The NAGALAND TOWN AND COUNTRY PLANNING ACT, 1966

NAGALAND ACT 4 OF 1966 
[THE NAGALAND TOWN AND COUNTRY PLANNING 
ACT, 1966.] 
Received the assent of the President on the 27th August, 1966. 
[Published in the Nagaland Gazette-Extraordinary, Dated the 3rd September, 1966] 
  An Act provide for the development of towns and  
country sides in the State of Nagaland. 
 Preamble.- WHEREAS is expedient to provide for the development of towns and 
country sides in the State of Nagaland on sound planning principles with the object of 
securing proper sanitary conditions; to conserve and promote public health, safety and 
general welfare of the people living therein; 
 It is hereby enacted in the Seventeenth Year of the Republic of India, as follows: - 
 
CHAPTER I 
PRELIMINARY 
 Short title, extent and commencement.- 1. (1) This Act may be called the Nagaland 
Town and Country Planning Act, 1966. 
 (2) It shall extend to the whole of Nagaland. 
 (3) It shall come into force on such date as the State Government may, by notification 
in the Official Gazette, appoint. 
 Definitions.- 2. In this Act, unless there is anything repugnant in the subject or 
context:- 
(1) “Authority” shall mean the Local or Regional Authority appointed by the State 
Government for the purpose of administering the Act. 
(2) “Advisory Council” means the Town and Country Planning Advisory Council 
constituted under section 3 of this Act. 
(3) “Betterment Fee” means the fee prescribed in respect of an increase in the 
value of land resulting from the execution of a Development Scheme. 
(4) “Building” means any construction for whatsoever purpose and of whatsoever 
materials constructed and every part thereof, whether used as human habitation or not and 
includes plinth, walls, chimney, drainage works, fixed platforms, verandah, balcony, cornice 
or projection, or part of a building or anything affixed thereto or any walls, earth bank, fence 
or other construction enclosing or de-limiting or intended to enclose or delimit any land or 
space. 
(5) “Building Industrial” means a building, which is wholly or predominantly 
used as a warehouse, factory, distillery, iron foundry and all other buildings put to any used 
permitted in the zone by an authorized scheme applicable thereto. 
(6) “Director” means Director of Town and Country Planning or any other officer 
appointed in that behalf by the State Government. 
(7) “Development” means the carrying out of building, engineering, mining or 
other operations in, on, or over the land or making of any material change in the use of any 
buildings or of land: 
Provided that the following operations or use of land shall not be deemed for the 
purposes of this Act to mean development of the land, that is to say: - 
(a) the carrying out of works for the maintenance, improvement or other alteration of 
any building, being works which affect only the interior of the building or which 
do not materially affect the use and the external appearance of the building; 
(b) the carrying out by a local authority of any works required for the maintenance or 
improvement of road, being works carried out on land within the boundaries of the 
road; 
(c) the carrying out by any local authority any works for the purposes of inspecting, 
repairing or renewing any sewers, main pipes, cables or other apparatus, including 
the breaking open of any street or other land for that purpose; 
(d) the use of any building or other land within the cartilage of any dwelling house for 
any purpose incidental to the enjoyment of the dwelling house as such. 
(8) “Factory” means a place to which the provision of Indian Factories Act, 1948 
(Act 3 of 1948) or any amendment thereof shall apply. 
(9) “Industrial concern” means commercial body, e.g. a factory, workshop and a 
mill, or any concern of similar nature where materials are manufacture, repaired, altered or 
processed. 
(10) “Master Plan” means a plan as defined under section 9 and shall comprise of 
items (a) to (e) of section 11. 
(11) “Occupier” includes any person paying or liable to pay the rent or any portion 
of the rent of the land or building in respect of which the work is due or compensation or 
premium on account of the occupation of such land and building and also a rent free tenant. 
(12) “Open space” means any land whether enclosed or not, on which not more 
than one twentieth part is covered with buildings and whole of the remainders ahs been laid 
out as a public garden or used for purposes or recreation or lies waste and unoccupied. 
(13) “Prescribed” means prescribed by rules made under this Act. 
(14) “Reconstituted plot” means a plot which is in any way altered by the making 
of a Development Scheme. 
(15) “Road” means and includes any highway, street, land, pathway, alley, 
passageway, carriageway, footway square bridge whether private or public, whether 
thoroughfare, or not, whether existing or proposed in any scheme and includes all bunds, 
channels, ditches, drains, culverts, side walks and traffic islands. 
(16) “Scheme” means a development scheme and includes a plan or plans together 
with the descriptive matter, if any, relating to such scheme. 
 
