size and shape of every reconstituted plot shall be determined, so far as may be, to render it suitable for building purposes, and where a plot is already built upon, to ensure that the buildings as far as possible comply with the provisions of the scheme as regards open spaces.
2. (2) For the purpose of sub-section (1), a draft scheme may contain proposals-
   • (a) to form a final plot by reconstitution of an original plot by alteration of the boundaries of the original plot, if necessary ;
   • (b) to form a final plot from an original plot by the transfer wholly or partly of the adjoining lands ;
   • (c) to provide, with the consent of the owners, that two or more original plots each of which is held in ownership in severally or in joint ownership shall hereafter, with or without alteration of boundaries be held in ownership in common as a final plot ;
   • (d) to allot a final plot to any owner dispossessed of land in furtherance of the scheme; and
   • (e) to transfer the ownership of an original plot from one person to another.

Where under sub-clause (i) of clause (b) of section 59 the purposes to which the buildings or areas may not be appropriated or used in pursuance of clause (m) of section 22 have been specified, then the building or area shall cease to be used for a purpose other than the purposes specified in the scheme within such time as may be specified in the final scheme; and the person affected by this provision shall be entitled to such compensation, from the Planning Authority as may be determined by the Arbitrator : Provided that, in ascertaining whether compensation be paid, the time within which the person affected was permitted to change the user shall be taken into consideration.

If within thirty days from the date of the 1[publication of notice regarding the preparation of the draft scheme], any person affected thereby communicates in writing any objection relating to such scheme, the Planning Authority, or the officer appointed under sub-section (2) of section 61 or section 63 shall consider such objection and may, at any time before submitting the draft scheme to the State Government as hereinafter provided, modify such scheme as it or he thinks fit.

1. (1) The Planning Authority or, as the case may be, the officer aforesaid shall, not later than 1[three months] 2[from the date of the publication of the notice in the Official Gazette, regarding the making of the draft scheme], submit the same with any modifications which it or he may have made therein together with a copy of objections received by it or him to the State Government, and shall at the same time apply for its sanction.
2. (2) On receiving such application, after making such inquiry as it may think fit and consulting the Director of Town Planning, the State Government may, not later than 3[three months] from the date of its submission, by notification in the Official Gazette, 4***, either sanction such draft scheme with or without modifications and subject to such conditions as it may think fit to impose or refuse to give sanction.
3. (3) If the State Government sanctions such scheme, it shall in such notification state at what place and time the draft scheme shall be open to the inspection of the public 5[and the State Government shall also state therein that copies of the scheme or any extract therefrom certified to be correct shall on application be available for sale to public at a reasonable price.]

1[68A. Effect of sanction of draft scheme - (1) Where a draft scheme has been sanctioned by the State Government under sub-section (2) of section 68 (hereinafter in this section, referred to as "the sanctioned draft scheme"), all lands required by the Appropriate Authority for the purposes specified in sub-clauses (ii-b), (ii-e), (ii-f) and (ii-g) of clause (b) of sub-section (1) of section 59 shall vest absolutely in the Appropriate Authority free from all encumbrances.

1. (2) Nothing in sub-section (1) shall affect any right of the owner of the land vesting in the Appropriate Authority under that sub-section.
2. (3) The provisions of sections 89 and 90 shall, mutatis mutandis apply, to the sanctioned draft scheme as if,-
   • (i) sanctioned draft scheme were a preliminary scheme, and
   • (ii) in sub-section (1) of section 89 and sub-section (1) of section 90, for the words "the day on which a final scheme comes into force" the words, brackets and figures "the date on which the draft scheme is sanctioned under sub-section (2) of section 68" were substituted.]

