Chapter VI LEVY, ASSESSMENT AND RECOVERY OF DEVELOPMENT CHARGE

1[CHAPTER VI-A LEVY, ASSESSMENT AND RECOVERY OF DEVELOPMENT CHARGE.

1. (1) Subject to the provisions of this Act, the Planning Authority or the Development Authority (hereinafter in this Chapter collectively referred to as "the Authority"), shall levy within the area of its jurisdiction development charge on the institution of use or change of use of any land or building, or development of any land or building, for which permission is required under this Act, at the rates specified by or under the provisions of this Chapter : Provided that, where land appurtenant to a building is used for any purpose independent of the building, development charge may be levied separately for the building and the land.
2. (2) The development charge shall be leviable on any person who institutes or changes the use of any land or undertakes or carries out any development : 2[Provided that,-
   • (i) no such development charge shall be leviable under the provisions of this Chapter in respect of use or change of use of any land or building, or development of any land or building, or both, for which a development permission has had already been granted or deemed to have been granted by the Planning Authority or the Development Authority either by way of commencement certificate or by way of any other mode of permission for development granted under this Act or any other law for the time being in force or by way of approval subject to condition in the form of a written notice (Intimation of Disapproval) by the Commissioner under section 346 of the Bombay Municipal Corporation Act, (Bom. III of 1888), before the 10th day of August 1992, being the date of commencement of the Maharashtra Regional and Town Planning (Amendment) Act, 1992 (Mah. XVI of 1992) , (hereinafter in this section referred to as "the said date"), irrespective of whether or not the institution of use or change of use or actual development work of land or building or both, has been effected or commenced or completed, as the case may be, and whether or not the completion certificate for any such use, change of use or development is granted by the Planning Authority or Development Authority, before the said date ;
   • (ii) where the development permission for land development, including permission for sub-division of a land, land development or land reclamation not involving any building or construction operations has had already been granted by the Planning Authority or the Development Authority before the said date, no development charge in respect of such land shall be leviable for the land development activities, irrespective of whether or not development of such land (not involving any building or constructions operations) has actually been commenced or completed before the said date. However, if at a later date, a permission for construction operations is granted, the development charge in respect of such land shall be leviable only for the building or construction activities : Provided further that, nothing in this chapter shall apply to demolition of any existing building, structure or erection, or part of such building, structure or erection.]

1. (1) (a) For the purposes of assessing the development charge, the user of land and building shall be classified under the following categories, namely :-
   • (i) Industrial ;
   • (ii) Commercial;
   • (iii) Residential;
   • (iv) Institutional.
   • (b) In classifying the user of land and building under any of the categories mentioned in clause (a), the predominant purpose for which such land and building is used shall be the basis for such classification. 1[(2) On and from the date of commencement of the Maharashtra Ragional and Town Planning (Amendment) Act, 2010 (Mah. XXXIV of 2010) ,development charge shall be levied and collected by the Authority at the rates specified in column (4) of the Second Schedule; and the Authority may, subject to the other provisions of this Chapter, enhance, from time to time, the rate specified in column (4) of the Second Schedule and levy the development charge at such enhanced rate : Provided that, the Authority may, subject to the other provisions of this Chapter, reduce, from time to time, the enhanced rate and levy development charge at such reduced rate, so however that in no case the rate shall be reduced below the rate specified in column (4) of the Second Schedule.] 2[(2-1A) In respect of the area under the jurisdiction of any Planning Authority or a New Town Development Authority under this Act, where State Government declares its intention to undertake one or more Vital Urban Transport Projects, the development charges levied and collected under the provisions of sub-section (2) shall be increased by one hundred per cent. Explanation.- For the purpose of this section, the term "Vital Urban Transport Project" means a project related to Mass Rapid Transport System such as Metro Rail, Mono Rail Bus Rapid Transport System and includes Freeway, Sealink, etc., in respect of which the State Government has by notification in the Official Gazette, declared the intention to undertake such project either on its own behalf or through the Planning Authority, a New Town Development Authority, any other statutory authority, an agency owned and controlled by the Central Government or State Government, or a Government company incorporated under the provisions of the Companies Act, 2013 (18 of 2013) or any other law relating to companies for the time being in force.] 3[(2A) Notwithstanding anything contained in sub-section (1), when the Maharashtra Industrial Development Corporation is the Special Planning Authority deemed to have been appointed as such under sub-section (1A) of section 40, for a notified area under its jurisdiction as provided in the said sub-section (1A), it shall be lawful for such Planning Authority to levy within such notified area, the development charges at such rate which may be lower than the 4* * rates specified by or under the provisions of this Chapter, as it may fix, from time to time.]
2. (3) The Authority, before enhancing or reducing the rate and levying the development charge at such rate shall observe the following preliminary procedure, namely :-
   • (a) the Authority shall, by a resolution passed at a special meeting, approve the regulations prescribing the rates of the development charge proposed to be levied by it ;
   • (b) when such a resolution is passed, the Authority shall take further action to obtain the previous sanction of the State Government to the regulations.