 
CHAPTER II 
 
CONSTITUTION OF THE ADVISORY COUNCIL 
Constitution of the Town and Country Planning Advisory Council.- 3.   (1) The 
State Government may constitute, by a notification in the Official Gazette, the Council 
consisting of the following members to advise the Government on matters referred to it: - 
(i) Minister-in-charge of Town and Country Planning … Chairman 
(ii) Director of the Town and Country Planning   
      Department … Secretary 
(iii) Secretary, Town and Country Planning Department … Member 
(iv) Chief Engineer, Public works Department or his 
      Nominee … Member 
(v) Public Health Engineer or his nominee   … Member 
(vi) Secretary, Finance Department or his nominee  … Member 
(vii) Six other non-official members half of whom 
        shall be elected by the Assembly and the rest 
        shall be nominated by the State Government   … Member 
(viii) Such number of representatives of Local Authorities falling within the area as 
may be covered by the Master Plan not exceeding two as may be co-opted by 
the Council by notification, published in the Official Gazette. 
(2) Five of the members attending any meeting of the Council shall form the quorum 
for the purpose of transacting the business of that meeting of the Council. 
(3) All members of the Council including the co-opted members shall have one vote 
each and the Chairman shall have a casting vote in case of equality of division, in addition to 
his own vote. 
(4) Nothing done by the Council in its meeting shall be held to be invalid because of 
any vacancy in the seats of nominated or elected members or the absence of any of the 
members for any reason whatsoever. 
(5) The Chairman shall preside over the meetings of the Advisory Council and in his 
absence the members present shall elect one among themselves to be the president for that 
particular meeting. 
Resignation of non-official members.- 4. Any non-official member may at any time 
resign his office, provided that his resignation shall not take effect until accepted by the State 
Government. 
Term of office. – 5. The term office of any non-official member shall ordinarily be 
three years: 
Provided that in case of members representing the Legislature or Local Authorities, 
their terms of office shall terminate as soon as they cease to be member of such Legislature or 
Local Authority, as the case may be. 
Commencement of the term of office of non-official members.- 6. (1) The term of 
office of non-official members shall commence on such date as may be notified in this behalf 
by the State Government. 
(2) A person ceasing to be member by reason of the expiry of his term of office as 
described in section 5, shall be eligible for re-nomination or re-election. 
Removal of non-official members. – 7.  The State Government may remover from 
the Council any member who: - 
(a) refuses to act, or becomes incapable of acting or absents himself from three 
consecutive meetings of the Councils and is unable to explain such absence to the 
satisfaction of the Council; or 
(b) has so flagrantly abused in any manner his position as a member of the Council as 
to render his continuance detrimental to the public interest:  
Provided that when the State Government proposes to take action under the foregoing 
provisions of this section an opportunity of explanation shall be given to the member 
concerned and when such action is taken, the reasons thereof shall be placed on record. 
Filling of casual vacancies. – 8. (1) When the place of a member nominated by the 
State Government becomes vacant by his resignation, removal or death, the State 
Government shall appoint a person to fill the vacancy. 
(2) When the place of a member elected or co-opted becomes vacant, he shall be 
elected or co-opted by the Legislature or the Council as the case may be. 
(3) The term of office of a member nominated or elected or co-opted as the case may 
be, under sub-section (1) and (2) shall be the remainder of the term of office of the member in 
whose place he has been nominated, or elected, or co-opted. 
 
 
CHAPTER III 
MASTER PLAN 
  
Preparation of Master Plan. – 9. A Master Plan hereinafter referred to as “Plan” in 
this Act for the development of any area within the State which the State Government may 
consider necessary, shall be drawn up by the Director in consultation with the local 
authority/authorities concerned and submitted to the State Government for examination and 
approval. 
Publication of the Master Plan.- 10. (1) On receiving the Plan and the Regulation 
from the Director, the State Government shall have them, as soon as may be, published in the 
Official Gazette, in some local newspaper and in the locality in the manner prescribed and 
deemed to be required for wide and sufficient publicity in the locality inviting public opinion 
and objection, if any, to be submitted within a period not more than two months. 
(2) After considering all objections, suggestions and representation that may have 
been received, and after getting the advice of the Council, the State Government shall have 
the plan finally prepared by the Director. 
Contents of Master Plan and Zoning Regulations. – 11. The Master Plan to be 
prepared as defined under section 9, may include: - 
(a) A general land use plan for residential, commercial, industrial, recreational and 
public and semi-public purposes; 
(b) Zoning plan; 
(c) Transportation plan including roads, railways, canals, and the like; 
(d) Public utilities plan; 
(e) A report giving relevant date and information in respect of the proposals in the 
Plan and any other thing which the State Government may deem necessary. 
 
