Chapter VI NEW TOWNS

1. (1) If the State Government is satisfied that it is expedient in the public interest that any area should be developed as a site for a new town as reserved or designated *1[in any draft or final Regional Plan], it may, by notification in the Official Gazette, designate that area as the site for the proposed new town. The new town shall be known by the name specified in the notification.
2. (2) After publication of the notification under sub-section (1), for the purpose of acquiring, developing and disposing of land in the area of a new town, the State Government shall by another notification in the Official Gazette constitute a New Town Development Authority. The New Town Development Authority shall consist of a Chairman, a Vice-Chairman, 2[two members representing the local authorities functioning in the Region and such number of other members not exceeding seven] as in the opinion of the State Government have special knowledge or practical experience in matters relating to town and country planning, an officer to be called the Town Planning Officer and a Chief Executive Officer. The Chairman and the Vice-Chairman and all other members shall be appointed by the State Government.
3. (3) The Chief Executive Officer shall be the Secretary of the Development Authority 3[constituted under sub-section (2)]. 4[(3A) Having regard to the complexity and magnitude of the work involved in developing any area as a site for the new town, the time required for setting up new machinery for undertaking and completing such work of development, and the comparative speed with which such work can be undertaken and completed in the public interest, if the work is done through the agency of a corporation including a company owned or controlled by the State or a subsidiary company thereof, set up with the object of developing an area as a new town, the State Government may, notwithstanding anything contained in sub-section (2), require the work of developing and disposing of land in the area of a new town to be done by any such corporation, company or subsidiary company aforesaid, as an agent of the State Government ; and thereupon, such corporation or company shall, in relation to such area, be declared by the State Government, by notification in the Official Gazette, to be the New Town Development Authority for that area.]
4. (4) Every Development Authority shall be a body corporate with perpetual succession and a common seal with power to acquire, hold and dispose of property, both moveable and immoveable, and contract and sue or be sued by such name as may be specified in the notification under 5[sub-section (2)]. (5)6[On the constitution of, or on the declaration of any corporation or company as], a Development Authority for any new town, the local authority or authorities functioning, within the area designated under this Act as a site for the new town, immediately 7[before such constitution or declaration] shall cease to exercise the powers and perform the functions and duties which the said Development Authority is competent to exercise and perform under this Act.
5. (6) The provisions of sections 5, 6, 7, 8, 9, 10 and 11 shall apply mutatis mutandis to a 8[Development Authority constituted under sub-section (2)] as they apply in relation to a Regional Board.
6. (7) The Development Authority shall have its office at such place as the State Government may appoint in this behalf.
7. (8) A Development Authority shall have all the powers and shall carry out all the duties of a Planning Authority under this Act 9[(including all powers and duties under Chapters III and IV and also under other provisions of this Act)] as may be relevant for carrying out of its objects and all the provisions in respect of procedure under this Act shall apply so far as may be necessary in this behalf.

1[113A. Power of State Government to acquire land for Corporation or Company declared to be New Town Development Authority. Notwithstanding anything contained in this Act, or in any law for the time being in force, where any corporation or company is declared to be the New Town Development Authority under sub-section (3A) of section 113, the State Government shall acquire either by agreement or 2[under the provisions of the Right to Fair Comensation and Transparancy in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013)] (and such acquisition may have been commenced before the coming into force of this section) any land within the area designated under this Act, as the site of the new town, any land adjacent to that area which is required for the purposes connected with the development of the new town, and any land whether adjacent to that area or not, which is required for provisions of services or amenities for the purposes of the new town; and vest such land in such Authority for the purposes of this Chapter] 3[by an order duly made in that behalf].

1. (1) The objects of a Development Authority shall be to secure the laying out and development of the new town in accordance with proposals approved in that behalf under the 1[provisions] of this Act, and for that purpose every such Authority shall 2[subject to the provisions of section 113A] have power to acquire, hold, manage and dispose of land and other property to carry out buildings and other operations, to provide water, electricity, gas, sewerage and other services, amenities and facilities and generally to do anything necessary or expedient for the purpose of the new town or for purposes incidental thereto. 3 * * * * *
2. (2) Without prejudice to any provision of this Act requiring the consent of the State Government to be obtained for anything to be done by a Development Authority, the State Government may give directions to any such Development Authority for restricting the exercise by it of any of its powers under this Act, or for requiring it to exercise those powers in any manner specified in the directions : Provided that-
   • (a) before giving any such directions, the State Government 4[shall consult with the Chairman, or if the Chairman is not available, with the Vice-Chairman, of the Development Authority constituted under sub-section (2) of section 113, or as the case may be, with the officer or officers of the Development Authority declared under sub-section (3A) of that section who is or are duly authorised by such Authority], unless the State Government is satisfied that, on account of urgency, such consultation is impracticable ; and
   • (b) any transaction between any person and any such Development Authority acting in the purported exercise of their powers, under this Act shall not be void by reason only that it was carried out in contravention of such directions, unless that person had actual notice of the directions.
3. (3) For the avoidance of doubt, it is hereby declared that the provisions of sub-section (1) with respect to the powers of Development Authorities relate only to their capacity as statutory corporation; and nothing in this section shall be construed as authorizing the disregard by a Development Authority of any enactment or rule of law.