1. (1) On or after the date on which a declaration of intention to make a scheme is published in the Official Gazette-
   • (a) no person shall within the area included in the scheme, institute or change the use of any land or building or carry out any development, unless such person has applied for and obtained the necessary permission which shall be contained in a commencement certificate granted by the Planning Authority in the prescribed form ;
   • (b) the Planning Authority on receipt of such application shall at once furnish the applicant with a written acknowledgment of its receipt, and
     • (i) in the case of a Planning Authority other than a municipal corporation, after inquiry and where an Arbitrator has been appointed in respect of a draft scheme after obtaining his approval; or
     • (ii) in the case of a municipal corporation, after inquiry, may either grant or refuse such certificate, or grant it subject to such conditions as the Planning Authority may, with the previous approval of the State Government thinks fit to impose.
2. (2) If a municipal corporation gives permission under clause (b) of sub-section (1), it shall inform the Arbitrator accordingly, and shall send him a copy of the plan : Provided that, a municipal corporation shall not grant a commencement certificate for any purpose which is in conflict with the provisions of the draft scheme, unless the corporation first obtains concurrence of the Arbitrator for the necessary change in the proposal of the draft scheme.
3. (3) If a Planning Authority communicates no decision to the applicant within two months from the date of such acknowledgment, the applicant shall be deemed to have been granted such certificate.
4. (4) If any person contravenes the provisions contained in clause (a) or clause (b) of sub-section (1), the Planning Authority may direct such person by notice in writing to stop any development in progress, and after making inquiry in the prescribed manner, remove, pull down or alter any building or other development or restore the land in respect of which such contravention is made to its original condition.
5. (5) Any expense 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 or the owner of the plot. 1[(6) The provisions of Chapter IV shall, mutatis mutandis apply in relation to the development and use of land included in a town planning scheme in so far as they are not inconsistent with the provisions of the Chapter.]
6. (7) The restrictions imposed by this section shall cease to operate in the event of the State Government refusing to sanction the draft scheme or the final scheme or in the event of the withdrawal of the scheme under section 87 or in the event of the declaration lapsing under sub-section (2) of section 61.

1. (1) Where a Planning Authority has published a declaration under section 61 the State Government may, on an application of the Planning Authority by order published in the Official Gazette, suspend to such extent only as may be necessary for the proper carrying out of the scheme any rule, bye law, regulation, notification or order made or issued under any law which the Legislature of the State is competent to amend.
2. (2) Any order issued under sub-section (1) shall cease to operate in the event of the State Government refusing to sanction the scheme, or in the event of the withdrawal of the scheme under section 87 or in the event of the coming into force of the final scheme or in the event of the declaration lapsing under sub-section (2) of section 61.

1. (1) Where there is a disputed claim as to the ownership of any piece of land included in an area in respect of which a declaration of intention to make a town planning scheme has been made and any entry in the record of rights or mutation register relevant to such disputed claim is inaccurate or inconclusive, an inquiry may be held on an application being made by the Planning Authority or the Arbitrator at any time prior to the date on which the arbitrator draws up the final scheme under clause (xviii) of sub-section (3) of section 72 by such officer as the State Government may appoint for the purpose of deciding who shall be deemed to be owner for the purposes of this Act.
2. (2) Such decision shall not be subject to appeal but it shall not operate as a bar to a regular suit.
3. (3) Such decision shall, in the event of a civil court passing a decree which is inconsistent therewith, be corrected, modified or rescinded in accordance with such decree as soon as practicable after such decree has been brought to the notice of the Planning Authority either by the Civil Court or by some person affected by such decree.
4. (4) Where such a decree of the civil court is passed after final scheme has been sanctioned by the State Government under section 86, such final scheme shall be deemed to have been suitably varied by reason of such decree.

