The Madhya Pradesh Griha Nirman Mandal Adhiniyam, 1972

M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
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The Madhya Pradesh Griha Nirman Mandal Adhiniyam, 1972 
(No.3 of 1972) 
[Received the assent of the President on the 21 st January, 1973, assent first published in the 
"Madhya Pradesh Gazette, Extraordinary on the 22nd January, 1973]  
An Act to provide for the incorporation and re gulation of Housing Boar ds in the State of 
Madhya Pradesh for the purpose of taking measures  to deal with and sa tisfying the need of 
housing accommodation and for matters connected there- with.  
Be it enacted by the Madhya Pradesh Legislature in the Twenty-third Year of the Republic of 
India as follows:-  
CHAPTER I 
Preliminary 
1. Short title and extent. -(1)  This Act may be called the Madhya Pradesh Griha Nirman 
MandaI Adhiniyam, 1972.  
(2) It extends to the whole of Madhya Pradesh.  
2. Definition -In this Act, unless the context otherwise requires, -  
(1) "Adjoining area" means such area as may be  specified to be an adjoining area under 
section -33; 
(2) "Betterment charges" means the charges leviable under section 51;  
(3) "Board" means the Madhya Pradesh Housing Board established unde r section 3 of the 
Madhya Pradesh Gramin Avas MandaI established under section 4- A, as the case may be;  
(4) "Board premises" means any premises belongi ng to or: vesting in, the Board or taken on 
lease by the Board or entrusted to the Board under this Act for management and use for the 
purpose of this Act.  
(5) "Byelaws" means byelaws made under section 104. (6) "Chairman" means the Chairman 
of the Board;  
(7) "Competent authority" means any pers on authorized by the State Government, by 
notification, to perform the f unctions of the competent authority under Chapter XII for such 
area as may be specified in the notification a nd shall be a person who is holding or has held 
M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
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an office, not lower in rank than that of a Deputy Collector, or Executive Engineer under the 
Board;  
(8) "Housing Commissioner" means the Housing Commissioner appointed under section 13;  
(9) "Housing Scheme" means a Housing Scheme made under this Act and included a land 
development scheme prepared under section 34;  
(10) "Improvement Trust" means a Trust es tablished under the Ma dhya Pradesh Town 
Improvement Trusts Act, 1960 (No,14 of 1961);  
(11) "Land" includes benefits arising out of  land and things attached to the earth or 
permanently fastened to anything attached to the earth;  
(12) "Land adjacent to the area" means such land as may be specified to be _the land adjacent 
to the area under submission (3) of section 51;  
(13) "Local authority means a Municipal Corporation, Muni cipal Council, Notified Area 
Committee, Zi1a Panchayat, Janapada Panchayat, Gram Panchayat or  
Town Area Committee, as the case may be;  
(14) "Member" means a member of the Board and includes the Chairman;  
(15) "Premises" means any land or building or part of a building and includes- (i) gardens, 
grounds and out-house, if any, appertaining to such building or part of building;  
(ii) Any fittings affixed to such building or part of a bu ilding for the more beneficial 
enjoyment thereof;  
(16) "Programme" means the annual housi ng programme prepared by the Board under 
section (35) 
(17) "Regulations" means regulations made under section 103;  
(18) "Year" means the year commencing on the 1st day of April and ending on the 31 st day 
of March.  
CHAPTER-II 
Establishment of Board 
3. Establishment of Madhya Pradesh Housing Board -The State Government shall, by 
notification, establish with effect from such date, as may be specified therein, a Board by the 
name of the Madhya Pradesh Housing Board,  which shall be a body corporate having 
perpetual succession and a common sea] with power , subject to the provisions of this Act, to 
M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
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acquire, hold and dispose of property and to c ontract, and may, by the said name, sue and be 
sued.  
4. Constitution of Board -The Board shall consis t of the Chairman who shall be appointed by 
the State Government and the following other members, namely  
(a) Secretary to the Government of Madhya Pr adesh in charge of ea ch of the following 
departments or his nominee, namely :-  
(i) Housing Department (ii) Finance Department  
(b) Chairman, Housing and Urban Development Corporation, New Delhi or his nominee;  
(c) Engineer-in-Chief, Public Works Department;  
(d) Two members of the State Legislative Assembly to be appointed by the State 
Government;  
(e) Director, Town and Country Planning or his nominee;  
(f) Two non-officials to be appointed by the State Government.  
(g) One person prominent in the field of Housing, Engineering, Architecture or Town 
Planning to be appointed by the State Government.  