1[Without prejudice to the provisions of sub-section (8) of section 113, the Development Authority] shall from time to time submit to the State Government in accordance with any directions that may be given by the State Government in that behalf, its proposals for the development of land within the area designated under this Act as the site of the new town, and the State Government 2[after consultation with the Director of Town Planning], may approve any such proposals either with or wihout modification.

116. Acquisition of land by Development Authority 1[constituted under section 113 (2)].- A Development Authority 2[constituted under sub-section (2) of section 113] shall have all the powers of a Planning Authority under this Act as provided in Chapter VII for the purpose of acquisition either by agreement or 3[under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013)] of-

1. (a) any land within the area designated under this Act as the site of the new town ;
2. (b) any land adjacent to that area which is required for purposes connected with the development of the new town ; and
3. (c) any land whether adjacent to that area or not which is required for provision of services of amenities for the purposes of the new town.

Where any land within the area designated by a notification under section 113 of this Act as the site of the new town has not been 1[acquired by the State Government or a Development Authority constituted under sub-section (2) of section 113] within a period of ten years from the date of the notification, any owner of the land may by notice in writing 2[served on the State Government or the Development Authority] require it to acquire his interest therein; and thereupon, the provisions of section 127 providing for lapsing of reservations shall apply in relation to such land as they apply in relation to land reserved under any plan under this Act.

1. (1) Subject to any directions given by the State Government under this Act, a Development Authority may dispose of any land acquired by it 1[or vesting in it] to such persons, in such manner, and subject to such terms or conditions as they consider expedient for securing the development of the new town in accordance with proposals approved by the State Government under this Act : Provided that, a Development Authority shall not have power, except with the consent of the State Government, to sell any land or to grant a lease of any land for a term of more than ninety-nine years, and the State Government shall not consent to any such disposal of land unless it is satisfied that there are exceptional circumstances which render the disposal of the land in that manner expedient.
2. (2) The powers of a Development Authority with respect to the disposal of 2[land acquired for it for the purposes of this Act] shall be so exercised as to secure, so far as practicable, that persons who were living or carrying on business, or other activities on land so acquired shall, if they desire to obtain a plot or accommodation 3[on land belonging to, or vesting in], the Development Authority and are willing to comply with any requirements of the Development Authority as to its development and use, have an opportunity to obtain a plot or accommodation suitable to their reasonable requirements on terms settled with due regard to the price at which any such land has been acquired from them.
3. (3) Nothing in this Act shall be construed as enabling a Development Authority to dispose of land by way of gift, mortgage or charge, but subject as aforesaid, references in this Act to the disposal of land shall be construed as reference to the disposal thereof in any manner, whether by way of sale, exchange or lease by the creation of any easement, right or privilege or otherwise.

The State Government may give to any Development Authority such directions with respect to the disposal of land acquired by the Authority 1[or vested in it] under this Act and with respect to the development by that Authority of such land, as appear to the State Government to be necessary or expedient for securing so far as practicable, the preservation of any features or objects of special architectural or historic interest.

A Development Authority may make any agreement or enter into any contract with any local authority, Planning Authority or statutory body in order to secure the provision of services, such as water-supply, drainage, including sewerage, electricity, gas within the area of the new town, subject to the power of the State Government to modify or disallow such agreement or contract.

Without prejudice to the generality of the powers conferred on a Development Authority under this Chapter, any Development Authority may, with the consent of the State Government contribute such sums as the State Government may determine towards expenditure incurred or to be incurred by any local authority, Planning Authority or statutory body in the performance, in relation to the new town, of any of their statutory functions, including expenditure so incurred in the acquisition of land.