1. (1) Within one month from the date on which the sanction of the State Government to the draft scheme is published in the Official Gazette, the State Government shall for purposes of one or more planning schemes received by it for sanction appoint any person possessing such qualifications as may be prescribed to be an Arbitrator with sufficient establishment and his duties shall be as hereinafter provided.
2. (2) The State Government may, if it thinks fit at any time, remove for incompetence or misconduct or replace for any good and sufficient reason an Arbitrator appointed under this section and shall forthwith appoint another person to take his place and any proceeding pending before the Arbitrator immediately before the date of his removal or replacement shall be continued and disposed of by the new Arbitrator appointed in his place. 1[(3) The Arbitrator shall, after following the prescribed procedure, subdivide the town planning scheme into a preliminary scheme and a final scheme. The Arbitrator shall prepare preliminary scheme within nine months and as far as possible the final scheme within eighteen months, from the date of his appointment : Provided that, the State Government may, by an order in writing, extend the said period by such further period not exceeding three months in the aggregate and any such order extending the period may be made so as to have retrospective effect: Provided also that, where the town planning scheme pending before the Arbitrator on the date of commencement of the Maharashtra Regional and Town Planning (Amendment) Act, 2011, which has not been sub-divided into a preliminary scheme and a final scheme within the period so extended under the preceding proviso, the State Government may, by an order and for reasons to be recorded in writing, extend the period by such further period not exceeding two years in aggregate from the date of expiry of the period so extended under the said proviso and any such order extending the period may be made so as to have retrospective effect.
3. (4) In the preliminary scheme, the Arbitrator shall,-
   • (i) after notice given by him in the prescribed manner, define, demarcate and decide the areas allotted to, or reserved for the public purpose or purposes of the Planning Authority, and also the final plots ;
   • (ii) after notice given by him in the prescribed manner, decide the person or persons to whom a final plot is to be allotted; when such plot is to be allotted; and when such plot is to be allotted to persons in ownership in common, decide the shares of such persons ;
   • (iii) provide for the total or partial transfer of any right in an original plot to a final plot or provide for the transfer of any right in an original plot in accordance with the provisions of section 101;
   • (iv) determine the period within which the works provided in the scheme shall be completed by the Appropriate Authority.
4. (5) The Arbitrator shall submit the preliminary scheme so prepared to the State Government for sanction and shall also prepare and submit to the State Government the final scheme for sanction in accordance with the provisions of sub-section (6)
5. (6) In the final scheme, the Arbitrator shall, -
   • (i) estimate the amount of compensation payable under section 66 ;
   • (ii) calculate the proportion in which the increment in respect of the final plots included in the final scheme shall be liable to contribution to the cost of the scheme in accordance with the provisions contained in section 97 ;
   • (iii) estimate the value of and fix the difference between the values of the original plots and the values of the final plots included in the final scheme, in accordance with the provisions contained in clause (f) of subsection (1) of section 97 ;
   • (iv) estimate the compensation payable for the loss of the area of the original plot in accordance with the provisions contained in clause (f) of sub-section (1) of section 97 in respect of any original plot which is wholly acquired under the scheme ;
   • (v) estimate the value of final plots included in the final scheme and the increment to accrue in respect of such plots in accordance with the provisions of section 98 ;
   • (vi) determine the amount to be deducted from or added to, as the case may be, the contribution leviable from a person in accordance with the provisions contained in section 100;
   • (vii) estimate in reference to claims made before him, after the notice given by him in the prescribed manner, the compensation to be paid to the owner of any property or right injuriously affected by the making of a town planning scheme in accordance with the provisions contained in section 102 ;
   • (viii) determine whether the areas allotted or reserved for the public purpose or purposes of the Planning Authority are beneficial wholly or partly to the owners or residents within the area of the scheme;
   • (ix) estimate the proportion of the sums payable as compensation of each plot used, allotted or reserved for the public purpose or purposes of the Planning Authority which is beneficial partly to the owners or residents within the area of the scheme and partly to the general public, which shall be included in the cost of the scheme;
   • (x) determine the proportion of contribution to be levied on each plot used, allotted or reserved for a public purpose or purposes of the Planning Authority which is beneficial partly to the owners or residents within the area of the scheme and partly to the general public;
   • (xi) determine the amount of exemption, if any, from the payment of the contribution that may be granted in respect of plots or portions thereof exclusively used or occupied for religious or charitable purposes on the date on which the final scheme is drawn up under sub-section (7);
   • (xii) calculate the contribution to be levied on each final plot included in the final scheme;
   • (xiii) where a plot is subject to a mortgage with possession or a lease, decide the proportion of compensation payable to or contribution payable by the mortgagee or lessee on one hand and the mortgagor or lessor on the other.
6. (7) The Arbitrator shall draw in the prescribed form the preliminary and final schemes in accordance with the draft scheme: Provided that,-
   • (a) he may make variation in the draft scheme;
   • (b) he may, with the previous sanction of the State Government, after hearing the Planning Authority and any owners who may raise objections, make substantial variations in the draft scheme. Explanation.-For the purposes of clause (b) of this proviso, "substantial variation" means increase in the total cost of the draft scheme by more than twenty per cent. or, two lakhs rupees, whichever is higher, on account of the provision of new works or the reservation of additional sites for public purposes included in the final scheme drawn up by the Arbitrator.]

Except in matters arising out of 1[clauses (i), (ii), (iv), (v) and clauses (vii) to (xiii) (both inclusive) of sub-section (6)] of section 72, every decision of the Arbitrator shall be final and conclusive and binding on all parties including the Planning Authority.

1. (1) Any decision of the Arbitrator under 1[clauses (i), (ii), (iv), (v) and clauses (vii) to (xiii) (both inclusive) of sub-section (6)] of section 72 shall be forthwith communicated to the party concerned including the Planning Authority; and any party aggrieved by such decision may, within two months from the date of communication of the decision, apply to the Arbitrator to make a reference to the Tribunal of Appeal for decision of the appeal.
2. (2) The provisions of sections 5, 12 and 14 of the Indian Limitation Act, 1963 (36 of 1963) shall apply to appeals submitted under this section.