Constitution of the authority for implementation of the Plan.- 12. After the 
adaptation of the Plan and the Regulations, they shall be sent for implementation to the 
Authority as may be declared or constituted by the State Government in this behalf. 
Restriction of use of land and buildings thereon after publication. -13.  
(1) The Plan as adopted by the State Government shall be published as prescribed 
in Section 10, and after such publication no person shall use any land, sub-divide any land or 
set up any new structure on any land covered by the Plan or change the existing structure of 
any building or use of any building or land within the area except with the permission of the 
Authority on a written application submitted for that purpose. 
(2) Each such application shall be accompanied by a plan drawn to scale showing 
the actual dimension of the land and the building to be built upon it, the site and the position 
of the building to be erected and in case of alteration in the use or structure of the building or 
land, the nature and extent of such alteration. 
(3) The authority may also call for such other information as it may deem 
necessary to examine the application. 
(4) The authority shall not refuse the permission except on the ground of 
contravention of proposals contained in the plan or the Regulations and unless the permission 
has been refused within a period of one month from the receipt of the application or such 
other information as may be call for by the authority under sub- section (3), it shall be 
presumed that the permission has been given. 
Prohibition of registration in certain case. – (5). Where any deed or document 
required to be registered under the Indian Registration Act, 1908, [Act XVI of 1908] purports 
to sub-divide any land covered by the Plan, no registering officer shall register any such 
document unless the party presenting the deed or document for registration produces a no 
objection certificate from the Authority to the effect that the Authority has no objection to the 
registration of such deed or document. 
Power of the State Government to modify the Plan and the Regulation.- 14. The 
State Government may review the Plan and may modify the Plan and the Regulations from 
time to time, in such manner and in such procedure as followed for the preparation and 
approval of the original Plan and the Regulations. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     CHAPTER IV 
       DEVELOPMENT SCHEME 
  Preparation of the Development Scheme-15 (1) After the commencement of this 
Act, the State Government after consultation with the Authority. If any, may by notification 
in the Official Gazette declare any area to be a scheme area for the purpose of this Act.  
(2) After the Master Plan has been approved by the State Government the Authority 
shall define the area which it considers necessary for development. The Director shall prepare 
a scheme and submit it to the State Government with all information necessary for 
consideration and approval of the scheme. 
(3) While preparing the scheme the Director shall issue a notice inviting the names of 
all the claimants of any interest on any land or building within the area under the scheme to 
be submitted within a period not more than one month and submit the same to the Authority 
along with the scheme and the report. 
 (4) Save as provided in the Act, the Authority shall not undertake or carry out any 
development of land in any area which is not a scheme area. 
 (5) After the commencement of this Act, no development of land shall be undertaken 
or carried out in scheme area by any person or body of persons except in the manner 
prescribed under section 13 of this Act. 
 Publication of the Development Scheme. – 16.  The Authority shall have the 
scheme and the report and names of all the claimants published in the manner prescribed in 
sub-section (1) of section 10 and have a copy of them served on all persons who preferred 
claims under sub-section (3) of section 15, inviting objections to be filed within a period not 
more than two months. 
 (2) After the period for submitting opinion and objection of the public or any 
interested persons has expired, the Authority shall examine the scheme in the light of such 
opinion and objection giving sufficient opportunity for hearing to all such interested persons 
who have filed objections and demanded hearing in the manner prescribed and shall approved 
or refuse to approve or approve with such modifications, as it may deem necessary, for the 
implementation of the scheme and for imposing for that purpose reasonable restrictions in the 
use of land and buildings within the area. 
 (3) After the Authority has adopted the scheme, it shall forwarded to the State 
Government for sanction and shall come into force as soon as the sanction has been accorded 
by the State Government after taking into account the financial implications of the scheme. 
 Implication of the Development Scheme.- 17. (1) The Scheme shall come into force 
from such date as may be fixed by the government in sanctioning the scheme and shall be 
implemented by such authority as may be authorized by the State Government in that behalf. 
 (2) No person shall within the area for which the government has sanctioned a 
Development Scheme, erect or proceed with any building or work or remove or alter or make 
additions or make any substantial repair to building or a part of it, a compound wall or any 
drainage work or any earth work or change the use of any land or building except on 
permission of the authority on applicant submitted for the purpose. Unless the permission has 
been refused within one month from the date of receipt of the application is shall be 
presumed that the permission has been given. 
 Scope of the Development Scheme. – 18. (1) A scheme may be made in accordance 
with the provisions of the Act in respect of any land which is: - 
(a) in the course of development, 
(b) likely to be used for building purpose, or 
(c) already built upon, 
Explanation: - 
The expression “Land likely to be used for building purposes” shall include any land 
likely to be used as, or for the purpose of providing open spaces, roads, streets, parks, 
pleasure or recreational grounds, parking spaces, or for the purposes of executing any work 
upon or under the land incidental to a scheme, whether in the nature of a building work or 
not. 
(2) Such scheme may make provisions for any of the following maters: - 
(a) the laying out or re-laying out of land, either vacant or already built upon; 
(b) the filling up or reclamation of low-lying or unhealthy areas or leveling up of land; 
