The JAMMU AND KASHMIR DEVELOPMENT ACT, 1970

DEVELOPMENT ACT, 1970          515
DEVELOPMENT ACT, 1970
(Act No. XIX of 1970)
516 DEVELOPMENT ACT, 1970
Section.
CHAPTER I
PRELIMINARY
1. Short title, extent and
commencement.
2. Definitions.
CHAPTER II
DEVELOPMENT AUTHORITY
AND ITS OBJECT
3. Declaration of local area and
constitution of development
Authority.
4. Members of Authority
5. Appointment of Staff.
6. Object of the Authority.
CHAPTER III
MASTER PLAN AND ZONAL
DEVELOPMENT PLANS
7. Civic Survey of , and master plan
for the area.
8. Zonal Development Plans.
9. Submission of plans to the
Government for approval.
10. Procedure to be followed in the
preparation and approval of plans.
THE JAMMU AND KASHMIR DEVELOPMENT ACT , 1970
(ACT NO. XIX OF 1970)
CONTENTS.
Section.
11. Date of operation of  plan in
contravention of plans.
11-A. Permitted land use and levy of land
use charges.
CHAPTER IV
MODIFICA TIONS TO THE MASTER
PLAN AND THE ZONAL
DEVELOPMENT PLAN
12. Modifications to Plan.
12-A Adoption of scheme sanctioned
under the Town Planning Act as
Zonal Development Plan.
CHAPTER V
DEVELOPMENT
13. Declaration of development area
and permission for development
etc.
14. Application for permission.
15. User of land and buildings.
15-A Power of the Authority to
undertake building operations.
CHAPTER VI
ACQUISITION AND DISPOSAL
OF LAND
16. Compulsory acquisition of land.
518 DEVELOPMENT ACT, 1970
Section.
17. Disposal of land by the Authority.
18. Nazul Lands.
18-A. Reservation of land for housing
to economically weaker sections
and low income groups in scheme
and projects developed by the
Development Authority or private
developer.
18-B. Identification of eligible persons
and determination 0f cost of land
or houses.
18-C. Incentives to developers.
18-D. Non-residential development.
18-E. Utilization of shelter fee.
CHAPTER VII
FINANCE, ACCOUNTS AND AUDIT
19. Fund of the Authority.
20. Budget of the Authority.
21. Accounts and Audit.
22. Pension and provident Funds.
CHAPTER VII-A
JAMMU AND KASHMIR
INDUSTRIAL DEVELOPMENT
CORPORA TION
22-A. Definitions.
22-B. Establishment and Constitution of
the Corporation.
22-C. Composition of the Corporation.
Section.
22-D. Disqualifications.
22-E. Term.
22-F . Meetings.
22-G . Removal of Director.
22-H. Filling of Vacancy.
22-I. Government to appoint person to
act as Director in certain cases.
22-J. Defect not to invalidate
proceedings.
22-K. Managing Director and Chief
Accounts Officer.
22-L. Functions of Corporation.
22-M.Powers of Corporation.
22-N. Authentication of Documents etc.
22-O. Power of Government to Issue
Directions.
22-P . Finance, accounts and audit.
22-Q. Funds.
22-R. Grants, Loans and Advances to
the Corporation.
22-S. Power to Borrow Money.
22-T. Accepting of Deposits.
22-U. Reserve and Other Specially
Denominated Funds.
22-V . Authority to spend Sums.
22-W.Annual Financial Statements.
22-X. Books of Account.
DEVELOPMENT ACT, 1970          519
Section.
22-Y . Audit of Accounts.
22-Z. Acquisition and Disposal of Land.
22-AA. Land to be Placed at the Disposal
of the Corporation.
22-AB. Supplementary and miscellaneous
provisions under this Chapter.
22-AC. Demolition of Erection of any
Building in Certain Cases.
22-AD. Discontinuation of Erection of
any Building in Certain Cases.
22-AE. Penalties.
22-AF. Other Powers of Corporation.
22-AG . Power to Enter into/or upon any
Land or Building.
22-AH. Controller or Licensing
Authority.
22-AI. Amenity.
22-AJ. Lease of Land.
22-AK. Mode of Recovery.
22-AL. Service of Notice etc.
22-AM. Public Notice to be in Writing.
22-AN. Prescribing of Time under
Notice.
22-AO. Duty of Corporation to furnish
Returns etc. to Government.
22-AP. Power of Government to exclude
Industrial Estate from the
Jurisdiction of Corporation.
Section.
22-AQ. Power of Government in case of
Default by the Corporation.
22-AR. Dissolving of Corporation.
22-AS. No Court to take Cognizance of
any Offence under this Chapter.
22-A T. Compounding of Offence.
22-AU. Offence Committed by
Company.
22-A V . Penalty for Obstruction of Entry
of an Authorized Person.