After the regulations in respect of development charge are sanctioned by the State Government under section 124B, such development charge shall be brought into force on or after the date to be specified by the State Government in its sanction.

1. (1) The regulations referred to in sections 124B and 124C, as sanctioned and published in the Official Gazette, shall be displayed by the Authority on notice board in its office. The Authority shall also publish a notice in a local newspaper, informing the inhabitants of the area within its jurisdiction, of the subject matter of the regulations so displayed and the date on which they shall come into force.
2. (2) When the rates at which the development charge is leviable are enhanced or reduced under sub-section (2) of section 124B, it shall not be necessary to give any separate notice thereof to the owners or occupiers of the lands or buildings affected thereby.

1. (1) Any person who, after the commencement of the Maharashtra Regional and Town Planning (Amendment) Act,1992 (Mah. XVI of 1992) , intends to carry out any development or institute or change any use of any land or building for which permission is required under this Act, whether he has applied for such permission or not, or who has commenced carrying out any such development or has carried out such development or instituted or changed any such use, shall apply to the Authority within such time and in such manner as may be prescribed, for the assessment of development charge payable in respect thereof.
2. (2) The Authority shall, on such application being made or if no such application is made, by a person instituting or changing any use of any land or building, then after serving a notice in writing on the person liable to such payment and after calling is made, by a person instituting or changing any use of any land or building, then after serving a notice in wrting on the person liable to such payment and after calling for a report in this behalf from the concerned officer of the Authority, after taking into consideration the report aforesaid, determine whether or not and if so, what development charge is leviable in respect of that development or, institution of use or change of use, and after giving the person concerned an opportunity to be heard, shall then assess the amount of development charge payable by such person and give to such person a notice in writing of such assessment : Provided that,-
   • (a) where permission under this Act has not been granted for carrying out the said development, the Authority may postpone the assessment of the development charge ;
   • (b) where the application relates to the carrying out of any development, the Authority may refuse to assess the amount of development charge payable by such person concerned unless it is satisfied that the applicant has an interest in the land or building sufficient to enable him to carry out such development or that the applicant is able to acquire such interest and that the applicant shall carry out the development within such period as the Authority may determine.
3. (3) The amount of Development charge as shown in the notice of assessment shall be paid within thirty days of the date of receipt thereof by such person and where the amount has not been so paid or has been partly paid an interest at the rate of eighteen per cent. per annum upon any amount outstanding shall be payable from the date immediately following the date on which the period of thirty days as aforesaid expires till the date of payment of such amount.
4. (4) The Authority shall, in regard to the area lying within its jurisdiction, collect all development charges due under this Act in respect of any development in that area.
5. (5) (a) The development charge together with interest, if any, payable in respect of any land or building shall, subject to the provisions of sub-section (6), be the first charge on such land or building, subject to the prior payment of land revenue, if any, due to the Government thereon.
   • (b) The development charge payable in respect of any land or building by any person shall, together with interest due upto the date of realisation, be recoverable from such person or his successor-in-interest in such land or building, as arrear of land revenue.
6. (6) Notwithstanding anything contained in sub-section (5), where a promoter as defined in clause (c) of section 2 of the Maharashtra Ownership Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 1963 (Mah. XLV of 1963) , intends to carry out any development or institute or change any use of any land or building, the liability to pay the development charge in respect of any such land or building and interest, if any, shall be that of such promoter; and any amount of such development charge and interest remaining outstanding shall, without prejudice to any other mode of recovery thereof available against such promoter, be the first charge on any other property which he owns or in which he has a right, title or interest (in which case such charge shall be limited to the extent of his such right, title or interest), subject to the prior payment of land revenue, if any, due to Government thereon.

1. (1) No development charge shall be levied on institution of use or of change of use, or development of, any land or building vested in or under the control or possession of the Central or State Government or of any local authority.
2. (2) Subject to such conditions as it may impose, the State Government may, by notification in the Official Gazette, exempt partially from the payment of development charge payable 1[on the development of any land or building which is proposed for warehouse or godown or by any educational institution, medical institution or charitable institution.] 2[(3) Notwithstanding anything contained in sub-sections (1) and (2), the State Government may, by notification in the Official Gazette and subject to such terms and conditions as may be specified therein, exempt partially a Special Township Project undertaken by a private developer under the Special Development Control Regulations made under the provisions of this Act, from payment of the development charges.]

