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The Telangana Town Planning Act, 1920.

Telangana · state statute
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THE TELANGANA TOWN-PLANNING ACT, 1920. 
(ACT NO. VII OF 1920.) 
ARRANGEMENT OF SECTIONS 
Sections 
 CHAPTER I. 
PRELIMINARY. 
1. Short title and extent. 
2. Definitions. 
 CHAPTER II. 
TOWN-PLANNING SCHEMES. 
3. Omitted. 
4. Matters that may be dealt with in scheme. 
5. Reconstituted plots. 
6. Omitted. 
 CHAPTER III. 
MAKING, VARIATION AND REVOCATION OF 
SCHEMES AND THEIR EFFECT. 
7. Appointment of Director of Town-Planning. 
8. Obligation on newly constituted councils to make 
schemes not later than four years. 
9. Declaration of intention to make or adopt scheme. 
10. Resolution to make or adopt scheme. 
11. Publication of draft scheme. 
12. Power of State Government to require council to 
make scheme. 
13. Contents of draft scheme. 
14. Sanctioning of scheme by State Government. 
2  [Act No. VII of 1920] 
15. Variation or revocation of schemes. 
16. Limitation of compensation payable to person 
affected by variation or revocation of scheme. 
17. Permission to be taken for construction, etc., after 
publication of draft scheme. 
18. Obligation on owners to comply with scheme after 
sanction. 
18-A. Power to levy development charges. 
18-B. Classification of land or building. 
19. Power of responsible authority to enforce scheme. 
 CHAPTER IV 
COMPENSATION FOR INJURIOUS AFFECTION 
AND CONTRIBUTION FOR BETTERMENT. 
20. Right to compensation. 
21. No right to compensation for building, etc., 
subsequent to first notification. 
22. Exclusion or limitation of compensation in certain 
cases. 
22-A. Application for sanction for withdrawal or 
modification of the scheme. 
23. Power to levy betterment contribution. 
24. Betterment contribution how calculated. 
25. Assessment and collection of betterment 
contribution. 
26. Option of objecting owner to require council to 
acquire his property. 
 CHAPTER V. 
THE ARBITRATOR. 
27. State Government to appoint arbitrator. 
[Act No. VII of 1920]  3 
28. Powers and duties of arbitrator. 
29. Appeal. 
 CHAPTER VI. 
FINANCE. 
30. Municipal town-planning fund. 
31. Power to borrow. 
32. Omitted. 
 CHAPTER VII. 
LAND ACQUISITION. 
33. Modification of land Acquisition Act. 
34. Notification under section 14 to have effect as 
declaration under section 6, Land Acquisition Act. 
35. Sections 15, 23 and 24 of Land Acquisition Act 
superseded. 
 CHAPTER VIII. 
MISCELLANEOUS. 
36. Power of councils to make agreements. 
37. Town-planning committee. 
38. Joint town-planning committee. 
39. Omitted. 
40. Omitted. 
41. Power of State Government to arbitrate in disputes 
between local authorities. 
42. Power of control of State Government. 
43. Power of entry, etc. 
44. Power of State Government to make rules. 
44-A. Previous publication of the rules. 
4  [Act No. VII of 1920] 
44-B. Penalty for breach of the provisions of the scheme. 
 CHAPTER IX. 
TOWN PLANNING TRUSTS. 
45. Creation of town-planning trusts. 
46. Constitution of trusts. 
47. Chairman may be given salary. 
48. Removal of trustees. 
49. Disabilities of trustees removed under section 48. 
50. Application to trusts of this Act and their power to 
borrow. 
50-A. Payment to trust by municipal councils. 
51. Procedure if trust fails to make any payment in 
respect of loans. 
52. Vesting in municipal council of streets laid out or 
altered and open spaces provided by the trust 
under a scheme. 
53. Ultimate dissolution of trust, and transfer of its 
assets and liabilities to the municipal council. 
54. Power to State Government to make rules for trusts. 
54-A. Power of State Government to issue directions. 
 CHAPTER X. 
TRANSFER OF PROCEEDINGS. 
55. Transfer of proceedings from one authority to 
another. 
 
THE TELANGANA TOWN-PLANNING ACT, 1920.1 
 
ACT No.VII OF 1920. 
 
CHAPTER I. 
PRELIMINARY. 
 
2[1. (1) This Act may be called 3the Telangana Town 
Planning Act, 1920.] 
 
 (2) It extends to the whole of the State of 3[Telangana]. 
 
2. In this Act, unless there is anything repugnant in the 
subject or context,- 
 
 (1) “Chairman” means 4[XXX] the “Chairman of the 
Municipal Council” in 5[XXX] municipalities. 
 
 (2) “Director” means the Direc tor of Town -Planning 
appointed under this Act. 
 
 (3) “Municipality” means any local area in which 6[the 
Telangana Municipalities Act, 1965,] is in force. 
 