22-AW. Penalty for Obstruction or
Molestation of any Person with
whom the Corporation has
entered into Contract.
22-AX. Penalty for Removal of any
Mark.
22-A Y . Penalty for Obstruction of the
Lawful Exercise of any Power.
22-AZ. Power to make Rules.
22-AAA. Power to make Regulations.
22-AAB. Act done in good faith.
22-AAC. Requirement of prior notice for
filing of Suit.
22-AAD. Public Servants.
22-AAE. Overriding effect.
22-AAF. Power to remove difficulties.
CHAPTER VIII
SUPPLEMENTAL AND
MISCELLANEOUS PROVISIONS
Section.
23. Powers of entry.
24. Penalties.
25. Order of demolition of building.
26. Power to stop development.
27. Offences by companies.
28. Fines when realised to be paid to
authority.
29. Composition of Offences.
30 Default powers of Authority.
31. Powers of Authority to require
local authority to assume
responsibility for amenities in
certain cases.
32. Power of  levy betterment
charges.
33. Assessment of betterment
charges by Authority.
34. Settlement of betterment charges
by arbitrators.
35. Payment of betterment charge.
36. Mode of recovery of moneys due
to Authority.
37. Control by Government.
38. Return and information.
39. Services of notices, etc.
40 Public notice how to be made
known.
Section.
41. Notice etc. to fix reasonable time.
42. Authentication of orders and
documents of Authority.
43. Members and officers to be public
servants.
44. Sanction of prosecution.
45. Magistrate’s power to impose
enchanced penalties.
46. Protection of action taken in good
faith.
47. Power to delegate.
48. Notice to be given of suits.
49 Savings.
50. Plans to stand modified in certain
cases.
51 Power to make rules.
52. Power to make regulations.
53. Dissolution of the Authority.
54. Cessation of the provisions of
certain Acts.
55. Power to remove difficulty.
56. Repeal and Saving.
57. Development of Housing
Colonies outside local area.
DEVELOPMENT ACT, 1970          521
THE JAMMU AND KASHMIR DEVELOPMENT ACT, 1970
(Act No. XIX of 1970)
[Received the assent of the Governor on 31st of October, 1970 and published
in Government Gazette dated 31st October, 1970 (Extra).]
An Act to provide for the development of the 1[Union territory of Jammu and
Kashmir] according to plan and for matters ancillary thereto.
Be it enacted by the Jammu and Kashmir State Legislature in the Twenty-first
Year of the Republic of India as follows :––
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.––(1) This Act may be called the
Jammu and Kashmir Development Act, 1970.
(2) It extends to the 2[whole of the Union territory of Jammu and Kashmir].
3(3) It shall come into force on such date as the Government may, by notification
in the *[Government Gazette] appoint and different dates may be appointed for
different parts of the 1[Union territory of Jammu and Kashmir].
2. Definitions.––In this Act, unless the context otherwise requires,––
(a) “amenity” includes road, street lighting, drainage, sewerage, public
works and such other convenience as the Government may, by
notification in the *[Government Gazette], specify to be an amenity for
the purposes of this Act ;
(b) “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 ;
(c) “building operations” includes re-building operation, structural
alterations of or additions to buildings and other operations normally
undertaken in connection with the construction of buildings ;
1. Substituted for “State” by S.O. 3808 (E) dated 26.10.2020.
2. Substituted for “whole of the State” ibid.
* Now Official Gazette.
3. Enforced effect from 31st October, 1970 by Notification SRO-518 dated 31-10-1970.
t
522 DEVELOPMENT ACT, 1970
(d) “development” with its grammatical variations means the carrying out
of building, engineering quarrying or extraction or manufacture of
building materials or other operations in, on, over or under land, or
“erecting or re-erecting” of any building or land and includes re-
development ;
1[(da) “economically weaker section” means such class of persons, 2[x x x x],
as may be notified by the Government from time to time, for the purpose
of providing housing sites of the dimension 3[as may be prescribed] ;
(db) “floor space index” means the area that can be constructed on a piece of
land divided by the total area of the land ;
(dc) “group housing” means more than two buildings on a plot with one or
more floors and with one or more dwelling units in each floor] ;
(e) “Local Area” means any area declared to be a local area under sub-
section (1) of section 3 ;
4[(ea) “low income group” means such class of persons, 2[x x x x], as may be
notified by the Government from time to time, for the purpose of
providing housing sites which may be of dimension 3[as may be
prescribed] ;
(f) “engineering operations” includes the formation of laying out of means
of access to a road or the laying out of means of water supply or any
other amenity ;
(g) “means of access” includes any means of access whether private or
public, for vehicles or for foot passenger, and includes a road ;
(h) “regulation” means a regulation made under this Act by the
Development Authority constituted under section 3 ;
(i) “rule” means a rule made under this Act ;
4[(ia) “shelter fee” means fee levied and collected in lieu of the reservation of
