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The MYSURU DEVELOPMENT AUTHORITY ACT, 2024

Karnataka · state statute
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KARNATAKA ACT NO. 39 OF 2025 
 
THE MYSURU DEVELOPMENT AUTHORITY ACT, 2024 
Arrangement of Sections 
 
Sections: 
 1. Short title and commencement 
 2. Definitions 
 3. Constitution and incorporation of the Authority 
 4. Disqualification for office of member 
 5. Term of office and conditions of service of members 
 6. Removal of member 
 7. Eligibility for reappointment 
 8. Meetings of the Authority 
 9. Appointment of committees 
10. Powers of authority 
11. Authority may compromise claims by or against it    
12. Appointment of Commissioner 
13. Appointment of Secretary 
14. Powers and duties of the Commissioner 
15. Objects of the Authority 
16. Power of Authority to undertake works and incur expenditure  for 
development, etc  
17. Particulars to be provided for in a development scheme 
18. Procedure on completion of scheme 
19. Sanction of scheme 
20. Upon sanction, declaration to be published giving  particulars  of land 
to be acquired 
21. Levy of betterment tax 
22. Assessment of betterment tax by the Authority 
23. Manner of payment of betterment tax 
24. Recovery of betterment tax 
25. Payment etc. no bar to future acquisition 
26. Power of Authority to take up works for further development 
27. Crediting betterment tax collected to the funds of the Corporation in 
certain cases   
28. Authority to execute the scheme within five years 
29. Land vested in Corporation and required by the Authority for 
formation of street to be vested temporarily in the  Authority 
30. Duty to maintain streets etc 
31. Levy of property tax on lands and buildings 
32. Authority is deemed to be a Local Authority for levy of cesses under 
certain Acts 
33. Authority and Commissioner to exercise powers and functions under 
Karnataka Act 14 of 1977 
34. Streets on completion to vest in and be maintained by Corporation 
35. Authority not to sell or otherwise dispose of sites in certain cases 
36. Forming of new extensions or layouts or making new private streets 
37. Alteration or demolition of extension, layout or street 
38. Prohibition of unauthorised occupation of land 
39. Power of Authority to order work to be carried out or to carry it out 
itself in default 
40. Authority to have power to acquire land by agreement 
41. Provisions applicable to the acquisition of land otherwise than by 
agreement 
42. Power of Government to transfer to the Authority lands belonging to 
it or to Corporation, etc 
43. Power of Authority to lease, sell or transfer property 
44. Grant of area reserved for civic amenities etc 
45. Power of Authority to borrow 
46. Development Fund and the items to be credited to such fund 
47. Application of the Mysuru Development Authority Fund 
48. Laying of annual estimate of income and expenditure 
49. Authority to approve or amend such estimate 
50. Estimates to be submitted to Government for sanction 
51. Supplementary estimates may be prepared and submitted when 
necessary 
52. Provisions regarding expenditure 
53. Accounts and audit 
54. Reports 
55. Power of Auditor 
56. Schedule of officers and employees to be submitted for sanction of 
Government 
57. Appointment and conditions of service of officers and employees of  
the Authority 
58. Constitution of Mysuru Heritage Building Protection Commission 
59. Powers of entry 
60. Directions by the Authority 
61. Offences by companies 
62. Fines when realised to be credited to the Mysuru Development 
Authority Fund 
63. Compounding of offences 
64. Members and officers to be public servants 
65. Jurisdiction of courts 
66. Sanction of prosecution 
67. Protection of action taken in good faith 
68. Power to delegate 
69. Appeal against assessment etc., 
70. Revision 
71. Notice of suit against the Authority 
72. Power of Government to give directions to the Authority 
73. Transfer of employees 
74. Submission of copies of resolution and Government’s power to cancel 
the resolution or order 
75. Default in performance of duty 
76. Amendment of the Karnataka Town and Country Planning Act, 1961 
77. Housing Board not to undertake any Housing Scheme after the 
commencement of this Act 
78. Power to make rules 
79. Power to make regulations 
80. Power to make bye-laws 
81. Penalty for breach of the provisions of the Act 
82. Act to override other laws 
83. Removal of difficulties 
84. Dissolution of the Authority 
85. Savings 
 