                                                           
1. The Andhra Pradesh Town -Planning Act, 1920 in force in the 
combined State, as on 02.06.2014,  has been adapted to the State of 
Telangana, under section 101 of the Andhra Pradesh Reorganisation 
Act, 2014 (Central Act 6 of 2014) vide. the Telangana Adaptation of Laws 
Order, 2016, issued in G.O.Ms.No.45, Law (F) Department, dated 
01.06.2016. 
2. Section 1 substituted by Act No.24 of 1981. 
3. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016. 
4. The words “the Commissioner of the Corporation of Madras, in the 
City of Madras and ” were omitted by the Andhra Adaptation of Laws 
(Amendment) Order, 1954 (A.A (Amdt) O. 1954). 
5. The word “other” was omitted by the A.A (Amdt) O. 1954. 
6. Adapted by G.O.Ms.No.142, Municipal Administration & Urban 
Development (A2) Department, dated 29.10.2015. 
Definitions. 
Short title and 
extent. 
Act 6 of 1965. 
2  [Act No.VII of 1920] 
 (4) “Owner” includes the person for the time being 
receiving, or entitled to receive, whether on his own account 
or as agent, trustee, guardian, manager or receiver for 
another person, or for any religious or charitable purpose, 
the rents or profits of the property i n connexion with which 
the word is used. 
 
 (5) “Plot” means a continuous portion of land held in 
one ownership other than land used , allotted or reserved for 
any public or municipal purpose. 
 
 (6) “Prescribed” means prescribed by rules made 
under this Act. 
 
 (7) “Reconstituted plot ” means a plot which is in any 
way altered by the making of a town -planning scheme 
otherwise than by the severance of land used , allotted or 
reserved for any public or municipal purpose. 
 
 (8) “Responsible authority ” means “the authority or 
person, who is specified in a scheme as responsible for 
carrying out or enforcing the observance of all or any of the 
provisions of the scheme or for enforcing the execution of 
any works which under the scheme are to be executed by 
any authority, owner, or other person”. 
 
 (9) “Scheme” means a town -planning scheme and 
includes a plan relating to a town-planning scheme; 
 
 (10) “Town-planning” includes town-improvement. 
 
CHAPTER II. 
TOWN-PLANNING SCHEMES. 
 
7[3. [XXX]] 
                                                           
7. Section 3 was omitted by Madras Act II of 1930. 
[Act No.VII of 1920]  3 
4. A town-planning scheme may provide for all or any of 
the following matters:- 
 
 8[(a) the laying out or relaying out of land either vacant 
or already built upon as building sites or for any of the 
purposes mentioned in this section;] 
 
 (b) the construction, diversion, extension, alteration, 
improvement or closure of streets, roads and 
communications; 
 
 (c) the construction, alteration, removal 9[or] demolition 
of buildings, bridges and other structures; 
 
 (d) the acquisition by purchase,  exchange or 
otherwise, of any land 10[or other immovable property] 
within the area included in the schem e whether required 
immediately 11[XXX] or not; 
 
 (e) the redistribut ion of boundaries and the re -
constitution of plots belonging to owners of property 
comprised in the scheme; 
 
 (f) the disposal by sale, exchange, lease, or otherwise 
of land acquired or owned by the council; 
 
 (g) transport facilities; 
 
 (h) water-supply; 
 
 (i) lighting; 
 
                                                           
8. Clause (a) substituted by Madras Act II of 1930. 
9. Substituted for the word “and” by Madras Act II of 1930. 
10. Inserted by Madras Act II of 1930. 
11. “For building purposes” were omitted by Madras Act II of 1930. 
Matters that may 
be dealt with in 
scheme. 
4  [Act No.VII of 1920] 
 (j) drainage inclusive of severage and of surface 
draining and sewage disposal; 
 
 (k) the allotment or reservation of land for s treets, 
roads, squares, houses 12[XXX] buildings for religious and 
charitable purposes, open spaces, gardens, recreation 
grounds, schools, markets, shops, factories, hospitals, 
dispensaries, Government and municipal buildings, and 
public purposes of all kinds; 
 
 (l) construction of houses 12[XXX]; 
 
 (m) the preservation of objects and buildings of 
archaeological or historic interest or of natural beauty or 
actually used for religious purposes or regarded by the 
public with special religious veneration; 
 
 (n) the imposition of conditions and restrictions in 
regard to the character, number, architectural features and 
height of buildings allowed in specified areas, and the 
purposes to which buildi ngs or specified areas may or may 
not be appropriated; and the provision and maintenance of 
sufficient open space about buildings; 
 
 (o) the suspension, 13[restriction or modification] so far 
as may be necessary for the proper carrying out  of t he 
scheme, of any provision in 14[XXX] 15[the Telangana 
Municipalities Act,  1965, or the 16Andhra Pradesh (Andhra 
Area) District Boards Act, 1920 or as the case may be, 17the 
                                                           
12. “For the poorer and working classes ” were omitted by Madras Act II 
of 1930. 
13. Inserted by Madras Act II of 1930. 
14. “The Madras City Municipal Act, 1919 ” were omitted by the A.A 
(Amdt) O. 1954. 
15. Adapted by G.O.Ms.No.142, Municipal Administration & Urban 
Development (A2) Department, dated 29.10.2015. 
16. Andhra Area Acts. 
17. Adapted in G.O.Ms.No.46, Law (F) Department, dated 01.06.2016. 
Act 6 of 1965. 
[Act No.VII of 1920]  5 
Telangana District Boards Act, 1955] or in any rule, by -law 
or regulation made under the said Acts and in force in the 
area included in the scheme; 
 
 (p) the 18[suspension, restriction or] modification, so far 
as may be necessary for the proper carrying out of the 
scheme, of any provision in 19[the Andhra Pradesh (Andhra 
Area) Estates Land Act, 1908,] affecting the conversion of 
holdings or portions thereof into b uilding land in the area 
included in the scheme; 
 
 Explanation.- The word „holding‟ in this clause shall 
have the same meaning a s in 19[the Andhra Pradesh 
(Andhra Area) Estates Land Act, 1908.] 
 
