The Himachal Pradesh New Mandi Townships (Development and Regulation) Act 1973

THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS 
(DEVELOPMENT AND REGULATIONS) ACT, 1973 
ARRANGMENT OF SECTOONS 
Sections: 
1. Short title, extent and commencement. 
2. Definitions. 
3. Power of State Government to declare new mandi townships 
and to transfer land and buildings therein. 
4. Bar to purchase plots. 
5. Bar to erection or alteration of buildings in contravention of 
building rules. 
6. Administer’s power to sanction or refuse erection, re-erection 
or modification of plan of buildings and presumption 
sanction. 
7. Power of Administrator to stop unauthorized building 
operations and penalty for breach and disobedience. 
8. Power of Administrator to direct modification of sanctioned 
plan of a building before its completion. 
9. Lapse of sanction after one year from the date of such 
sanction. 
10. Power to require proper maintenance of site or building. 
11. Levy of fees for amenities. 
12. Imposition of penalty. 
13. Mode of Recovery of arrears. 
14. Forfeiture for breach of conditions of transfer. 
15. Penalty for breach of the provisions of the Act or rules 
thereunder. 
16. Appeal and revision. 
17. Powers of entry into buildings or land. 
18. Partial exclusion of jurisdiction of municipal Committees, 
Panchayats and Town Improvement Trusts in new mandi 
townships. 
19. Procedure for prosecution. 
20. Bar of jurisdiction of Court. 
21. Protection of Action taken in good faith. 
22. Delegation. 
2 THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT 
AND REGULATIONS) ACT, 1973 
 
23. Power to exclude application of Act to certain new mandi 
townships. 
24. Power to include fully developed new mandi townships 
within limits of local authorities. 
25. Certain sales to be deemed to be sales under this Act. 
26. Power to make rules. 
27. Repeal and Savings. 
THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS 
(DEVELOPMENT AND REGULATIONS) ACT, 1973 
(ACT NO. 18 OF 1973)1 
(Received the assent of the Governor on the 28th June, 1973 and was 
published in the Rajpatra, Himachal Pradesh (Extra-ordinary) dated 20th July, 
1973, pp. 1185-1194).  
An Act to provide for the development and regulation of new mandi 
townships in Himachal Pradesh. 
BE it enacted by the Legislative Assembly of Himachal Pradesh in the 
Twenty-fourth Year of the Republic of India asfollows:- 
1. Short title, extent and commencement.- (1) This Act may be 
called the Himachal Pradesh New Mandi Townships (Development and 
Regulation) Act 1973. 
(2) It extends to the whole of Himachal Pradesh. 
(3) It shall come into force at once. 
2. Definitions.- In this Act, unless the context otherwise requires.- 
(a)  "Administrator" means any person designated by.the State 
Government by notification in the Official Gazette 
forperforming the functions of an Administrator under this 
Act;  
(b) "amenity" includes roads, water supply, street lighting, 
drainage, sewerage, cattle-sheds, warehouse, public 
laboratories, bathrooms, public buildings, horticulture, 
landscaping, children parks, lawns and ploy grounds, and 
anyother public utility as may be prescribed; 
(c)  "building" means any construction or part of construction 
which is intended to be used for residential, commercial, 
industrial or other purposes, whether in actual use or not and 
includes any out-house, structure, stable, cattle-shed, garage, 
hut, platform and plinth; 
                                                           
1.  For Statement of Objects and Reasons see the Rajpatra, Himachal Pradesh (Extra-
ordinary) dated 6th January, 1973, p. 33. 
THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT  3 
AND REGULATIONS) ACT, 1973 
(d) "erect or re-erect any building" includes- 
(i)  any material alteration or enlargement of building, 
(ii)  the conversion by structural alteration into a place for 
human habitation of any building not originally 
constructed for human habitation, 
(iii) the conversion into more than one place for human 
habitation of a building originally constructed as one 
such place, 
(iv) the conversion of two or more places of human 
habitation into a greater number of such places, 
(v) such alterations of a building as affect an alteration of 
its drainage or sanitary arrangements, or materially 
affectits security,  
(vi)  the addition of any rooms, buildings, out-houses or 
other structures to any building, 
(vii)  the construction in a wall adjoining any street or land 
not belonging to the owner of the wall, of a door 
opening on to such street or land, 
(viii) the construction of any overhanging structure over any 
street or public place or the enclosing of any 
spaceintended to be kept open, and 
(ix)  digging of earth and construction of foundation for 
erection or re-erection of any structure; 
(e)  "family" includes husband, wife and their children; 
(f) "new mandi township" means any area declared to be a new 
mandi township by the State Government under sub-section 
(1) of section 3; 
(g)  "occupier" meansa person, including firm or other body of 
individuals, whether incorporated or not, who occupies site or 
building transferred under this Act, and includes his 
successors and assigns; 
(h)  "prescribed" means prescribed by rules made under this Act; 
(i)  "site" means any land which is transferred by the State 
Government under section 3; and 
(j) "transferee" means a person (including a firm or other body of 
individuals whether incorporated or not) to whom asite or 
building is sold, leased or transferred in any manner 
whatsoever, under this Act, and includes his successors and 
assigns. 
4 THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT 
AND REGULATIONS) ACT, 1973 
 
3. Power of State Government to declare new mandi townships 
and to transfer land and buildings therein.- (1) The State Government may, 
from time to time, by notification in the Official Gazette, declare any area to 
be a new mandi township for the purposes of this Act, to be known by 
suchname as may be specified in the notification. 
(2) The State Government may, sell, lease or otherwise transfer, by 
auction, allotment or otherwise, any land or building belonging to or vested in 
the State Government in any new mandi township on such terms and 
conditions as it may, subject toany rules that may be made under this Act, 
deem fit to impose. 
(3) Any amount due to the State Government on account of the sale, 
lease or transfer of any site or building undersub-section(2) shall be a first 
charge on that site or building, and notwithstanding anything contained in any 
other law for thetime being in force, no transferee shall be entitled to sell, 
mortgage or otherwise transfer any right, title or interest in the site orbuilding 
transferred to him under sub-section(2) except by way of a lease from month 
to month (by the plot holders) until the amount mentioned as first charge 
under this sub-sectionhas been paid in full. 
4. Bar to purchase plots.- Not more than two plots will be sold, 
leased or otherwise transferred to one family. 
5. Bar to erection or alteration of buildings in contravention of 
building rules.- (1) No person shall erect or re-erect or occupy wholly or 
partly any building or use or develop any site or building incontravention of 
any rules made under sub-section(2) and without the previous permission in 
writing of the Administrator. 
(2) The State Government, shall by notification, in the Official 
Gazette make rules to regulate the erection or re-erection of buildings and use 
of sites, and such rulesmay provide for all or any of the following matters:- 
(a) notice to build and procedure for submission of building 
applications with building and site plans; 
(b)  use of site and .the type and character of building and the 
number of self-contained units that may be erected on anysite; 
(c)  extent of site coverage and space about buildings and the 
prescription of a building line; 
(d)  the minimum dimensions and superficial area required for 
various parts of the building designed for different purposes 
und the minimum provision of doors and windows for 
securing ventilation and circulation of air; 
(e)  the maximum height of any building and the total number and 
height of storeys in a building; 
(f)  the means to be provided for ingressand egress to any 
building for prevention of fire;  
THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT  5 
AND REGULATIONS) ACT, 1973 
(g)  the extents of architectural control on the various units of the 
building and the portions of such architectural units, including 
compulsory building line along which, and compulsory height 
upto which, building shall be completedwithin a specified and 
reasonable time; 
(h)  the specification of materialsand dimensions for any building 
to ensure structural stability: 
(i)  the materials and methods of construction for drains and 
sewers and for the provision and useof connection 
betweenprivate and public drains and sewers, and the 
procedure for submission of plans; 
(j)  supervisors and architects for designs and erection of any 
buildings and the qualifications which such person shall 
possess; 
(k)  notice and certificate of completion of buildings or part 
thereof; 
(l)  any other matters for the proper use and development of sites 
and the use, alteration .and erection of buildings thereon. 
6. Administer’s power to sanction or refuse erection, re-erection 
or modification of plan of buildings and presumption sanction.- (l) The 
Administrator shall refuse to sanction the erection, re-erection or modification 
of plan of any building incontravention of any rules made' under sub-section 
(2) of section 5. 
(2) The Administrator shall, in every case, communicate the sanction 
or modification or rejection of a building applicationwithin sixty days of its 
receipt. 