land or floor area, as the case may be, being an amount equal to the
market value of the land or floor area determined on the basis of the
1. Clauses (da), (db) and (dc) inserted by Act XII of 2012, s. 2.
2. Words “being permanent resident of the State” omitted by S.O. 3808 (E) dated 26.10.2020.
3. Substituted for certain words ibid.
4. Clauses (ea) and (ia) inserted by Act XII of 2012, s. 2.
DEVELOPMENT ACT, 1970          523
rates notified by the Government, which is required to be reserved for
the economically weaker section and the lower income groups] ;
(j) “to erect or re-erect” in relation to any building includes––
(i) any material alteration or enlargement of any 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
any 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 alteration of a building as affect an alteration of its drainage
or sanitary arrangements or materially affect its security ;
(vi) the addition of any rooms, buildings, 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 ; and
(viii) reconstruction of a building or a portion thereof ;
(k) “Zone” means any one of the divisions in which a local area may be
divided for the purposes of development under this Act ;
(l) the expression “land” and the expression “person interested” shall
have the meaning respectively assigned to them in 1[the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013 (30 of 2013)] ;
2[(m) “Strategic Areas” means an area notified as Strategic Area under sub-
section (3) of section 3 of this Act.]
1. Substituted for “section 3 of the Land Acquisition Act, 1990” by S.O. 3808 (E) dated
26.10.2020.
2. Clause (m) inserted ibid.
524 DEVELOPMENT ACT, 1970
CHAPTER II
DEVELOPMENT AUTHORITY AND ITS OBJECTS
3. Declaration of local area and constitution of Development Authority.––
(1) As soon as may be after the commencement of this Act, the Government may, by
notification in the *[Government Gazette], declare any area to be local area for
purposes of this Act and constitute therefor an authority to be called the Develop-
ment Authority hereinafter referred to as the Authority.
(2) The Authority shall be a body corporate by the name of the Local Area
having perpetual succession and a common seal with power to acquire, hold and
dispose of property, both movable and immovable, and to contract and shall in the
said name sue and be sued.
1[(3) Notwithstanding anything contained in this Act, the Government may
on the written request of an Army officer not below the rank of Corp Commander,
declare an area as Strategic Area within a local area, only for direct operational and
training requirements of armed forces, which may be excluded from the operation of
this Act and rules/regulations made there under in the manner and to the extent
specified in the declaration and the Government may satisfy itself about the reasons
cited for declaring the area as strategic area and will have such area notified
accordingly with such conditions as may be required.]
4. Members of the Authority.––(1) The Authority shall consist of 2[12]  members
including a 3[Chairman and Vice-Chairman] all of whom shall be appointed by the
Government on such terms and conditions as the Government may specify.
(2) The members of the Authority appointed under sub-section (1) shall hold
office for such time as the Government may by notification determine.
5. Appointment of Staff.–– 4[Subject to any rule, regulation, order or instruction
issued in this behalf by the Government, the authority] may appoint such officers
and employees (including experts for technical work) as are necessary and may
assign to them such duties and pay such salary and allowance as it may determine
from time to time ; provided that the appointment of officers on post carrying a
maximum pay scale which exceeds Rs. 5[950] per month shall be made after prior
approval of the Government.
* Now Official Gazette.
1. Sub-section (3) inserted by S.O. 3808 (E) dated 26.10.2020.
2. Substituted for the figure “9” by Act XII of 2012, s. 3.
3. Substituted by Act X of 1977, s. 2.
4. Substituted for “The Authority” by S.O. 3808 (E) dated 26.10.2020.
5. Substituted by Act VIII of 1974, s.2.
DEVELOPMENT ACT, 1970          525
6. Objects of the Authority.–– The objects of the Authority shall be to promote
and secure the development  of the local area for which it is constituted, according
to plan and for that purpose the Authority shall have the power to acquire, hold,
manage and dispose of land and other property, to carry out building, engineering
and other operations, to execute works in connection with supply of water and
electricity, disposal of sewerage and other services and amenities and generally to
do anything necessary or expedient for purposes of such development and for
purposes incidental thereto :
Provided that save as otherwise provided in this Act, nothing contained in
this Act shall be constructed as authorising the disregard by the Authority of any
law for the time being in force.
CHAPTER III
MASTER PLAN AND ZONAL DEVELOPMENT PLANS
7. Civic Survey of, and master plan for the area. ––(1) An Authority shall, as
soon as may be, carry out a civic survey of and prepare a master plan for the Local
Area for which it is constituted.