(h) Housing Commissioner;  
CHAPTER II-A 
Establishment of Madhya Pradesh Gramin Avas Mandal 
 4.A. Establishment of Madhya Pradesh Gramin Avas Mandal  -The State Government 
shall, by notificati on, establish with effect from such date as may be specified therein, a 
Board by the Name of the Madhya Pradesh Gramin Avas MandaI which shall be a body 
corporate having perpetual succession and a co mmon seal with power, subject to provisions 
of this Act, to acquire, hold and dispose of property and to contract and may be the said name 
sue and be sued.  
4-B. Constitution of the Board  -(1) The Board established under section 4-A shall consist 
of a Chairman and a Vice-Chairman who shall be appointed by the State Government and the 
following other members namely :-  
(a) Secretary to the Government of Madhya Pr adesh incharge of the following departments 
or his nominee not below the rank of Deputy Secretary, namely;  
(i) Housing Department; (ii) Finance Department;  
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(iii) Revenue Department;  
(iv) Rural Development Department; (v) Tribal Welfare Department;  
(b) Chairman, Housing and Urban Development Corporation, New Delhi, or his nominee;  
(c) Director, Town and Country Planning, Madhya Pradesh or his nominee;  
(d) The Superintending Engineer, Rural Engineering Services, Madhya Pradesh.  
(e) Two members of the State Legislative Assembly to be appointed by the State 
Government;  
(f) Two experts in the field of  architecture, Sociology or Trib al Welfare to be appointed by 
the State Government;  
(g) Two non-official members to  be appointed by the State Government; (h) Commissioner, 
Gramin Avas Mandal,  
(2) The Commissioner, Gramin Avas Mandal shall act as the member Secretary of the 
Madhya Pradesh Gramin Avas Mandal,  
4.C Function of the Gramin Avas Mandal. -(1) The Board established under section 4-A shall 
be charged with the function of and be responsible for carrying out the provisions of this Act, 
essentially in the rural areas of the State,  
Explanation. -In this section, th e expression "rural area" means an area other than the area 
included within the limits of a municipal corpor ation or municipal coun cilor a notified area 
Committee constituted under th e Madhya Pradesh Municipal Corporation Act, 1955 (No,23 
of 1956) and the Madhya Pradesh Municipalities Act, 1961 (No, 37 of 1961),  
(1) The Vice-Chairman shall, for all purposes of  the Act, be deemed to be a member, He 
shall preside over the meetings of the Board in the absence of the Chairman and exercise 
such powers and perform such functions of th e Chairman as the Chairman may direct, The 
provisions of section 9 shall apply to Vice-Chairman as they apply to a Chairman,  
(2) The Housing Commissioner shall act as the member Secretary of the Board,  
CHAPTER II-B 
Disqualifications and Term of Office etc. of Members 
5. Disqualification for appointment as member of Board -A person shall be disqualified for 
being appointed as, and for being member of the Board, if he- (a) holds any office or place of 
profit under the Board; (b) is of unsound mind;  
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(c) is an un-certificated bankrupt or an un-discharged insolvent;  
(d) is or has been convicted of any offence involving moral turpitude;  
(e) has been removed or dismissed from the serv ice of the Union or State Government on a 
charge of corruption or bribery:  
(f) has directly or indi rectly by himself or by any other partner, any sh are or interest in any 
contract or employment with, by or on behalf of, the Board; or  
(g) is a Director, a Secr etary, Manager or other salaried o fficer of any incorporated company 
which has any share or interest in any contract, or employment with, by or on behalf of the 
Board.  
Explanation -A person shall be deemed to have  incurred disqualificatio n under clause (f) or 
(g) by reason of-  
(i) his or of the incorporated company of which he is a Direct or, Secretary, Manager or other 
salaried officer, having a share or interest in any newspaper in which any advertisement 
relating to the affairs of the Board if inserted, or  
(ii) his being a share-holder in or a member of any incorporated or registered company or 
society which has any share or interest in any contract or employment with, by or on behalf 
of, the Board, subject to the condition that such  person discloses to the State Government the 
nature and extent of the shares held by him.  
6. Term of Office -The term of the office of  every member other than ex-officio members 
shall be three years:  
Provided that a member of the Legislative As sembly (appointed) under  clause (d) of sub-
section (I) of section 4 shall cease to be a me mber on his ceasing to be a member of the 
Legislative Assembly.  
7. Commencement of term of office of member  -(I) The names of the members shall be 
notified in the Gazette by the St ate Government and the term of  office of each of them shall 
commence on such date as may be specified. in the notification.  
(2) A person ceasing to be a member by reason of  the expiry of his term of office shall, if 
otherwise qualified, be eligible for re-appointment.  
8. Resignation of member. -The Chairman or any non-official member may resign his office 
by writing under his hand addres sed to the State government but he shall continue in office 
until his resignation is accepted by that Government.  