(3) Where no communication is received by the applicant from the 
Administrator within the period specified in sub-section (2), the application 
shall be deemed to have been sanctioned and the applicant may, after giving 
fifteen days notice to the Administrator, erect or re-erect the building in 
accordance with the building application submitted by him to the 
Administratorfor sanction notwithstanding that such erection or re-erection 
contravenes the rules made under section 5: 
Provided that when the Administrator modifies the building 
application within such fifteen days and communicates the modification to the 
applicant; the applicant shall erect or re-erect the building in accordance with 
such modifications. 
7. Power of Administrator to stop unauthorized building 
operations and penalty for breach and disobedience.- Where the erection 
or re-erection of a building has been commenced without sanction or is being 
carried on as such or in contravention of the terms of any sanction, the 
Administrator may, by a notice to be served on the owner, or by affixing it at 
the site or on the building, direct that building operations be discontinued. 
6 THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT 
AND REGULATIONS) ACT, 1973 
 
8. Power of Administrator to direct modification of sanctioned 
plan of a building before its completion.- If at any time before the 
completion of abuilding of which the erectionor re-erection has been 
sanctioned under section 6, the Administrator finds that any modification of 
the sanctioned plan is necessary, he may direct that the building be modified 
accordingly, subject to payment of compensation by the State Government for 
any loss incurred by the owner on account of such modification, 
9. Lapse of sanction after one year from the date of such 
sanction.- Every sanction for erection or re-erection of any building given or 
deemed to have been given under section 6 shall be valid for one year from 
the date of such sanction or for such longer period as the Administrator may 
allow: 
Provided that the erection of the building not commenced within one 
year and completed within two years or such longer period as may have been 
allowed the sanction shall be deemed to have lapsed, but such lapse shall not 
bar any subsequent application for fresh sanction. 
10. Power to require proper maintenance of site or building.- If it 
appears to the Administrator, that the condition or use of any site or building 
is prejudicially affecting the proper planning of any part of the new mandi 
township, or its amenities or the health or interests of the general public, he 
may serve on the transferee or occupier of the site or building notice requiring 
him to take such steps and within such period as may be specified in the 
notice and thereafter to maintain it in such a manner as may be specified 
therein. 
11. Levy of fees for amenities.- For the purpose of providing, 
maintaining or continuing any amenity in the new mandi township the State 
Government may levy such fees as it may consider necessary in respect of any 
site or building on the transferee or occupier thereof. 
12. Imposition of penalty.- Where any transferee or occupier defaults 
in the payment of any fee levied under this Actor the rule mode thereunder 
and such default has continued for three months from the due date, then, in 
addition to the arrears, a sum equal to twenty percentum of that amount shall 
be recovered from the transferee or occupier, as the case may be, by way of 
penalty. 
13. Mode of Recovery of arrears.- In the event of default in the 
payment of any amount due under this Act or the rules made thereunder, the 
outstanding amount together, with the penalty if any, may be recovered from 
the transferee or occupier as the case may be as arrears of land revenue.  
14. Forfeiture for breach of conditions of transfer.- (1) 
Notwithstanding anything contained in any other law for the time being in 
force, the Administrator may resume anysite or building if the transferee or 
occupier persistently fail to use such site or building for the purpose for which 
it is sold, leased or transferred or fails to build upon the site within the period 
allowed or fails to pay the sale price or lease money of such site or building 
due under this Act or the rules made thereunder. 
THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT  7 
AND REGULATIONS) ACT, 1973 
(2) In the event of such resumption of any site or building, any money 
paid or deposited in respect of such site or building may also be forfeited: 
Provided that no order of resumption or forfeiture of money shall be 
passed under this section without affording the defaulter an opportunity to 
show cause against it. 
(3) The resumed site or building as the case may be, may be resold by 
auction and any loss resulting from such re-sale which isnot covered by the 
amount forfeited under sub-section (2), shall be recoverable as arrears of land 
revenue from such defaulter. 
15. Penalty for breach of the provisions of the Act or rules 
thereunder.- (1) Except as otherwise provided in this Act, any contravention 
of the provisions of this Act or the rules mode thereunder shall be punishable 
with fine which may extend to five hundred rupees and, in the case of 
continuing contravention, with an additional fine which may extend to fifty 
rupees for each day during which such contravention continues after· the first 
conviction. 