 
STATEMENT OF OBJECTS AND REASONS 
Amendment Act 3 9 of 2025 :- The population of Mysuru  City as per 
2011 census is 8,93,062 and the population of the local planning area is 
16,96,577. Currently the growth of the city indicates the city attaining a 
population and status of a metropolitan city.  
The budget and other activities of the Mysuru Ur ban Development 
Authority have been expanding to a large extent. The Authority is facing 
complex challenges due to fast growth and large scale developments. Therefore 
it is essential to enact a separate act for Mysuru Urban Development Authority 
in lines w ith the Bangalore Development Authority Act for effective 
administration and management of the financial resources of the Authority.  
Co-ordinated planning and development within the local planning area is 
necessary for speedy implementation of the schemes  of the Authority, Central 
and State Government requiring legislation, which complements the growth 
and development of the fast growing urban area. 
Hence, the Bill. 
[L.A. Bill No.54 of 2024, File No. SAMVYASHAE 66 SHASANA 2024]  
[Entries 5 and  18 of List II of the Seventh Schedule t o the Constitution of 
India.]   
[Published in Karnataka Gazette Extra -ordinary No.2 78 in part -IVA 
dated:14.05.2025] 
  
KARNATAKA ACT NO. 39 OF 2025 
(First published in the Karnataka Gazette Extra-ordinary on the 14th day of May, 2025) 
 
THE MYSURU DEVELOPMENT AUTHORITY ACT, 2024 
 (Received the assent of the Governor on the 13th day of May, 2025) 
 
An Act to provide for the establishment of a development authority for 
the development of the City of Mysuru and areas adjacent thereto. 
 
Whereas it is expedient to provide for the establishment of a development 
authority for the development of the City of Mysuru and areas adjacent thereto 
and for matters connected therewith and incidental thereto; 
Be it enacted by the Karnataka State Legislature in the seventy fifth year 
of the Republic of India as follows:- 
 CHAPTER-I 
PRELIMINARY 
1. Short title and commencement. - (1) This Act may be called the 
Mysuru Development Authority Act, 2024. 
 
(2) It shall come into force o n such 1[date]1, as the State Government may, 
by notification in the official Gazette, appoint. 
1. This Act has came into force w.e.f. 23.05.2025. by   Notification No. ನಅಇ 03  ಅ   2021 ( -1) (ಇ) 
               Dated: 23.05.2025 
2. Definitions.- (1) In this Act, unless the context otherwise requires,- 
(a) “Authority” means the Mysuru Development Authority constituted 
under section 3; 
(b) “Amenity” includes road, street, lighting, drainage, public works and 
such other conveniences as the Government may, by notification, 
specify to be an amenity for the purposes of this Act; 
(c) “Betterment tax” means the tax payable under section 21 in respect  
of an inc rease in the value of land resulting from the execution of a 
development scheme; 
(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) “Building operations” include rebuilding operations, structural 
alterations of or additions to buildings and other operations normally 
undertaken in connection with the construction of buildings; 
(f) “Bye-laws” mean bye-laws made by the Authority under this Act; 
(g) “Chairman” means the Chairman of the Authority; 
(h) “Civic amenity” means,- 
(i) a market, a post office, a telephone exchange, a bank, a fair price 
shop, a milk booth, a school, a dispensary, a hospital, a 
pathological laboratory, a mate rnity home, a child  care  centre, a 
library, a gymnasium,  a bus stand or a bus depot; 
(ii) a recreation centre run by the Government or the Corporation; 
(iii) a centre for educational,  social  or  cultural  activities established 
by the Central Government or the S tate Government or by a body 
established by the Central Government or the State Government; 
(iv) a centre for educational, religious, social or cultural activities or for 
philanthropic service run by a cooperative society registered under 
the Karnataka Co -operative Societies Act, 1959 (Karnataka Act 11 
of 1959) or  a society registered under the Karnataka Societies 
Registration Act, 1960 (Karnataka Act 17 of 1960) or by a trust 
created wholly for charitable, educational or religious purposes; 
(v) a police station, a n area office or a service station of the 
Corporation or the Karnataka Urban Water Supply and Sewerage 
Board or the Chamundeshwari Electricity Supply Company; and 
(vi) such other amenity as the Government may, by notification, 
specify; 
(i) “Commissioner”  means  th e  Commissioner  appointed  under 
section 12; 
(j) “Corporation” means the City Corporation of Mysuru; 
(k) “Development” with its grammatical variations means the carrying 
out of building, engineering, or other operations in or over or under 
land or the making of a ny material change in any building or land 
and includes redevelopment; 
(l) “Engineering operation” means formation or laying out of means of 
access to road; 
(m) “Government” means the State Government; 
(n) “Land” includes benefits to arise out of land and things attached to 
the earth or permanently fastened to anything attached to the earth; 
(o) “Local authority” means a Municipal Corporation or  a  Municipal 
Council or a Gram Panchayat constituted or continued under any law 
for the time being in force; 
(p) “Means of acce ss” includes any means of access whether private or 
public, for vehicles or for foot passengers, and includes a road; 
(q) “Regulation” means regulations made by the Authority under this 
Act; 
(r) “Street” includes any highway and any causeway, bridge, aqueduct, 
arch, road, lane, footway, square, court, alley or passage, whether a 
thoroughfare or not; 
(s) “To 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 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 affect its security; 
(vi) the addition of any rooms, buildings, houses or other structures to 
any building; and 
(vii) the c onstruction in a wall adjoining any street or land not 
belonging to the owner of the wall, or a door opening on to such 
street or land. 
 
