The PEPSU Townships Development Board Act, 1954

Preliminary

This Act may be called the PEPSU Townships Development Board Act, 1954.

In this Act, unless the context otherwise requires :-

1. (a) "Board" means the Patiala & East Punjab States Union Townships Development Board established under Section 3
2. (b) "Chairman" means the Chairman of the Board.
3. (c) "Displaced Person" means any person who, on account of the setting up of the Dominions of India and Pakistan or on account of Civil disturbances or the fear of such disturbances in any area now forming part of Pakistan, including any state which has acceded to Pakistan, has been displaced from, or has left his place of residence in such area and who has subsequently been residing in any part of India.
4. (d) "Member" means a member of the Board and includes the Chairman
5. (e) "Prescribed" means prescribed by rules made under this Act
6. (f) "Township" means any town to be constructed and developed by the Board in any part of the State for the settlement of displaced persons therein.

1. (2) Words and expressions used and not defined in this Act, but defined in the Punjab Municipal Act, 1911 (Punjab Act, III of 1911), have the same meanings as are respectively assigned to them in the said Act.

1. (1) THE State Government may, by notification in the official Gazette, establish a Board to be called the Patiala and East Punjab States Union Townships Development Board, for the purposes of constructing and developing townships at such places in the State as it deems fit, settling therein displaced persons, exercising such other powers and discharging such other functions as are conferred on, or may be assigned to, the Board by or under this Act.
2. (2) The Board shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power, subject to the provisions of this Act and the rules made thereunder, to acquire, own or transfer property, both movable and immovable, and may by the said name sue and be sued.

1. (1) The Board shall consist of the Chairman and six other members to be appointed by the State Government, of whom, at least, two shall be displaced persons settled in a Township.
2. (2) The names of members appointed under sub-section (1) shall be published in the official Gazette and every such appointment shall take effect from the date on which it is so published.

1. (1) The terms of office of the Chairman and other members shall be such as may be prescribed.
2. (2) The Chairman or any other member may resign his office by writing under his hand addressed to the State Government but his resignation shall take effect from the date on which it is accepted and notified in official Gazette.
3. (3) A member shall hold office during the pleasure of the State Government.
4. (4) A casual vacancy caused by resignation, death or removal of a member or for any other reason shall be filled by fresh appointment in accordance with the provisions of Section 4.

1. (1) The Board may, from time to time, with a view to give effect to the purposes of this Act appoint one or more committees consisting of such persons as it thinks fit.
2. (2) The Board may: -
   • (a) refer to such committee for inquiry and report any matter relating to any of the purposes of this Act.
   • (b) delegate to such Committee, by a specific resolution and subject to any rules made in this behalf, any of the powers or duties of the Board relating to the subject matter for which such Committee has been appointed.
   • (c) The Board may, at any time, for reasons to be recorded, dissolve or alter the constitution of any such Committee.
   • (d) Every Committee shall carry out any instruction given to it by the Board, and every final decision of such Committee shall, subject to any rule to the contrary, be laid before the Board for confirmation.

No act or proceedings of the Board or of any of its Committees shall be invalid by reason only of the existence of any vacancy amongst its members or any defect in the constitution thereof.

1. (1) No person who directly or indirectly, by himself or by any partner, has any share or interest, in any contract with, by or on behalf of the Board, or in any business, industry or concern, connected with the construction and development of a township under this Act except as a share-holder (other than a director or managing agent) in an incorporated company, or holds any office of profit under the Board, shall become or continue to be a member of the Board. Provided that no such member shall be deemed to have any share or interest in any such contract by reason only of his being: -
   • (a) A share-holder in, or a member of, any incorporated or registered company with which any such contract has been entered into by the Board; or
   • (b) A person to whom the Board has sold, leased, let out on hire or allotted any property.
2. (2) Subject to the provisions of sub-section (3) of section 5, the State Government may, by notification in the official Gazette, remove from office any Member of the Board who, in its opinion, is or becomes, subject to any of the disqualifications herein before mentioned.