(c) lay out of new streets or roads constructions, diversion, extension, alteration, 
improvement and stopping up of streets, roads and communications; 
(d) the construction, alteration and removal of buildings, bridges and other structure; 
(e) the allotment or reservation of land for roads, open spaces, gardens, recreation 
grounds, schools, markets, industrial and commercial activities, green belts and 
dairies, transport facilities and public purposes of all kinds; 
(f) drainage inclusive of sewerage, surface or sub-soil drainage and sewage disposal; 
(g) lighting; 
(h) water supply; 
(i) the preservation of objects of historical importance or natural beauty and of 
buildings actually used for religious purpose; 
(j) the imposition of conditions and restrictions in regard to the open space to be 
maintained about buildings, the percentage of building area for a plot, the number, 
height and character of building allowed in specified areas, the purposes to which 
building or specified areas may not be appropriate, the sub-division of plots, the 
discontinuance of objectionable uses of land in any area in reasonable periods, 
parking space and loading and unloading space for any building and the sizes of 
projections and advertisement signs; 
(k) the suspension, so far as may be necessary for the proper carrying out of the 
scheme, of any rule, bye-law regulation, notification or order made or issued 
under any Act of the State Legislature or any of the Acts which the State 
Legislature is competent to amend; 
(l) such other matter not inconsistent with the object of this Act.. 
(3) The draft scheme shall contain the following particulars: - 
(a) the area, ownership and tenure of each original plot; 
(b) the land allotted or reserved under clause (e) of sub-section (2) of section 18 with 
a general indication of the uses to which such land is to be put and the terms and 
conditions subject to which such land is to be put in such cases; 
(c) the extent to which it is proposed to alter the boundaries of original plots; 
(d) an estimate of the net cost of the scheme; 
(e) a full description of all details of the scheme under such clause of sub-section (2) 
of section 18, as may be applicable; 
(f) the laying out or relaying out of land either vacant or already built upon; 
(g) the filling up or reclamation of low-lying swamp or unhealthy areas or leveling up 
of land; and  
(h) any other prescribed particulars. 
(4) In the scheme the size and shape of every reconstituted plot shall be determined, 
so far as may be, to render it suitable for building purposes and where the plot is already built 
upon, to ensure that the building, as for as possible, complies with the provisions of the 
scheme as regards open spaces. 
(5) In order to render original plots more suitable for building purposes the scheme 
may contain proposals: - 
(a)  to form a reconstituted plot by the alteration of the boundaries of an original plot; 
(b)  to provide with the consent of the owners that two or more original plots each of 
which is held in one ownership in severality or in joint ownership, shall 
hereafter, with or without alteration of boundaries be held in ownership in 
common as a reconstituted plot. 
(6) The scheme shall include all such provisions as the Authority may think necessary 
for carrying out the objects of the Act including the following matters. 
(a) the laying out or re-laying out of land, either vacant or already built upon; 
(b) the filling up or reclamation of low-lying swamp or unhealthy areas or leveling up 
of land; 
(c) lay out new streets or roads, construction, diversion, extension, alteration, 
improvement and stopping up of streets, roads, and communication; 
(d) the construction, alteration and removal of buildings, bridges and other structures; 
(e) the allotment or reservation of land for road, open spaces, gardens, recreation 
grounds, schools, markets, industrial and commercial activities, green belts and 
dairies, transport facility and public purposes of all other kinds; 
(f) drainage inclusive of sewerage, surface or sub-soil drainage and sewage disposal; 
(g) lighting; 
(h) water supply; 
(i) the preservation of objects of historical importance of natural beauty and of 
buildings actually used for religious purposes. 
Amendments and alterations of the Development Scheme. – 19. (1) If after the 
final scheme has come into force, the Authority considers that the scheme is defective on 
account of an error or irregularity or for any other reason, it shall refer to the State 
Government to modify or withdraw the scheme and to publish the modified or withdrawn 
scheme in the manner prescribed in sub-section (1) of section 10. 
(2) The modification of the scheme shall state every amendment proposed to be made 
in the scheme and if any such amendment relates to matter specified in any or all of the 
clauses (a) to (l) of sub-section (2) of section 18, the modification shall also contain such 
other particulars as may be found necessary by the authority. 
(3) The variation shall be opened to inspection by the public at the office of the Local 
Body or Bodies as prescribed, covering the area during office hours. 
(4) Within one month of the date of publication of the modification, any person 
affected thereby may communicate in writing his objection to the Authority. 
(5) After receiving the objection under sub-section ($) above, the Authority may, after 
making such enquiry as it may think fit, approve the proposed modification with or without 
any further modification thereof. 
(6) Such modification shall take effect as if it were incorporated in the scheme from 
the date of its modification. 
(7) The Authority shall thereafter submit the modified scheme to the State 
Government for sanction. The modified scheme shall be published after sanction as 
prescribed in sub-section (1) of Section 10. 
Power to revoke the Development Scheme. – 20. (1) Notwithstanding anything 
contained in section 19, a scheme may at any time be modified or revoked by a subsequent 
scheme made, published and sanctioned in accordance with this Act. 
(2) The State Government, at it s own initiative or on the application of the Authority 
may at any time, by a notification in the Official Gazette revoke scheme, if it is satisfied that 
under the special circumstances of the case shall be revoked; 
Provided that where revocation or modification is order by Government after people 
have partially or wholly implemented, in a scheme, compensation should be paid for the 
necessary alterations in the manner prescribed. 
