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The Himachal Pradesh Housing and Urban Development Authority Act, 2004

Himachal Pradesh · state statute
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AUTHORITATIVE ENGLISH TEXT 
THE HIMACHAL PRADESH HOUSING AND URBAN 
DEVELOPMENT AUTHORITY ACT, 2004 
ARRANGEMENT OF SECTIONS 
Sections: 
CHAPTER-I 
PRELIMINARY 
1. Short title extent and commencement. 
2. Definitions. 
CHAPTER-II 
ESTABLISHMENT AND CONSTITUTION OF THE 
AUTHORITY 
3. Establishment of the Authority. 
4. Constitution of the Authority. 
5. Term of office of the Chairman, the Vice-Chairman and the 
non-official members. 
6. Disqualifications. 
7. Remuneration and allowances to the Chairman, the Vice-
Chairman and the non official members. 
8. Acting Chairman. 
9. Vacancy of a non-official member. 
10. Filling up of vacancy. 
11. Appointment of officers, officials and creation of posts. 
12. Appointment of committee. 
13. Meeting of the Authority. 
14. Temporary association of person with the Authority for 
particular purpose. 
15. Power to make contracts. 
16. Execution of contract. 
CHAPTER-III 
FARMING AND FINALISING OF SCHEMES FOR 
EXECUTION 
17. Powers and duties of the Authority to undertake housing and 
development schemes. 
18. Matters to be provided for in a development scheme. 
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19. Provision for economically weaker section. 
20. Publication of development scheme. 
21. Transfer of management to the Authority, for the purposes of 
housing and development schemes vested in a Local 
Authority. 
22. Power of Authority to turn or close public path or street. 
23. Vesting in Local Authority of streets laid out or altered and 
open space provided by the Authority under housing and 
Development schemes. 
24. Other duties of the Authority. 
CHAPTER-IV 
FINANCE, ACCOUNT AND AUDIT 
25. Fund of the Authority. 
26. Application of the fund. 
27. Power of the Authority to borrow. 
28. Accounts and audit. 
29. Special audit of accounts. 
30. Annual report and budget. 
31. Provident fund. 
CHAPTER-V 
ACQUISITION AND DISPOSAL OF LAND BY THE 
AUTHORITY 
32. Acquisition of land. 
33. Disposal of land. 
34. Recovery of arrears as land revenue. 
CHAPTER-VI 
IMPLEM ENTATION OF SCHEMES  
35. Implementation of the schemes by the promoter. 
36. Power to grant licence to the Promoter. 
37. Registration of the Promoter. 
38. Application for grant of licence. 
39. Allotment of building or plot by the Promoter. 
40. Maintenance charges of amenities. 
41. Reference to Arbitrator in case of dispute. 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT  3  
AUTHORITY ACT, 2004  
CHAPTER-VII 
RELATIONS BETWEEN THE STATE 
GOVERNMENT, THE AUTHOERITY AND THE 
LOCAL AUTHORITIES 
42. Powers of Authority to require Local Authority to assume 
responsibility for maintenance of amenities.   
43. Power to give directions. 
44. Revisional powers. 
CHAPTER-VIII 
LEVY OF DEVELOPMENT FEE AND PENALITY FOR 
NON-CONSTRUCTION OF BUILDING OF PLOTS 
45. Levy of development fees. 
46. Penalty for non-construction of buildings. 
CHAPTER-IX 
DEVELOPMENT, CONTROL AND USE OF LAND 
47. Power to stop construction. 
48. Power of Chief Executive Officer to require alteration of 
work. 
CHAPTER-X 
MISCELLANEOUS 
49. Notice of suit against the Authority. 
50. Valuation of assets and liabilities of the Authority. 
50-A. Abolition of the Himachal Pradesh Housing Board and 
transfer of its assets and liabilities. 
51. Power to make regulations.  
52. Power to make bye-laws. 
53. Offences and penalties. 
54. Authority for prosecution. 
55. Members, officers and officials of the Authority to be public 
servants. 
56. Protection of action taken in good faith. 
57. Authentication. 
58. Relation of Authority with police. 
59. Power to delegate. 
60. Supersession of Authority. 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT 
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61. Power to make Rules. 
62. Repeal and savings. 
__________ 
THE HIMACHAL PRADESH HOUSING AND URBAN 
DEVELOPMENT AUTHORITY ACT, 2004 
(ACT NO. 9 OF 2004)1 
(Received the assent of the Governor on the 1st May, 2004 and 
published both in Hindi and English in the Rajpatra, Himachal Pradesh 
(Extra-ordinary), dated 6th May, 2004, pp. 373-433).  
An Act to re-enact the law to provide for the creation of a Development 
Authority to plan and develop land and create infrastructure to 
meet with the housing needs of different income groups and to 
provide for development schemes for mobilizing public and 
private resources for the promotion of housing colonies and 
related infrastructure and to provide for the creation of 
appropriate Authority and mechanism for planned development 
of housing colonies. 