(2) All other words and expressions used herein but not defined shall have 
the same meaning as assigned to them in the Karn ataka Municipal 
Corporations Act, 1976 (Karnataka Act 14 of 1977). 
 
 
CHAPTER-II 
THE MYSURU DEVELOPMENT AUTHORITY 
 
3. Constitution and incorporation of the Authority. - (1) As soon as 
may be, after the date of commencement of this Act, the Government shall, by 
notification, constitute for the Mysuru Local Planning Area, an Authority to be 
called the Mysuru Development Authority. 
(2) The Authority shall be a body corporate by the name aforesaid 
having perpetual succession and a common seal, with power, subject to the 
provisions of this Act, to acquire, hold and dispose of property, both moveable 
and immoveable and to contract and shall by the said name sue or be sued. 
(3) The Authority shall consist of the following members, namely:- 
(a) the Chairman; 
(b) one person to be called the Finance Member possessing 
qualifications in accounts and audit; 
(c) an engineer who shall be an officer of the Karnataka Engineering 
Service or an officer employed in any undertaking owned or 
controlled by the State Government not below the rank of a Chief 
Engineer/Superintending Engineer; 
(d) a town planner who shall be an officer of the department of Town 
and Country Planning not below the rank of Additional Director o f 
Town and Country Planning assisted by such other officers having 
Post graduate qualification in Town and Country Planning from the 
Department of Town and Country Planning; 
(e) a person with experience in architecture; 
(f) the Commissioner, Corporation of the City of Mysuru, who shall be 
an ex-officio member; 
(g) an officer of the Karnataka Government Secretariat, Department of 
Urban Development, not below the rank of a Deputy Secretary to 
Government, who shall be an ex-officio member; 
(h)  one person who is member of the Karnataka State Legislature; 
(i) four persons including a woman and a person belonging to the 
Scheduled Castes or the Scheduled Tribes; 
(j)  a representative of the Karnataka Urban Water Supply and 
Sewerage Board; 
(k)  a representative of the Electricity Supply Compa nies in the 
jurisdiction of Mysuru Local Planning Area; and 
(l) the Commissioner, ex-officio; and 
(m)  the Secretary of the Authority, who shall be an ex-officio member. 
(4) The persons referred to in clauses (a) to (e) and (g) to (i) of sub - 
section (3) shall be appointed by the Government and the persons referred to in 
clauses (j) and (k) thereof shall be nominated by the respective bodies: 
Provided that, all the first members of the Authority shall be appointed 
by the Government. 
(5) The Chairman, the engineer membe r, the finance member and the 
town planner member shall be whole time members and the other members 
shall be part time members. 
(6) The names of the Chairman and members (appointed or elected) 
shall be published by the Government by notification. 
 
