Chapter XI PRIVATE AND JOINT SECTOR PARTICIPATION IN DEVELOPMENT

Subject to the provisions of this Act and the rules and regulations made thereunder, the Authority for the purpose of implementing the proposals contained in an approved plan, permit a promoter to undertake or carry out a development work within the area of its jurisdiction.

1. (1) The Authority may grant a license to a promoter national or international, to undertake or carry out a development work in its area of jurisdiction, on such terms and conditions as may be mutually agreed upon after following such procedure and on payment of such license fee as may be prescribed: Provided that prior permission of the Government shall be required for granting license to an international promoter.
2. (2) Before granting such license under sub-section (1), the Authority shall ensure that development charges as leviable under this Act have been paid or that no development charges are leviable under this Act.

1. (1) Any promoter intending to undertake or carry out any development work shall make an application in writing for grant of license to undertake or carry out such work to the Authority in such form accompanied by such documents and fee and in such manner as may be prescribed.
2. (2) The Authority may, after making such enquiry as it considers necessary, by an order in writing:-
   • (a) grant a license in the prescribed form after the applicant has furnished to it a bank guarantee equivalent to ten percent of the estimated cost of the development work and has entered into an agreement with it containing such details as may be considered necessary including provisions for ensuring:-
     • (i) that the development shall be within the framework of the approved plan and shall conform to the provisions of the development control rules and applicable building rules, bye-laws; and
     • (ii) that the time schedule within which the development work is to be completed shall be adhered to;
   • (b) or refuse to grant a license after affording the applicant an opportunity of being heard.
3. (3) The license so granted shall be valid for a period of 3 (three) years.

Additional provisions where cost of development work is to be realized in advance Where a development work envisages realization in advance of the cost of development from the prospective allottees, the promoter shall deposit an amount equivalent to 25 (twenty-five) percent of the sum collected, from time to time, by him from the prospective allottees, within a period of 10

1. (ten) days of its realization, in a separate account to be maintained in a scheduled bank and pledged to the Authority.

Provisions for economically weaker sections and Lower Income Groups

1. (1) Where a development work for which license is granted envisages provision of developed plots or built-up space, space percentage of the plots or built-up space shall be reserved for economically weaker sections and lower income groups of the society, as may be mutually agreed, and the cost of development of such reserved developed plots or built-up space shall be fully or partly, as may be agreed, distributed over developed plots or the built spaces meant for allottees other than economically weaker sections and lower income groups.
2. (2) The developed plots or built-up space reserved for economically weaker sections and lower income groups of the society shall be allotted by the promoter to only those beneficiaries who are identified by the Authority, at such cost as may be mutually agreed.

Where a license has been granted for providing or maintaining or both providing and maintaining any amenity, utility, service or facility, the Authority may permit the promoter to recover the capital and maintenance cost by way of collection of users charges as may be agreed upon in the manner prescribed under regulations.

The Authority may enter into collaboration with a promoter or national or international agency to jointly undertake implementation of any development work within the framework of an approved plan on such terms and conditions as may be mutually agreed. Such collaboration may include provision for Economically weaker sections/Lower Income Groups housing facilities including shelter for economically weaker sections or sharing of developed plots and built spaces or sharing of profits:

Rules for regulating development by private and joint sector The Government shall frame rules for regulating development works by private-sector and under joint- sector.