Amended, Repealed or otherwise  effected by:- 
H.P. Act No. 2 of 20052  assented to by the Governor on 23rd 
January, 2005, published both in Hindi and English in the 
Rajpatra, Himachal Pradesh (Extra-ordinary), dated 24th January, 
2005, pp. 3549-3555, effective from 15th May, 2004. 
BE it enacted by the Legislative Assembly of Himachal Pradesh in the 
Fifty-fifth Year of the Republic of India, as follows:- 
CHAPTER-I 
Preliminary 
1. Short title, extent and commencement.-  (1) This Act may be 
called the Himachal Pradesh Housing and Urban Development Authority Act, 
2004. 
(2) It extends to the whole of the State of Himachal Pradesh. 
(3) It shall come in to force on such date as the State Government 
may, by notification3, appoint. 
                                                           
1. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of Objects 
and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 25th 
February, 2004, pp. 3503-3504 and 3530-3531. 
2. Passed in Hindi by the Himachal Pradesh Vidhan Sabha. For Statement of 
Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-ordinary), dated 
20th December, 2004, pp. 2827 and 2832. 
3. Act came into force from 15th day May, 2004 vide Notification. No. HSG-1A(3)-
3/95-I. 13th  May, 2004 published in the Rajpatra, Himachal Pradesh (Extra-
ordinary), dated 15th May, 2004, p.  526. 
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AUTHORITY ACT, 2004  
2. Definitions.- In this Act, unless the context otherwise requires,- 
(a) “adjoining area” means such area as may be specified to be 
an ‘adjoining area’ under section 18 of this Act; 
(b) “Authority” means the Himachal Pradesh Housing and 
Urban Development Authority established under section 3 
of this Act; 
(c) “Authority’s premises” means any premises belonging to, or 
vesting in the Authority or taken on lease by the Authority 
or any premises which is entrusted to, or in the possession 
or control of the Authority for the purposes of this Act; 
(d) “building” includes any structure or erection or part of a 
structure or erection, which is intended to be used for 
residential, industrial, commercial or other purposes, 
whether in actual use or not; 
(e) “bye- laws” means bye-laws made under section 52 of this 
Act; 
(f) “Chairman” means the Chairman of the Authority; 
(g) “Chief Executive Officer” means an officer appointed under 
section 11 of this Act; 
(h) “committee” means any committee appointed under section 
12 of this Act; 
(i) “Competent Authority” means any person or officer 
appointed by the State Government by notification, to 
exercise and perform all or any of the powers and functions 
under this Act; 
(j) “financial year” means the year commencing on the 1st day 
of April and ending on the 31st day of March of the ensuing 
year; 
(k) “land” includes benefits to arise out of land and things 
attached to the earth or permanently fastened to anything 
attached to the earth; 
(l) “Local Authority” means a Municipal Corporation, a 
Municipal Council, a Town Improvement Trust, a 
Cantonment Board, a Nagar Panchayat, a Zila Parishad, a 
Gram Panchayat or any other Authority entrusted with the 
functions of Local Authority under any law for the time 
being in force; 
(m)  “member” means the member of the Authority and includes 
its Chairman, Vice-Chairman and Acting Chairman; 
(n) “notification” means a notification published in the Official 
Gazette; 
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(o) “premises” means any land occupied by any building or a 
part of a building and includes,- 
 (i) the garden, grounds and out-houses, if any, 
appertaining to such building or part of a building; and 
 (ii) any fitting affixed to such building or part of a building 
for the more beneficial enjoyment thereof; 
(p). “prescribed” means prescribed by rules made under this 
Act; 
(q). “Promoter” means a person or a company or a society 
who,- 
(i) constructs or causes to construct a building consisting of 
apartment or convert an existing building or a part 
thereof into apartments, for the purpose of selling all or 
some of the apartments to other persons and includes 
his assigns; or 
(ii) .develops land into a colony and also carves out plots, 
for the purpose of selling to other persons; 
(r) “regulations” means the regulations made under section 51 
of this Act; 
(s). “rules” means the rules made under section 61 of this Act; 
(t). “scheme” means any scheme framed under this Act; 
(u) “Secretary” means the Secretary of the Authority; 
(v) “State Government” means the Government of Himachal 
Pradesh; and 
(w) “Vice-Chairman” means the Vice-Chairman of the 
Authority. 
CHAPTER-II 
ESTABLISHMENT AND CONSTITUTION OF THE 
AUTHORITY 
3. Establishment of the Authority.-  (1)  With effect from such date 
as the State Government may, by notification appoint in this behalf, establish 
for carrying out the purposes of this Act, an Authority to be known as the 
Himachal Pradesh Housing and Urban Development Authority with the 
headquarter at such place as the State Government may specify. 
(2)The Authority shall by the name aforesaid, be a body corporate 
having perpetual succession and a common seal, and, subject to any restriction 
by or under this Act or the rules made there under, shall have the powers to 
acquire, hold, administer and transfer property movable or immovable, and to 
enter into contracts, and shall by the said name sue and be sued and do all 
such things as are necessary for which it is constituted. 
