Constitution of Punjab Urban Development Fund

(1) Every promoter to whom a licence has been granted under section 5 to develop a colony or who stands exempted or to whom exemption is granted under section 44, shall deposit service charges at the rate of rupees three per square meter of the plotted area proposed to be developed by him as residential, commercial or industrial (excluding the area used by the public for general purpose) into a colony in lump sum, prior to grant of licence and the promoter shall in turn be entitled to pass on the service charges so paid by him to the allottees. (2) The amount of service charges levied under sub-section (1) if not paid within the stipulated period, shall be recoverable as arrears of land revenue. (3) The amount of service charges deposited by the promoter under sub-section (1) or recovered under sub-section (2) shall constitute a fund to be called "the Punjab Urban Development Fund" (hereinafter referred to as the Fund) and shall vest in such Authority as the State Government may notify in this behalf and shall be administered by that Authority. (4) The Fund shall be utilized by the Authority notified under sub-section (3) for the benefit of the allottees, for development of the colonies to promote research and development, training and capacity building and up-gradation of infrastructure or apparatus in town and country planning and urban affairs, and for such other similar purposes, as may be prescribed. (5) The State Government shall publish annually in the Official Gazette the report of the activities financed from the Fund and the statement of accounts.