(2) The master plan shall––
(a) define the various zones into which the Local Area may be divided for
the purposes of development and indicate the manner in which the
land in each zone is proposed to be used (whether by the carrying out
thereon of development or otherwise) and the stages by which any
such development shall be carried out ; and
(b) serve as a basic pattern of frame-work within which the zonal develop-
ment plans of the various zones of the Local Area may be prepared.
(3) The master plan may provide for any other matter which is necessary for
the development of the Local Area.
8. Zonal Development Plans. ––(1) Simultaneously with the preparation of
the master plan or as soon as may be thereafter, the Authority shall proceed with the
preparation of a zonal development plan (hereinafter referred to as the zonal plan)
1[for such zones which are declared as development areas under section 13] and
shall propose a date or dates from which development plan of 2[each such zone]
shall operate.
1. Substituted for certain words by S.O. 3808 (E) dated 26.10.2020.
2. Substituted for “each zone” ibid.
526 DEVELOPMENT ACT, 1970
(2) A zonal development plan may––
(a) contain a site-plan and use-plan for the development of the zone and
show the approximate locations and extents of land uses proposed in
the zone for such things as public buildings and other public works
and utilities, roads, housing recreation, industry, business, markets,
schools, hospitals and public and private open spaces and other cat-
egories of public and private uses ;
(b) specify the standards of population density and building density ;
(c) show every area in the zone which may, in the opinion of the Authority,
be required or declared for development or re-development ; and
(d) in particular, contain provisions regarding all or any of the following
matters, namely :––
(i) the division of any site into plots for the erection of buildings ;
(ii) the allotment or reservation of land for roads, open spaces,
gardens, recreation grounds, schools, markets and other public
purposes ;
(iii) the development of any area into a township or colony and the
restrictions and conditions subject to which such development
may be undertaken or carried out ;
(iv) the erection of buildings on any site and the restrictions and
conditions in regard to the open spaces to be maintained in or
around buildings and height and character of buildings ;
(v) the alignment of buildings of any site ;
(vi) the architectural features of the elevation or frontage of any
building to be erected on any site ;
(vii) the number of residential buildings which may be erected on any
plot or site ;
(viii)  the amenities to be provided in relation to any site or buildings
on such site whether before or after the erection of buildings and
the person or authority by whom or at whose expense amenities
are to be provided ;
DEVELOPMENT ACT, 1970          527
(ix) the prohibitions or restrictions regarding erection of shops,
workshops, warehouses or factories or building of a specified
architectural feature or building designed for particular purposes
in the locality ;
(x) the maintenance of walls, fences, hedges or any other structural
or architectural construction and the height at which they shall
be maintained ;
(xi) the restriction regarding the use of any site for purposes other
than erection of buildings ; and
(xii) any other matter which is necessary for the proper development
of the zone or any area thereof according to plan and for prevent-
ing building being erected haphazardly in such zone or area.
9. Submission of plans to the Government for approval.––Every master plan
and zonal plan shall, as soon as may be after its preparation, be submitted by the
Authority to the Government alongwith a proposal relating the date of operation of
the zonal plan and the Government may either approve the plan and the proposal
without modification or with such modifications as it may consider necessary or
reject the plan with directions to the Authority to prepare a fresh plan according to
such directions.
10. Procedure to be followed in the preparation and approval of plans.––
(1) Before preparing any plan finally and submitting it to the Government for approval,
the Authority shall prepare a plan in draft and publish it by making a copy thereof
available for inspection and publishing a notice in such form and manner as may be
prescribed by rules made in this behalf inviting objections and suggestions from
any person with respect to the draft plan before such date as may be specified in the
notice.
(2) The Authority shall also give reasonable opportunity to every local
authority within whose local limits any land touched by the plan is situated to make
any representation with respect to the plan.
(3) After considering all objections, suggestions and representations that
may have been received by the Authority, the Authority shall finally prepare the
plan and submit it to the Government for its approval.
(4) Provisions may be made by rules in this behalf with respect to the form and
content of a plan and with respect to the procedure to be followed and any other
matter, in connection with the preparation, submission and approval of such plan.
528 DEVELOPMENT ACT, 1970
(5) Subject to the foregoing provisions of this section, the Government may
direct the Authority to furnish such information as the Government may require for
the purposes of approving any plan submitted to it under this section.
1[11. Date of Operation of Plan.––Immediately after the 2[Master or a Zonal
Plan] and their dates of operation have been approved by the Government, it shall
declare the area for the Master Plan or for a Zone, as the case may be, for the
purposes of the Act and shall also publish in the *[Government Gazette a notice
indicating the approval of the plan and the date of its operation and name of the
place where a copy of the plan may be inspected at all reasonable hours].
3[11-A. Permitted land use and levy of land use charges .––(1) Upon coming
into operation of the master plan or a zonal plan, the land use permitted in the area
covered thereunder shall only be as provided in terms of such master or zonal plan.