4. Disqualification for office of member. - (1) No person shall be 
appointed as or continue to be a member if he,- 
(a) has been convicted and sentenced to imprisonment for an offence 
which in the opinion of the Government involves moral turpitude; or 
(b) is of unsound mind  and stands so declared by a competent 
court; or 
(c) is an undischarged insolvent; or 
(d) has been removed or dismissed from the service of the Central 
Government or a State Government or a Corporation owned or controlled  by 
the Central Government or a State Government; or 
(e) has directly or indirectly by himself or his partner any share or 
interest in any work done by the order of the Authority or in any contract or 
employment with or under or by or on behalf of the Authority; or 
(f) being an elected member ceases t o be a councilor of the Corporation; 
or 
(g) is employed as paid legal practitioner on behalf of the Authority or 
accepts employment as legal practitioner against the Authority. 
(2) A person shall not be disqualified under clause (e) of sub -section (1) 
or be de emed to have any share or interest in any contract or employment 
within the meaning of the said clause by reason only of his  having a share or 
interest in any newspaper in which any advertisement relating to the affairs of 
the Authority is inserted. 
5. Term of office and conditions of service of members.- (1) Subject to 
the pleasure of the Government and the provisions of section 6, the Chairman 
and other members of the Authority shall hold office for a period of three years 
from the date on which they assume  office and shall be eligible for re -
appointment under such conditions as may be prescribed: 
Provided that, the term of office of the representative of the Corporation 
shall come to an end when he ceases to be a councillor or when the 
Corporation is superseded. 
(2) The other conditions of service of members shall be such as may be 
prescribed. 
(3) Any member other than an ex-officio member may resign his office by 
writing under his hand addressed to the Government but shall continue in 
office till his resignation is accepted by the Government. 
(4) A casual vacancy caused by resignation of a member or otherwise 
may be filled by fresh appointment or election and the person so appointed or 
elected shall hold office for the remaining period for which the member in 
whose place he was appointed or elected would have held office. 
(5) No Act or proceeding of the Authority shall be invalid merely by 
reason of any vacancy in or defect in the constitution or reconstitution of the 
Authority. 
6. Removal of member.- The Government shall remove a member if,- 
(a) he becomes subject to any of the disqualifications mentioned in 
section 4: 
Provided that, no member shall be removed on the ground that he has 
become subject to the disqualification mentioned in clause (e) of section 4, 
unless he has been given an opportunity of submitting his representation; or 
(b) he refuses to act or becomes incapable of acting; or 
(c) he, without obtaining leave of absence from the Authority, absents from 
three consecutive meetings of the Authority; or 
(d) in the opinion of the  Government he has so abused his position as to 
render his continuance in office detrimental to the public interest: 
Provided that, no member shall be removed under this clause unless he 
has been given an opportunity of submitting his representation. 
7. Eligibility for reappointment. - Any person ceasing to be a member 
shall, unless disqualified under section 4, shall be eligible for reappointment as 
a member. 
8. Meetings of the Authority.- (1) The meetings of the Authority shall be 
convened by the Chairman a nd shall be held at any place within the 
jurisdiction of the Authority. 
(2) The Authority shall meet at such times and shall observe such rules of 
procedure in regard to the transaction of business at its meetings including 
quorum at meetings, may be provided by the regulations. 
(3) The Chairman or, if for any reason he is unable to attend any meeting, 
any other member chosen by the members present at the meeting shall preside 
at the meeting. 
(4) All questions which come up before any meeting of the Authority shall 
be decided by a majority of the votes of the members present and voting and in 
the event of an equality of votes, the Chairman or in his absence, the person 
presiding, shall have and exercise a second or casting vote. 
(5) A member shall not, at any meeting of the  Authority or a committee 
thereof, take part in the discussion of or vote on any matter in which he has 
directly or indirectly, by himself or his partner, any share or interest. 
9. Appointment of committees. - (1) The Authority may from time to 
time appoint committees consisting of the Chairman and such other members 
as it thinks fit and may with the approval of the Government associate with 
such committees in such manner and for such period as may be prescribed, 
any person or persons whose assistance or advise  it may desire and refer to 
such committees for inquiry and report any subject relating to the purposes of 
this Act. 
(2) Every committee appointed under the sub -section (1) shall conform to 
any instructions that may from time to time be given to it by the Authority and 
the Authority may at any time alter the constitution of any committee so 
