Town Planning Scheme for MPSC Exam

• Assistant Town Planner study notes on Town Planning Scheme for MPSC Exam

Syllabus Topics

• Town Planning Scheme concept
• Preparation of Town Planning Scheme as per MR & TP Act 1966 provisions
• Relation of Town Planning Scheme with Development Plan (DP)
• Original Plot, Final Plot, and Semi-final Plot definitions
• Incremental Contribution (Betterment Charge)
• Rationale for charging Incremental Contribution
• Contents of TPS and its cost
• Functions of Arbitrator
• Advance Possession
• Amenities Partially beneficial
• Functions of Tribunal of Appeal
• Town Planning Legislation in Maharashtra is included

Town Planning Legislation in Maharashtra

• Bombay Town Planning Act, 1915:
  • Authorisation to undertake Town Planning Scheme, but not mandatory
  • Only larger towns prepared schemes
• Bombay Town Planning Act, 1954:
  • Preparation of Development Plans (DPs) was made mandatory
  • Town Planning Scheme served as a tool to implement DP proposals
• Maharashtra Regional & Town Planning Act, 1966:
  • Preparation of Regional Plans (RP) introduced
  • Preparation of DPs made mandatory
  • TPS as a tool to implement DP Proposals, and can now be prepared for any area under development
• In pre-independence India, the first Town Planning Scheme was implemented in 1917 in the Jamalpur area of Ahmadabad city, under the Bombay Town Planning Act, 1915

Town Planning Scheme Stories

• Maharashtra State:
  • Many schemes were prepared by Consulting Surveyors to the Governments of Maharashtra, Gujarat, and Karnataka, which were then parts of the Bombay Province
  • Approximately 125 schemes were prepared for around 10000 hectares in Mumbai, Pune, Solapur, etc
  • Approximately 40 schemes in Mumbai
• Gujarat State:
  • Gujarat modified and enacted the Gujarat Town Planning and Urban Development Act, 1976
  • Provision for "Area Development Authority" was incorporated and authorities like SUDA, AUDA, and RUDA were created
  • Development activities used TPS concept

Smart City Scheme

• The Smart City Scheme of the Central Government envisages urban development in broad categories: Brownfield and Greenfield
• Brownfield development:
  • Retrofitting involves road widening in congested core areas
  • Redevelopment forms clusters in already developed congested core areas.
• Greenfield development:
  • It includes planned development of lands on the outskirts or vacant lands

Urban Land Management (ULM)

• ULM formulates and administers policy instruments to ensure adequate land availability at reasonable prices
• Constituents of ULM include land assembly, development, and disposal
• Land Assembly Techniques:
  • Compulsory Acquisition
  • Private negotiations
  • Acquisition through land exchange
  • Acquisition through grant of TDR/FSI
  • Acquisition through Accommodation Reservation
  • Acquisition through confiscation & Nationalization
  • Public – Private ventures

Learnings from Experiences

• The LARR Act 2013 has increased the financial burden on funds-starved Urban Local Bodies.
• Land Acquisition Cases create inequality
• Delays occur due to Court references in Land Acquisition cases
• Town planning scheme is land acquisition without tears

Town Planning Scheme Stages

• Three stages: Draft, Preliminary, and Final
• Principles of TPS:
  • Land Pooling
  • Plot Reconstitution
  • Redistribution of Reconstituted Plots
  • Maximum Incremental Contribution 50%
  • Making land available for public purpose

Terminologies in Town Planning Scheme

• OPs – Original Plots: original land/plot with survey or city survey number
• FPs – Final Plots: reconstituted final plot in TPS
• Valuation & Redistribution Statement
  • OP Value (Original Plot Value) – value of original plot in its original state on the declaration date
  • SFP value (Semi-final Plot Value) – value of the final plot without considering improvement contemplated under the scheme
• FP value (Final Plot Value) - value of the final plot considering improvements contemplated by the scheme

Valuations

• All values are estimated on the date of declaration of intention
• O.P Value is the value of the Original land /Plot
• Semi-Final Value accounts for what happens to the original plot
  • Reduction in area for which compensation is paid
  • Regular shape plot – certain addition in value
  • Value of the Final Plot does not consider development carried out
• Final Value considers development when valuing final plot

Compensation, Increment, Contribution

• Compensation: difference between original and semi-final plots
• Increment: difference between final and semi-final values
• Contribution: scheme self-financing via authority levying contribution on each final plot out of UNEARNED INCOME
  • No more than 50% of the increment can be recovered from any owner
  • Contributions are not levied on plots used for public purposes
  • Contributions are levied partly on plots beneficial to scheme holders
• Examples:
  • Total Increment = 120 Cr., Cost of Scheme = 50 Cr. (less than 50% of 120 Cr.); Contribution to be less than 50% of increment
  • Cost of Scheme = 70 Cr. (more than 50% of 120 Cr.); Contribution to be no less than 50% of increment

From Owner's Angle

• Return of Buildable FPs
• No Dispossession
• Improvement in standard of Living
• Full benefits in the Scheme area, like a New Town
• If the scheme costs are met through land sales, minimal owner contributions
• If costs are met through Planning Authority funds and land sales, minimal owner contributions
• FSI/TDR can be given in lieu of compensation for area loss, if desired

From Authority's Angle

• Land available for public purposes, with minimal resistance
• Speedy Development of basic infrastructure
• Increase in land value, resulting in acceptance of TPS
• Speedy implementation of social infrastructure, increasing income
• Win-win for both Owner and Authority
• Purchase Notice u/s 49 & 127, not applicable once scheme intention is declared
• Recovery of betterment charges is possible