Power of the Authority to impose restrictions. -21. For the purpose of the Master 
Plan, the Land-use and Zoning Regulation and the Scheme, the Authority may imposed 
reasonable restrictions on the use of the land and building including the regulation of the 
open spaces to be maintained around the building or buildings, the percentage of the plot area 
to be covered by building or buildings, the number of building or buildings on each plot, 
height and character of building or buildings allowed in specified areas, the purpose for 
which building or buildings or the specified areas may or may not be used, the sub-division 
of plots, parking space and loading and unloading space for any building and the sizes of 
projections and such other matters not inconsistent with the objects of this Act. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAPTER  V 
STREETS AND LAND SUB-DIVISIONS 
Width of Public Streets.- 22. (1) The authority shall, from time to time, with the 
sanction of the State Government specify the minimum width for different classes of public 
streets according to the nature of the traffic likely to be carried there, the localities in which 
they are situated, the heights up to the buildings abutting thereon may be erected and other 
similar considerations. 
 (2) The width of a new public street shall not be less than that prescribed in 
sub-section (1) or that shown on the Master Plan for the class to which it belongs in areas for 
which a Master Plan has been prepared. 
Power to prescribed street lines.- 23. The authority may prescribe a line on one or 
both sides of any public street, provided a public notice of the proposal has been issued by the 
Authority in the prescribed manner. No person shall construct or reconstruct any portion of 
any building on land within the prescribed new street line. 
Setting back buildings to the prescribed street line. – 24. (1) If any building or any 
part of a building abutting on a public street is within such line of the street, the Authority 
may require such building to be set back to the prescribed line, whenever it is proposed: - 
(a) to re-build such building or to take down such building; 
(b) to remove, reconstruct or make any addition to or structural alteration in any 
portion of such building which is within the regular line of the street. 
(2) When any building or any part thereof within the prescribed line of the street falls 
down or is burnt down or is taken down, under the provisions of this Act or otherwise, the 
Authority may at once take possession of the portion of land within the prescribed line of the 
street previously occupied by the said building and if necessary clear the same. 
(3) Land acquired under the foregoing sub-sections shall henceforward be deemed to 
be a part of the public street. 
Acquisition of land within the line of street. – 25. If any private land whether open 
or enclosed, lies within the prescribed line of a public street and is not occupied by a building 
or if a platform, verandah, steps, compound wall, hedge or fence or other structure, is within 
the line of such street the Authority may, after giving the owner of the land or building a 
notice of an intention to do so, take possession of the said land with its enclosing wall, hedge 
or fence, if any, or of the said platform, verandah, steps, of such other structure as aforesaid 
or of the portion of the said platform, verandah, steps or other such structure as aforesaid 
which is within the prescribed line of the street. 
Acquisition of the remaining part of building and land after their portions within 
prescribed line of the street are acquired. – 26. If a building or land is partly within the 
prescribed line of a public street and if the Authority is satisfied that the land remaining after 
exclusion of the portion within the said line will not be suitable or fit for construction of 
independent building, the Authority shall acquire the remaining portion of the land if so 
desired by the owner. 
Sub-division of private land. – 27. (1) Every person who intends to sub-divide any 
plot of land within the Master Plan Area shall give notice in writing to the Authority of his 
said intention and such notice shall be accompanied by the plans and statements in triplicate. 
(2) All plans for sub-division of land shall be in accordance with the standards 
prescribed by the State Government. 
Plans accompanying notice.- 28. A layout plan drawn to a suitable scale and 
containing the following information shall accompany the notice given under section 27: - 
(a) the location of the land, 
(b) the boundaries of the proposed land shown on the map, and sufficient description 
to define the same, 
(c) name and address of the owner of the land, 
(d) location, name and present widths of the adjacent roads and lanes, 
(e) the major physical characteristics of the land proposed to be sub-divided, 
including topography, the approximate location and width of any water course 
and location of any areas subject to inundation or flood, 
(f) the complete layout of the proposed subdivision showing the location and widths 
of all the proposed streets, dimension and uses of all the plots, 
(g) the location of all drains, sewers and other utilities, 
(h) building lines permissible, 
(i) key plan. 
Sanction with or without modification or refusal. – 29. (1) The Authority may 
either grant or refuse the approval to the plans or may approve them with such modifications 
as it may deem fit and thereupon shall communicate its decision to the person giving the 
notice within three months from the date of notice. 
(2) No person shall be allowed to construct a building on any plot of land, the 
subdivision of which has not been previously approved by the Authority. 
Layout not according to plan. – 30. Should the Authority determine at any stage that 
the layout or the construction is not proceeding according to sanctioned plan or is in violation 
of any provisions of this Act, it shall serve a notice on the applicant requiring him to stay 
further execution until correction has been effected in accordance with the approved plan. 
Penalty for violation. – 31. The Authority will have power to impose fine not 
exceeding rupees two hundred and fifty on any person, firm or corporation who violates, 
disobeys, refuses to comply with, or who resists the enforcement of any of the provisions of 
this Act. Continuation of the violation shall constitute offence for which a fine of rupees fifty 
per day may be imposed for the days after the first conviction. An appeal shall lie to the 
Appellate Authority constituted under this Act. 
 