The provisions of the Jammu and Kashmir Agrarian Reforms Act, 1976, Jammu and
Kashmir Land Revenue Act, Samvat 1996 or any other law for the time being in force
requiring any permission to change the usage of any land, shall not be applicable to
any land so covered.
(2) The Government may, by notification in the Official Gazette, notify a scheme
for levy of charges for use of land as permitted in the master plan or the zonal plan,
the proceeds whereof shall form part of the fund of the Authority and may be used
to defray the expenses incurred on acquisition of land that may be required to be
acquired in terms of section 50.]
CHAPTER IV
MODIFICA TION TO THE MASTER PLAN AND THE ZONAL
DEVELOPMENT PLAN
12. Modifications to Plan. ––(1) The Authority may make any modifications
to the master plan or the zonal plan as it thinks fit being modifications which, in its
opinion, do not effect important alterations in the character of the plan and which
do not relate to the extent of land uses or the standards of population density.
(2) The Government may make any modifications to the master plan or the
zonal plan whether such modifications are of the nature specified in sub-section (1)
or otherwise.
1. Section 11 substituted by Act IV of 2001, s. 2.
2. Substituted by S.O. 3808 (E) dated 26.10.2020.
3. Section 11-A inserted ibid.
* Now Official Gazette.
DEVELOPMENT ACT, 1970          529
(3) Before making any modification to the Plan, the Authority or, as the case
may be, the Government shall publish a notice in such form and manner as may be
prescribed by rules made in this behalf inviting objection and suggestions from any
person with respect to the proposed modifications before such date as may be
specified in the notice and shall consider all objections and suggestions that may
be received by the Authority or the Government.
(4) Every modification made under the provision of this section shall be
published in such manner as  the  Authority or the Government, as the case may be,
may specify and the modification shall come into operation either on the date of the
publication or on such other date as the Authority or the Government may fix.
(5) When the Authority makes any modifications to the Plan under sub-
section (1), it shall report to the Government the full particulars of such modifications
within thirty days of the date on which such modifications come into operation.
(6) If any question arises whether the modifications proposed to be made by
the Authority are modifications which effect important alterations in the character
of the Plan or whether they relate to the extent of land-uses or the standards of
population density, it shall be referred to the Government whose decision thereon
shall be final.
(7) Any reference in any other Chapter, except Chapter III, to the master plan
or the zonal development plan shall be construed as a reference to the master plan
or the zonal plan as modified under the provisions of this section.
1[12-A. Adoption of scheme sanctioned under the Town Planning Act, 1963
as a zonal development plan.––Notwithstanding anything contained in this Act or
in the Jammu and Kashmir Town Planning Act, 1963 or in any other law for the time
being in force,––
(1) If at any time the Government decides that scheme sanctioned under the
Jammu and Kashmir Town Planning Act, 1963 in respect of any area which is included
in a local area under this Act, may be adopted as a zonal development plan under
this Act, the Government may, by notification in the *[Government Gazette],––
(a) declare the area covered under the plan so adopted as a zone for purposes
of this Act ;
(b) adopt such scheme as a zonal development plan in respect of that area
for purposes of this Act ; and
1. Section 12-A added by Act XVI of 1972, s.2.
* Now Official Gazette.
530 DEVELOPMENT ACT, 1970
(c) specify a date of operation of the zonal development plan so adopted
and the name of the place where a copy of the plan may be inspected at
all reasonable times.
(2) The Government may by notification also direct that in respect of
acquisition of immovable property, if any, required for the purpose of the said zonal
development plan, the provisions of Chapter VI of the Jammu and Kashmir Town
Planning Act, 1963 shall apply mutatis mutandis as if the said zonal development
plan were a scheme for purposes of the said Chapter.
(3) Every zonal development plan adopted under this section shall be deemed
to have been validly prepared by the Development Authority and approved by the
Government under this Act.
(4) Upon the publication of a notification under sub-section (1) noth-
ing in––
(a) the provisions of Chapters III and IV of this Act ;
(b) the provisions of the Jammu and Kashmir Town Planning Act, 1963
except so far as provided in this section ;
shall apply to any zonal plan but in the application of the other provisions of this
Act to such zonal plan––
(i) in section 13 reference to section 11 shall be constructed as reference
to clause (c) of such sub-section (1) of this section ;
(ii) in sub-section (3) of section 14, the words, brackets, figures and letter,
“in relation to any matter specified in clause (d) of sub-section (2) of
section 8 or in relation to any other matter” shall be omitted ; and
(iii) section 16 shall cease to apply as soon as a notification under sub-
section (2) of this section is issued].
CHAPTER  V
DEVELOPMENT
1[13. Declaration of development area and permission for development
etc. ––(1) After a notice approving the date of operation of plan is published under
section 11, the Authority may, with prior permission of the Government and by
1. Section 13 substituted by S.O. 3808 (E) dated 26.10.2020.
DEVELOPMENT ACT, 1970          531
notification in the Official Gazette, declare any zone or part thereof as development
area for the purposes of this Act.