Government's Angle

• Constitutional obligation of providing public amenities/facilities, is fulfilled.
• Development Plan proposals made easy through TPS, at local level
• Fewer land acquisition cases and litigation
• Lower capital investment by the state

Draft Town Planning Scheme Procedure

• Declaration of Intention u/s 60
• Publication of Declaration & Plan
• Copy of Declaration & Plan to Govt. & DTP
• Tentative Proposals of T. P. Scheme
• Explaining the Proposals to the Owners in their Meeting
• Publication of the Draft T. P. Scheme under Section 61
• Finalization considering suggestions of Director of Town Planning
• Consultation with the Director of Town Planning 3 months before publication
• Preparation of Draft Scheme Considering suggestions in the meeting
• Submission of draft T.P. Scheme To Govt. for sanction u/s 68
• Sanction to the Draft T.P. Scheme u/s 68 by Govt.
• Modifications in the Scheme in light of suggestions & objections received within 30 days
• Vesting of Lands Under Roads, Water Supply, Lighting, Drainage, and Sewerage Disposal

Drawing Town Planning Scheme Procedure By Arbitrator

• Appointment of Arbitrator u/s 72
• Preliminary Scheme
• Sanction to scheme by Govt u/s 86
• Assistance by Planning Authority
• One Month
• Enter upon duties, Demarcate and serve Special Notice in Form 4 Upon every Owner
• Drawal of Scheme & Publication
• Communicating decision to every owner in form 5
• Tribunal of Appeals u/s 75
• Appeals within 2 Months
• To receive the Suggestions & Objections within given time & within 60 days for claim of injurious affection
• Then Hearing & recording Minutes
• Submission of Preliminary Scheme to Govt. u/s 72 (5)
• Final Scheme
• Drawal of Scheme & Publication
• Splitting of Draft Scheme
• Revision
• 9 + 3 Months
• 18 + 3 Μ.
• 2 Month + 3 Month +
• Submission of Final Scheme to Govt. u/s 82
• Finalization of Planning part of the scheme
• Finalization of Financial Part of the Scheme

Provisions of MRTP Act, 1966

• Provisions of MRTP Act, 1966 related to TPS
• Sec. 59 – (a) Planning Authority can Prepare Town Planning Scheme
• For implementing Development Plan (DP) proposals or land likely to be in course of development. (b) a town planning scheme may make provision for anything in section for any of the following matters:
  • Any of the matters specified in section 22
  • Laying out or re-laying out of land, either vacant or already built upon, including areas of comprehensive development
  • Filling-up or reclamation of low-lying, swampy or unhealthy area, or leveling-up of land
  • Layout of new streets or roads, construction, diversion, extension, alteration, improvement and closing up of streets and roads and discontinuance of communications
  • Construction, alteration and removal of buildings, bridges and other structures
  • Allotment or reservation of land for open spaces, gardens, recreation grounds, schools, markets, green-belts, dairies, transport facilities and public purposes of all kinds
  • Drainage, inclusive of sewerage, surface or sub-soil drainage and sewage disposal
  • Lighting
  • Water supply
  • Preservation of objects of historical or national interest or natural beauty, and of building actually used for religious purposes
  • Suspension of any rule as far as may be necessary for properly carrying out of the scheme, bye-law, regulation, notification or order
• Planning Authority with the approval of the Director of Town Planning and subject to the provisions of section 68 to provide for suitable amendment of the Development Plan

MRTP Act, 1966 Sections

• Sec. 60. Power of Planning Authority to resolve on declaration of intention to make scheme
  • Authority may resolve to make a town planning scheme
  • No later than thirty days from declaration, authority shall publish the declaration
  • Post to Gazette, newspaper
  • Copy of plan to State Government & Director
  • Open to Public during all reasonal hours
• Sec. 61- Making and Publication of Draft Scheme
  • Subject to conditions, no later than nine months from the date of declariation, Planning Authority shall make a draft scheme
  • Publish to Official Gazette and in another way as precribed
  • Scheme availble for inspection plus sale
  • Person affected can object (Rule) within 30 days
  • Failing this, authority lapses, unless the State Government appoints an Officer to prepare
• Sec. 62. Inclusion of additional area in draft scheme
  • Before a draft scheme is prepared, the Authority can include it in the Official Gazette newspapers
• Sec. 63. Power of State Government to require Planning Authority to make scheme.
  • The State Goverment may, direct the planning authority, that authroity makes it necessary,
• Sec. 64. Contents of Draft Scheme
  • A draft scheme shall contain the following particulars
• Sec. 65. Reconstituted plot.
• Size and Shape determined to be suitable for builidng purposes
• Sec. 66. Compensation for discontinuance of use.
• Building cannot be built on designated areas
• Sec. 67. Objections to draft scheme to be considered.
• If draft scheme is not valid it can be objected to
• The State Goverment can modify the scheme
• Sec. 68. Power of State Government to sanction draft scheme.
  • the officer forsaid the modifications of draft scheme
• Sec. 68A. Effect of sanction of draft scheme.
  • Where is vest absolutely in the Appropriate Authority from all encumbrances
• Sec. 69. Restrictions on use and development of land after declaration for town planning scheme
• One cannot add a building or construct
• Sec. 70. Power of State Government to suspend rule, bye- law, etc.
  • Authority should suspends if there a bylaw conflict
• Sec. 71. Disputed ownership
  • There should be no conflicting ownership
• Sec. 72. Arbitrator
  • should have a qualified background