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AUTHORITY ACT, 2004  
(3) For the purposes of this Act and the Land Acquisition Act, 1894,( 
1 of 1894) the Authority shall be deemed to be a Corporation. 
4. Constitution of the Authority.- (1) The Authority shall consist of 
the following members:- 
(a)  Chairman and the Vice-Chairman to be 
appointed by the State Government, by 
notification. 
 
(b)  Secretary (Finance) to the Government 
of Himachal Pradesh- 
-Ex-officio 
member 
(c)  Secretary (Housing) to the Government 
of Himachal Pradesh  
-Ex-officio 
member. 
(d)  Secretary (Urban Development) to the 
Government of Himachal Pradesh- 
-Ex-officio 
member 
(e)  Secretary (Town and Country Planning) 
to the Government of Himachal Pradesh  
-Ex-officio 
member. 
(f)  The Engineer-in-Chief ,Himachal 
Pradesh Public Works Department   
-Ex-officio 
member. 
(g)  The Engineer- in- Chief, Himachal 
Pradesh Irrigation and Public Health 
Department    
-Ex-officio 
member. 
(h)  Three non-official members to be 
appointed by the State Government, by 
notification.  
(i) The Chief Executive Officer shall be 
the Member-Secretary of the Authority.  
(2) The Chairman or the Vice-Chairman may at any time resign his 
office by submitting his resignation to the State Government. 
5. Term of office of the Chairman, the Vice-Chairman and the 
non-official members.- (1) The Chairman, the Vice-Chairman and the non-
official members of the Authority shall hold office during the pleasure of the 
State Government. 
(2)The Chairman and the Vice-Chairman shall perform such duties 
and exercise such powers as may be prescribed. 
6. Disqualifications.- A person shall be disqualified for being 
appointed or for continuing as the Chairman or the Vice-Chairman or the non-
official member of the Authority, if he- 
(a) has been convicted by a Criminal Court for an offence 
involving moral turpitude; or 
(b) is an un-discharged insolvent; or 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT 
 AUTHORITY ACT, 2004  
8 
(c)  is a defaulter of the Authority or any other financial 
institution established under any law; or 
(d) is of unsound mind; or 
(e)  is the employee of the Authority; or 
(f) directly or indirectly, himself or through any partner, 
employer or employee has any share or interest in any 
contract or employment  with, by or on behalf of the 
Authority; or 
(g) is not a citizen of India. 
Explanation.-  For the purpose of clause (e) of this section, the 
Chairman and the Vice-Chairman of the Authority shall not be deemed to be 
an employee of the Authority. 
7. Remuneration and allowance to the Chairman, the Vice-
Chairman and the non-official members.- (1) The Chairman and the Vice-
Chairman shall be paid such remuneration and allowances, as may be 
prescribed. 
(2) Every non-official member shall receive such allowances, as may 
be prescribed. 
(3) The remuneration and allowance to the Chairman, the Vice-
Chairman or non-official members, as the case may be, shall be paid from the 
fund of the Authority. 
8. Acting Chairman.-Whenever there occurs a temporary vacancy in 
the office of the Chairman, the Vice- Chairman shall act as the Chairman 
during the period of such vacancy and in the absence of both, the State 
Government may appoint an acting Chairman out of the non-official members 
of the Authority. 
9. Vacancy of a non-official member.-  If a non-official member,- 
(a) becomes subject to any of the disqualifications mentioned in 
section 6 of this Act; or 
(b) tenders his resignation in writing to the State Government and 
the same is accepted; or 
(c) is absent without the permission of the Chairman from three 
consecutive meetings of the Authority, 
he shall cease to be a non-official member, from such date as the State 
Government  may declare. 
10. Filling up of vacancy.-  Any vacancy of the Chairman or the 
Vice-Chairman or a non-official member shall be filled in as early as 
practicable. 
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AUTHORITY ACT, 2004  
11. Appointment of officers, officials and creation of posts.- (1) 
The State Government may appoint Chief Executive Officer of the Authority 
on such terms and conditions, as may be prescribed. 
(2) The Authority may create posts, as it may deem necessary, for the 
efficient performance of its functions with the prior approval of the State 
Government. 
(3)The method of appointment, essential qualifications, the scale of 
pay and allowances and other conditions of service of officers and employees 
of the Authority shall be such, as may be determined by the regulations. 
12. Appointment of committee.-(1) Subject to any rules made in this 
behalf under this Act, the Authority may, from time to time, appoint one or 
more committees for the purpose of securing the efficient discharge of its 
functions and in particular for the purpose of securing that the said functions 
are discharged with due regard to the circumstances and requirements of a 
particular local area. 
(2)  Any committee appointed under sub-section (1) shall meet to 
discharge the functions assigned to it in such manner, as may be directed by 
the Authority. 