(2) Notwithstanding anything to the contrary contained in any law for the time
being in force, consequent upon such notification, no person including a Department
of the Government shall undertake or carry out development of any land or building
in the zone unless permission for such development has been obtained in writing
from the Authority in accordance with the provisions of this Act :
Provided that the development of any land undertaken by a Department of
the Government or any local authority before the 31st day of October, 2019 may be
completed by that Department or local authority.
(3) No person or entity, whether private or public, including a Department of
the Government or any authority, shall undertake the implementation of any street
or layout plan, in any form whatsoever, in the local area outside the limits of a
Municipal Corporation established under the provisions of the Jammu and Kashmir
Municipal Corporation Act, 2000,without the prior written permission of the
Authority :
Provided that for the purposes of such permission, the Authority shall follow
the procedure laid down in Chapter XIII of the Jammu and Kashmir Municipal
Corporation Act, 2000, and any reference therein to the Corporation or the
Commissioner shall be construed as reference to the Authority or the Vice-Chairman
of the Authority, respectively :
Provided further that the restriction under this sub-section shall not apply to
the development undertaken by or on behalf of the Metropolitan Region Development
Authority established under the Jammu and Kashmir Metropolitan Region
Development Authorities Act, 2018, or to a town planning scheme implemented under
the provisions of the Jammu and Kashmir Town Planning Act, 1963.]
14. Application for permission.––(1) Every person including a Depart-
ment of Government desiring to obtain the permission referred to in section 13
shall make an application in writing to the Authority in such form and
containing such particulars in respect of the development to which the
application relates as may be prescribed by regulations.
(2) Every application under sub-section (1) shall be accompanied by such fee
as may be prescribed by rules :
Provided that no such fee shall be necessary in the case of an application
made by a Department of the Government.
532 DEVELOPMENT ACT, 1970
(3) On receipt of an application for permission under sub-section (1), the
Authority after making such inquiry as it considers necessary in relation to any
matter specified in clause (d) of sub-section (2) of section 8 or in relation to any
other matter, shall, by order in writing, either grant the permission, subject to
such conditions, if any, as may be specified in the order, or refuse to grant such
permission :
Provided that before making an order refusing such permission, the applicant
shall be given a reasonable opportunity to show cause why the permission should
not be refused.
(4) Where permission is refused, the grounds of such refusal shall be recorded
in writing and communicated to the applicant in the manner prescribed by regulations.
(5) The Authority shall keep in such form as may be prescribed by regulations
a register of applications for permission under this section.
(6) The said register, shall contain such particulars including information as
to the manner in which applications for permission have been dealt with as may be
prescribed by regulations and shall be available for inspection by any member of
the public at all reasonable hours on payment of such fee not exceeding rupees five
as may be prescribed by regulations.
(7) Where permission is refused under this section, the applicant or any
person claiming through him shall not be entitled to get refund of the fee paid on the
application for permission but the Authority may, on the application for refund
being made within three months of the communication of the grounds of the refusal
under sub-section (4), direct refund of such portion of the fee as it may seem proper
in the circumstances of the case.
15. User of land and buildings in contravention of plans.––After the coming
into operation of 1[a master or zonal plan in a zone] no person shall use or permit to be
used any land or building in that zone otherwise than in conformity with such plan :
Provided that it shall be lawful to continue to use, upon such terms and
conditions as may be prescribed by regulations made in this behalf, any land or
building for the purposes and to the extent for and to which it is being used upon
the date on which such plan comes into force.
1[15-A.Power of the Authority to undertake building operations.––
Nowithstanding anything contained in this Act, the Authority may undertake any
building operations on behalf of the Government in any local area on such terms
1. Substituted for “a plan in a zone” by S.O. 3808 (E) dated 26.10.2020.
1. Section 15-A inserted by Act VIII of 1974, s. 3.
DEVELOPMENT ACT, 1970          533
and conditions as may be mutually agreed upon by the Government and the
Authority and nothing in this Act shall apply in respect of such building operations].
CHAPTER VI
ACQUISITION AND DISPOSAL OF LAND
16. Compulsory acquisition of land. ––(1) If in the opinion of the Government,
any land is required for the purpose of development, or for any other purpose under
this Act, the Government may acquire such land under the provisions of 1[the Right
to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 (30 of 2013)].
(2) Where any land has been acquired by the Government, the Government
may, after it has taken possession of the land, transfer the land to the Authority for
the purpose for which the land has been acquired on payment by the Authority of
the compensation awarded under that Act and the charges incurred by the
Government in connection with the acquisition.