CHAPETER VI 
ACQUISITION OF LAND 
 Power of State Government to acquire land. – 32. Where on the representation of 
the Authority it appears to the State Government that in order to enable it to execute the 
scheme it is necessary that land within, adjoining or surrounded by any such area should be 
acquired, the State Government may in consultation with the Council acquire the land by 
publishing in the Official Gazette a notice to the effect that the State Government has decided 
to acquire the land in pursuance of this section. 
 Proceeding for acquisition of land. – 33.  (1) The provisions of the land Acquisition 
Act, 1984 [1 of 1894] shall be applicable for acquisition of land under this Act and the 
compensation shall be computed under the provisions of the same Act. 
 (2) In computing compensation for land acquired, the value will be the market value 
as it prevailed on the 1st January, 1962. 
 (3) The owner of the lands will be entitled to the reasonable cost of development, if 
any, made during the period. 
 (4) Twenty five percent increase in value on the date of acquisitions of land. 
 Disposing of land. – 34. Subject to the rules made under this Act, and with the 
previous sanction of the State Government, the Authority may retain, lease, exchange or 
otherwise transfer any land acquired by it under this Act; 
 Provided that in case of lease or transfer the owner will get first priority, if due to 
acquisition he becomes landless. 
 Provided of private negotiation before compulsory acquisition. – 35. (1) The 
Authority may in the first instance, make reasonable efforts to purchase any land by private 
negotiation. 
 (2) In case of failure to purchase the land by private negotiation within a specified 
time, the said land shall be compulsorily acquired. 
(3) Nothing in this section shall however, debar the State Government or a local 
authority from compulsorily acquiring any land without prior private negotiation. 
Payment to owner by adjustment. – 36. All payments due to be made to any person 
by the Authority, under this Act, shall so far as possible, be made by an adjustment in respect 
of the plot concerned or of any other plot in which he has an interest and failing such 
adjustment shall be paid in cash or in such other way as be agreed upon by the parties. 
 