13. Meeting of the Authority.- (1)The Authority shall meet at such 
time and place as it deems fit, subject to the following:- 
(a) an ordinary meeting shall be held once in every three months; 
(b) the Chairman may, whenever he thinks fit, call special 
meeting either himself or on the directions of the State 
Government; 
(c) every meeting shall be presided over by the Chairman and in 
his absence by the Vice-Chairman and in the absence of both, 
by acting Chairman; 
(d) all questions at any meeting shall be decided by a majority of 
the members present and in case of equality of votes, the 
person presiding over the meeting shall be entitled to exercise 
a casting vote; and 
(e) the minutes of the proceedings of every meeting shall be 
recorded in a book to be provided for the purpose under the 
signature of the Chairman of the meeting and the Chief 
Executive Officer. 
(2) The quorum for a meeting of the Authority shall be two-third of 
the total members of the Authority. 
14. Temporary association of person with the Authority for 
particular purpose.- (1) The Authority may take the advice of any expert in a 
specialized field, as it may deem necessary, on such terms and conditions and 
on payment of such fees, as may be decided by the Authority. 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT 
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(2) A person associated with the Authority under sub-section (1) for 
any purpose shall have the right to take part in the deliberations of the 
Authority relevant to that purpose but shall not have the right to vote. 
(3) The State Government may by order, depute its representatives to 
attend any meeting of the Authority and to take part in the deliberations of the 
Authority, on such items as the State Government may specify, but such 
representatives shall not have the right to vote. 
(4) The Authority may appoint a consultant as may be considered 
necessary, for specialized or specific job(s), for a limited period on such terms 
and conditions and on payment of such fees, as may be decided by the 
Authority. 
15. Power to make contracts.- The Authority may enter in to such 
contracts as it may consider necessary or expedient for carrying out any 
purpose of this Act. 
16. Execution of contract.-  Every contract shall be signed on behalf 
of the Authority by the Chief Executive Officer or by any other officer 
authorized by the Authority, by a special or general order: 
Provided that no contract shall be signed by any officer unless the 
contents of the contract are approved by the Authority. 
CHAPTER-III 
FRAMING AND FINALISING OF SCHEMES FOR 
EXECUTION 
17. Powers and duties of the Authority to undertake housing and 
development schemes.- (1) Subject to the provisions of this Act and the 
control of State Government, the Authority may,- 
(a) frame the schemes on its own; 
(b) frame a scheme on the request of a Promoter; 
(c) adopt a scheme proposed by a Promoter; and 
(d) incur expenditure and undertake works in any area in which 
this Act is enforced for the framing and execution of such 
housing and development schemes, as it may consider 
necessary. 
(2). The housing and development schemes may be of one of the 
following types combination of any two or more of such types of schemes or 
of any special features thereof, namely:- 
(a) a land development scheme; 
(b) a city or town or village development scheme; 
(c) a housing scheme; 
(d) an industrial area development scheme; 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT  11  
AUTHORITY ACT, 2004  
(e) a commercial/tourism scheme; and 
(f) an infrastructure development scheme. 
(3) The State Government may, on such terms and conditions, as it 
may think fit to impose, entrust to the Authority the framing and execution of 
any deposit work or any housing and development scheme whether provided 
by this Act or not and the Authority shall thereupon, undertake the framing 
and execution of such schemes as if it had been provided for by this Act. 
(4) The Authority may, with the previous approval of the State 
Government, on such terms and conditions, as may be agreed upon, take up 
framing or execution of any deposit work or any housing and development 
scheme, on behalf of a Local Authority or a Co-operative Society or a person. 
18. Matters to be provided for in a development scheme.-Subject 
to the provisions of this Act, a development scheme may provide for all or any 
of the following matters, namely:- 
(a) acquisition by purchase, exchange or otherwise, of any 
property necessary for or affected by the execution of the 
scheme; 
(b) acquisition by purchase, exchange or otherwise, of any land, 
division of the same into plots and the sale thereof after 
developing itself or through a Promoter, in accordance with 
the scheme; 
(c) laying or re-laying out of any land comprised in the scheme; 
(d) distribution or re-distribution of sites belonging to owners of 
property comprised in the scheme; 
(e) the closure or demolition of dwellings or portions of 
dwellings unfit for human habitation; 
(f) demolition of obstructive buildings or portions of buildings; 
(g) the construction and re-construction of buildings, their 
maintenance and preservation; 
(h) sale, letting or exchange of any property comprised in the 
scheme; 
(i) construction and alteration of streets and back lanes; 
(j) drainage, water-supply and lighting of the area included in the 
scheme; 
(k) parks, playing fields and open spaces for the benefit of any 
area comprised in the scheme and the enlargement of existing 
parks, playing fields, open spaces and approaches; 
(l) sanitary arrangements required for the area comprised in the 
scheme including the conservation and prevention of any 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT 
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12
injury or contamination to rivers or other sources and means 
of water supply; 
(m) accommodation for any class of inhabitants, industries, 
institutions, offices, Local Authorities, Co-operative Societies 
or Corporate Bodies; 
(n) advance of money for the purpose of the scheme; 
(o) facilities for communication and transport; 
(p) collection of such information and statistics as may be 
necessary for the purposes of this Act; and 
(q) any other matter for which in the opinion of the State 
Government, it is expedient to make provision with a view to 
provide housing accommodation and or to the improvement 
or development of any area comprised in the scheme or any 
adjoining area. 