9. Conditions of service of Chairman -(1) The Chairman may either be an honorary officer or 
a salaried officer of the Board.  
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(2) The salaried Chairman shall be a whole time officer of the Board and his emoluments and 
conditions of service shall be such as may be prescribed.  
(3) Every member shall received such allowance as may be prescribed.  
(4) the allowance of the members and the remuneration, if any, to the Chairman shall be paid 
from the fund of the Board.  
10. Effect. of subsequent disqualification -(1) If a member -  
(a) becomes subject to any of the disqualifications mentioned in section 5;  
(b) absent himself during three consecutive meeti ngs of the Board except with the leave of 
the Board; (1) he shall cease to be a member and his seat shall become vacant with effect 
from a date to be notified in the Gazette by the State Government.  
(2) No member shall cease to be member under sub-section (1) until the pre- scribed 
authority on its own motion or on an applicat ion made to it by any person in this behalf 
decides that such a member has incurred the disqualification on any of the grounds specified 
therein and communicates the decision in relation thereto, to such member;  
Provided that no order shall be passed by the prescribed authority under the sub-section 
against any member without giving him a reasonable opportunity of being heard.  
(3) Any person aggrieved by the decision of th e prescribed authorit y under sub-section (2) 
may within thirty days from the date of the co mmunication to him of such decision appeal to 
the State Government. The order passed by the pr escribed authority shall, subject to the 
decision of the State Government in appeal, be final.  
11. Filling up of casual vacancies -In the event of the death, resignation or disqualification of 
a member, a casual vacancy shall be deemed to have occurred in his office and such vacancy 
shall be filled in, as soon as may be, by the appointment, of a person thereto as member, who 
that take office forthwith and shall hold such office for the unexpired term of his predecessor.  
12. Vacancies, etc. not to invalidate proceedings -Not Act or proceeding of the Board shall be 
invalid merely by reason of-  
(a) any vacancy in or defect in the constitu tion of the Board, or (b) any defect in the 
appointment or qualification of any person acting as a member of the Board, or  
(c) any defect or irregularity in the procedure of the Board not affecting the merit of the case.  
M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
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CHAPTER-III 
Officers and Members of Staff of Board 
13. Housing Commissioner. -(1) There shall be  a Housing Commissione r to the Board who 
shall be the principal executive officer of the Bo ard and subject to the overall control of the 
Board and the Chairman, all other officers and se rvants of the Board shall be subordinate to 
him.  
(2) The Housing Commissioner shall be appoin ted by the State Government and his salary 
and other conditions of service shall be such as may be prescribed.  
14. Appointment of officers and servants of  Board. -The Board may appoint a Chief 
Engineer, a Chief Accounts Officer , an Estate Manager and such  other officers and servants 
as it considers necessary for the efficient performance of its functions;  
15. Conditions of Service of officers and servants -(1) The remuneration and other conditions 
of service of the officers and servants of th e Board appointed under s ection 14, shall be such 
as may be determined by regulations.  
(2) Until regulations are made under sub-sect ion (i) the remuneration and conditions of 
officers and servants of the Board shall be gove rned by the rules, orders and instructions 
relating to remuneration and conditi ons of service applicable to the officers and servants of 
the corresponding grade in the service of the State Govemment.  
16. Promotion and punishment of officers and servants of Board -(1) subject to any 
regulations made under section 17, the power of making promotions to posts in the service of 
the Board, or granting leave to officers and se rvants holding such posts  or censuring, fining, 
withholding, promotions from, reducing, suspen ding, removing or dismi ssing such officers, 
and servants for any breach of departmental rules or discipline or for carelessness, unfitness, 
neglect of duty or misconduct, and of discharg ing such officers and servants from the service 
of the Board for any other sufficient reason sha ll be exercised by such authorities as may be 
prescribed by the regulations.  
Provided that a servant of the Central or Stat e Government or of a local authority, whose 
services have been lent to the Board, shall not be so punished except by an authority which 
would have been competent to do so if .his se rvices had not been so  lent, put prescribed 
authority shall be entitled to make an enquiry and to report against such servant to the Central 
or State Government or local authority, as the case may be.  
(2) Any officer or servant of  the Board who is aggrieved by an order passed under sub-
section (1) may, within two months from the date of receipt by him of such order, appeal -  
(a) to the Board, if the order was passed by the Housing Commissioner or Chairman; and  
(b) to the State Government if the order was passed by Board.  
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17. Service regulation. -Subject to the provisions  of this Act, the Board shall, with the 
previous approval of the State Government, make regulations -  
(a) fixing the salary and allowances of the officers and servants of the Board.  