appointed or rescind any such appointment. The Chairman shall be the 
President of every such committee. 
10. Powers of authority. - (1) The Commissioner may, on behalf of the 
Authority, sanction any estimate, call for tenders or enter into any contract or 
agreement the value or amount as specified by the Government from time to 
time in such manner and form as, according to the law for the time being in 
force, would bind him if such contract or agreement were on his own behalf; 
and every such contract or agreement shall be reported to the Authority at its 
next meeting. 
(2) The Authority may sanction any estimate, call for tenders or enter 
into any contract or agreement the value as s pecified by the Government from 
time to time and where the value of any estimate, contract or agreement 
exceeds the amount so specified by the Government, the same shall not be 
entered into except with the previous sanction of the Government. 
(3) Every contract or agreement on behalf of the Authority, other than a 
contact or agreement referred to in sub-section (1), shall be in writing and shall 
be signed by the Commissioner and sealed with the common seal of the 
Authority. 
(4) The common seal of the Authori ty shall be in the custody of the  
Commissioner, who shall personally affix the seal to any contract or other 
instrument. 
(5) The acceptance of any tender shall be subject to such rules as may 
be prescribed. 
(6) A contract not made or executed as provided in this s ection and the 
rules made there under shall be null and void and shall not be binding on the 
Authority. 
11. Authority may compromise claims by or against it. -  The 
Authority may compound or compromise any claim or demand arising out of 
any contract entered into by it under this Act or any action or suit instituted by 
or against it for such sum of money or other compensation as it may deem 
sufficient: 
Provided that, no such claim or demand exceeding fifty thousand rupees 
shall be compounded or compromised ex cept with the previous approval of the 
Government. 
12. Appointment of Commissioner. - (1) The State Government shall 
appoint an officer, who shall be an officer of the rank of Indian Administrative 
Service or Senior scale and above rank officer of the Karna taka  Administrative 
Service to be the Commissioner for the Authority. 
(2) The Commissioner shall receive such monthly salary and other 
allowances as the State Government may, from time to time determine. 
(3) The State Government may, from time to time, grant leav e of 
absence for such period as it thinks fit to the Commissioner. A copy of every 
order granting such leave shall be communicated to the Chairman. 
13. Appointment of Secretary.- (1) The State Government shall appoint 
an officer not below the rank of a junior scale officer of the Karnataka 
Administrative Service, to be the Secretary of the Authority. 
(2) The Secretary shall receive such monthly salary and other allowances 
as the State Government may from time to time determine. 
14. Powers and duties of t he Commissioner. - (1) The Commissioner 
shall be the Chief Executive and Administrative Officer of the Authority. 
(2) The Commissioner shall in addition to performing such functions as 
are conferred on him by or under this Act or under any law for the time being 
in force,- 
(a) carry into effect the resolutions of the Authority: 
      Provided that, if in the opinion of the Commissioner any resolution of  
the Authority contravenes any provision of this Act or any other law or of  any 
rule, notification, regulation or bye -law made or issued  under this Act  or any 
other law, or of any order passed by the Government or  is  prejudicial or 
detrimental to the interest of the Authority, he shall, within fifteen days of the 
passing of the resolution refer the matter to the Government for orders and 
inform the Authority at its next meetin g, of the action taken by him and until 
the orders of the Government on such reference are received, the 
Commissioner shall not be bound to give effect to the resolution. 
(b) keep and conduct the Authority‟s correspondence; 
(c) carry out and execute such schemes a nd works as the State 
Government may direct and incur necessary expenditure there for; 
(d) be responsible for implementing the schemes of the Authority; 
(e) operate the accounts of the Authority and be responsible for the 
maintenance of the accounts of the authority; 
(f) exercise supervision and control over the accounts and proceedings of 
all officers and employees of the Authority in matters of executive 
administration and in the matters concerning the accounts and records 
of the Authority and to the extent specified  in sub-section (1) of section 
57 dispose of all questions relating to the service of such officers and 
employees and their pay, privileges and allowances; and 
(g) furnish to the Government a copy of the minutes of the Authority‟s 
proceedings and any return or other information which the Government 
may, from time to time, call for; 
(h) authenticate by his signature all permissions, orders, decisions, notices 
and other documents of the Authority and the orders of the Chairman. 
(3) The Commissioner shall have all the  powers of a Secretary to the State 
Government under the Karnataka State Civil Services Rules for the time being 
in force, with respect to the officers and employees of the Authority. 
 