Explanation.-For the purposes of this section, the State Government 
may on the recommendation of the Authority, by notification, specify the 
area, surrounding or adjoining area of a housing scheme, to be the “adjoining 
area”. 
19. Provision for economically weaker section.- The State 
Government may reserve atleast 5% of the developed area or built up houses 
for economically weaker section on such terms and conditions, as may be 
prescribed by regulations. 
20. Publication of development scheme.- (1) Before finalization of 
any development scheme, the Authority shall, by notification, publish the 
draft scheme and the same shall specify the plan showing the area proposed to 
be included in the development scheme alongwith surrounding lands and shall 
be open to inspection for the public during office hours at the office of the 
Authority for 30 days from the date of publication thereof. 
(2) If within 30 days from the date of publication of the draft scheme, 
any person communicates in writing to the Authority any suggestion or 
objection relating to the scheme, the Authority shall consider such suggestion 
or objection and may modify the draft scheme as it may deem fit. 
(3) The Authority shall, by notification, publish the scheme finalized 
under sub-section (2). 
(4) The publication of a notification under sub-section (3) shall be 
conclusive evidence that the said scheme has been framed. 
21.Transfer of management to the Authority, for the purposes of 
housing and development schemes vested in a Local Authority.- (1) 
Whenever any street, square or other land or any part thereof, owned and 
possessed by a Local Authority is required for the purposes of any housing or 
development scheme as published in the Official Gazette under section 20 of 
this Act, the Authority shall give notice to the concerned Local Authority to 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT  13  
AUTHORITY ACT, 2004  
transfer the management of such street, square or other land or part thereof, as 
the case may be, to the Authority. 
(2) Where the Local Authority agrees the transfer of the management 
of such street, square or other land or part thereof, the same shall vest in the 
Authority. 
(3)Where there is any dispute, the matter shall be referred to the State 
Government and the State Government shall, after hearing the parties 
concerned decide the matter, whose decision thereon shall be final. 
(4)Notwithstanding such vestment, the Local Authority concerned 
shall continue to render the municipal services as usually provided by it and 
such vestment shall not affect the duties and obligations of such Local 
Authority in or over any drain or water works falling in the management 
vested in the Authority. 
22. Power of Authority to turn or close public path or street.- (1) 
The Authority may turn, divert, discontinue the public use of or permanently 
close, any public path or street or any part thereof vested in it. 
(2) Whenever the Authority discontinues the public use of or 
permanently closes any public street or any part thereof, vested in it, it shall as 
far as practicable provide some other reasonable means of access to be 
substituted in lieu of the use by those entitled to the use of the street or part 
thereof. 
(3) When any public street vested in the Authority is permanently 
closed under sub-section (1), the Authority may utilize the same as per the 
scheme. 
23. Vesting in Local Authority of streets laid out or altered and 
open space provided by the Authority under housing and development 
schemes.- (1)  Whenever the State Government is satisfied,- 
(a)  that any street laid out or altered by the Authority has been 
duly levelled, paved, metalled, fledged, channeled, sewered 
and drained as required for the housing and development 
scheme; 
(b)  that such lamps, lamp posts, and other apparatus as the Local 
Authority concerned considers necessary for the lighting of 
such street as ought to be provided by the Authority have 
been so provided; and 
(c) that water and other sanitary conveniences have been duly 
provided in such street, 
it may declare the street to be a public street, and the street shall thereupon 
vest in the Local Authority concerned and shall thereafter be maintained, 
repaired, lighted and cleaned by the Local Authority concerned. 
(2) When any open space for the purposes of ventilation or recreation 
has been provided by the Authority in executing any housing and 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT 
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14
development scheme, the Authority shall transfer such open space to the 
Local Authority concerned on completion of the scheme and thereupon such 
open space shall vest in and be maintained by the Local Authority: 
Provided that the Local Authority may require the Authority before 
any such open space is so transferred, to enclose, level, turf, drain and layout 
such space and provide footpath therein and if necessary, provided lamps and 
other apparatus for lighting it. 
(3)If any difference of opinion arises between the Authority and the 
Local Authority in respect of any of the matters referred to in this section, the 
matter shall be referred to the State Government whose decision thereon shall 
be final. 
24.Other duties of the Authority.-  (1) It shall be the duty of the 
Authority to take necessary measures to maintain, allot, lease or otherwise use 
the Authority premises and to collect rents, compensation and damages in 
respect thereof. 