 (q) the advance to the owners of land or buildings 
comprised within the scheme, upon such terms and 
conditions as may be provided by the scheme, of the whole 
or part of the amount required for the erection of buildings 
or for the carrying out of the works, alterations or 
improvements in accordance with the scheme; 
 
 (r) such other matters not inconsistent with the object s 
of this Act as may be prescribed. 
 
5. (1) 20[XXX] The size and shape of every recons tituted 
plot shall be so determined as to render it, so far as may be, 
suitable for building purposes. 
 
 (2) In order to re nder original plots more suitabl e for 
building purposes, the scheme may contain proposals,- 
 
  (a) to form a reconstituted plot by the alteration of the 
boundaries of an original plot; 
                                                           
18. Inserted by Madras Act II of 1930. 
19. Andhra Area Acts. 
20. “In the scheme” were omitted by Madras Act II of 1930. 
Reconstituted 
plots. 
Act I of 1908. 
6  [Act No.VII of 1920] 
  (b) to provide with the  consent of the owners, that 
two or more original plots, each of which is held in 
ownership in severalty or in joint ownership, shall thereafter, 
with or without alteration of boundaries, be held in 
ownership in common as a reconstituted plot; 
 
  (c) to allot a p lot to any owner dispossessed of land 
in furtherance of the scheme; and 
 
  (d) to transfer the ownership of a plot from one 
person to another. 
 
21[6. [XXX]] 
 
CHAPTER III. 
MAKING, VARIATION AND REVOCATION OF SCHEMES 
AND THEIR EFFECT. 
 
7. (1) The *[State Government] may appoint a person to 
be Director of Town -Planning for the *[State] and may 
assign to him from time to time such salary and 
establishment as they think fit. 
 
 (2) The cost of such officer and his establishment shall 
be paid out of the revenues of the *[State Government]. 
 
 (3) Municipal councils shall consult the Director on 
such matters relating to town -planning, and in such manner 
as may be prescribed. If any difference arises between the 
Director and a council on any matter so prescribe d, it shall 
be referred to the *[State Government] whose decision shall 
be final. 
                                                           
21. Omitted by Madras Act II of 1930. 
* Throughout the Act , the words “Provincial Government ” were 
substituted for the words “Local Government” by the Adaptation Order, 
1937, and the word “State” was substituted for “Provincial” by the 
Adaptation Order, 1950. 
Appointment of 
Director of Town-
Planning. 
[Act No.VII of 1920]  7 
22[8. (1) [Every M unicipal council shall not later than four 
years from t he date of the c onstitution of such council] 
prepare, publish and submit for the sanction of the *[State 
Government] a general town -planning scheme in respect of 
all land within the municip ality and in its vicinity unless the 
*[State Government] order otherwise. 
 
 (2) Notwithstanding anything con tained in sub -section 
(1), the *[State Government] may, after making such enquiry 
as they may deem ne cessary by notification in the 23[Official 
Gazette], direct any municipal council to prepare, publish 
and submit for their sanction before an appointed date a 
general town -planning scheme under this section for an 
area specified in such notification. 
 
 (3) A general town -planning scheme shall determine 
the lines on which the improvement and development of the 
area within the municipality and in its vicinity shall proceed 
and shall provide for such of the matters referred to in 
section 4 and to such extent as may be prescribed.] 
 
9. 24[(1) A municipal council may, by resolution, decide to 
prepare a scheme in respect of any land, within the 
municipal area, or in its vicinity outside such area, or to 
adopt with or without modifications a draft schem e 
proposed by all or any of the owners of any such land. The 
chairman shall then have a plan prepared showing the land 
proposed to be included in the scheme, the surrounding 
lands and any existing streets.] 
 
                                                           
22. Substituted for the original section 8 by Madras Act II of 1930. 
Marginal heading and opening portion of sub -section (1) substituted by 
Act No.24 of 1981. 
23. Substituted for the “Fort St. George Gazette ” by the Adaptation 
Order, 1937. 
24. Substituted by Madras Act II of 1930. 
[Obligation on 
newly constituted 
councils to make 
schemes not later 
than four years.] 
Declaration of 
intention to make 
or adopt scheme. 
8  [Act No.VII of 1920] 
 (2) No town -planning scheme made or adopted by a 
municipal counci l shall include any area outside its limits 
without the concurrence of the municipal council or of the 
district board, as the case may be, hav ing jurisdiction over 
such area: 
 
 25[Provided that if the municipal council or district 
board concerned omits, for four months from the date of 
receipt of the communication requesting such concurrence, 
to send a final reply thereto, such concurrence sha ll be 
deemed to have been given:] 
 
 Provided further that, where su ch concurrence is 
refused, the *[State Government] may, after considering the 
objections of such council or district board, overrule them, 
and permit such area to be included in the scheme. 
 