15. Objects of the Authority. - The objects of the Authority shall be to 
promote and secure the development of the Mysuru Local Planning Area and 
for that purpose the Authority shall have the power to acquire, hold, manage 
and dispose of moveable and immoveable property, whether within or outside 
the area under its jurisdiction, t o carry out building, engineering and other 
operations and generally to do all things necessary or expedient for the 
purposes of such development and for purposes incidental there to. 
CHAPTER-III 
DEVELOPMENT SCHEMES 
 
16. Power of Authority to undertake works and incur expenditure  for 
development, etc.- (1) The Authority may,- 
(a) draw up detailed schemes (hereinafter referred to as “development 
scheme”) for the development of Local Planning Area of the Authority; 
and 
(b) with the previous approval of the Government, undertake from time 
to time any works for the development of the Mysuru Local Planning 
Area and incur expenditure there for and also for planning and 
execution of development schemes. 
(2) The Authority may also from time to time make and take up any new 
or additional development schemes,- 
(i) on its own initiative, if satisfied of the sufficiency of its resources; or 
(ii) on the recommendation of the local authority if the local authority 
places at the disposal of the Authority the necessary funds for planning 
and carrying out any scheme; or 
(iii) otherwise. 
(3) Notwithstanding anything in this Act or in any other law for the time 
being in force, the Government may, whenever it deems necessary require the 
Authority to take up any development scheme or work and execute it subject to 
such terms and conditions as may be specified by the Government. 
17. Particulars to be provided for in a development scheme. - Every 
development scheme under section16,- 
(1) shall, within the limits of the area comprised in the scheme, provide 
for,- 
(a) the acquisition of any land which, in the opinion of the Authority, will 
be necessary for or affected by the execution of the scheme; 
(b) laying and re -laying out all or any land including  the  construction 
and reconstruction of buildings and formation and alteration of 
streets; 
(c) drainage, water supply and electricity; and 
(d)   the reservation of not less than fifteen percent of the total area of the 
layout for public parks and playgrounds and an additional area of not 
less than ten percent of the total area of the layout  for civic 
amenities. 
(2) may, within the limits aforesaid, provide for,- 
(a) raising any land which the Authority may consider expedient to raise 
to facilitate better drainage; 
(b) forming  open  spaces  for  the better ventilation of the area 
comprised in the scheme or any adjoining area; and 
(c) the sanitary arrangements required; 
(3)  may, within and without the limits aforesaid provide for the 
construction of houses. 
18. Procedure on completion of scheme. - (1) When a development 
scheme has been prepared, the Authority shall d raw up a notification stating 
the fact of a scheme having been made and the limits of the area comprised 
therein and naming a place where particulars of the scheme, a map of the area 
comprised therein, a statement specifying the land which is proposed to b e 
acquired and of the land in regard to which a betterment tax may be levied may 
be seen at all reasonable hours. 
(2) A copy of the said notification shall be sent to the Corporation which 
shall, within thirty days from the date of receipt thereof, forward to the 
Authority for transmission to the Government as hereinafter provided, any 
representation which the Corporation may think fit to make with regard to the 
scheme. 
(3) The Authority shall also cause a copy of the said notification to be 
published in  the offici al Gazette and affixed in some conspicuous part of its 
own office, the Deputy Commissioner‟s Office, the office of the Corporation and 
in such other places as the Authority may consider necessary. 
(4) If no representation is received from the Corporation withi n the time 
specified in sub -section (2), the concurrence of the Corporation to the scheme 
shall be deemed to have been given. 
(5) During the thirty days next following the day on which such 
notification is published in the official Gazette the Authority shall serve a notice 
on every person whose name appears in the assessment list of the local 
authority or in the land revenue register as being primarily liable to pay the 
property tax or land revenue assessment on any building or land which is 
proposed to be acq uired in executing the scheme or in regard to which  the 
Authority proposes to recover betterment tax requiring such person to show 
cause within thirty days from the date of the receipt of the notice why such 
acquisition of the building or land and the rec overy of betterment tax should 
not be made. 
(6) The notice shall be signed by or by the order of the  Commissioner and 
shall be served by,- 
(a) personal delivery or if such person is absent or cannot be found, on 
his agent, or if no agent can be found, then by leav ing the same on 
the land or the building; or 
(b) leaving the same at the usual or last known place of abode or 
business of such person; or 
(c) registered post addressed to the usual or last known place of abode 
or business of such person. 
 