1. (1) The Tribunal of Appeal shall consist of a President and two Assessors. (2)The President shall-
   • (a) in Greater Bombay, be the Principal Judge of the Bombay City Civil Court or such other Judge of the said Court as may be appointed by the State Government on the recommendation of the Principal Judge; and
   • (b) elsewhere, be the District Judge or the Civil Judge of the Senior Division as may be appointed by the State Government on the recommendation of the District Judge : Provided that, the State Government may, if it thinks fit, appoint as President any person who has held the post(i) in Greater Bombay of a Judge of the High Court or of the Bombay City Civil Court, and (ii) elsewhere of a Judge of the District Court.
2. (3) The President shall appoint fit and proper persons as Assessors, who shall as far as possible have knowledge, or experience of town planning, valuation of land or civil engineering.
3. (4) The President and the Assessors shall be appointed members of the Tribunal of Appeal for such period as may be required by such Tribunal to decide an appeal made against the decision under clauses (iv) to (xi) (both inclusive), and clauses (xiv), (xv) and (xvi) of the sub-section (3) of section 72.
4. (5) The State Government may, if it thinks fit, remove for incompetence or misconduct or any other good and sufficient reason any Assessor appointed under sub-section (3).
5. (6) If any Assessor is removed or dies or refuses or neglects to act or becomes incapable of acting, the President shall appoint forthwith a fit and proper person to take the place of such Assessor.

1. (1) The Arbitrator shall be present at the proceedings before the Tribunal of Appeal. He shall not be required to give evidence in such proceedings but the President may require him to assist the Tribunal in an advisory capacity.
2. (2) Where the Arbitrator is required under sub-section (1) to assist the Tribunal of Appeal, he shall, save where he is a salaried officer of Government, be entitled to such fees as the State Government may from time to time determine.

The Tribunal of Appeal may sit either at the headquarters of the President or at any other place within the local limits of his jurisdiction which he may deem convenient for the consideration and decision of any matter before such Tribunal.

All questions of law and procedure shall be decided by the President. All other questions shall be decided by the President and the two Assessors or by a majority.

1. (1) The Tribunal of Appeal shall, after making such inquiry as it may think fit, decide all matters arising out of clauses (iv) to (xi) (both inclusive) and clauses (xiv), (xv) and (xvi) only of sub-section (3) of section 72 in respect of appeals referred to the Tribunal: and may either confirm the proposals of the Arbitrator or direct him where necessary to reconsider, vary or modify his proposals only in respect of such matters aforesaid.
2. (2) Every decision of the Tribunal of Appeal shall be final and conclusive and binding on all persons and parties including the Planning Authorities.

Nothing contained in this Act shall be deemed to constitute the Tribunal of Appeal to be a Court.

1. (1) The President and the Assessors shall, save where they are salaried Government Officers, be entitled to such remuneration, either by way of monthly salary or by way of fees or partly in one way and partly in the other, as the State Government may, from time to time, decide : Provided that, in exceptional cases where the scheme is a large one or the work involved is complicated, the State Government may authorise the President and the Assessors, even if they are salaried Government Officers to receive such special salary or remuneration, as the State Government may by order, decide from time to time.
2. (2) The salary of the President of the Tribunal of Appeal or an Assessor who is a salaried Government Officer, and any remuneration payable under sub-section (1) of this section and fees payable to an Arbitrator under sub-section (2) of section 76 and all expenses incidental to the working of the Tribunal of Appeal shall, unless the State Government otherwise determines, be defrayed out of the funds of the Planning Authority and shall be added to the cost of the scheme.

1. (1) Where no appeal has been made under section 74, the decisions of the Arbitrator under clauses (iv) to (xi) and clauses (xiv), (xv) and (xvi) of sub-section (3) of section 72 shall be final and binding on the parties
2. (2) The Tribunal of Appeal shall send a copy of its decision in appeal to the Arbitrator who shall then, where necessary, make variation in the scheme in accordance with such decision and may also rectify such errors or omissions, if any, as may have been brought to his notice after publication of the final scheme as drawn up by him under clause (xviii) of sub-section (3) of section 72; and the Arbitrator shall forward such final scheme together with a copy of his decisions under section 72 and a copy of the decision of the Tribunal of Appeal in appeal to the State Government for the sanction of the final scheme.

1. (1) Where a Planning Authority thinks that, in the interest of the public, it is necessary to undertake forthwith any of the works included in a draft scheme for a public purpose, the Planning Authority shall make an application through the Arbitrator to the State Government to vest in it the land (without any building) shown in the draft scheme.
2. (2) The State Government may, if satisfied that it is urgently necessary in the public interest to empower the Planning Authority to enter on such land for the purpose of executing any of such works, direct the Arbitrator, by notification in the Official Gazette, to take possession of the land, or may, after recording its reasons refuse to make any such direction : Provided that, no such direction shall be made without the Arbitrator giving a hearing to any person or Planning Authority affected by such direction, and considering the report of the Arbitrator in that behalf.
3. (3) The Arbitrator shall then give a notice in the prescribed manner to the person interested in the land the possession of which is to be taken by Arbitrator requiring him to give possession of his land to the Arbitrator or any person authorised by him in this behalf within a period of one month from the date of service of notice ; and if no possession is delivered within the period specified in the notice, the Arbitrator shall take possession of the land and shall handover the land to the Planning Authority. Such land shall thereupon, notwithstanding anything contained in this Act, vest absolutely in the Planning Authority free from all encumbrances.