17. Disposal of land by the Authority.—(1) Subject to any direction given by
the Government under this Act, the Authority may dispose of––
(a) any land acquired by the Government and transferred to it without
undertaking or carrying out any development thereon ; or
(b) any such land after undertaking or carrying out such development as it
thinks fit ;
2[x x x x] in such manner and subject to such terms and conditions as it considers
expedient for securing the development of the area according to plan.
(2) The powers of the Authority with respect to the disposal of land under
sub-section (1) shall be so exercised as to secure, so far as practicable, that persons
who are living or carrying on business or other activities on the land shall, if they
desire to obtain accommodation on land belonging to the Authority and are willing
to comply with any requirements of the Authority as to its development and use,
have an opportunity to obtain thereon accommodation suitable to their reasonable
requirements on terms and settled with due regard to the price at which any land
has been acquired from them :
Provided that where the Authority proposes to dispose of by sale any land
without any development having been undertaken or carried out thereon, it shall
1. Substituted for “Land Acquisition Act, 1990” by S.O. 3808 (E) dated 26.10.2020.
2. Words “to permanent resident of the State” omitted ibid.
534 DEVELOPMENT ACT, 1970
offer the land in the first instance, to the persons from whom it was acquired, if they
desire to purchase it subject to such requirements as to its development and use as
the Authority may think fit to impose.
(3) Nothing in this Act shall be construed as enabling the Authority to dispose
of land by way of gift, mortgage or charge, but subject as aforesaid, reference in this
Act to the disposal of land shall be contrued as reference to the disposal thereof in
any manner whether by way of sale, exchange or lease or by the creation of any
easement right or privilege or otherwise.
18. Nazul Lands. ––(1) The Government may, by notification in the
*[Government Gazette] and upon such terms and conditions as may be agreed upon
between the Government and the Authority, place at the disposal of the Authority
all or any developed and undeveloped lands in the zone or the local area vested in
the Government (known and hereinafter referred to as “Nazul Land”) for the  purpose
of development in accordance with the provisions of this Act.
(2) No development of any Nazul land shall be undertaken or carried out
except by or under the control and supervision of the Authority after such Nazul
land has been placed at the disposal of the Authority under sub-section (1).
(3) After any such Nazul land has been developed, by or under the control
and supervision of, the Authority, it shall be dealt with by the Authority in accordance
with rules made and directions given by the Government in this behalf.
(4) If any Nazul land placed at the disposal of the Authority under sub-
section (1) is required at any time thereafter by the Government, the Authority shall,
by notification in *[Government Gazette], place it at the disposal of the Government
upon such terms and conditions as may be agreed upon between the Government
and the Authority.
1[18-A. Reservation of Land for housing to economically weaker sections
and low income groups in schemes and projects developed by the Development
Authority or private developer. ––(1) In any Housing Scheme or Land Development/
Land Re-adjustment Scheme, whether undertaken by any authority or private
developer, there shall be reservation of not less than ten per cent of the gross land
area under each scheme for the purpose of providing housing accommodation to
the members of economically weaker sections and low income groups.
(2) In all residential layouts of extent above 4000 square meters, not less than
ten per cent of the gross area shall be earmarked for economically weaker sections
and low income groups :
* Now Official Gazette.
1. Sections 18-A, 18-B, 18-C, 18-D and 18-E inserted by Act XII of 2012, s. 4.
DEVELOPMENT ACT, 1970          535
Provided that where the total extent of land is between 1000 square meters
and 4000 square meters, either land may be reserved for economically weaker sections
and low income group or shelter fee may be collected.
(3) All residential layouts of extent below 1000 square meters may be exempted
from reservation of land as well as payment of shelter fee.
(4) The size of the plot reserved under sub-sections (1) and (2) for economically
weaker sections and low income groups shall not be less than 30 square meters or
higher as may be prescribed by the Government.
(5) In all residential buildings with total plot area above 1000 square meter, not
less than ten per cent of the floor area shall be reserved for economically weaker
sections and low income groups by way of flats :
Provided that where the total plot area is between 500 square meters and 1000
square meters, either floor area may be reserved for economically weaker sections
and low income groups or shelter fee may be collected.
(6) All residential buildings with plot area below 500 square meters may be
exempted from reservation of floor area as well as payment of shelter fee.
(7) The size of the unit reserved under sub-section (5) for economically weaker
sections and low income groups shall not be less than 25 square meters of carpet
area or higher, as prescribed by the  Government.
(8) The earmarking in sub-sections (1) and (5) shall be such that a minimum of
20 per cent of developed land or 20 per cent of floor space index in all land development
or housing projects both by public and private agencies is reserved for the
economically weaker sections and low income groups category taking into account
the reservation at area plan or layout approval stage or group housing approval
stages together.