1. (1) The Board shall meet at such times and places, and shall, subject to the provisions of this section observe such rules of procedure in regard to transaction of business at its meetings as may be prescribed. Provided that the Chairman may, whenever he thinks fit, and shall, upon the written request of not less than two members, call a special meeting.
2. (2) The quorum necessary for the transaction of business at a meeting of the Board shall be three members. Provided that where the business to be transacted at any such meeting involves the preparation of any scheme under Chapter-III, the quorum shall be four.
3. (3) The chairman or in his absence, any member chosen by the members present from among themselves shall preside at a meeting of the Board.
4. (4) All questions at any meeting of the Board shall be decided by a majority of the votes of the members present and voting, and in the case of an equality of votes, the Chairman or in his absence the person presiding, shall have and exercise a second or casting vote.
5. (5) Minutes of the proceedings of each meeting (together with the names of the members present) shall be recorded in a book to be provided for the purpose, and shall be signed by the person presiding at the next ensuing meeting, and the minutes shall be circulated to each member and shall, at all reasonable times, be open to inspection by any member during office hours free of charge.

The Board may associate with itself, in such manner and for such purposes as may be prescribed, any person whose assistance or advice it may desire in carrying out any of the provisions of this act or rules made thereunder; and such person shall have a right to take part in the discussions of the Board, relevant to the purpose, but shall not have a right to vote.

Subject to the provisions of this Act and any rules made thereunder the Board, may appoint such officers and servants as it considers necessary for the efficient performance of its functions on such terms and conditions of service as it may consider proper.

1. (1) There shall be an Administrator of the Board who shall be appointed by the State Government on such terms and conditions as may be prescribed.
2. (2) The Administrator shall be the ex-officio secretary to the Board and shall have the right to speak at, and otherwise take part in, any meeting, but shall not have the right to vote.
3. (3) The Administrator shall be the principal executive officer of the Board and all other officers and servants of the Board shall be subordinate to him.

1. (1) The jurisdiction of the Board shall extend to every township constructed and developed by the Board under this Act and the State Government may, by notification in the official Gazette, specify the territorial limits of every such township and the area so specified shall be called the area of operation of the Board.
2. (2) The State Government may, from time to time, by a like notification, extend or vary the limits of such area of operation of the Board.
3. (3) The Board shall carry out all or any of its functions and exercise all or any of its powers within the area of its operation.

1. (1) The Board shall, as soon as may be, after the area of its operation has been specified in relation to a township under sub-section (1) of Section 13, prepare a scheme in the prescribed manner for the construction and development of the township for the purpose of rehabilitating displaced persons and take all such measures as may appear to it to be necessary for carrying out such rehabilitation.
2. (2) A scheme to be prepared by the Board under sub-section (1) shall, among other things, provide for: -
   • (a) The laying out of the locality to be developed.
   • (b) The purposes for which particular portions of such locality are to be utilized.
   • (c) The laying out of streets and buildings.
   • (d) Roads, drainage, sewerage and water-supply lighting of streets, and public health, sanitation and social welfare.
   • (e) Construction of residential or other buildings.
   • (f) Such other matters as may appear necessary to the Board for carrying out the purpose of this act.
3. (3) The Board may at any time alter or vary a scheme prepared by it under sub-section (2).
4. (4) Any scheme for the construction and development of a township prepared by the Board under sub-section (2) or any alteration in or modification of, such scheme under sub-section (3) shall, if so, required by the State Government be submitted by the Board to the State Government for approval.