1. (1) If the Arbitrator is opposed or impeded in taking possession of the land under section 83, he shall request the Commissioner of Police, or as the case may be, the District Magistrate to enforce the delivery of possession of the land to the Arbitrator. The Commissioner or the District Magistrate, as the case may be, shall take or cause to be taken such steps and use or cause to be used such force as may be reasonably necessary for securing the delivery of possession of the land to the Arbitrator.
2. (2) For the avoidance of doubt, it is hereby declared that the power to take steps under sub-section (1) includes the power to enter upon any land or other property whatsoever.

1. (1) Where possession of land is taken by the Arbitrator under section 83 or 84, the persons interested in such land shall be entitled to interest at the rate of 4 per cent. per annum on the amount of compensation payable to him under the final scheme in respect of the said land from the date on which such possession is taken till the date on which amount of compensation is paid to him by the Planning Authority.
2. (2) The Planning Authority may, at the request of the person interested, pay after consulting the Arbitrator, an advance as provided in sub-section (3) of section 129.

1[86.Sanction of State Government to preliminary or final scheme. - (1) On receipt of the preliminary scheme or, as the case may be, the final scheme, the State Government may,-

1. (a) in the case of the preliminary scheme, within a period of two months from the date of its receipt, and
2. (b) in the case of the final scheme, within a period of three months from the date of its receipt, by notification in the Official Gazette, sanction the preliminary scheme or the final scheme or refuse to give such sanction, provided that in sanctioning any scheme, the State Government may make such modifications as may, in its opinion, be necessary for the purpose of correcting an error, irregularity or informality.

1. (2) Where the State Government sanctions the preliminary scheme or the final scheme, it shall state in the notification,-
   • (a) the place at which the scheme shall be kept open for inspection by the public ; and
   • (b) a date (which shall not be earlier than one month after the date of the publication of the notification) in which all the liabilities created by the scheme shall come into force : Provided that, the State Government may, from time to time, by notification in the Official Gazette, extend such date, by such period, not exceeding three months at a time, as it thinks fit.
2. (3) On and after the date fixed in such notification, the preliminary scheme or the final scheme, as the case may be, shall have effect as if it were enacted in this Act.]

1. (1) If at any time before the 1[preliminary scheme] is forwarded by the Arbitrator to the State Government, a representation is made to the Arbitrator by the Planning Authority and a majority of the owners in the area that the scheme should be withdrawn, the Arbitrator shall, after inviting from all persons interested in the scheme objections to such representation, forward such representation together with the objections, if any, to the State Government.
2. (2) After making such inquiry as it may think fit, the State Government may, by notification in the Official Gazette, direct that the scheme shall be withdrawn; and upon such withdrawal, no further proceedings shall be taken in regard to such scheme.

On and after the day on which a 1[preliminary scheme] comes into force-

1. (a) all lands required by the Planning Authority shall, unless it is otherwise determined in such scheme, vest absolutely in the Planning Authority free from all encumbrances;
2. (b) all rights in the original plots which have been reconstituted shall determine and the reconstituted plots shall become subject to the rights settled by Arbitrator; 2* * *

1. (1) On and after the day on which a 1[preliminary scheme] comes into force, any person continuing to occupy any land which he is not entitled to occupy under the 2[preliminary scheme] may, in accordance with the prescribed procedure, be summarily evicted by the Planning Authority or any of its officers authorised in that behalf by that Authority.
2. (2) If the Planning Authority is opposed or impeded in evicting such person or taking possession of the land from such person, the Commissioner of Police, or as the case may be, the District Magistrate shall at the request of the Planning Authority enforce the eviction of such person or secure delivery of possession of the land to the Planning Authority as may be necessary.