 
CHAPTER  VII 
COMPENSATION AND BETTERMENT 
 
 Right to compensation. -37. Any person whose property is injuriously affected in 
value by the making of a scheme shall, if he makes a claim for the purpose within a period of 
three months after the date of publication of a notification sanctioning the scheme under 
section 16, be entitled to obtain compensation in respect from the authority. 
 No right to compensation. – 38. A person shall not be entitled to obtain 
compensation under foregoing section on account of any building erected on or contract 
made or other thing done with respect to any land within the area included in a scheme after 
the date of the notification of the scheme under section 15; 
 Provided that this provision shall not apply to any building erected, contract made or 
other things done in accordance with the permission granted under section 13 and 17 of this 
Act. 
 Power of Government to exclude compensation in certain cases. – 39. (1) No 
compensation shall be payable in respect of any property which may be injuriously affected 
by putting into operation of any provision of the scheme which: - 
(a) prescribes the space about buildings; or  
(b) limits the number of buildings; or 
(c) regulates the size, height, design or external appearance of buildings; or 
(d) prohibits or restricts building operation permanently or temporarily on the ground 
that erection of buildings thereon will be likely to be injurious to the health of the 
occupants or the neighbours or likely to cause excessive expenditure of public 
money in making provision for roads, sewers, water supply or other public 
services; or 
(e) prohibits or restricts the use of land or a building for a purpose which may involve 
danger or injury to public hygiene or the health of the occupants or their 
neighbours or for a purpose which is against public policy or public morals; or 
(f) in the interest of safety, regulates the height and position of proposed walls, and 
building fences or hedges near the corners or bends or roads; or 
(g) in the case of the erection of any building intended to be used for purposes of 
business or industry, requires the provision of parking the vehicles. 
(2) No compensation shall be payable for refusal of permission to make any alteration 
in any building which is not in conformity with the use specified in the Plan or in the scheme. 
Right of owner to require Authority to acquire or purchase land. – 40. (1) The 
owner of any land which is to be acquired for purposes of a scheme may, at any time, after 
sanction of the scheme by the Government, by a written notice to the Authority in the 
prescribed manner, call upon it to acquire or purchase the land in so far as the land is to be 
acquired by the State Government or the Authority. 
(2) If within six months of the service of the notice under sub-section (1) the land is 
not purchased or acquisition proceedings are not started the scheme, in so far as that land is 
concerned, shall be deemed to have been withdrawn and all notices and orders in that 
connection shall lapse. 
Levy of betterment fee.-41.  (1)  Every property which has increased in value due to 
its inclusion within an area under a plan or a scheme or due to the execution of such schemes 
shall be charged with a betterment fee; 
Provided that no such fee shall be levied on such public land or building ads are used 
for charitable, religious and educational purposes or for places of non-professional 
entertainment and recreation. 
(2) Betterment fee shall be an amount equal to twenty percent in case of 
residential holdings so long the original owners use for their residences and equal to fifty 
percent in case of non-residential areas and will be realized in five equal installments. 
Explanation.- The increase in value for this Section shall be the increase in the market 
prices between the date on which a notification under sub-section (1) of section 15 has been 
issued and the date on which the execution of the scheme has been substantially completed. 
  Appeal.42. (1) Any person aggrieved by the decision of the Authority with respect to 
matters of compensation and betterment fee, may appeal to the Appellate Authority within 
thirty days of the award. 
 (2) If the owners of any property objects to the amount of betterment fee determined 
by the Authority on any ground he shall also state the amount which, he contends would be 
correct and may within thirty days of the date on which the determination of his objection or 
appeal becomes final by written notice, require, the authority to acquire the property together 
with any building or other works that may exist thereon. 
 (3) The authority shall thereupon acquire the property. 
 