(b) fixing the amount and nature of security to be furnished by any officer or servant from 
whom it may be deemed expedient to require security;  
(c) for regulating the grant of leave of absence,  leave, allowances, and acting allowances to 
the officers and servants of the Board;  
Provided that a servant of th e Central or State Governments employed as an officer or 
servant of the Board shall not be entitled to leav e or leave allowances, otherwise than as laid 
down in the conditions of his services under the Ce ntral or State Government, as the case 
may be, relating to transfer to foreign service;  
(d) for regulating the subscrip tions to the provident fund es tablished under section 18 and 
other matters relating thereto;  
(e) for determining the conditions under which th e officers and servants or any of them shall 
on retirement receive gratuities or compa ssionate allowance and the amount of such 
gratuities and compassionate allowance.  
18. Provident fund- (1) The Board shall establish a provident fund for Housing 
Commissioner, officers and servants of the Board and such provident fund (hereinafter in this 
section called the said fund) shall notwithstanding anything c ontained in section 8 of the 
Provident Fund Act. I 925(No. of 19 of 1925), be  deemed to be a Board Provident Fund for 
the purposes of the said Act.  
(2) The Board shall in respect of  each of its employees who is a subscriber to the said fund, 
pay into the said fund, such portion of the contribution and in such manner as government 
may, from time to time determine.  
19. Control and delegation by Chairman. -(I) the Chairman shall exercise supervision and 
control over the acts and proceedings of th e Housing Commissioner and all officers and 
servants of the Board and subject to the foregoi ng sections and subject also to such control 
and supervision as may be prescr ibed, shall decide all questions relating to the service of the 
said officers and servants and their salaries, allowances, benefits and privileges,  
(2) The Chairman may, by genera l or special order in writi ng, delegate to the Housing 
Commissioner or to any officer  of the Board, any of his powers, duties or functions under 
this act or any rules or regulations made there under except those under sections 21 and 87.  
Provided that the Chairman shall not delegate  - (a) his powers under sections 24 and 25 to 
incur expenditure and to approve estimates for any single work or doing of any act the value 
of which exceeds five lakhs of rupees.  
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(b) any of his powers under section 16 to any officer in respect of any employee of the Board 
unless such employee was appoin ted by such officer or any subordinate of such officer by 
virtue of a delegation of Chairman's power to appoint under section 14.  
(3) The exercise or discharge by any officer of  any powers, duties or functions delegated to 
him under sub-section (2) shall be subject to su ch restrictions and, limitations as may be 
imposed by the Chairman, and shall also be subject to his control and revision.  
(4) Against any order of nature referred to in  sub-section (2) of se ction 16, passed by an 
officer to whom the Chairman's power in that behalf has been delegated, an appeal shall lie to 
the Board, and if the Chairman has himself revise d the order of such officer, an appeal shall 
lie to the Board against the order of the Chairman.  
20. General disqualifications of  all officers and servants -No person who has directly or 
indirectly by Himself or his part ner or agent any share or interest , " in any contract, by or on 
behalf of the Board or in any employment under, by or on behalf of the Board otherwise than 
as an officer or servant thereof, shall become or remain an officer or servant of the Board.  
CHAPTER IV 
Conduct of Business of Board and its Committees 
21. Meetings of Board- The Board shall meet and shall from time to time make such 
arrangements with respect to the day time, notice, management and adjournment of its 
meetings as it thinks fit, subject to the following provisions, namely:- 
(a) an ordinary meeting shall generally be he ld once every three months; (b) the Chairman 
may, whenever he thinks fit, call special meeting:  
(c) every meeting shall be presided over by the Chairman and in his absence by any member 
chosen by the members present for the meeting to be preside for the occasion;  
(d) all questions at any meeting shall be decided by a majority of the members present and in 
case of equality of votes, the person presidi ng shall have and exercise a second or casting 
vote;  
(e) the minutes of the proceedings of each meeting shall be recorded in a book to be provided 
for the purpose.  
22. Quorum. (1) The quorum for a special meeting shall be of five members and that for an 
ordinary meeting shall be of four members.  
(2) If at any special or ordina ry meeting of the Board a quorum is not present, the Chairman 
shall adjourn the meeting to such other day as he may think fit, and the business which would 
have been brought before the original meeting, if there had been a quorum present, -shall be 
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brought before and transacted at the adjour ned meeting, whether th ere is quorum present 
thereat or not.  
2.3. Appointment and functions of committees -(1) The Board may from time to time, 
appoint committees consisting of such number of persons as it may think fit for the purpose 
of discharging such duties or performing such  functions and on such terms and conditions as 
may be prescribed by regulations.  
(2) The Chairman or such other person as he may nominate in this behalf shall be the 
president of the committee and the committee shall observe such rules and procedure in 
regard to transaction of business at its meeting as may be prescribed by regulations.  