(2) The Authority may,- 
(i) provide technical advice to the State Government and 
scrutinize projects under other housing schemes, when 
required by the State Government to do so; 
(ii) undertake research on various problems connected with 
housing schemes in general and find out in particular the 
economical methods of constructing houses suited to local 
conditions ;   
(iii)  undertake comprehensive survey of problems of housing; and 
(iv)  do all the things for,- 
(a) unification, simplification and standardization of 
building materials; 
(b) encouraging prefabrication and mass production of 
house components; 
(c) organization or undertaking the production of building 
materials; and 
(d) securing a steady and sufficient supply of workmen 
trained in the work of design and construction of 
housing infrastructure including buildings. 
CHAPTER –IV 
FINANCE, ACCOUNT AND AUDIT 
25. Fund of the Authority.-  (1) The Authority shall have its own 
fund. 
THE HIMACHAL PRADESH HOUSING AND URBAN DEVELOPMENT  15  
AUTHORITY ACT, 2004  
(2) The Authority may accept grants, subsidies and donations from 
the Central or the State Government or a Local Authority or any individual or 
body, whether incorporated or not, for all or any of the purposes of this Act. 
(3) The State Government may give such grants, as it may consider 
necessary, to the Authority. 
(4) All money received by or on behalf of the Authority by virtue of 
this Act, all proceeds of land or any other kind of property sold by the 
Authority, all rents and interests, profits and other money accruing to the 
Authority including the loans raised by it shall constitute the fund of the 
Authority. 
(5) Except as otherwise directed  by the State Government, all money 
and receipts specified in this section and forming part of the fund of the 
Authority shall be deposited in any Nationalized Bank or any other Bank 
having National Computerized network or in Himachal Pradesh State Co-
operative Bank or invested in such securities as may be approved by the State 
Government. 
(6) Such account shall be operated upon by such officers, as may be 
authorized by the Authority. 
26. Application of the fund.- Subject to the provisions of this Act, all 
property, fund and all other assets vested in the Authority shall be applied by 
it for the purpose of this Act. 
27. Power of the Authority to borrow.-  (1) The Authority may, 
from time to time, with the previous sanction of the State Government, 
borrow money from any source by issue of bonds, debenture, loans or such 
other instruments, on such terms and conditions, as it may deem fit, for the 
purposes of this Act. 
(2) Every debenture, bond or instrument shall be signed by the officer 
duly authorized by the Authority. 
(3) The Authority may, from time to time, on the request of the State 
Government, raise loans to it for execution of any work or scheme. 
(4).The State Government may give guarantee subject to such 
conditions as it think fit, for the repayment of the principal and the payment of 
interest thereon with respect to the money borrowed under sub-section (1) or 
loan raised under sub-section (3), by the Authority. 
28. Accounts and audit.-   (1) The accounts of the Authority shall be 
prepared and maintained in such form and in such manner, as may be 
prescribed. 
(2) The Authority shall cause to be prepared for each financial year an 
annual statement of accounts in such form, as may be prescribed. 
(3)  The accounts of the Authority shall be audited by an agency as 
may be authorized by the State Government or by an auditor duly qualified to 
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16
act as an auditor of Companies under section 226 of the Companies Act, 1956 
( 1 of 1956). 
(4) The auditor shall send copy of the report together with audited 
copy of accounts to the Authority, which shall, as soon as may be, after the 
receipt of the audit report forward the same to the State Government. 
(5) The State Government shall cause the audit report together with 
audited copy of accounts to be laid before the State Legislature, as soon as 
may be, after the receipt of the same under sub-section(4). 
29. Special audit of accounts.- (1) Notwithstanding anything 
contained in section 28 of this Act, the State Government may order special 
audit of accounts of the Authority by such person as it thinks fit. 
(2) Where an order is made under sub-section (1), the Authority shall 
present or cause to be presented for special audit such accounts and shall 
furnish to the person appointed under sub-section (1), such information as the 
said person may require. 
30. Annual report and budget.- (1) The Authority shall during each 
financial year prepare, in such form and at such time, as may be prescribed, an 
annual administrative report giving a true and full account of its activities 
during the previous financial year, and an account of the activities likely to be 
undertaken by it in the current financial year and copies of such report shall be 
forwarded to the State Government. 
(2) The State Government shall cause every such report to be laid 
before the State Legislature, as soon as may be, after the receipt of the report 
under sub-section (1). 
(3)The Authority shall prepare the annual budget in the prescribed 
manner for every financial year and the same shall be approved by it and sent 
to the State Government within 15 days from its approval. 
31. Provident fund.- (1)The Authority shall established Contributory 
Provident Fund for the officers and officials of the Authority and such 
Provident Fund shall be deemed to be the Authority’s Provident Fund for the 
purpose of the Provident Fund Act, 1925 (19 of 1925) and shall be 
administered by the officers of the Authority. 