1. (1) Subject to the provision of this Act and the rules made thereunder the Board shall have powers to do anything consistent therewith, which may in its opinion be necessary or expedient for the purpose of carrying out its functions under this Act.
2. (2) Without prejudice to the generality of the foregoing provision, the Board shall have power: -
   • (a) to acquire and hold such property, both movable and immovable, as the Board may deem necessary and to sell, lease or otherwise transfer any such property.
   • (b) to construct residential or other buildings.
   • (c) subject to such rules as may be made in this behalf by the State Government to advance to a displaced person, or to any other person a loan for industrial or business purposes or for constructing residential or other buildings.
   • (d) to sell, lease or let out on hire any building or site belonging to the Board to any person on such terms as may be prescribed.
   • (e) to promote or cause to be promoted any trade, business or industry for the development of the township.
   • (f) to make provision for drains, sewers, water supply and the lighting of streets.
   • (g) to undertake measures to promote public health, sanitation, education and social welfare and to promote or operate schemes of water supply, drainage and irrigation.
   • (h) to perform such other functions as may be prescribed.

Notwithstanding anything contained in any law for the time being in force, where a loan has been advanced to a displaced person under clause (c) of sub-section (2) of section 15, or where a building or site has been sold or leased or let out on hire under clause (d) of the Board on account of the loan, sale, lease or hire together with any interest thereon, shall be a first charge on the building, machinery stock and other assets belonging to such person.

POWERS OF THE BOARD TO APPLY CERTAIN PROVISIONS OF THE PUMB MUNICIPAL ACT TO TOWNSHIPS: - The State Government may, by notification in the official Gazette apply to any township or a part thereof, with such adaptations and modifications not affecting the substance as may be specified in the notification, all or any of the provisions of section 61 to 79, 82 to 92, 96 to 110, 113 to 121, 121A, 122, 123, 125 to 168. Contd... P. 8. 170 to 17OF, 172 to 185, 188 to 197, 199, 201 to 207, 209 to 222, 224 to 228 and 230 of the Punjab Municipal Act, 1911 (Punjab Act III of 1911) Union in so far as such provisions are not inconsistent with the provisions of this Act if

Notwithstanding any agreement to the contrary, the Board may, by notice require any person to whom a loan has been advanced under this Act to repay forthwith in full with interest thereon any such loan.

1. (a) If it appears to the Board that false or incorrect information in any material particulars has been given by the person for obtaining the loan;
2. (b) If the person has failed to comply with any terms of the contract with the Board in respect of the loan; or
3. (c) If in the opinion of the Board there is a reasonable apprehension that the person is unable to pay his debt or that insolvency proceedings or proceedings for liquidation are to be started against him; or
4. (d) If it is necessary in the opinion of the Board for any other reason to protect the interests of the Board.

If the amount of loan or any instalment thereof or any interest thereon which has become due to the Board in accordance with the terms of the contract or under the provisions of this Act, has not been re-paid, then:-

1. (a) Without prejudice to any other remedy provided by law, such loan instalment or interest may be recovered as arrears of land revenue, or.
2. (b) Where such loan was taken for the purposes of trade business or industry, the Board may, subject to such rules as may be made in this behalf by the State Govt. take charge of the trade, business or industry of the person on such terms and conditions as may be agreed upon.

1. (1) The Administrator or any other officer empowered by the Board in writing in this behalf may, by order, require any person to whom a loan has been advanced or to whom a building or site has been leased or let out on hire to furnish such information or to produce such books of accounts and other documents for inspection at such time and place as may be specified in the order and such person shall comply with such order.
2. (2) The Administrator or the other officer so empowered may inspect such books of accounts or documents produced and take extracts therefrom.
3. (3) The Administrator or such other officer making the inspection or any person working under his orders, shall not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of such person.
4. (4) If any person contravene the provisions of sub-section (1) or sub-section (3), he shall be punishable with imprisonment which may extend to one month or with fine which may extend to two hundred rupees or with both.

1. (1) If any person fails to pay on the date on which payment is due any tax, or any instalment of any tax, or any fee or any other sum (not being a loan) due to the Board under this Act, or due to the Board as rent for any movable or immovable property under the control of the Board, the Board shall ordinarily within fifteen days after such date cause a notice of demand to be served on such person or delivered at or affixed to his place of residence, or addressed by registered post to such place of residence or any other place where he may be known to reside and if no payment is made until the expiry of three weeks from the date of the issue of such notice, the amount of the arrear claim may if certified by the Administrator, be recovered as arrears of land revenue.
2. (2) Any postal charges incurred or any fee leviable for the notice of demand under sub-section (1) may be added to the arrear claim and recovered as such.