 (3) The decision of the *[State Government] as to 
whether any land is in the vicinity of a mun icipal area shall 
be final. 
 
10. The resolution under section 9 shall be pub lished by 
notification in the prescribed manner by the chairman; and 
such notification shall state that a copy of the plan is kept for 
the inspection of the public at all reasonable hours at the 
municipal office. 
 
11. (1) If the resolution is to make a scheme, the municipal 
council shall, within twelve months from the date of the 
notification under section 10, 26[XXX], or within such further 
period, not exceeding twelve months, as the *[State 
Government] may allow, and after consulting, in the 
prescribed manner, the owners of lands and buildings in the 
area affected, prepare, 27[XXX] and publish a draft scheme. 
                                                           
25. The proviso was inserted by Madras Act II of 1930. 
26. “Sub-section (3)” were omitted by Madras Act II of 1930. 
27. “Print” was omitted by Madras Act II of 1930. 
Resolution to 
make or adopt 
scheme. 
Publication of 
draft scheme. 
[Act No.VII of 1920]  9 
 (2) If the resolution is to adopt a draft scheme 
proposed by owners, the council shall, without delay 28[XXX] 
publish such scheme. 
 
12. Notwithstanding anything contained in 29[sections 9 to 
11], the *[State Government] may, in respect of any 
municipality, after making such inquiry as they may deem 
necessary, by notification in the 30[Official Gazette], require 
the council, before a fixed date, 31[to prepare, publish and 
submit for thei r sanction a draft scheme] as respects any 
land in regard to which a town -planning scheme may be 
made. 
 
13. (1) Every draft scheme shall co ntain the following 
particulars:- 
 
  (a) a plan showing the lines o f existing and proposed 
streets; 
 
  (b) the ownership of all lands and buildings in the 
area to which the scheme relates; 
 
  (c) the area of all such lands whether public or 
private; 
 
  (d) a full description of all details of the scheme under 
such clauses of section 4 as may be applicable; 
 
  32[(e) [XXX]] 
 
 
                                                           
28. “Print and” were omitted by Madras Act II of 1930. 
29. Substituted for “sections 8 to 11” by Madras Act II of 1930. 
30. Substituted for the words “Fort St. George Gazette ” by the 
Adaptation Order, 1937. 
31. Substituted by Madras Act II of 1930. 
32. Clause (e) was omitted by Madras Act II of 1930. 
Power of State 
Government to 
require council to 
make scheme. 
Contents of draft 
scheme. 
10  [Act No.VII of 1920] 
  (f) an estimate of the 33[XXX] cost of the scheme; 
 
  34[(g) regulations for enforcing or carrying out the 
provisions of the scheme; and defining the responsible 
authority and the period for which such responsible 
authority shall function;] 
 
  (h) any other particulars or plans that may be 
prescribed or specially required by the *[State Government.] 
 
 (2) Every draft scheme which includes a housing 
scheme shall also contain the following particulars, namely:- 
 
  (i) the approximate number and the nature of the 
houses to be provided by the „responsible authority‟; 
 
  (ii) the approximate quanti ty of land to be acquired 
and the localities in which land is acquired; 
 
  (iii) the average number of houses per acre; and 
 
  (iv) all matters incidental to the housing scheme. 
 
 (3) A draft scheme may provide that any person who 
commits or knowingly permits a breach of any specified 
provision of the scheme, or who neglects or fails to comply 
with any such provision, shall, on c onviction, be punishable 
under section 44-B. 
 
14. (1) If within sixty days from the date of the publication 
of a draft scheme any person affected by such scheme 
communicates in writing any objection or suggestion 
relating thereto, the council shall consider such objection or 
suggestion and may modify the scheme as it thinks fit. 
                                                           
33. The word “net” was omitted by Madras Act II of 1930. 
34. Clause (g) substituted by Madras Act II of 1930. 
Sanctioning of 
scheme by State 
Government. 
[Act No.VII of 1920]  11 
 (2) The scheme as passed or adopted by the council 
together with all written objections and suggestions shall  
thereupon be sub mitted to the *[State Government] for 
sanction 35[and the fact of such submission shall be 
published in the prescribed manner]. 
 
 36[(3) The *[State Government] may, af ter considering 
the objections a nd suggestions, if any, and making such 
inquiry as they think fit,  sanction scheme with or without 
modifications, or may refuse to sanction the scheme or may 
return the scheme to the council for reconsideration: 
 
 Provided that unless a modifica tion is, in the opinion of 
the *[State Government], verbal or incon sequential, the 
*[State Government] shall not sanction the scheme with 
such modification without the consent of the council: 
 
 Provided further that when a scheme is returned to the 
council for reconsideration, the co uncil shall resubmit it to 
the *[State Government] within three months from the date 
of its receipt and the *[State Government] may then deal 
with the scheme in the manner mentioned in this sub -
section: 
 
 Provided further that if the council fails to re -submit the 
scheme within the time specified in the foregoing proviso, 
the *[State Government] may, in relation to the scheme, 
pass such orders as they may deem fit.] 
 
