Chapter XI FUNDS AND FINANCE

1. (1) The State Government shall place all such Urban Development fund at the disposal of the Competent Authorities, as the case may be, for Spatial and Economic Development Plans and Schemes preparation thereof and its implementation, as may be compatible with the respective State Five Year Plan and the Annual Plan;
2. (2) The State Government shall, by notification, constitute a 'State Urban & Planning and Development Fund' for the purpose of preparation of plans under this Act and implementation thereof, and the administration of such fund shall be made in such a manner as may be prescribed.

Costs of Town Planning Scheme or Local Area Plan.-

1. (1) The costs of a Town Planning Scheme or as the case may be the Local Area Plan shall include-
   • (i) all sums payable by the appropriate authority under the provisions of this Act, which are not specifically excluded from the costs of the scheme or the Local Area Plan;
   • (ii) all sums spent or estimated to be spent by the appropriate authority in the making and execution of the scheme or the Local Area Plan: Provided that the estimates shall be with reference to the period during which, after the sanctioned of Preliminary Scheme under section 27 or the Local Area Plan under section 44, is to be implemented;
   • (iii) all sums payable as compensation for land earmarked or designated for any public purpose or for the purposes of the appropriate authority which is solely beneficial to the owners of land or residents within the area of the scheme or the Local Area Plan;
   • (iv) such portion of the sums payable as compensation for land earmarked or designated for any public purpose or for the purpose of the appropriate authority which is beneficial partly to the owners of land or residents within the area of the scheme or the Local Area Plan from such earmark or designation;
   • (v) all legal expenses incurred by the appropriate authority in the making and in the execution of the scheme or the Local Area Plan;
   • (vi) any amount by which the total amount of the values of the Original Plots exceeds the total amount of the values of the plots included in the Final Scheme or the Local Area Plan, each of such plots being estimated at the value prescribed under the Rules at the date of the declaration of intention to make a scheme or the Local Area Plan, with all the buildings and works thereon at the said date and without reference to improvements contemplated in the scheme or the Local Area Plan other than improvements due to alteration of its boundaries;
   • (vii) twenty percent of the amount of the cost of infrastructure provided in the area adjacent to the area of the scheme, or the Local Area Plan, as is necessary for the purpose of and incidental to the scheme or the Local Area Plan.
2. (2) If in any case the total amount of values of the plots included in the Final Scheme or as the case may be the Local Area Plan exceeds the total amount of the values of the Original Plots, each of such plots being estimated in the manner provided in clause
   • (vi) of sub-section (1), then the amount of such excess shall be deducted in arriving at the costs of the scheme or the Local Area Plan as defined in sub-section (1).

Certain amounts to be added to, or deducted from, contribution leviable from a person.- The amount by which the total value of the plots included in the Final Scheme or as the case may be the Local Area Plan with all the buildings and works thereon allotted to a 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, the contribution leviable from such a person, each of such plots being estimated at its market value at the date of declaration of intention to make a scheme or the Local Area Plan or the date of the notification issued by the State Government and without reference to improvements contemplated in the Town Planning Scheme or the Local Area Plan other than improvements due to the alteration of its boundaries.

Exclusion of compensation in certain cases.-

1. (1) No compensation shall be payable in respect of any property or private right which is alleged to be injuriously affected by reason of any provisions contained in the Town Planning Scheme or the Local Area Plan.
2. (2) Any property or private right shall not be deemed to be injuriously affected by reason of any provision inserted in a Town Planning Scheme or the Local Area Plan which imposes any conditions and restrictions in regard to any of the matters specified in clause
   • (o) of section 22 in case of Town Planning Scheme or clause
   • (e) of sub-section
3. (1) of section 38 in case of Local Area Plan.

Compensation when the Town Planning Scheme or Local Area Plan is varied.- If at any time after the date on which the scheme or as the case may be the Local Area Plan has come into force, such a scheme or the Local Area Plan is varied, any person who has incurred any expenditure for the purpose of complying with such a scheme or the Local Area Plan shall be entitled to be compensated by the appropriate authority for the expenditure, if such an expenditure is rendered abortive by reason of the modification in the scheme or as the case may be the Local Area Plan.

Compensation in respect of property or right injuriously affected by the Town Planning Scheme or the Local Area Plan.-

1. (1) The owner of any property or right which is injuriously affected by the making of a Town Planning Scheme or as the case may be the Local Area Plan shall, if such owner makes a claim before the Town Planning Scheme Officer within the prescribed time, be entitled to be compensated in respect thereof by the appropriate authority or by any person benefited or partly by the appropriate authority and partly by such a person as the Town Planning Scheme Officer may in each case determine: Provided that the value of such property or right shall be deemed to be its market value at the date of the declaration of intention to make a scheme or the Local Area Plan or the date of the notification issued by the State Government under sub-section
2. (1) of section 31 in case of Town Planning Scheme or sub-section
3. (1) of section 45 in case of Local Area Plan, as the case may be and without reference to improvements contemplated in the scheme or the Local Area Plan.
4. (2) If at any time after the date on which the Local Area Plan has come into force, and such a Local Area Plan is varied, any person who has incurred any expenditure for the purpose of complying with such a scheme or as the case may be the Local Area Plan shall be entitled to be compensated by the appropriate authority for the expenditure, if such an expenditure is rendered abortive by the reason of modification in the Local Area Plan.