All property movable and immovable, and all assets and funds owned or acquired by the State Government for the purposes of construction and development of any township at any time before the establishment of the Board, shall on such establishment and subject to such conditions as may be prescribed, vest in the Board.

All expenditure incurred by the State Government at any time before the establishment of the Board for any of the purposes under this Act shall be deemed to be the expenditure of the Board.

1. (1) The Board shall have its own fund and all grants and advances made to it from time to time by the Central Government or the State Government and all receipts of the Board shall be credited thereto and all payments by the Board shall be made therefrom.
2. (2) Save as may be prescribed, all moneys belonging to that fund shall be deposited in such scheduled bank or invested in such securities as may be approved by the State Government.

Subject to such limitations and restrictions on the powers of the Board as may be prescribed, the Board shall have power without reference to the State Government to spend such sums as it thinks fit for the purposes of this Act and the rules made thereunder, and such sums shall be deemed to be the expenditure payable out of the funds of the Board.

REPAYMENT OF LOANS AND INTEREST BY BOARD

1. (1) All loans advanced to the Board by the Central Government or the State Government together with the interest accruing thereon at such rate as may, from time to time, be fixed by the Central Government or the State Government, as the case may be, shall be a first charge on the fund of the Board and the Board shall repay such loans with the interest thereon in such manner and in such number of instalments as may be determined by the Central Government or the State Government as the case may be, and every such repayment shall be deemed to be a part of the expenditure of the Board.
2. (2) For the purposes of any loan granted to it by the State Government, the Board shall be deemed to be a local authority within the meaning of the Local Authorities Loans Act, 1914, (IX of 1914).

1. (1) The Board shall prepare, in such form and at such time as may be prescribed, a Budget in respect of every financial year showing its estimated receipts and expenditure during the financial year and submit it to the State Government who may sanction the budget with such alterations and modifications, if any, as the State Government may deem fit.
2. (2) A copy of the budget of the Board as so sanctioned shall be forwarded by the State Government to the Central Government.

The Board shall, as soon as possible after the close of a financial year, prepare in such form and before such date as may be prescribed an annual report (including a statement of its assets and liabilities at the close of that financial year) giving a true and faithful account of its activities during the financial year, and copies thereof shall be submitted by the Board to the State Government.

1. (1) The Board shall cause to be maintained such books of account and other books in relation to its accounts in such form and in such manner as may be prescribed.
2. (2) The accounts of the Board shall be audited by such authority (hereinafter referred to in this section as the "auditor"), at such times and in such manner as may be prescribed.
3. (3) The auditor shall be furnished by the Board with a copy of the annual report (including the statement of its assets and liabilities) for the financial year in respect of which the accounts are to be audited and it shall be the duty of the auditor to scrutinize the statement together with the accounts and vouchers relating thereto and for this purpose, he shall at all reasonable times have access to the relevant books, registers, accounts and other documents of the Board and shall also have power to examine any officer or servant of the Board in relation to such accounts.
4. (4) The auditor shall prepare a report on the aforesaid report and accounts (including the statement of assets and liabilities) audited by him and forward copies thereof to the State Government and the Central Government together with a statement whether in the opinion of the auditor, the report and accounts are complete and true in all material respects and exhibit a true and correct view of the state of affairs of the Board, and whether any explanation or information from the Board was called for and whether it has been given and whether it is satisfactory.

The State Government may, give to the Board general instructions to be followed by the Board and such instructions may include direction to the Board regarding the exercise of its powers and performance of its duties under this Act in such manner as may be binding on the Board.