 (4) When a scheme returned for reconsid eration is 
modified by the council, the scheme as so modified sh all 
before resubmission to the *[State Government] for 
sanction, be published and passed by the council in the 
same manner as a draft scheme,- 
                                                           
35. Added by Madras Act II of 1930. 
36. Substituted by Madras Act II of 1930. 
12  [Act No.VII of 1920] 
  (a) in cases in which the modification involves  the 
inclusion in or exclusion from the scheme of any land or the 
acquisition of any land not originally proposed to be 
acquired, and  
 
  (b) in every other case in which the modification is in 
the opinion of the council or of the *[State Government], of 
sufficient importance to require the following of this 
procedure. 
 
 (5) The sanction of the *[State Government] to a 
scheme under sub -section (3) shall be published by 
notification in the 37[Official Gazette], and such notification 
shall state at what place and time the scheme will be open 
to the inspection of the public. 
 
 (6) A notification published under sub -section (5) shall 
be conclusive evidence that the scheme has been duly 
made and sanctioned. The scheme shall have effect from 
the date of publication of such notification and the execution 
of the scheme shall be commenced forthwith: 
 
 Provided that, where the scheme so provides, the 
execution of the scheme or any part thereof may be 
deferred until such time as may be fixed in the scheme. 
 
38[15. (1) A town -planning scheme sanctioned under 
section 14 may at any time be varied or revoked by a 
subsequent scheme, published and sanctioned in 
accordance with this Act: 
 
 Provided that the municipal council shall be competent 
to modify a scheme after it has been sanctioned by the 
*[State Government] under section 14 by an agreement 
                                                           
37. Substituted by the Adaptation Order, 1937. 
38. Substituted by Madras Act II of 1930. 
Variation or 
revocation of 
schemes. 
[Act No.VII of 1920]  13 
entered into with the persons interested in the scheme a nd 
with the concurrence of the *[State Government]. 
 
 (2) (a) The *[State Government] may, at an y time, by 
notification in the 39[Official Gazette], vary or revoke a 
scheme sanctioned under section 14. 
 
  (b) Before  issuing such notification the *[State 
Government] shall publish in the pr escribed manner a draft 
of such notification together with a notice specifying a date 
on or after which such draft will be taken into consideration 
and shall consider any objection or suggestion which may 
be received in respect of such draft from the counc il or any 
person affected by the scheme before the date so 
specified.] 
 
16. If at any time after the day on which a scheme has 
come into force such scheme is varied or revoked, any 
person who has incurred expenditure for the purpose of 
complying with such sch eme shall be entitled to receive 
compensation from the municipal council in so far as, by 
reason of the variation or revocation of such scheme, such 
expenditure has ceased to be in any way beneficial to him. 
 
17. After the publication of a notification under section  10 
or section 12, no person shall erect, or proceed with, any 
building or work on, or enter into or carry out a contract in 
respect of, land within the area included in the sche me, 
unless he has appl ied for, 40[and obtained permission, in 
cases where a scheme has not been sanctioned, from the 
municipal council, an d in other cases , from a responsible 
authority]: 
 
                                                           
39. Substituted by the Adaptation Order, 1937. 
40. Substituted by Madras Act II of 1930. 
Limitation of 
compensation 
payable to person 
affected by 
variation or 
revocation of 
scheme. 
Permission to be 
taken for 
construction, etc., 
after publication 
of draft scheme. 
14  [Act No.VII of 1920] 
 Provided that, if the counci l 41[or the responsible 
authority] omits for th ree months from the date of rece ipt of 
such application, to communicate to the applicant any 
orders thereon, it shall be de emed to have granted the 
permission. 
 
18. From the d ate of the notification of the *[State 
Government] sanctioning a scheme under section 14, all 
owners of lands and buildings in the area affected by the 
scheme who propose to construct or reconstruct or in any 
way alter or add to buildings shall conform in every 
particular with the requirements of such scheme ; and no 
building shall be constructed or reconstructed in any area in 
which building is expre ssly forbidden in the scheme, or 
which is reserved in the scheme for any purpose 
incompatible with building. 
 
42[18-A. (1) Subject to the provision s of this Act the 
competent authority shall levy, development charges at  
such rate as may be prescribed on th e institution of use or 
change of use of land or building or development of any 
land or building for which permission is required under this 
Act in the whole area or any part of the development area: 
 
 Provided that dif ferent rates of development charges 
may be prescribed for different parts of the development 
area and for different uses. 
 
 (2) Notwithstanding anything contained in sub -section 
(1) no development charges shall be levied on the institution 
of use or change of use of land or building or development 
of any land or building vested in or under the control or 
possession of the Central or the State Government or of any 
local authority. 
                                                           
41. Inserted by Madras Act II of 1930. 
42. Sections 18-A and 18-B inserted by Act No.14 of 1996. 
Obligation on 
owners to comply 
with scheme after 
sanction. 
Power to levy 
development 
charges. 
[Act No.VII of 1920]  15 
18-B. (1) For the purpose of assessing the development 
charges, the use of land or building shall be classified under 
the following categories:- 
 
  (i) Industrial; 
 
  (ii) Commercial; 
 
  (iii) Residential; 
 
  (iv) Agricultural or conservation and recreational; and 
 
  (v) Miscellaneous (other uses). 
 