 
CHAPTER VIII 
 
APPEALS AND THE APPELLATE AUTHORITY 
 
 Appointment of Appellate Authority.-43. (1) Save as otherwise provided the State 
Government shall appoint an Appellate Authority to hear all appeals arising out of the 
provisions of this Act. The decision of Appellate Authority shall be final. 
(2) The person or persons appointed by the State Government as Appellate Authority 
shall have the qualifications as may be prescribed under this Act. The appointment shall be 
on such terms and condition as the State Government may decide. 
Duties of Appellate Authority.- 44. (1) The duties and powers of the Appellate 
Authority shall be as follows:- 
(a) to hear and decide appeals against the order of the Authority, 
(b) to decide and hear appeals in respect of such other matters and exercise such other 
powers as may be entrusted to and conferred upon it by the State Government in 
accordance with the provisions of this Act. 
(2) All appeals to the Appellate Authority shall be filed within a month from the date 
of the order appealed against. The time required for taking out copies of the order shall be 
excluded. The Appellate Authority may, however, in its discretion condone such delay in 
filing appeal for sufficient reasons. 
 Procedure of working of the Appellate Authority.-45. (1)  The Appellate Authority 
shall conduct its proceeding in the prescribed manner after giving the opposite party or any 
one interested in the order appealed against an opportunity of being heard. 
(2) The Appellate Authority may, at any time, call for any extract from any 
proceeding of the State Government or Authority and call for any return or statement or 
report concerning or connected with any matter with which the Authority has been authorized 
to deal. 
(3) The Appellate Authority shall have all the powers of a Civil Court for the 
purposes of taking evidence on oath and of enforcing the attendance of witness including the 
parties interested or any of them and compelling the production of documents and material 
objection if considered necessary. 
 (4) The Appellate Authority in its discretion may make any orders regarding the cost 
to be paid 3by any of the parties to the proceedings and Appellate Authority shall have full 
powers to determine by whom or out of what property and to what extent such costs are to be 
paid and the authority shall be bound to execute orders of the Appellate Authority in 
accordance with the directions, if [any, contained in the order and such costs or amounts 
awarded by the Appellate Authority shall be realized as  arrears of land revenue. 
  Right to appear by recognized agent.- 46. Every party proceeding before the 
Appellate Authority shall be entitled to appear either in person or by his recognized agent. 
  Protection of action taken under this Act.- 47. (1) No suit, prosecution or other 
legal proceedings shall lie against any person for anything which is in good faith done or 
intended to be done in pursuance of this Act or order made there under. 
 (2) Save as otherwise expressly provided in this Act, no suit or other legal 
proceedings shall lie against the State Government for any damage caused or likely to be 
caused by anything in good faith done or intended to be done in pursuance of this Act or any 
order made there under. 
 
 
CHAPTER IX 
FINANCE 
 
 Development Fund.- 48.   The receipt of any money by Authority under this Act 
shall form a separate development fund and all expenditure under this Act, or any 
development scheme there under, shall be defrayed out of such fund. No portion of the fund 
shall, except with the sanction of Government, be expended for purposes not provided by this 
Act, or any development scheme thereunder, shall be defrayed out of such fund. No portion 
of the fund shall, except with the sanction of Government, be expanded for purposes not 
provided by this Act. 
 Powers to borrow.-  49. Authority as defined in this Act shall be deemed to be a 
local Authority as defined in the Local Authorities Loans Act, 1914 (9 of 1914) for the 
purpose of borrowing money under that Act, and the making and execution of a plan and 
scheme shall be deemed to be a work which such local Authority is legally authorized to 
carry out. 
 Grants advances and loans. – 50. The Government make such grants, advances, and 
loans to authority as the Government may deem necessary for the performance of unction’s 
of the authority under this Act. 
 
 
 
 
CHAPTER X 
LEGAL PROCEEDINGS 
 
Penalty for breach of the provision of the Master Plan or Scheme.-  51. (1) When 
a Master Plan or a scheme has been sanctioned under his Act any person who commits or 
knowingly permits a breach of any specified provisions of the Master Plan or of the scheme 
or who neglects or fails to comply with any such provisions shall be punishable under this 
section. 
(2) In case of any such beach or default the Authority shall send to any such person a 
notice calling on him to discontinue the breach or cause if to be discontinued or to comply 
with such provision of the Master Plan or the scheme within a time to be specified in the 
notice. 
(3) If after such time any such person under sub-section (1) continues to neglect or 
causes a breach of any specified provision, such person shall be prosecuted and on conviction 
by any officer exercising the powers of a magistrate be punishable by any or all of the 
following: - 
(i) with fine which may extend to rupees five hundred with or without simple 
imprisonment not exceeding a period of two months; 
(ii) if the breach, neglect or failure continues after such conviction with fine which 
may extend to rupees thirty for every day during which the breach, neglect or 
failure continues after such conviction. 
 Powers to execute works on failure to comply with notice.- 52.  If a notice has been 
given under this Act to a person requiring him to execute a work in respect of any property, 
movable or immovable, or to provide or do or refrain from doing anything within a time 
specified in the notice and if such person fails to comply with such notice, then the authority 
may cause such to be executed or such thing to be provided or done, and may recover all 
expenses incurred by it on such account from the said person as an arrear of land revenue. 
 Right of occupier to execute works in default of owner.-  53. When default is made 
by the owner of a building or land in the execution of any work required under this Act to be 
executed by him, the occupier of such building or land may, with the prior approval of the 
Authority cause such works to be executed, and the expenses thereof shall, in the absence of 
any contract to the contrary, be paid to him by the owner, or the amount may be deducted out 
of the rent from time to time becoming due from him to such owner. 
 Procedure upon opposition to execution by occupier. – 54. (1) If after receiving 
information of the intention of the owner of any building or land to take any action in respect 
thereof in compliance with a notice issued under this Act, the occupier refuse

Excerpt shown. Open the full act in Lexace.

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