(2) If a building is begun, erected or re-erected in contravention of 
any of the rules made under sub-section (2) of section 5, the Administrator 
shall be competent to order the building to be altered or demolished by a 
written notice served on the owner thereof within six months of such 
commencement, erection or re-erection. Such notice shall also specify the 
period not being less than fifteen days during which such alteration or 
demolition must be made and, if the notice is not complied with, the 
Administrator shall be competent to demolish the said building at the expense 
of the owner. 
Provided that the Administrator may, instead of requiring the 
alteration or demolition of any such building, accept, by way of compositions 
such sum as he may, deem reasonable. 
16. Appeal and revision.- (1) Any person aggrieved by an order of 
the Administrator under section 6, 9, 10, 14 or sub-section (2) of section15 
may, within thirty days from the date of communication to him of such order, 
prefer an appeal to the Commissioner: 
Provided that the Commissioner may entertain appeal after the expiry 
of the said period of thirty days if he is satisfied that the appellant was 
prevented by sufficient cause from filing the appeal in time: 
Provided further that the provisions relating to the deduction of period 
spent in obtaining copies of order contained in the Indian Limitation Act, 
1963, shall apply in computing the period of limitation. 
(2) The Commissioner may, after hearing the appeal, confirm,vary or 
reverse the over appealed against and may pass said orders, as he may deem 
fit. 
(3) The Financial Commissioner, may either on his own motion or on 
an application received in this behalf at any time, within a period of one year 
8 THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT 
AND REGULATIONS) ACT, 1973 
 
from the date of the order, call for the records of any proceedings in which the 
Administrator or Commissioner has passed an order for the purpose of 
satisfying himself as to the legality or propriety of such order and may pass 
such orders in relation thereto as he thinks fit: 
Provided that the Financial Commissioner shall not pass an order 
under this sub-section prejudicial to any person without giving him a 
reasonable opportunity of being heard. 
17. Powers of entry into buildings or land.- ( 1) The Administrator 
may, after giving four days' notice to the occupier, or if there be no occupier, 
to the owner of the building or land, authorise any person- 
(a) to enter on and to survey and to take levels or measurements 
of any building or land; 
(b)  to enter into any building or on any land to ascertain whether 
any building is being or has been erected without sanction or 
in contravention of any sanction or the rules made under this 
Act and to take such measurements as may be necessary for 
this purpose. 
(2) The entry contemplated in clauses (a) and (b) of sub-section (1) 
shall be between sunrise and sun-set. 
18. Partial exclusion of jurisdiction of municipal Committees, 
Panchayats and Town Improvement Trusts in new mandi townships.- (1) 
If any new mandi township or a part thereof lies within the limits of a 
municipality, notified area, gram panchayat area or local area under the 
Punjab Town Improvement Act, 1922, the State Government may, by 
notification in the Official Gazette, direct that any or all the powers under the 
Himachal Pradesh Municipal Act, 1968, the Himachal Pradesh Panchayati Rai 
Act, 1968 or the Punjab Town Improvement Act, 1922, as are relevant to the 
purposes of this Act, shall, subject to such conditions and restrictions as may 
be specified in the notification, cease to operate in such new mandi township 
or a part, thereof, and the Municipal Committee, the President or any officer 
of the Committee, the Gram Panchayat or the Town Improvement Trust, as 
the case may be shall thereafter cease to have jurisdiction over that new mandi 
township or a part thereof, as the case may be, in respect of such powers. 
(2) The provisions of the Himachal Pradesh, Municipal Act, 1968, the 
Himachal Pradesh Panchayati Raj Act, 1968 and the Punjab Town 
Improvement Act, 1922 in so for as they are inconsistent with the provisions 
of this Act shall not apply to a new mandi township or a part thereof . 
19. Procedure for prosecution.- No Court shall take cognizance of 
any offence under section 15 except on the complaint of, or upon information 
received by (sic) the Administrator or any other person authorised by him in 
this behalf. 
20. Bar of jurisdiction of Court.- Except as otherwise provided in 
this Act, no order made by the Administrator or any authority in exercise of 
THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT  9 
AND REGULATIONS) ACT, 1973 
any powers conferred by or under this Act shall be called in question in any 
Court. 