1. (1) The Board shall furnish to the State Govt. at such time and in such form and manner as may be prescribed or as the State Govt. may direct, such returns and statements and such particulars in regard to any proposed or existing scheme as the State Govt. may, from time to time require.
2. (2) The State Govt. may at any time by order in writing addressed to the Administrator require the Board to furnish it with such information, statement, report or documents in regard to any matter relating to the functions or acts of the Board or any of its members, officers or servants and the Administrator shall without delay comply with such order accordingly.

The State Govt. may, by order in writing, prohibit the execution or further execution of resolution or order passed or made under this Act by the Board, if in the opinion of the State Government such resolution or order is of such nature as to cause obstruction, annoyance or injury to the public or to any class or body of persons lawfully employed, or a danger to human life, health or safety or riot or affray or is otherwise prejudicial to public interest and may prohibit the doing or continuance by any person of a act in pursuance of or under cover of such resolution or order.

1. (1) If, in the opinion of the State Govt. an emergency exists, it may direct that any work or acts which the Board is empowered under this Act to execute or do, and the immediate execution or doing of which, is in its opinion, necessary for the safety or protection of the public, shall forthwith be executed or done and that the expense of executing the work or of doing the act shall be paid out of the fund of the Board.
2. (2) If the expense ordered to be paid under sub-section (1) is not forthwith paid, the State Govt. may make an order directing the person having the custody of the balance of the fund of the Board to pay the expense, or so much thereof as may from time to time be possible, from that balance in priority to all other charges against the same.

When the State Government has made an order under section 32 or 33, the Board may, within three months of the date of receipt of such order, make such representation to the State Government as it thinks fit and if no such representation is received within the period specified or if on consideration of a representation from the Board the State Government is of the opinion that the order of prohibition shall be confirmed, modified or rescinded the State Government shall pass such order accordingly and the order so passed shall be final.

1. (1) If in the opinion of the State Government the Board becomes incompetent to perform or has persistently made default in the performance of the duties imposed, on it by or under this Act, or exceeds or abuses its powers, the State Government may, after consultation with the Central Govt., by notification in the official Gazette, supersede the Board for such period as may be specified in the notification. Provided that before issuing a notification under this sub-section (1), the following consequences shall ensue, namely: -
   • (a) All the members of the Board shall, as from the date of the supersession, vacate their offices as such members.
   • (b) All the powers and duties which may, by or under the provisions of this Act, be exercised or performed by or on behalf of the Board shall, during the period of supersession, be exercised and performed by such person or persons as the State Government after consultation with the Central Govt. may decide.
   • (c) All property vested in the Board shall, during the period of supersession, vest in the State Government.
2. (3) On the expiration of the period of supersession specified in the notification under sub-section (1) the State Govt. may, after consultation with the Central Govt.
   • (a) Extend the period of supersession for such further term as it may consider necessary; or
   • (b) Constitute the Board in the manner provided in Section 4.

The Board may, with the previous approval of the State Govt., by general or special order in writing delegate to the Chairman or any other Member, officer or servant of the Board subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and duties under this Act as it may deem necessary for the efficient running of the day to day administration of the Board.

All orders and decisions of the Board shall be authenticated by the signature of the Chairman or any other member empowered by the Board in this behalf; and all contracts and instruments entered into or made by the Board shall be executed by the Administrator or any other officer of the Board empowered by the Board in this behalf.

If any dispute for the resolution of which this Act does not otherwise provide, arises between the Board and any other local authority, the matter shall be referred to the State Government and the decision of the State Govt. thereon shall be final. Provided that where such dispute exists between the Board and a Cantonment Board, the decision of the State Govt. shall be subject to the approval of the Central Govt.

Whenever it is necessary for the Board to carry out any of its works or to make any survey or examination or investigation, preliminary or incidental to the exercise of powers or the performance of duties by the Board under this Act, any officer or servant of the Board, generally or specially empowered by it, may enter upon any land or premises between sunrise and sunset after giving reasonable notice of the intention to make such entry to the owner or occupier of such land or premises, and at any other time with the consent in writing of the owner or occupier of such land or premises, for the purpose of the carrying out of such works or the making of such survey, examination or investigation.