19. Sanction of scheme. - (1) After publication of the scheme and service 
of notices as provided in section 18 and after consideration of representations, 
if any, received in respect thereof, the Authority shall submit the scheme, 
making such modifications therein as it may think fit,  to the Government for 
sanction, furnishing,- 
(a) a description with full particulars of the scheme including the 
reasons for any modifications inserted therein; 
(b) complete plans and estimates of the cost of executing the scheme; 
(c) a statement specifying the land proposed to be acquired; 
(d) any representation received under sub-section (2) of section18; 
(e) a schedule showing the rateable value, as entered in the municipal 
assessment book on the date of the publication of a notification 
relating to the land under the section 18 or the land assessment of all 
land specified in the statement under clause(c); and 
(f) such other particulars, if any, as may be prescribed. 
(2) Where any development scheme provides for the construction of 
houses, the Authority shall also submit to the Government plans and estimates 
for the construction of the houses. 
(3) After considering the proposal submitted to it the Government may, 
by order, give sanction to the scheme. 
20. Upon sanction, declaration to be published giving  particulars  of 
land to be acquired .- (1) Upon sanction of the scheme, the Government shall 
publish in the official Gazette a declaration stating the fact of such sanction 
and that the land proposed to be acquired by the Authority for the purposes of 
the scheme is required for a public purpose. 
(2) The declaration shall state the limits within which the land proposed 
to be acquired is situated, the purpose for which it is needed, its approximate 
area and the place where a plan of the land may be inspected. 
(3) The said declaration shall be conclusive evidence that the land is 
needed for a public purpose and the Authority shall, upon the publication of 
the said declaration, proceed to execute the scheme. 
(4) If at any time it appears to the Authority that an improvement can be 
made in any part of  the scheme, the Authority may alter the scheme for the 
said purpose and shall subject to the provisions of sub -sections (5) and (6), 
forthwith proceed to execute the scheme as altered. 
(5) If the estimated cost of executing the scheme as altered exceeds, by a  
greater sum than five percent of the estimated cost of executing the scheme as 
sanctioned, the Authority shall not, without the previous sanction of the 
Government, proceed to execute the scheme as altered. 
(6) If the scheme as altered involves the acquisitio n otherwise than by 
agreement, of any land other than that specified in the schedule referred to in 
clause (e) of sub -section (1) of section 19, the provisions of sections 18 and 19 
and of sub -section (1) of this section shall apply to the part of the sche me so 
altered in the same manner as if such altered part were the scheme. 
21. Levy of betterment tax.- (1) Where as a consequence of execution of 
any development scheme, the market value of any land in the area comprised 
in the scheme which is not required for  the execution thereof has in the 
opinion of the Authority, increased or will increase the authority shall be 
entitled to levy on the owner of the land or any person having an interest 
therein a betterment tax in respect of the increase in value of the land resulting 
from the execution of such scheme. 
(2) Such increase in value shall be the amount by which the value of the 
land, on the completion of the execution of the scheme, estimated as if the land 
were clear of buildings, exceeds the value of the land prior to the execution of 
the scheme estimated in like manner, and the betterment tax shall be one-third 
of such increase in value. 
22. Assessment of betterment tax by the Authority. - (1) When it 
appears to the Authority that a development scheme is sufficiently  advanced to 
enable the amount of the betterment tax to be determined, the Authority shall, 
by a resolution passed in this behalf declare that for the purpose of 
determining such tax, the execution of the scheme shall be deemed to have 
been completed an d shall thereupon give notice in writing to every person on 
whom a notice in respect of land to be assessed had been served under sub -
section (5) of section 18 or to the successor in interest of such person, as the 
case may be, that the Authority proposes to assess the amount of the 
betterment tax payable in respect of such land under section 21. 
(2) The Authority shall then assess the amount of betterment tax payable 
by each person concerned after giving such person an opportunity of being 
heard and such perso n shall, within three months from the date of receipt of 
notice in writing of such assessment inform the Authority in writing whether or 
not he accepts the assessment. 
(3) When the assessment proposed by the Authority is accepted by the 
person concerned within  the period specified in sub -section (2), such 
assessment shall be final. 
(4) If the person concerned does not accept the assessment made by the 
Authority or fails to give the Authority the information required under sub -
section (2) within the period specified  therein the Authority shall make a 
reference to the District Court for determining the betterment tax payable by 
such person. 
23. Manner of payment of betterment tax. - The betterment tax 
determined under section 22 shall be paid within such time and in such 
number of installments not exceeding ten as may be specified by the Authority 
together with interest at such rates as may be prescribed. 
24. Recovery of betterment tax. - Where any person liable to pay 
betterment tax fails to pay the same within the time specifi ed by the Authority 
or makes default in payment of two consecutive installments or  any three 
installments, the Authority shall  be entitled  to recover the whole of the 
amount due together with interest from the said person or his successor -in-
interest in  such land in the manner provided by the Karnataka Municipal 
Corporations Act, 1976 (Karnataka Act 14 of 1977), for the recovery of taxes 
and if the said money is not so recovered, the Commissioner may, after giving 
public notice of his intention to do so and not less than one month after the 
publication of such notice, sell the land or the interest of the said person or his 
successor-in-interest in such land by public auction and may deduct the said 
money and the expenses of the sale from the proceeds of t he sale, and shall 
pay the balance (if any) to the defaulter. 
25. Payment etc. no bar to future acquisition. - Acceptance of liability to 
betterment tax under sub -section (3) of section 22, or payment of the said tax 
after determination under section 23 shall n ot debar subsequent acquisition of 
the land concerned, if such acquisition is necessary for purposes of this Act. 
26. Power of Authority to take up works for further development. - (1) 
Notwithstanding anything contained in any other provision of this Act,  the 
Authority may, with the previous sanction of the Government, take up such 
works as the Authority considers necessary or desirable  for  the further 
development of any area within the Mysuru Local Planning Area: 
Provided that, the Authority shall consult th e Corporation, if such area 
lies within the limits of the Corporation. 
(2) The expenditure incurred or proposed to be incurred or such portion 
thereof as may be determined by the Authority and approved by the 
Government in carrying out such works may recovered  by a pro -rata levy on 
the owners of properties benefitted by such works as may be determined by the 
Authority. The said sum may be recovered as any other sum due to the 
Authority under the provisions of this Act. 
 
 
 