1. (1) On and after the day on which a 1[preliminary scheme] comes into force, the Planning Authority may, after giving the prescribed notice and in accordance with the provisions of the scheme,-
   • (a) remove, pull down or alter any building or other work in the area included in the scheme which is such as to contravene the scheme or in the erection of which or carrying out of which, any provision of the scheme has not been complied with ;
   • (b) execute any work which it is the duty of any person to execute under the scheme, in any case where it appears to the Planning Authority that delay in the execution of the work would prejudice the efficient operation of the scheme.
2. (2) Any expenses incurred by the Planning Authority under this section may be recovered from the person in default or from the owner of the original plot in the manner provided for the recovery of sums due to the Planning Authority under the provisions of this Act.
3. (3) If any action taken by the Planning Authority is questioned, the matter shall be referred to the State Government or any officer authorised by the State Government in this behalf; and the decision of the State Government or of the officer, as the case may be, shall be final and conclusive and binding on all persons. 2[(4) No person shall be entitled to compensation in respect of any damage, loss or injury resulting from any action taken by the Appropriate Authority under the provisions of this section except in respect of the building constructed or work begun before the date referred to in sub-section (1) and only in so far as such building or work has proceeded until that date : Provided that, any claim to compensation, which is not barred by this sub-section shall be subject to the condition of any agreement entered into between the claimant and the Appropriate Authority.
4. (5) The provisions of this section shall not apply to any operational construction undertaken by the State Government or the Central Government.]

1. (1) If after the final scheme has come into force, the Planning Authority considers that the scheme is defective on account of an error, irregularity or informality or that the scheme needs variation or modification of a minor nature, the Planning Authority may apply in writing to the State Government for variation of the scheme.
2. (2) If, on receiving such application or otherwise, the State Government is satisfied that the variation required is not substantial, the State Government shall, by notification in the Official Gazette, authorise or direct the Planning Authority to prepare 1[a draft of such variation and publish a notice in the Official Gazette, and in such other manner as may be prescribed stating that a draft variation has been prepared]. (3)2[The notice of preparation of draft variation published] under sub-section (2) shall state every amendment proposed to be made in the scheme, and if any such amendment relates to a matter specified in any of the sub-clauses (i) to (ii) of clause (b) of section 59, the draft variation shall also contain such other particulars as may be prescribed.
3. (4) The draft variation shall be open to the inspection of the public at the office of the Planning Authority during office hours 3[and copies of such draft variation or any extract therefrom certified to be correct shall be available for sale to the public at a reasonable price.]
4. (5) Not later than one month of the date of the 4[publication of the notice regarding preparation of draft variation], any person affected thereby may communicate in writing his objections to such variation to the State Government, and send a copy thereof to the Planning Authority.
5. (6) After receiving the objections under sub-section (5), the State Government may, after consulting the Planning Authority and after making such enquiry as it may think fit, by notification in the Official Gazette,- (a) appoint an Arbitrator, and thereupon the provisions of this Chapter shall, so far as may be, apply to such draft variation, as if it were a draft scheme submitted to the State Government for sanction ;
   • (b) sanction the variation with or without modifications ; or
   • (c) refuse to sanction the variation.
6. (7) From the date of the notification sanctioning the variation, with or without modifications, such variation shall take effect as if it were incorporated in the scheme.

Notwithstanding anything contained in section 86, a town planning scheme may at any time be varied by a subsequent scheme made, 1[published by means of notice] and sanctioned in accordance with this Act : Provided that, when a scheme is so varied, the provisions of this Chapter shall so far as may be applicable, apply to such variation and making of subsequent scheme; and the date of the declaration of intention of the Planning Authority to vary the scheme shall, for the purposes of sections 69, 70, 97, 98 and 100, be deemed to be the date of declaration of intention to make a scheme referred to in those sections.

In the event of a town planning scheme being withdrawn or sanction to a final scheme being refused by the State Government, the State Government may direct that the costs of the scheme shall be borne by the Planning Authority or be paid to the Planning Authority by the owners concerned, in such proportion as the State Government may in each case determine.

Every party to any proceeding before an Arbitrator or the Tribunal of Appeal shall be entitled to appear either in person or by his agent authorised in writing in that behalf.

For the purpose of this Act, an officer appointed under sub-section (1) of section 71 or an Arbitrator or the Tribunal of Appeal may summon and enforce the attendance of witnesses including the parties interested or any of them and compel them to give evidence and compel the production of documents by the same means and as far as possible, in the same manner as is provided in the case of a Civil Court by the Code of Civil Procedure, 1908(V of 1908).

1. (1) When the State Government or two or more Planning Authorities are of opinion that the interests of contiguous areas within the jurisdiction of such Planning Authorities can best be served by the making of a joint development plan or a joint town planning scheme, the State Government shall after necessary enquiry constitute a Special Planning Authority as provided in section 40.
2. (2) Such Special Planning Authority, when duly constituted, shall make a declaration of the intention to make a joint development plan or a joint town planning scheme in respect of the contiguous areas in the manner provided in section 23 or section 60, as the case may be, and thereafter, the Special Planning Authority shall have all the powers and be liable to all the duties of a Planning Authority under this Act and all the foregoing provisions of this Act in respect of the procedure to be followed in preparing, publishing and submitting a development plan, or, as the case may be, a town planning scheme for sanction of the State Government shall apply so far as may be applicable.
3. (3) The joint development plan or the joint town planning scheme shall specify the parts of the joint development plan or the joint town planning scheme to be executed by the several Planning Authorities in the several contiguous areas, and the several parts of the joint development plan or joint town planning scheme shall, when the joint development plan or the joint town planning scheme is sanctioned by the State Government under section 31 or 86, as the case may be, have effect in the several contiguous areas as if they are separate development plans or town planning schemes : Provided that, a joint development plan, or a joint town planning scheme may be executed partly or wholly by the two or more Planning Authorities concerned jointly as they may decide in this behalf.