(3) All proceedings of such committee shall be subject to confirmation by the Board.  
CHAPTER -V 
Powers of Board, Chairman and Housing Commissioner to incur  
Expenditure on Housing Schemes and enter into Contracts 
24. Power to Board to incur expenditure. -Subj ect to the budget provis ion, availability of 
funds and other provisions of this Act, the e xpenditure may be incurred on any single work 
or scheme for carrying out any of delegate to the Committee, Committee of the Board, the 
Housing Commissioner or any othe r officer of the Board of the power to incur expenditure 
upto such limits on any single work or scheme as may be prescribed by regulations.  
25. Powers of Board, Chairman and Housing Commissioner to approve estimates -The 
Board, the Chairman or the Housing Commissioner, as the case may be, may accord approval 
to estimates for incurring expenditure on any work doing of any act fo r carrying out any of 
the purposes of this Act subject to like rest rictions and conditions imposed on the Board, the 
Chairman or the Housing Commissioner, as the case may be, under section 24.  
26. Emergency Powers of Board -(1) Where in the opinion of the Board circumstances have 
arisen which require immediate action, it shall be  lawful for the Board to incur in any year 
recurring or non-recurring expenditure, not with standing the fact that such expenditure has 
not been included in its annua l programme or supplementary  programme sanctioned by the 
State Government or the variation of the programme made under section 37,  
(2) The expenditure under sub-s ection (1) shall be made from out of the Contingency Fund 
established under section 73,  
27. Emergency Powers of Chairman -The Chai rman may, in case of emergency, direct the 
execution of any worker the doing of any act which requires the sanction of the Board and 
the immediate execution or the doing of which is , in his opinion, necessary for the service or 
safety of the public and may also direct that  the expense of executing work or of doing the 
act shall be paid from the funds of the Board;  
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Provided that (a) He shall not ac t under the section in contraven tion of a direction, if any, of 
the Board or the State Governme nt prohibiting the execution of any particular work or the 
doing of any particular act;  
(b) He shall report the action ta ken by him under this section a nd the reasons thereof to the 
Board at its next meeting and shall also submit a copy of his report to the State Government 
and the Board, or the State Government may issu e such direction as it  may deem fit on such 
report.  
28. Power to make and perform contracts -The Board may enter into and perform all such 
contracts as it may consider necessary or expedient for carrying out the purposes of this Act.  
29. Agreements and security deposits (1) Every contract shall be made on behalf of the Board 
by the Housing Commissioner.  
(2) The Housing Commissioner shall take su fficient security deposits for the due 
performance of the contract.  
(3) Written agreements shall be executed for a ll contracts the value of which exceeds five 
hundred rupees.  
(4) Every contract made by the Housing Commissioner, the value of which exceeds ten 
thousand rupees, shall be reported to the Board at its next meeting.  
Provided that a contract with any person or in stitution or organization outside India may be 
made on behalf of the Board by such other pers on also as the Board may specially authorise 
in this behalf.  
30. Further provision as to ex ecution of contracts and agr eements- (I) Subject to the 
provisions of sections 28 and 29 the contracts and agreements shall be made or executed in 
accordance with such rules as may be prescribed.  
(2) A contract or agreement made  or executed in contravention of the provisions of this Act 
or the rules or regulations made these under shall not be binding on the Board.  
CHAPTER -VI 
Housing Scheme 
31. Duty of Board to undertake Housing Schemes -Subject to the provisi ons of this Act and 
subject to control of the State Government, the Board may incur expe nditure and undertake 
works in any area to which th is Act applies for the framing and execution of such housing 
schemes as it may consider necessary from time to time or as may be entrusted to it by the 
State Government 
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32. Power of Board to undertake Housing Schemes or to entrust its work to Government or 
non-government body -The Board may, subject to  such rules and conditions as may be 
prescribed, undertake execution of work of housi ng schemes on behalf of a local authority or 
Cooperative Housing Society or employers or labour in industries or any other body, whether 
Government or otherwise, and also may entr ust execution of its Housing Schemes to such 
bodies, as and when necessary. .  