Any land required by the Board for carrying out any of the purposes of this Act shall be deemed to be needed for a public purpose and such land shall be acquired for the Board as if the provisions of part VII of the Land Acquisition Act 1894 (1 of 1894) were applicable to it and the Board were a company within the meaning of clause (e) of section 3 of the said Act.

All members of the Board, and all officers and servants of the Board whether appointed by the State Govt. or the Board, when acting or purporting to act in pursuance of any of the provisions of this Act, shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code (Act XLV of 1860).

Unless otherwise expressly provided, no Court shall take cognizance of any offence under this Act or under any rules made thereunder except on the complaint of the Board or a person empowered by the Board in this behalf.

No suit or other legal proceeding shall lie against any officer or servant of the Board in respect of anything done or purported to have been done in good faith under the provisions of this Act.

1. (1) When all the townships under this Act have been constructed and developed or have been so far constructed and developed as to render the continued existence of the Board, in the opinion of the State Govt. unnecessary, the State Government may by notification in the official Gazette, declare that the Board shall be dissolved on such date as may be specified in the notification and the Board shall be deemed to be dissolved accordingly.
2. (2) ON AND FROM THE SAID DATE: -
   • (a) All properties and funds placed at the disposal of the Board, all properties situated within the area of operation which immediately before the said date were held by the Board, and all dues realisable by the Board, shall vest in, and be realisable by the State Government.
   • (b) All liabilities, which, immediately before the said date, were enforceable against the Board, shall be enforceable against the State Govt.
   • (c) For the purpose of competing the execution of any work undertaken but not fully executed by the Board, and of realising properties, funds and dues referred to in clause (a), the functions of the Board under this Act shall be discharged by the State Govt.
   • (d) The State Government shall keep separate accounts of all moneys respectively received and expended by it under this Act until all loans raised thereunder have been repaid and until all other liabilities referred to in clause (c) have been duly met.
3. (3) The properties and funds vested in the State Govt. under Sub-section (2) which remain after meeting out the liabilities of the Board shall be transferred to such local authority or local authorities, as may be having jurisdiction over the Township in such proportion as the State Govt. may by order determine.

1. (1) The State Government may, subject to the conditions of previous publication, by notification in the official Gazette, make rules for carrying out the purposes of this Act.
2. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters namely: -
   • (a) The term of office of members, the manner of filling casual vacancies and the allowances or fees to be paid to any member or associate member of the Board;
   • (b) The terms and conditions of service of officers and servants of the Board under section 11;
   • (c) The terms and conditions of service of the Administrator under section 12;
   • (d) The functions and duties of the Administrator;
   • (e) The manner in which the accounts of the Board shall be maintained and the time at which the accounts shall be audited;
   • (f) The terms on which loans shall be advanced to persons;
   • (g) The terms on which a building or site may be sold, leased or let out on hire to any person;
   • (h) The manner in which the fund and other moneys of the Board shall be invested;
     • (i) The form in which and the time at which the budget and annual report (including the statement of assets and liabilities) of the Board shall be prepared.
   • (j) The services of notices and orders under this Act;
   • (k) Any other matter which has to be, or may be prescribed under this Act.
3. (3) All rules made under this Section shall be published in the official Gazette.
4. (4) Any rule made by the Board under this Act, may provide that a contravention thereof shall be punishable with fine, which may extend to five hundred rupees.

The Board may, after previous publication and with the previous approval of the State Government, make by-laws for determining the procedure for conducting the business of the Board and for such other purposes as the State Government may, from time to time, by general or special order, direct.

The Patiala & East Punjab States Union Townships Development Board Act, 1954 (President's Act 3 of 1954), is hereby repealed but notwithstanding such repeal anything done or any action taken in the exercise of any power conferred by or under the said Act (including things deemed to have been validly done and actions deemed to have been validly taken under the provision to section 47 of the said Act) shall be deemed to have been done or taken in exercise of the powers conferred by or under this Act, as if this Act was in force on the day on which such thing was done or action was taken.