1. (1) The cost of a town planning scheme shall include,-
   • (a) all sums payable by a Planning Authority under the provisions of this Act which are not specifically excluded from the costs of the scheme; 1[(b) all sums spent or estimated to be spent by a Planning Authority with reference to the period during which the preliminary scheme is to be implemented, after it is sanctioned under section 86;]
   • (c) all sums payable as compensation for land reserved or allotted for any public purpose or purpose of a Planning Authority which is solely beneficial to the owners or residents within the area of the scheme;
   • (d) such portion of the sums payable as compensation for land reserved or allotted for any public purpose or purpose of the Planning Authority which is beneficial partly to the owners or residents within the area of the scheme and partly to the general public, as is attributable to the benefit accruing to the owner or residents within the area of the scheme from such reservation or allottment;
   • (e) all legal expenses incurred by the Planning Authority in the making and in the execution of the scheme;
   • (f) the amount by which the total of the values of the original plots exceeds the total 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 declaration of intention to make a scheme, with all the buildings and works thereon at that date and without reference to improvements contemplated in the scheme other than improvements due to the alteration of its boundaries. 2[(g) twenty per cent. of the amount of the cost of the infrastructure provided in the area adjacent to the area of the scheme as is necessary for the purpose of and incidental to the scheme.]
2. (2) If in any case the total of the values of the plots included in the final scheme exceeds the total of the value 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).

For the purposes of this Act, the increment 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 any plot with reference to the improvements contemplated in the scheme on the assumption that the scheme has been completed would exceed on the same date the market value of the same plot estimated without reference to such improvements : Provided that, in estimating such values, the value of buildings or other works erected or in the course of erection on such plot shall not be taken into consideration.

1. (1) The cost of the scheme shall be met wholly or in part by a contribution to be levied by the Planning Authority on each final plot included in the final scheme calculated in proportion to the increment which is estimated to accrue in respect of such plot by the Arbitrator : Provided that-
   • (i) no such contribution shall exceed half the increment estimated by the Arbitrator to accrue in respect of such final plot, subject to the condition that where the total cost of a scheme exceeded half the total amount of increments, the proportion of such contribution shall not be less than half the increment ;
   • (ii) no such contribution shall be levied on a plot used, allotted or reserved, for a public purpose or purpose of the Planning Authority, such plot being solely for the benefit of the owners or residents within the area of the scheme ;
   • (iii) the contribution levied on a plot used, allotted or reserved for a public purpose or purposes of the Planning Authority which is beneficial partly to the owners or residents within the area of the scheme and partly to the general public shall be calculated in the proportion to the benefit estimated to accrue to the general public from such use, allotment or reservation.
2. (2) The owner of each final plot included in a final scheme shall be primarily liable for the payment of the contribution leviable in respect of such plot.

The amount by which the total value of final plots included in a final scheme with all the buildings and works thereon allotted to the 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 added to, as the case may be, 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 and without reference to improvements contempted in the scheme other than improvements due to the alteration of its boundaries: 1[Provided that, in lieu of the amount that qualifies to be deducted from the contribution leviable from a person, the Planning Authority or the Arbitrator may, at the request of such person, grant FSI (Floor Space Index) or TDR (Transferable Development Right) equivalent to the reduction in the area of his original plot resulting from reconstitution.]

Any right in an original plot which in the opinion of the Arbitrator 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 Arbitrator 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 owner of any property or right which is injuriously affected by the making of a town planning scheme shall, subject to provisions of section 101, if he makes a claim before the Arbitrator within sixty days of the receipt of the notice from the Arbitrator, be entitled to obtain compensation in respect thereof from the Planning Authority or from any person benefited or partly from the Planning Authority and partly from such person as the Arbitrator may in each case determine.

1. (1) No compensation shall be payable in respect of any property or private right of any sort 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.
2. (2) Property or a private right of any sort shall not be deemed to be injuriously affected by reason of any provision inserted in a town planning scheme which with a view to securing the amenity of the area included in such scheme or any part thereof, imposes any conditions and restrictions in regard to any of the matters specified in clause (b) of section 64.