33. Matters to be provided for by Housing Sche mes -Not withstanding anything contained in 
any other law for the time being in force, a hou sing scheme may provide for all or any of the 
following matters, namely-  
(a) the acquisition by purchase, exchange or otherwise of any property necessary for an 
affected by, the execution of the scheme;  
(b) the laying or relaying out of any land comprised in the scheme;  
(c) the distribution or redistribution of sites belonging to owners of property comprised in the 
scheme;  
(d) the closure or demolition of dwel1.ings or portion of dwellings unfit for human 
habitation;  
(e) the demolition of obstructive buildings or portions of build ings; (f) the construction and 
reconstruction of buildings;  
(g) the sale, letting or exch ange of any property comprised in the scheme; (h) the 
construction and alteration of sheets and back lines;  
(i) the provision of the draining, water supply and lighting of the area included in the scheme; 
(j) The provision of parks, playing fields, ope n spaces for benefit of any area comprised in 
the scheme or any adjoining area and the enla rgement of existing parks playing fields open 
space and approaches;  
(k) the provision of sanitary arrangements required for the area comprised in the scheme, 
including the conservation and pr evention of any injury or cont amination to rivers or other 
sources and means of water supply;  
(l) the provision of accommodation for any class of inhabitants:  
(m) the advance of money for the purposes of the scheme;  
(n) the provision of facilities for communication and transport;  
(o) the collection of such information and stat istic as may be necessary for the purposes of 
this Act;  
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(p) any other matter for which, in the opinion of  the State Government, it is expedient to 
make provision with a view to provide a ny housing accommodation and to the making of 
improvement or development of any area comprised in the scheme or any adjoining area or 
the general efficiency of the scheme.  
Explanation -For the purposes of this section, the State G overnment may on the 
recommendation of the Board by notification sp ecify such area surrounding or adjoining the 
area included in a housing scheme to be the adjoining area.  
34. Land Development Scheme -(I) Whenever the Board is of opinion that it is expedient to 
provide building sites in any area, the Board may frame a land development scheme.  
(2) Such scheme shall specify the proposed la yout of the area to be developed and the 
purposes for which particular portions thereof are to be utilized.  
(3) The Board may provide for roads, streets open spaces, drainage water supply and street 
lighting and other amenities for the scheme area.  
(4) The Board may lease out or se ll, by out-right sale or on hire  purchase basis, the building 
sites in the scheme area.  
CHAPTER-VII 
Annual Housing Programme and Budget Estimates 
35. Preparation of annual housing programme , budget and establishment schedule -(1) 
Before the first day of December in each financial year, the Board shall prepare and forward-  
(i) a programme,  
(ii) a budget for the next financial year;  
(iii) a schedule of the staff of officers and servants already employed and to be employed 
during the next financial year; to the State Government in such form as may be prescribed.  
(2) The programme shall contain -  
(a) such particulars of housing schemes which the Board proposes to execute ,whether in part 
or whole during the next financial year as may be prescribed;  
(b) the particulars of any undertaking which the Board proposes to organize or execute 
during the next financial year for the purpose of the production of building materials; and .  
(c) such other particulars as may be prescribed.  
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Provided that if the State Government so directs before the date referred to in sub-section (1) 
the housing scheme in the programme shall in clude any matter which in its opinion it is 
necessary to provide for and execute on a basis of priority.  
(3) The budget shall contain a statement show ing the estimated receipts and expenditure on 
capital and revenue accounts for the next financial year, and sh all have to be sanctioned by 
the State Government, If The Board is indevted to the State Government.  
36. Supplementary programme and budget -The Bo ard, may at any time, during the year in 
respect of which a programme has been prepar ed and forwarded to the State Government 
under section 35 forward a supplementary programme and budget to the State Government.  
Provided that where the Board is indebted to the State G overnment, such supplementary 
programme and budget shall have to be sanctioned by the State Government.  
37. Variation of programme by Board- The Boar d may at any time vary any programme or 
any part thereof included in the programme forwarded to the State Government under section 
35;  
Provided that no such variation shall be made if it i nvolves an expenditure in excess of 
fifteen percent of the amount originally pr ovided for the execution of any housing scheme 
included in such programme or affects its scope or purpose;  
Provided further that where the Board is indebted to the State Government, no such variation 
shall be made except with the previous sanction of the State Government.  
 
 
CHAPTER VIII 
Transfer of Land by Corporation, Improvement Trusts etc. 
38. Transfer to Board for purposes of housing sc heme of land vested in  local authority-(l) 
Whenever any street, square or other land or pa rt there of vested in any local authority is 
included in the programme and is required for the purposes of carrying on such housing 
schemes in accordance with the programme the Board shall give notice accordingly to the 
local authority concerned.  
(2) Where the local authority conc erned concurs, such street, sq uare or other land or part 
thereof shall vest in the Board.  
(3) Where the local authority concerned refuse s to give any such land for the purposes of 
sub-section (I), the matter may be referred to the State Government by the Board, and the 
M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
15 
State Government may, after giving a hearing to both parties, issue any direction in the 
matter which shall be binding on both parties.  
(4) Nothing in this section shal l affect the rights or  powers of local aut hority in or over any 
drain or water-work in such street, square or land.  