(2) The Authority shall, in respect of each of its employees, who is a 
subscriber to the said fund, pay to the said fund such portion of the 
contribution, in such manner, as the State Government may, from time to 
time, prescribe. 
CHAPTER-V 
ACQUISITION AND DISPOSAL OF LAND BY THE 
AUTHORITY 
32. Acquisition of land.-When any land is required for the purposes 
of this Act, the State Government may, at the request of the Authority, 
proceed to acquire it under the provisions of Land Acquisition Act, 1894 ( 1 
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AUTHORITY ACT, 2004  
of 1894) and on payment by the Authority of the compensation awarded under 
that Act and of any other charges incurred in acquiring the land and thereupon 
the land shall vest in the Authority. 
33. Disposal of land.-(1) Subject to any direction issued by the State 
Government under this Act, the Authority may dispose of by way of sale, 
exchange, lease or auction any land acquired by it or transferred to it by the 
State Government after undertaking or carrying out such development as 
provided in housing and development scheme, in such manner, as may be 
prescribed and subject to such terms and conditions, as it thinks fit. 
(2)  Subject to the provisions, of sub-section (1), the Authority may 
sell, lease or otherwise transfer whether by auction or allotment any land or 
building belonging to it on such terms and conditions as it may, from time to 
time, determine. 
(3)  The consideration money for any transfer under this section shall 
be paid to the Authority, in such manner, as may be prescribed by regulations. 
(4)  Any land or building, or both, as the case may be, shall continue 
to belong to the Authority until the entire consideration money together with 
interest and any other amount, if any, due to the Authority, on account of the 
transfer of such land or building or both, is paid. 
(5)  Subject to the provisions of regulations, the transfere shall not 
further transfer any of his rights in the land or buildings except with the prior 
permission of the Authority on an application accompanied by such fees, as 
may be prescribed. 
34. Recovery of arrears as land revenue.-  Where any person makes 
any default in the payment of any sum due to the Authority under this Act or 
the rules or regulations made thereunder, which is not paid on demand on the 
date on which it becomes due or on the day fixed by the Authority, shall be 
recovered from him, as arrears of land revenue. 
CHAPTER-VI 
IMPLEMENTATION OF SCHEMES 
35. Implementation of the schemes by the promoter.- Subject to 
the provisions of this Act and the rules or regulations made there under, the 
Authority may, for the implementation of the scheme, permit a Promoter to 
undertake any housing and development scheme. 
36. Power to grant licence to the Promoter.-  (1)  The Authority 
may, with the prior approval of the State Government, grant a licence, in the 
prescribed form, to the Promoter to undertake a scheme on such terms and 
conditions as may be mutually agreed upon after the following such procedure 
and on payment of such licence fee, as may be prescribed. 
(2) If the licence is granted, the Promoter shall execute the scheme as 
finalized by the Authority under section 20 of this Act. 
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18
(3) After the scheme has been executed, necessary completion 
certificate shall be issued by the Authority that the scheme has been executed 
as finalized by it under section 20 of this Act. 
(4) Upon the issue of the completion certificate by the Authority, it 
shall transfer the ownership of the land, in the manner prescribed, to the 
Promoter. 
37. Registration of the Promoter.-The Authority shall register a 
Promoter for the execution of any housing and development scheme for such 
period and on such terms and conditions, as may be prescribed. 
38. Application for grant of licence.-  (1)  Any registered Promoter 
may make an application in writing for grant of a licence to undertake or carry 
out any scheme to the Authority in such form accompanied by such 
documents and fee and in such manner, as may be prescribed. 
(2) The Authority may, after making such enquiry as it considers 
necessary, by an order in writing,- 
(a)  award the execution of scheme after the applicant has 
furnished to it a bank guarantee equivalent to 10% of the 
estimated cost of the development work and has entered into 
an agreement on such terms and conditions as may be agreed 
upon including the provisions to ensure- 
(i)  that the development work shall be within the 
framework of the approved scheme and shall confirm to 
the provisions of the regulations and building bye-laws; 
and 
(ii)  that the time schedule within which the housing and 
development work is to be completed shall be adhered 
to; or 
(b)  refuse to award the execution of scheme after affording the 
applicant an opportunity of being heard. 
39. Allotment of building or plot by the Promoter.-  Subject to the 
provisions of this Act and rules made thereunder, the Promoter may transfer 
the building or plot, to the prospective allottees, on such terms and conditions, 
as may be prescribed by regulations. 
40. Maintenance charges of amenities.-  Where the Authority is 
providing or maintaining any amenities, utility, service or facility, the 
Authority shall charge from the allottee maintenance charges, in the manner 
prescribed. 
41.Reference to Arbitrator in case of dispute.-  If any dispute arises 
out of any agreement entered into between the Authority and the Promoter or 
between the Promoter and the allottee, the same shall be referred for 
arbitration in accordance with the provisions of the Arbitration and 
Conciliation Act, 1996(26 of 1996). 