 (2) In classifying the use of land or building under any 
of the categories mentioned in sub -section (1), the 
predominant purpose for which such land or building is 
used shall be the main basis for such classification.] 
 
19. (1) On and after the day on which the scheme comes 
into force, the 43[responsible a uthority] may make a 
provisional order requiring an owner,- 
 
  (a) to remove, pull down, or alter any building or 
other work in the area included in the sc heme which is such 
as to contravene the scheme, or in the erection or carrying 
out of which any provision of the sc heme has not been 
complied with; or 
 
  (b) to execute within a specified period  any work 
which it is the owner ‟s duty to execu te under the scheme, 
where the 43[responsible authority] is of opinion that delay in 
the execution of the work would prejudice the efficient 
operation of the scheme. 
 
                                                           
43. Substituted for “chairman” by Madras Act II of 1930. 
Power of 
responsible 
authority to 
enforce scheme. 
Classification of 
land or building. 
16  [Act No.VII of 1920] 
 (2) The 44[responsible authority] shall serve a copy of 
the provisional order made under sub -section (1) on the 
owner, together with a notice requiring him to show cause, 
within a reasonable time to be specified in such notice, why 
the order should not be confirmed. 
 
 45[(3) If the owner fails to show cause to the satisfaction 
of the responsible authority, the responsible authority may 
confirm the order granting such further period as it may 
deem fit, to execute the work and such order shall be 
communicated to and be binding on the owner and may be 
enforced. The expenses of enforcement may be recovered 
in the prescribed mann er. An appeal shall lie to the *[State 
Government] against the order of the responsible authority 
and their decision shall be final.] 
 
CHAPTER IV 
COMPENSATION FOR INJURIOUS AFFECTION AND 
CONTRIBUTION FOR BETTERMENT. 
 
20. Any person whose property is injur iously affected by 
any refusal 46[XXX] to grant the permission applied for under 
section 17 or by the making of  a town -planning scheme 
shall, if he makes a claim for the purpose within the time (if 
any) limited by the scheme, not being less than three 
months after the date of public ation of a notification by the 
*[State Government] sanctioning the scheme under sect ion 
14, be entitled to obtain compensation in respect thereof 
from the municipal council. 
 
21. A person shall not be entitled to obtain compensation 
under section 20 on account of any building erected on, or 
contract made, or other thing done with respect to, land 
                                                           
44. Substituted for “chairman” by Madras Act II of 1930. 
45. Sub-section (3) substituted by Madras Act II of 1930. 
46. “Of the municipal council” were omitted by Madras Act II of 1930. 
Right to 
compensation. 
No right to 
compensation for 
building, etc., 
subsequent to first 
notification. 
[Act No.VII of 1920]  17 
included in scheme, after the date of the publication of the 
notification under section 10 47[XXX] or section 12: 
 
 Provided that this provision shall not apply to any 
building erected, contract made or other thing done in 
accordance with a permission granted under section 17. 
 
22. (1) Where property is alleged to be injuriously affected 
by reason of any provisions contained in a town -planning 
scheme, no compensation shall be paid in respect thereof, if 
or in so far as the provisions are such as would have been 
enforceable without c ompensation under any law, rule or 
bye-law at the time in force. 
 
 (2) Property shall not be deemed to be injuriously 
affected by reason of any provisions inserted in a scheme, 
which impose any conditions or rest rictions in regard to any 
of the matters specified in section 4,  clause (m) or clause 
(n). 
 
 (3) Where a person is entitled to compensation under 
this Act in respect of any matter or thing, and he would be 
entitled to compensation in respect of the same matter or 
thing under any other Act, he sha ll not be entitled to 
compensation in respect of that matter or thing under both 
the Acts, nor shall he be entitled to any larger compensation 
under this Act than he would be entitled to under the other 
Act. 
 
48[22-A. (1) The municipal council may, within three months 
from the date of an award of compensation in respect of 
property injuriously affect ed, make an application to the 
*[State Government] to sanction the withdrawal or 
modification of all or any of the provisions of the scheme 
                                                           
47. “Sub-section (1)” omitted by Madras Act II of 1930. 
48. Section 22-A inserted by Madras Act II of 1930. 
Exclusion or 
limitation of 
compensation in 
certain cases. 
Application for 
sanction for 
withdrawal or 
modification of the 
scheme. 
18  [Act No.VII of 1920] 
which gave rise to the claim for compensation and give 
notice of such application to the owner of such property. 
 
 (2) If the *[State Government] ac cord such sanction, 
the award of compensation shall stand cancelled, and the 
municipal council shall pay the costs if any, awarded by the 
arbitrator in connexion with the claim for compensation. 
 
 (3) Nothing contained in this section shall affect the 
right of the owner to make a fresh claim for compensation in 
respect of the mod ified scheme sanctione d by the *[Stale 
Government] under sub-section (2). 
 
 (4) No award of compensation in respect of property 
injuriously affected shall be enforceable within thre e months 
from the date thereof, or, if notice has been given under 
sub-section (1), pending the orders of the *[State 
Government] on the application made under the same sub -
section.] 
 