39. Compensation in respect of la nd vested in Board- (I) Wher e any land vests in the Board 
under the provisions of section 38 and the Board makes a declara tion that such land, shall be 
retained by the Board only until it  revests in the local authority concerned as part of a street 
or an open space under section 42, no compensa tion shall be payable by the Board to the 
local authority in respect of that land.  
(2) Where any land vests in the Board under section 38 and no declaration is made under 
sub-section (I) in respect of the land, the Boar d shall pay to the local authority concerned 
compensation determined in accordance with the provisions of this Act.  
(3) If in any case where the Board has made a declaration in respect of any land under sub-
section (I) the board retains or disposes of the land contrary to the terms of the declaration so 
that the land does not revest in the local authority, the Board shall pay to the local authority 
compensation in respect of such land in accordance with the provisions of sub-section (2).  
40. Power of Board to turn of cl ose public street vested in it- (I) The Board may turn, divert, 
discontinue the public use of or permanently close,  any public street vested in it or any part 
thereof.  
(2) Whenever the Board discontinues the public  use of, or permanently closes any public 
street vested in it or any pa rt thereof, it shall, as far as practicable, provided some other 
reasonable means of access to be substituted in lieu  of the use, by those entitled, of the street 
or part thereof and pay reas onable compensation to every person who is entitled otherwise 
than as a mere member of the public to use such  street or part as a means of access and has 
suffered damage from such discontinuance or closing.  
(3) In determining the compensation payable to  any person under sub-section (2), the Board 
shall make allowance for any benefit accruing to him from the construction, provision or 
improvement of any other public street at or about the same time when the public street. or 
part thereof, on account of which the compensation is paid, is discontinued or closed 
(4) When any public street vested in the Boar d is permanently closed under sub-section (1), 
the Board may sell or lease so much of the same as is no longer required, 
41. Reference  to Arbitration in case of dis pute under section 39 or 40- (I) lf there is any 
dispute as to whether any compensation payabl e under section 39 or section 40, as the case 
may be, the matter shall be referred to a Board of Arbitration consisting of  
(i) a nominee of the Board,  
M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
16 
(ii) a nominee of the other party to the dispute, and  
(iii) a person who holds or has acted as, a Judi cial Officer in the Proceedings not below the 
rank of an Additional District Judge to be appointed by the State Government,  
(2) The Board of Arbitration shall follow such  procedure in the proceeding before it and 
follow such principles or apportioning the cost of proceedings as may be prescribed. 
 (3) An appeal shall lie to the High Court against the award of the Board of Arbitration.  
(4) Save as provided in this section and any rules made there under, nothing in any law for 
the time being in force shall apply to the arbitrations under this section.  
(5) The State Government may make rules fo r the purpose of carr ying into effect the 
provisions of this section.  
42. Vesting in local authority of streets laid out or altered and open space provided by 
Board under Housing Scheme -Whenever the State Government is satisfied-  
(a) that any street laid out or altered by the Board has been dully levelled, paved, metalled 
flagged, channeled, sewered and drained in the manner provided in the programme; .  
(b) that such lamps, lamp-posts and other apparatus as the local authority concerned, 
considers necessary for the lighting of such st reet and as ought to be provided by the Board 
have been so provided; and  
(c) that water and other sanitary convenience have been duly provided in such street;  
The State Government may declare the street to  be a public street and the street shall 
thereupon vest in the lo cal authority concerned and shall thenceforth be  maintained, kept in 
repair, lighted and cleaned by the said authority.  
(2) When any open space for purpose of ventila tion or recreation has been provided by the 
Board in executing any housing scheme it shall on completion be transferred to the local 
authority concerned, by resolution of the Bo ard and shall thereupo n vest in, and be 
maintained at, the expenses of the local authority;  
Provided that the local authority  may require the Board, before  any such open space is so 
transferred to enclose, level, turf, drain and layout such space and provid e footpaths therein 
and, if necessary, to provide lamps and other apparatus for lighting it.  
(3) If any difference of opinion arises between the Board and the local authority concerned in 
respect of any matter referred to in the foregoing provision of this Section, the matter shall be 
referred to the State Government whose decision shall be final.  
M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
17 
42.A. Rendering of Financial Assistance to local  authorities etc. on a direction by State 
Government -The State Government may direct the Board to render financial assistance to 
local authorities. The Improvements Trusts, Development Authorities including Special Area 
Development Authorities and other statutory bodies, as may be notified by the State 
Government in this behalf, which under- take the function or activity of development of 
urban areas or construction of houses as a pa rt of housing programme under any enactment 
for the time being in force and upon receipt of such direction it shall be the duty of the Board 
to render financial assistance in accordance with the directions.  