27. Crediting betterment tax collected to the funds of the Corporation 
in certain cases. - Where the increase in value of any land is due to the 
execution of a development scheme made on the recommendation of the 
Corporation and for which the Corporation has placed at the disposal of the 
Authority the necessary funds for planning and carrying out such schemes, the 
betterment tax collected by the Authority from the owners of such land shall be 
credited by the Authority to the Municipal Fund of the Corporation. 
28. Authority to execute the scheme within five years.- Where within a 
period of five years from the date of the publication in the official Gazette of the 
declaration under sub -section (1) of section 20, the Authority fails to execute 
the scheme substantially, the scheme shall lapse and the  provis ions of section 
37 shall become inoperative. 
29. Land vested in Corporation and required by the Authority for 
formation of street to be vested temporarily in the  Authority. - Whenever 
under any development scheme the whole or any part of an existing public 
street or other land vested in the Corporation is included in the site of any part 
of a street to be formed, altered, widened, raised, re - arranged or re -
constructed by the Authority, the Authority shall give notice  to the Corporation 
that the whole or a par t, as the case may be, of such existing street or other 
land (hereinafter called the “part required”) is required by it as part of a street 
to be dealt with as aforesaid, and the part required shall thereupon, subject to 
the provisions of sub-section (1) of section 34, be vested in the Authority: 
Provided that, nothing in this section shall be deemed to affect the rights 
or powers of the Corporation under the Karnataka Municipal Corporations Act, 
1976 (Karnataka Act 14 of 1977) in or over any Corporation dr ainage work or 
water work. 
30. Duty to maintain streets etc. - It shall be incumbent  on  the 
Authority to make reasonable and adequate provision by any means or 
measures which it is lawfully competent to use or take, for the following 
matters, namely:- 
(a) the mai ntenance, keeping in repair, lighting and cleansing of the 
streets formed by the Authority till such streets are vested in the Corporation; 
and 
(b) the drainage, sanitary arrangement and water supply in respect of the 
streets formed by the Authority. 
31. Levy of p roperty tax on lands and buildings. - (1) Notwithstanding 
anything contained in this Act, the Authority may levy property tax on lands  or 
buildings or on both, situated within its jurisdiction  at the same rates at 
which such tax is levied by the Corporation within its jurisdiction. 
(2) The Provisions of the Karnataka Municipal Corporations Act, 1976 
(Karnataka Act 14 of 1977) shall mutatis mutandis  apply to the assessment 
and collection of property tax. 
Explanation:  For the purpose of this section “property tax” means a tax 
simpliciter requiring no service at all and not in the nature of fee requiring 
service. 
 
32. Authority is deemed to be a Local Authority for levy of cesses 
under certain Acts.- Notwithstanding anything  contained in any law  for  the 
time being in force the Authority shall be  deemed  to be a local authority for 
the purpose of levy and collection of,- 
(i) health cess under sections 3,4 and 4A of the Karnataka  Health  Cess 
Act, 1962 (Karnataka Act 28 of1962); 
(ii) library cess  under  section  30 of the Karnataka  Public Libraries  
Act, 1965 (Karnataka Act 10 of 1965); and 
(iii) beggary cess under section 31 of the Karnataka Prohibition of 
Beggary Act, 1975 (Karnataka Act 27 of1975). 
33.  Authority and Commissioner to exer cise powers and functions 
under Karnataka Act 14 of 1977.- (1) In any area or part thereof to which this 
Act applies, the Government may, by notification, declare that from such date 
and for such period as may be specified therein and subject to such 
restrictions and modifications, if any as may be  specified in the notification,- 
(i) the powers and functions of the Corporation (including the power to 
levy, assess and collect property tax) or a standing committee thereof under the 
Karnataka Municipal Corporations Act, 1976 shall be exercised and discharged 
by the Authority ; and 
(ii) the powers and functions of  the Commissioner of the Corporation 
under the said Act shall be exercised and discharged by the Commissioner: 
Provided that, the Corporation shall be consult ed before making such 
declaration if such area or part thereof lies within the limits of the Corporation. 
(2) On the making of a declaration under sub -section (1), notwithstanding 
anything contained in any other law for the time being in force, the 
Corporation, any standing committee thereof or the Commissioner of the 
Corporation, shall not be competent to exercise or discharge the powers or 
functions conferred or imposed on the Authority or the Commissioner, as the 
case may be, by such declaration. 
(3) The Authority or the Commissioner may delegate any of the functions 
exercisable by it or him under sub -section (1) to any officer or employee of the 
Authority. 
(4) The exercise or discharge of any of the powers or functions delegated 
under sub -section (3) shall be subject to such limitations, conditions and 
control as may be laid down by the Authority or the  Commissioner, as the case 
maybe, 
34. Streets on completion to vest in and be maintained by 
Corporation.- (1) The Government after consulting the Corporation and on 
being satisfied that any street formed by the Authority has been duly levelled, 
paved, metalled, flagged, channelled, drained and sewered in the manner 
provided for in the plans of any scheme sanctioned by the Government and 
that such lamps, lamp posts and  other apparatus as are in its opinion 
necessary for the lighting thereof and should be provided by the Authority have 
been so provided, shall declare such street to be a public street, and such 
street shall there upon vest or revest, as the case may be, i n the Corporation 
and the Corporation shall thereafter maintain, keep in repair, light and cleanse 
such street. 
(2) Any open space including such parks and play grounds as may be 
notified by the Government reserved for ventilation in any part of the area 
under the jurisdiction of the Authority as part of any development scheme 
sanctioned by the Government shall be transferred on completion to the 
Corporation for maintenance at the expense of the Corporation and shall 
thereupon vest in the Corporation. 
(3) Any dispute which arises between the Authority and the Corporation 
in respect of any of the provisions of this section shall be determined by the 
Government, and the decision of the Government shall

Excerpt shown. Open the full act in Lexace.

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