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AUTHORITY ACT, 2004  
CHAPTER-VII 
RELATIONS BETWEEN THE STATE GOVERNMENT, THE 
AUTHORITY AND THE LOCAL AUTHORITIES 
42. Powers of Authority to require Local Authority to assume 
responsibility for maintenance of amenities.-   (1) Where any area has been 
developed by the Authority or by the Promoter, the same shall be entrusted to 
the Local Authority within whose limits the area so developed is situated for 
discharging its municipal functions. 
(2) If any amenity has not been provided by the Authority or by the 
Promoter which otherwise should have been provided, the Authority or the 
Promoter, as the case may be, shall pay an amount equivalent to the cost of 
such amenities to the Local Authority. 
(3) Where money has been collected by the Authority or by the 
Promoter for the proposed amenities but not utilized, the same shall be 
transferred to the Local Authority for providing the same. 
43.  Power to give directions.- The State Government may give to 
the Authority such directions as in its opinion are necessary or expedient for 
carrying out the purposes of this Act and it shall be the duty of the Authority 
to comply with such directions. 
44. Revisional powers.- The State Government may, at any time 
either on its own motion or on application made to it in this behalf, call for the 
records of any case disposed of, or order passed by the Authority, for the 
purpose of satisfying itself as to the legality or propriety or correctness of any 
order passed or direction issued and may pass such order or issue such 
direction in relation thereto, as it thinks fit:  
Provided that the State Government shall not pass an order without 
affording an opportunity of being heard to the aggrieved party. 
CHAPTER-VIII 
LEVY OF DEVELOPMENT FEE AND PENALTY FOR 
NON-CONSTRUCTION OF BUILDING ON PLOTS 
45. Levy of development fees.-  Subject to the provisions of this Act 
and the rules made thereunder, the Authority may, with the previous sanction 
of the State Government, by order, levy development fee to recoup the 
expenditure incurred by it on the amenities provided or to be provided in 
future by the Authority: 
Provided that different rates of development fees may be levied for 
different parts of the scheme area. 
46. Penalty for non-construction of buildings.-  Subject to the 
provision of this Act and the rules made thereunder, the authority may impose 
penalty, not exceeding 5 percentum of the cost of the plot per year, on the 
allottee if he fails to construct the building on the plot within the specified 
period: 
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20
Provided that before passing any order under this section, the 
Authority shall provide reasonable opportunity of being heard. 
CHAPTER-IX 
DEVELOPMENT, CONTROL AND USE OF LAND 
47. Power to stop construction.- (1)  where any encroachment on 
Authority’s land is made, erection of any building or execution of any work 
has been commenced or is being carried on ( but has not been completed), 
without or contrary to the sanctioned building plan or in contravention of any 
condition subject to which such sanction has been accorded or in 
contravention of any provisions of this Act or bye-laws made thereunder, the 
Chief Executive Officer or any other officer authorized by him in addition to 
any other action that may be taken under this Act, by order, require the person 
at whose instance erection of the building or the work has been commenced or 
is being carried on, to stop the same forthwith. 
(2) If an order made under sub-section (1) is not complied with, the 
Chief Executive Officer or any other officer authorized by him may require 
any police officer to remove such person and all his assistants and workmen 
from the premises within such time, as may be specified in the requisition, and 
such police officer shall comply with the requisition accordingly. 
(3) After the requisition under sub-section (2) has been complied 
with, the Chief Executive Officer or any other officer authorized by him may, 
if he thinks fit, deploy by written order, a police officer or officer or other 
employee of the Authority, to watch the premises in order to ensure that the 
erection of the building or the execution of the work is not continued and the 
cost of such deployment shall be paid by the person at whose instance such 
erection or execution is continued or against whom an order under sub-section 
(1) is made. 
(4) Where the owner of the building submits the revised plan, after the 
work has been stopped by him or the work is completed by him and the 
deviations from the sanctioned plan are minor in nature, the Chief Executive 
Officer may, subject to the special or general directions of the State 
Government, compound the cases of deviations on payment of such sum, as 
may be prescribed. 
Explanation.-  For the purpose of sub-section (4), the expression “ 
minor in nature” in relation to deviations shall not include,- 
(a)  addition of a storey beyond the sanctioned plan; and 
(b)   erection of building,- 
(i) on any land vested in the Authority; or 
(ii)  by covering any public road, street, path or drain. 
(5) Notwithstanding anything to the contrary contained in this Act, the 
Authority may, after affording a reasonable opportunity of being heard, refuse 
or withdraw the civic amenities including water and sewerage connection, if 
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AUTHORITY ACT, 2004  
the owner of the building make deviation from the sanctioned plan by addition 
of a storey beyond the sanctioned plan, erection of a building on any land 
vested in the Authority, or by covering any public road, street, path or drain. 
48. Power of Chief Executive Officer to require alteration of 
work.-  (1) The Chief Executive Officer may, at any time, during the erection 
of any building or execution of

Excerpt shown. Open the full act in Lexace.

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