Explanation -In this section  
(i) "Town Improvement Trust" means Town Im provement Trust established and constituted 
under the Madhya Pradesh Town Improvement Trust Act, 1960 (No. 14 of 1960);  
(ii) "Development Authority" or "Special Area Development Authority" means "Town and 
Country Development Authority" or "Special Area Development Authority", as the case may 
be constituted under the Madhya Pradesh Na gar Tatha Gram Nivesh Adhiniyam, 1973 
(No.23 of 1973);  
(iii) "Housing Programme" includes slums clearan ce sewage system, electric installations, 
lighting and connections, water supply system, construction of roads of such other purpose as 
may be notified by the State Government in this behalf;  
or from the International Bank for Reconstr uction and Development (IBRD) or any other 
inter-Governmental agency functioning under the United Nations Organization.  
Subject to such conditions and limitation may fr om time to time, specify or for the purposes 
of the Act.  
"With the International Bank for Reconstruction and Development (IBRD) or any other inter-
Governmental agency functioning under the United  Nations Organisations. or with any Bank 
or other financial institutions approved by the State Government or with the Life Insurance 
Corporation of India established under section 5 of the Life Insurance Corporation Act, 1966 
(No.1 of 1956)".  
 
CHAPTER -IX 
Other Duties of the Board 
43. Measures to expediting and ch eapening of construction~ It shall be the duty of the Board 
to take measures with a view to expediting and cheapening construction of buildings and the 
Board may for that purpose do all thing; for -  
(a) Unification, simplification and standardization of building materials;  
M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
18 
(b) encouraging pre-fabrication and mass publi cation of housing components; (c) organizing 
or undertaking the production of building materials required for the housing scheme;  
(d) encouraging research for discovering cheap building materials and evolving new methods 
of economic construction;  
(e) securing a steady and sufficient supply of workmen trained in the work of construction of 
buildings.  
44. Measures to ensure expeditious and effi cient implementation of housing schemes in 
State- It shall also be tile duty of the Board to take measures  
(i) to plan and co-ordinate all housing activities in the State, and to ensure expeditious and 
efficient implementation of housing schemes in the State;  
(ii) to provide technical advi ce and scrutinize all projects under housing schemes sponsored 
or assisted by the Central or State Government;  
(iii) to maintain, allot, lease and otherwise us e plots, buildings and other properties of the 
Board and to fix and to refix rent and to co llect rents from the properties under the control 
and management of the Board and repay loans to  the State and Central Government; (vi) to 
set up a research section for the purpose of e xpediting the construction of and cheapening the 
costs of buildings; and  
(v) to organise and run workshops and stores for manufacture, sale, stock, pulling and supply 
of building material required for housing schemes.  
45. Reconstitution of plots -A housing scheme may provide - (a) for the formation of a 
reconstituted plots by the alteration of the boundaries of an original plot;  
with the consent of the owners that two or more  plots each of which is held in ownership in 
severally or in joint ownershi p shall, with or without alteration of boundaries be held in 
ownership in common as a reconstituted plot;  
(c) for the allotment of a plot to any owner di spossed of land in furtherance of housing 
scheme; and  
(d) for the transfer of ownership of a plot from one  person to another, with the consent of 
such person.  
46. Disputes regarding reconst itution of plots- (1) Where by the making of housing scheme, 
any plots comprised in the area included in th e scheme are reconstitu ted or any person is 
dispossessed any person affected by such reconstitution or dispossession may apply to the 
Board for compensation.  
M.P. GRIHA NIRMAN MANDAL ADHINIYAM, 1972 
 
19 
(2) The Board may, after making such enquiry as it  thinks fit, decide whether the applicant is 
entitled to any compensation and if so to what ment.  
(3) If any person is aggrieved by the decision of the Board he may apply to the Board to refer 
the matter to the Board of Arbitration to be constituted in accordance with section 41 and the 
Board shall, thereafter, refer the matter to arbitration.  
(4) The Board of Arbitration shall, then, af ter making an enquiry determine the amount of 
compensation and direct the Board to pay the same to the person entitled  
47. Supervision and centage charges -The Board may include in the cost of any housing or 
improvement scheme or land development scheme framed by it or any other work 
undertaken by it, supervision and centage charges at such rates as may be fixed by it;  
provided that the rate so fixed shall not be more than twenty-t hree percent of the scheme of 
work.  
CHAPTER X 
Acquisition and Disposal of Land 
48. Power to purchase or lease by agreement -the Board may en ter into agreement with any 
person for the acquisition from him by purchase, lease change of any land which is needed 
for the purposes of a housing scheme by interest in such land or for compensating the owners 
of any such land interest in respect of any deprivation thereof or interference there with.  
49. Acquisition of land- (1) The Bo ard may also take steps for th e compulsory requisition of 
any land or any interest therein required for the execution of a housing scheme in the manner 
pr

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