1. (1) Any person aggrieved by an order passed by the Authority under section 124E may prefer an appeal to the State Government or to such an officer as may be appointed by the State Government in this behalf, being an officer not below the rank of Deputy Secretary to the Government; and such appeal shall be made in such manner and accompanied by such fees, as may be prescribed.
2. (2) The State Government or the officer so appointed may, after giving a reasonable opportunity to the appellant and the Authority, of being heard, by an order confirm, reduce, enhance or annul the assessment.
3. (3) Where the assessment is annulled or set aside in an appeal, the State Government or such officer deciding the appeal may direct the Authority to make a fresh assessment after such further enquiry as may be directed.
4. (4) Every order passed in appeal under this section shall be final and shall not be questioned in any suit or other legal proceedings.

No appeal under section 124G shall be entertained unless,-

1. (a) the appeal is brought within forty-five days next after the receipt of notice of assessment under sub-section (2) of section 124E by the person concerned : Provided that, the State Government or the officer so appointed may, admit an appeal preferred after the expiration of the forty-five days as aforesaid if, the Government or such officer is satisfied that the appellant had sufficient cause for not prefering the appeal within the said period ;
2. (b) the amount claimed in the notice of assessment from the appellant together with the amount of interest, if any due thereon, has been deposited by him in the office of the Authority.

If, as a result of an order passed in appeal under section 124G, the assessment is enhanced and any amount of difference is required to be recovered from the appellant or any amount from out of the amount paid under clause (b) of section 124H is required to be refunded to the appellant, an interest at the rate of eighteen per cent. per annum shall be payable,-

1. (a) in the case of amount to be so recovered, from the date of the notice of original assessment till the date of recovery thereof; and
2. (b) in the case of amount to be so refunded, from the date on which the amount was paid under clause (b) of section 124H till the date of refund thereof.

1. (1) There shall be established and set apart a separate fund to be called "the Development Fund" and an Authority shall separately show the same in its budget.
2. (2) All moneys received by the Authority as development charge together with interest thereon, if any, under this Chapter shall be credited to the Development Fund. 1[(3) The money credited from time to time, to the said Fund, shall be utilized only for the purposes of acquisition and development of any land reserved for any of the public purposes specified in any plan or scheme under this Act and for providing public amenities in the area under the jurisdiction of the said Authority and maintenance and improvment thereof.] 2[Provided that, the additional amount levied and collected as a result of increase in the development charge in accordance with the provisions of sub-section (2-1A) of section 124B, shall be applied, subject to the directions issued by the State Government, from time to time, only for the purposes of one or more Vital Urban Transport Projects, within the meaning of the said sub-section.]
3. (4) Surplus moneys at the credit of the said Fund, which cannot immediateiy or at an early date be applied for the purposes aforesaid, shall, from time to time, be deposited by the Authority in the bank. Explanation.- For the purposes of this sub-section, the expression "bank" means,-
   • (i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
   • (ii) a subsidiary bank as defined in the State Bank of India (Subsidiary Bank) Act, 1959 (38 of 1959) ;
   • (iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) ;
   • (iv) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934)or being such a bank as may be approved by the State Government.

1. (1) Where any person who, whether at his own instance or at the instance of any other person commences, undertakes or carries out development or institutes or changes the use of any land or building without the payment of development charge payable under this Chapter, the Authority may serve on such person a notice requiring to stop the development work or the change of any such land or building and from the time of the service of such notice, such person shall discontinue such development or change of use of land or building.
2. (2) The notice issued under sub-section (1) and served upon such person may require,-
   • (a) the demolition of the development work, if any carried out, within the time specified in such notice, and
   • (b) the discontinuance of any further development or change of use of such land or building.
3. (3) Any person, who continues to carry out the development or change of use of any such land or building, whether for himself or on behalf of the owner or any other person, after such notice has been served upon him, shall, on conviction, be punished with imprisonment for a term which shall not be less than three months, but which may extend to three years and with fine which shall not be less than one thousand rupees, but which may extend to five thousand rupees; and when the non-compliance with notice is a continuing one, with further fine which may extend to hundred rupees for every day after the date of the service of the notice during which the non-compliance has continued or continues.
4. (4) On the failure of such person to demolish the work of development, if any, as required under such notice, the Authority may itself demolish such development and any expenses incurred by the Authority for doing so shall be recoverable from such person as arrears of land revenue.

1[124K-1Provisions of sections 124A to 124K also to apply in certain cases. Notwithstanding anything contained in the draft or final Regional plan, the provisions of sections 124A to 124K shall apply, mutatis mutandis, to cases where the permission to carry out the development is under clause (ii) or (iii) of sub-section (1) of section 18 : Provided that, the development charge collected under this section shall be assigned to the Village Panchayat, within whose limits the land proposed to be developed is situated. The amount so collected and assigned shall be utilised by the Village Panchayat, to provide or develop basic amenities and infrastructure.]

1. (1) The provision of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in this Act or any other law for the time being in force.
2. (2) Subject to the provisions of sub-section (1), the provisions of this Chapter shall be in addition to, and not in derogation of, any other provisions of this Act or any law relating to municipal corporation, municipal council or other local authority of any urban area.]