1. (1) For the purpose of enabling a Development Authority 1[constituted under sub-section (2) of section 113] to defray expenditure properly chargeable to capital account including the provision of working capital, the State Government may, after due appropriation made by the State Legislature by law in this behalf, make advances to the Development Authority repayable over such periods and on such terms as may be approved by the State Government.
2. (2) For the purpose of enabling 2[such Development Authority] to defray any other expenditure, the State Government may, after due appropriation made by the State Legislature by law in this behalf, make grants to the Development Authority of such amounts it may decide in this behalf.
3. (3) All sums received by the State Government by way of interest on an advance made to a Development Authority under sub-section (1) and all sums received by way of repayment of the principal of such an advance shall be paid into the Consolidated Fund of the State ; and the State Government shall lay before each House of the Legislature of the State a statement of any sums due from a Development Authority by way of interest on or repayment of any such advances which are not duly paid to the State Government in accordance with the terms approved under sub-section (1).
4. (4) It shall be a condition of the making of advances to a Development Authority under this section that 3[the plans or proposals] for development submitted to the State Government 4[under this Act] shall be approved by the State Government as being likely to secure for the Development Authority an overall return which is reasonable, having regard to all the circumstances, when compared with the cost of carrying out those proposals.
5. (5) The provisions of Chapter VIII in regard to budget, accounts and audit shall 5[except as provided in that Chapter] apply to every Development Authority.
6. (6) Every Development Authority shall provide the State Government with such information relating to the undertaking of the Authority as the State Government may from time to time require, and for that purpose shall permit any person authorised by the State Government in that behalf to inspect and make copies of the accounts, books, documents or papers of the Development Authority and shall afford such explanation thereof as that person or the State Government may reasonably require.

1[122A. Power of Development Authority to borrow and to accept deposits.- (1) Without prejudice to the provisions of section 122, a Development Authority constituted under sub-section (2) of section 113 may,-

1. (a) subject to such conditions as may be determined in this behalf by the Government, borrow money in the open market or otherwise with a view to provide itself with adequate resources ;
2. (b) accept deposits on such conditions as it deems fit from persons to whom allotment or sale of land or building or any structure is made, or is likely to be made, in furtherance of the objects of this Chapter.

1. (2) All moneys borrowed under sub-section (1) may be guaranteed by the State Government as to the repayment of principal and interest at such rates and on such conditions as the State Government may determine at the time the money, are borrowed].

1. (1) Without prejudice to the power of a Development Authority under this Act to dispose of any of their property, a Development Authority may by an agreement made with any local authority, or Planning Authority and approved by the State Government, transfer to that local authority or Planning Authority any part of the property of the Development Authority upon such terms as may be prescribed by the agreement : Provided that, before approving such agreement, the State Government shall publish in the Official Gazette and in one or more local newspapers a notice stating that the agreement has been submitted for approval, and describing the general effect of the agreement.
2. (2) If the State Government is satisfied that it is expedient, having regard to any agreement made or proposed to be made under sub-section (1) that the liability of the Development Authority in respect of advances made to it under this Act, should be reduced, the State Government may, by an order reduce that liability to such extent as may be specified in the order.
3. (3) The payment of any sums payable by a local authority or Planning Authority for the purposes of an agreement under this section shall be a purpose for which that authority may, notwithstanding anything contained in any law constituting such authority, borrow money.

1. (1) If it appears to the State Government in the case of any area designated under this Act as the site of a new town, that there are exceptional circumstances which render it expedient that the functions of a Development Authority under this Act should be performed by the Development Authority established for the purpose of any other new town instead of by a separate Development Authority established for the purpose, it may, in lieu of establishing such a separate Development Authority by order direct that the said functions shall be performed by the Development Authority established for the said other new town.
2. (2) If it appears to the State Government that there are exceptional circumstances which render it expedient that the functions of a Development Authority established for the purposes of a new town should be transferred to the Development Authority established for the purposes of any other new town, or to a new Development Authority to be established for the purposes of the first mentioned new town, it may by order provide for the dissolution of the first mentioned Development Authority and for the transfer of its functions, property, rights and liabilities to the Development Authority established for the purposes of the said other new town or, as the case may be, to a new Development Authority established for the purposes of the first mentioned new town by the order.
3. (3) Without prejudice to the provisions of this Act with respect to the variation of orders made thereunder, an order under this section, providing for the exercise of functions in relation to purposes of another new town, or for the transfer of such functions to such a Development Authority, may modify the name and constitution of that Development Authority in such a manner as appears to the State Government to be expedient, and for the purposes of this Act that Development Authority shall be deemed to have been established for the purposes of each of those new towns.
4. (4) Before making an order under this section providing for the transfer of functions from or to a Development Authority or for the excercise of any functions to such a Development Authority, the State Government shall consult with that Development Authority.