18-B. Identification of Eligible Persons and Determination of cost of land or
houses.––(1) A Government Department or agency of the Government, as may be
prescribed, shall maintain an inventory of all the plots or houses, as the case may
be, reserved for the economically weaker sections and the low income groups and
ensure its protection from encroachment.
(2) For the allotment of plots or houses to the economically weaker sections
and the low income groups, the procedure for the selection of eligible persons and
the determination of the cost of such plots or houses shall be such as may be
prescribed by the Government.
536 DEVELOPMENT ACT, 1970
18-C. Incentives to Developers.––Every developer who makes provision for
earmarking of land or floor area, as the case may be, for economically weaker sections
and low income groups housing, shall be incentivized through a scheme of cross-
subsidization, which shall be such, as may be prescribed by the Government
including land use concessions through conversion of part of residential use for
commercial use, Higher Floor Space Index, Transferable Development Right, etc
and/or higher prices charged from Higher Income Groups.
18-D. Non-residential Development.––The  Government shall consider levy
of suitable fee like Impact fee on all non-residential land development and buildings
above 1000 square meters to generate resources for the shelter fund which may be
used for provision of land, housing, basic service, etc. to the urban poor.
18-E. Utilization of Shelter Fee.––The shelter fee collected shall be maintained
in a separate account and will be utilized as per guidelines for the acquisition of
land, development of land and construction of houses and in such other ways so as
to provide for housing to economically weaker sections and low income groups].
CHAPTER VII
FINANCE, ACCOUNTS AND AUDIT
19. Fund of the Authority. ––(1) The Authority shall have and maintain its
own fund to which shall be credited––
(a) all moneys received by the Authority from the Central or *[State
Government] by way of grants, loans, advances or otherwise ;
(b) all moneys borrowed by the Authority from sources other than the
Government by way of loans or debentures ;
(c) all fees and charges received by the Authority under this Act ;
(d) all moneys received by the Authority from the disposal of lands,
buildings and other properties, movable and immovable ; and
(e) all moneys received by the Authority by way of rents and profits or in
any other manner or from any other source.
(2) The funds shall be applied towards meeting the expenses incurred by the
Authority in the administration of this Act and for no other purposes.
* Now Government of the Union territory of Jammu and Kashmir.
DEVELOPMENT ACT, 1970          537
(3) The Authority may keep in current account of the Jammu and Kashmir
Bank or any other Bank approved by the Government in this behalf such sum of
money out of its fund, as may be prescribed by rules, and any money  in excess of
the said sum shall be invested in such manner as may be approved by the
Government.
(4) The Government may make such grants, advances and loans to the
Authority, as the Government may deem necessary, for the performance of the
functions of the Authority under this Act, and all grants, loans and advances made
shall be on such terms and conditions as the Government may determine.
(5) The Authority may borrow money by way of loans or debentures from
such sources and on such terms and conditions as may be approved by the
Government.
(6) The Authority shall maintain a sinking fund for the repayment of money
borrowed under sub-section (5) and shall pay every year into the sinking fund such
sum as may be sufficient for re-payment within the period fixed for all the moneys so
borrowed.
(7) The sinking fund or any part thereof shall be applied in or towards the
discharge of the loan for which such fund was created, and until such loan is wholly
discharged it shall not be applied for any other purpose.
20. Budget of the Authority.–– The Authority shall prepare in such form and
at such time every year as may be prescribed by rules a budget in respect of the
financial year next ensuing showing the estimated receipts and expenditure of the
Authority and shall forward to the Government such number of copies thereof as
may be prescribed by rules.
21. Accounts and Audit.––(1) The Authority shall maintain proper accounts
and other relevant records and prepare an annual statement of accounts including the
balance sheet in such form as the Government may by rules prescribe in consultation
with such Auditor as the Government may by order specify.
(2) The Accounts of the Authority shall be subject to audit annually by the
said Auditor and any expenditure incurred by the Auditor in connection with such
audit shall be payable by the Authority to the said Auditor.
(3) The Auditor and any person appointed by him in connection with the
audit of accounts of Authority, shall have the same right, privilege and authority in
connection with such audit as the Accountant General of Jammu and Kashmir has
in connection with the audit of Government accounts and in particular shall have
538 DEVELOPMENT ACT, 1970
the right to demand the production of books, account, connected vouchers and
other documents and papers and to inspect the office of the Authority.
(4) The accounts of the Authority as certified by the said Auditor or any other
person appointed by him in this behalf together with the audit report thereon shall
be forwarded annually to the Government and Government shall cause a copy of
the same to be laid before 1[Legislative Assembly of the Union territory of Jammu
and Kashmir].
22. Pension and provident funds.––(1) The Authority shall constitute for the
benefit of its whole time paid members and of its officers and other employees in
such manner and subject to such conditions as may be prescribed by rules, such
pension and provident funds as it may deem fit.
(2

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