23. Where by the maki ng of any town -planning scheme 
49[the value of any property has increased or is likely to 
increase], the municipal council, if it makes a claim for the 
purpose within the time (if any) limited by the scheme 50[not 
being less than three months] after the date of publication of 
a notification of the *[State Gove rnment] sanctioning a 
scheme under section 14, shall be entitled to recover from 
the owner of such property an annual betterment 
contribution for such term of years and at such un iform 
percentage of the increase in value not exceeding ten per 
centum as may be fixed in the scheme: 
 
                                                           
49. Substituted for “any property is increased in value ” by Madras Act II 
of 1930. 
50. Substituted for “not being later than six months ” by Madras Act II of 
1930. 
Power to levy 
betterment 
contribution. 
[Act No.VII of 1920]  19 
 Provided that the aggregate amount of the  
contributions so re covered shall not exceed one -half of the 
maximum increase in value  during the aforesaid term of 
years as ascertained under the next following section. 
 
24. The betterment contribution shall be levied according 
to the following principles:- 
 
 (a) In respect of each property on which the 
contribution may be levied under section 23, its market 
value at the date of the publication of the notification under 
section 10, 51[XXX] or section 12, sha ll be estimated without 
reference to the improvements contemplated in the scheme. 
 
 (b) In each of the financial years following that in which 
the scheme takes effect under section 14, 52[sub-section 
(6)], the market value of each such property on the first day 
of April of that year shall be estimated by the chairman. 
 
 (c) If in any financial year, the market value estimated 
under clause (b) does not exceed that estimated under 
clause (a), no betterment contribution shall be levied for that 
year. 
 
 (d) If in any  financial year, the estimated market value 
under clause (b) exceeds that under clause (a), the 
municipal council shall levy on the difference a betterment 
contribution according to the percentage fixed in the 
scheme: 
 
 Provided that in estimating the mark et value of land 
under clause (a) or clause (b), the value of buildings or 
other works erected or in the course of erection on such 
land shall not be taken into consideration. 
                                                           
51. “Sub-section (1)” omitted by Madras Act II of 1930. 
52. Substituted for “sub-section (5)” by Madras Act II of 1930. 
Betterment 
contribution how 
calculated. 
20  [Act No.VII of 1920] 
25. (1) The betterment contribution shall be a first charge 
on the property on which it is due, subject to the prior 
payment of land revenue, if any, due to the Government 
thereon, and shall be paid in half -yearly instalments of one -
half of the amount fixed for the year. 
 
 (2) (a) The *[State Government] may make rules for the 
assessment and collection of the betterment contribution, 
and subject to such rules, (i) the chairman shall have the 
same powers and shall adopt the same procedure for the 
assessment and collection of the b etterment contribution as 
he has for the assessment and collection of the property tax, 
(ii) persons affected shall have the same right to receive 
notice of assessment and to object to the assessment and 
to appeal in respect thereof as they have in respect  of the 
property tax, and (iii) decisions on appeal shall to the same 
extent be final and conclusive; and 
 
  (b) lands and buildings exempt from the property tax 
shall also be exempt from any betterment contribution. 
 
26. (1) If the owner of any property, separately registered 
in the municipal assessment books and assessed to a 
betterment contribution in any particular year, objects to the 
amount of such contribution on the ground that the market 
value estimated under clause (b) of section 24 is excessive, 
he shall state the market value which, he contends, is 
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 municipal council to acquire the 
property together with any buildings or other works that may 
exist thereon. 
 
 (2) The counci l shall thereupon either acquire the 
property or accept the market value as stated by the owner 
and revise its ass essment of the betterment contribut ion in 
accordance therewith. 
Assessment and 
collection of 
betterment 
contribution. 
Option of 
objecting owner 
to require council 
to acquire his 
property. 
[Act No.VII of 1920]  21 
 (3) In case the council elects to acquire the property 
the compensation payable the refor shall be determined 
53[according to the provisions of the Land Acquisition Act, 
1894, or according to those provisions as modified by 
sections 34 and 35, as the case may require]: 
 
 Provided that the compensation payable for the 
property, apart from the buildings or other works thereon, 
shall not exceed the market value stated by the owner under 
sub-section (1). 
 
CHAPTER V. 
THE ARBITRATOR. 
 
54[27. (1) After a scheme has been sanctioned the *[State 
Government] may and if so required by the council or any 
person interested in the scheme shall appoint an arbitrator 
with sufficient establishment to discharge all or any of the 
following duties:- 
 
  (a) to pass such orders as may be required under 
clauses (a) to (d) of sub-section (2) of section 5; 
 
  (b) to define, and, where necessary, to demarcate or 
cause the demarcation  of, the reconstituted plots or the 
areas allotted to, or reserved for, the purposes mentioned in 
clause (k) of section 4; 
 
  (c) to decide, in reference to the claims made, 
whether any property is injuriously affected within the 
meaning of section 20, and  award the compensation, if any, 
to be paid to the owner concerned in accordance with the 
provisions contained in Chapter IV; and 
                                                           
53. Substituted for the words “according to the provisions of the Land 
Acquisition Act, 1894, as modified by Chapter VII of this Act ” by Madras 
Act IV of 1934. 
54. Substituted by Madras Act II of 1930. 
State Government 
to appoint 
arbitrator. 
Central Act I of 1894. 
22  [Act No.VII of 1920] 
  (d) to determine, in reference to the claims made, the 
properties which are liable to the betterment contribution 
under section 23 and estimate and record their market value 
as the date of the notification under section 10 or section 12, 
as the case may be, in accordance with the provi sions of 
clause (a) of section 24. 
 