If the owner of an original plot is not provided with a final plot in the final scheme or if the contribution to be levied from him under section 100 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 Planning Authority in cash or in such other way as may be agreed upon by the parties.

1. (1) If from any cause the total amount which would be due to a Planning Authority under the provisions of this Act from the owner of a final 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 Arbitrator shall, at the request of the Planning Authority, direct the owner of such plot to make payment to the Planning Authority of the amount of such excess.
2. (2) If such owner fails to make such payment within the prescribed period, the Arbitrator shall, if the Planning 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 Planning Authority of the value of such plot estimated as its market value at the date of the declaration of intention to make a scheme and without reference to improvements contemplated in the scheme ; and thereupon, the plot included in the final scheme shall vest absolutely in the Planning Authority free from all encumbrances but subject to the provisions of this Act : Provided that, the payment made by the Planning Authority on account of the value of the original plot shall not be included in the costs of the scheme.

All payments due to be made to any person by a Planning Authority under this Act shall, as far as possible, be made by an adjustment in such person’s account with the Planning Authority in respect of the final 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 way as may be agreed upon by the parties.

1. (1) The net amount payable under the provisions of this Act by the owner of a final plot included in a final scheme may at the option of the contributor be paid in one sum or annual instalments not exceeding ten. If the owner elects to pay the amount by instalments, interest at 6 per cent. per annum shall be charged on the net amount payable. If the owner of a plot fails to elect the option on or before the date specified in a notice issued to him in that behalf by the Planning Authority, he shall be deemed to have elected the option of paying contribution by instalments 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 make an election as aforesaid : Provided that, where an owner elects to pay the amount in one sum but fails to do so, interest at 6 per cent. per annum shall be payable by him to the Planning Authority from the date specified in the notice to the date of payment.
2. (2) Where two or more final plots included in a final scheme are in the same ownership, the net amount payable by such owner under the provisions of this Act shall be distributed over his several final plots in proportion to the increment which is estimated to accrue in respect of each final plot unless the owner and the Planning Authority agree to a different method of distribution.

1. (1) A Planning 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.
2. (2) Such agreement shall not in any way affect the duties of the Arbitrator as stated in section 72 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 Arbitrator : Provided that, if any agreement contains any provisions which are inconsistent with the final scheme as drawn up by the Arbitrator under section 72 or the final scheme as sanctioned by the State Government under section 86 such an agreement shall be void : Provided further 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 a Planning Authority under this Act, rule 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 Government thereon.
2. (2) Any sum due to the Planning Authority under this Act, rule 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 Planning Authority, shall be recoverable by the Planning Authority from the defaulter as if they were arrears of land revenue.
3. (3) If any question arises whether a sum is due to the Planning Authority within the meaning of sub-section (2), it shall be referred to a tribunal constituted by the State Government consisting of one or more persons not connected with the Planning Authority or any authority subordinate to it or with the person by whom the sum is alleged to be payable which the tribunal shall, after making such inquiry at it may deem fit and after giving to the person by whom the sum is alleged to be payable, an opportunity of being heard, decided the question ; and the decision of the tribunal thereon shall be final and shall not be called in question in any court or before any other authority.
4. (4) The procedure to be followed by the tribunal in deciding questions referred to it under sub-section (2) shall be such as may be prescribed by the State Government.

Where after completing and meeting all the costs of a scheme as provided in this Act, any amount from the sums paid to the Planning Authority under this Act remains as surplus, the Planning Authority shall, in consultation with the owners of the plots, spend such surplus amount for providing further amenities within the area of the scheme.

1. (1) A Planning Authority shall complete all the works provided in a final scheme within the period prescribed in the final scheme by the Arbitrator under clause (xvii) of sub-section (3) of section 72 : Provided that, in exceptional circumstances on application by the Planning Authority, the State Government may by an order in writing specifying those circumstances grant to the Planning Authority in this behalf further extension of time as it may think fit.
2. (2) If the Planning Authority fails to complete the work within the prescribed period or within the period extended under sub-section (1), the State Government may, notwithstanding anything contained in sub-section (1), require the Planning Authority to complete the works within a further period as it may consider reasonable or appoint an officer to complete such works at the cost of the Planning Authority and recover the cost from the Planning Authority in the manner provided by sub-section (2) of section 162 of this Act.

Whoever wilfully destroys or injures or without lawful authority removes, a boundary stone or mark lawfully fixed or constructed, the Collector, on receipt of the intimation from the Arbitrator or the Planning Authority, may order such person to pay a fine, not exceeding twenty rupees for each stone or mark so destroyed, injured or removed as may in his opinion be necessary to defray the expenses of restoring the same.