21. Protection of Action taken in good faith.- No suit, prosecution 
or other legal proceedings shall be against the Administrator or any other 
officer or authority for anything done or intended to be done in good faith in 
pursuance of this Act or rules or orders made thereunder. 
22. Delegation.- (1) The State Government may, by order, direct that 
any power exercisable by it or by the Administrator under this Act shall also 
be exercisable by such officer not below the rank of a Naib-Tehsildar and 
subject to such conditions, if any, as may be specified in the order. 
(2) The Administrator may delegate all or any of his powers under 
this Act to any officer not below the rank of a Naib-Tehsildar of the State 
Government or any other authority subject to such conditions as may be 
specified by the Administrator. 
23. Power to exclude application of Act to certain new mandi 
townships.- If the State Government is of opinion that it is not in public 
interest to develop a new mandi township, it may, by notification, declare that 
the provisions of this Act shall cease to apply to such new mandi township 
from such date as may be specified in such notification. 
24. Power to include fully developed new mandi townships within 
limits of local authorities.- If the State Government is of the opinion that any 
new mandi township has been fully developed in accordance with the 
provisions of this Act and the rules made thereunder, it may, by notification in 
the official Gazette, include such new mandi township within the local limits 
of any local authority from such date as may be specified in the notification, 
and thereupon the provisions of this Act shall cease to apply to such new 
mandi township, and the provisions of the law for the time being in force 
relating to such local authority shall apply in relation thereto. 
25. Certain sales to be deemed to be sales under this Act.- Every 
sale of land made to any person under the Punjab New Mandi Township 
(Development and Regulation) Act 1960 or recognized a sale under section 24 
of the said Act in respect of areas added to HimachalPradesh under section 5 
of the Punjab Re-organisation Act 1966, shall .be deemed to have been made 
to such person under the provisions of this Act and as from the 
commencement of this Act in such new mandi township all the provisions of 
this Act and the rules or orders made thereunder shall apply accordingly in 
respect thereof: 
Provided that such rules or orders shall not be inconsistent with the 
terms and conditions on which such sole has already beenmade. 
26. Power to make rules.- (1) The State Government may, by 
notification in the Official Gazette, make rules prescribing all matters which 
by this Act are required or permitted to be prescribed, or which are necessary 
or convenient to be prescribed for carrying out or giving effect to this Act and 
in particular prescribing- 
10 THE HIMACHAL PRADESH NEW MANDl TOWNSHIPS (DEVELOPMENT 
AND REGULATIONS) ACT, 1973 
 
(a)  the terms and conditions on which any land or building may 
be transferred by the State Government under this Act· 
(b)  the manner in which consideration money for transfer may be 
paid; 
(c)  the rate of interest payable and the procedure for payment of 
installments, interest, fees, rents or other dues payable under 
this Act; '.' 
(d)  the terms and conditions under which the transfer of any right 
in any site or building may be permitted; 
(e)  the levy of fees under section II; 
(f)  the terms and conditions for the breach of which any site or 
building may be resumed; 
(g) the form of notice and the manner in which notices may be 
served; 
(h)  the form and manner in which appeals and applications under 
this Act may be filed and the court fees leviable on such 
appeals and applications; and 
(i)  any other matter which has to be or may be prescribed. 
(2) Every rule made under this Act, shall be laid, as ,soon as may be 
after it is made, before the Legislative Assembly while it is in session for total 
period of not less than fourteen days which may be comprised in one session 
or in two or more successive sessions and if before the expiry of the session in 
which it is so laid or the sessions aforesaid, the Assembly makes any 
modification in the rule or decides that the rule should not be made, the rule 
shall thereafter have effect only in such modified form or be of no effect, as 
the case may be, so, however, that any such modification or annulment shall 
be without prejudice tothe validity of anything previously done under that 
rule. 
27. Repeal and Savings.- The Punjab New Mandi Townships 
(Development and Regulation) Act, 1960, in its application to territories 
added to Himachal Pradesh under section 5 of the Punjab Re-organisation 
Act, 1966 is hereby repealed: 
Provided that anything done, action taken, rules made or notification 
issued in exercise of the powers conferred by or under the provisions of the 
Act so repealed to the extent of their being consistent with the provisions of 
this Act, shall be deemed to have been done, taken, made or issued 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, action taken, rules made or notification 
issued. 
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