 (2) The decisions of the arbitrator under clauses (a) 
and (b) of sub -section (1) shall be read as part of the 
scheme sanctioned under section 14 and shall be final and 
binding on all persons: 
 
 Provided that where any such decision is in conflict 
with any provision in the scheme it shall require the approval 
of the *[State Government] and, on such approval bein g 
given, shall be deemed, to the  extent mentioned in such 
decision, to have varied the sanctioned scheme.] 
 
55[28. (1) The arbitrator shall give  notice of his proceedings 
and conduct them in the prescribed manner and 
communicate his decision to the parties concerned. 
 
 (2) An arbitrator shall have all the powers of a Civil 
Court under the Code of Civil Procedure, 1908, fo r the 
purpose of taking evidence on oath and of enforcing the 
attendance of witnesses and compelling the production of 
documents and material objects. 
 
 (3) The costs of and incident to all proceedings before 
the arbitrator shall be in his discretion and the arbitrator 
shall have full power to determine by whom or out of what 
property and to what extent such costs are to be paid and to 
give all necessary directions for the purpose aforesaid.] 
 
                                                           
55. Substituted by Madras Act II of 1930. 
Powers and 
duties of 
arbitrator. 
Central Act 5 of 1908. 
[Act No.VII of 1920]  23 
56[29. (1) Any party aggrieved by any decision of the  
arbitrator under clause (c) or clause  (d) of sub-section (1) of 
section 27 may within three months from the date of the 
communication of such decision appeal to th e District 
Judge concerned 57[XXX]. 
 
 (2) The decision of the arbitrator under clause  (c) or 
clause (d) of sub -section (1) of section 27 and, when an 
appeal has been preferred under sub -section (1), the 
decision on such appear shall be read as part of the 
scheme sanctioned under section 14 and shall be final and 
binding on all persons.] 
 
CHAPTER VI. 
FINANCE. 
 
30. (1) The receipts of a municipal council under this Act or 
any town -planning scheme made thereunder shall form a 
separate town-planning fund and all expenditure under this 
Act or any town -planning scheme thereunder shall be 
defrayed out of such fund. No portion of the fund shall, 
except with the sanction of the *[State Government ], be 
expended for purposes not provided for by this Act. 
 
 (2) The moneys required, in the first instance, to 
establish such fun d, and any deficiency from time to time 
occurring in such fund by reason of the excess of 
expenditure over receipts shall, subject to such rules as the 
*[State Government] may frame in this behalf be supplied 
out of the general municipal fund or out of mon eys 
borrowed in pursuance of this Act. 
 
 (3) Separate accounts shall be maintained by each 
municipal council for its town-planning fund. 
                                                           
56. Substituted by Madras Act II of 1930. 
57. Omitted by the A.A (Amdt) O. 1954. 
Appeal. 
Municipal town-
planning fund. 
24  [Act No.VII of 1920] 
31. A municipal council, taking action under this Act, shall 
be deemed to  be a local authority as defined in the Local 
Authorities Loans Act, 1914, for the purpose of borrowing 
money under the provisions of that Act, and the making and 
execution of a town-planning scheme shall be deemed to be 
a work which such local authority i s legally authorized to 
carry out. 
 
58[32. [XXX]] 
 
CHAPTER VII. 
LAND ACQUISITION. 
 
33. Immovable property required for the purposes of a 
town-planning scheme shall be deemed to be land needed 
for a public purpose, within the meaning of the 59Land 
Acquisition Act, 1894, 60[and may be acquired,- 
 
 (a) under the said Act, or 
 
 (b) under the said Act as modified in the manner 
hereinafter provided in this chapter.] 
 
34. 60[In cases falling under clause (b) of section 33 a 
notification under section 14 shall, notwithstanding anything 
contained in the Land Acquisition Act, 1894, operate] in 
respect of any land for the purposes of the scheme as a 
declaration under section 6 of the said Act and no furth er 
declaration shall be necessary, but it shall not be incumbent 
on the *[State Government], or officer authorized in that 
behalf, to take immediate steps for the acquisition of such 
land. Provided that if the land is not acquired within three 
years from the date of the notificati on, it shall cease to have 
                                                           
58. Section 32 was omitted by the Adaptation Order, 1937. 
59. See now the Provisions of the Act, 2013 (Central Act 30 of 2013). 
60. Substituted by Madras Act IV of 1934. 
Power to borrow. 
Modification of 
land Acquisition 
Act. 
Notification under 
section 14 to have 
effect as 
declaration under 
section 6, Land 
Acquisition Act. 
Central Act I of 1894. 
Central Act 9 of 1914. 
[Act No.VII of 1920] 

Excerpt shown. Open the full act in Lexace.

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