Town Planning Scheme is prepared under section 59 to 112 from chapter 5 in Maharashtra State. As per 59 of M.R.T.P. Act the planning authority (Planning authority can be Municipal Corporation, Municipal Council or Local Body) can start preparation and contents of Town Planning Scheme for the implementation of Development Plan.

The Town Planning Scheme requires sanctioning at two stages till is passed for implementation. Firstly Draft stage which is prepared by planning authority needs to get sanction by State Government and secondly Arbitrator prepared the final scheme in accordance to draft scheme which is sanctioned by State Government previously. After sanctioning of final scheme by Arbitrator next step is to hire the individual appeal made by owner, take decision as per situation and incorporate it n the final scheme submit it to the State Government. Next step to impose Betterment Charges on the land owners basically it is difference between increases in land value after declaration of Town Planning Scheme. (As per the Act maximum betterment charges is limited up to the 50% of increased cost) Basic intension of betterment charges is to meet the cost of the scheme. Also interestingly in this Act it is mention that Betterment Charges should not exceed the cost of scheme means the Planning Authority should not make any kind of profit from the scheme. If this betterment charges exceed the cost then the percentage has to be equally reduce. So basically concept of T.P.S. is no profit no loss mechanism.

In the process of MRTP Act first tire is to prepare Regional Plan, The second tire is to prepare Development Plan and third tire is to prepare Town Planning Scheme to implement the Development Plan.

Preparation of Town Planning Scheme is not necessary on the behalf of Planning Authority except when it is directed by State Government under section 63 of MRTP Act 1966.

Flow chart of preparation of Town Planning Scheme as bellow-

Analysis of Preparation of Town Planning Scheme-

Sanctioning of Scheme- Government sanctioning is done at two stages first at draft scheme which is prepared by Planning Authority and second is at final stage which is prepared by Arbitrator which takes too much time sanction the scheme.

Sanctioning the Draft Scheme- Time required for sanctioning the Draft Scheme is 24 months as per the Act.

No Time Limit- As per the Act there is no time limit mention in the Act for Tribunal of Appeal to the stage of sanctioning of final scheme.

Duplication of Work- Draft Scheme is prepared by planning authority and Final Scheme is prepared by Arbitrator.

Implementation Process- Implementation process starts only after sanction of final scheme by Government. This usually takes 3.5 years to complete.

Betterment Contribution- Upper limits of betterment contribution is up to the 50% of increased cost of land because of declaration of Town Planning Scheme. Declaration of Betterment Contribution is on the date of declaration of Town Planning Scheme and the cost of development works as on the day just before the declaration of award.

Legal Procedure-

(Source-M.R.T.P. Act 1966)

(A) Making of Town Planning Schemes

Section 59-(Source-M.R.T.P. Act 1966)

Section 59(a)

With the reference with section 59(a) Town Planning scheme (one or more) can start preparation with intention of implementing Development Plan which is within the jurisdiction of Municipal Corporation.

Section 59(b)

It provides the contents of the scheme. Purpose of Town Planning Scheme is to implement the sanction Development Plan; its contents will be the same as those of Development Plan provided in section 22 of M.R.T.P. Act. Town Planning Scheme contains the following matter with section 22 says that-

Proposals for allocating the use of land for purposes, such as residential, industrial, commercial, agricultural, recreational;

Proposals for designation of land for public purpose, such as schools, colleges and other educational institutions, medical and public health institutions, markets, social welfare and cultural institutions, theatres and places for public entertainment, or public assembly, museums, art galleries, religious buildings and government and other public buildings as may from time to time be approved by the State Government;

Proposals for designation of areas for open spaces, playgrounds, stadia, zoological gardens, green belts, nature reserves, sanctuaries and dairies;

Transports and communications, such as roads, high-ways, park ways, railways, water-ways, canals and airports, including their extension and development;

Water supply, drainage, sewerage, sewage disposal, other public utilities, amenities and services including electricity and gas;

Reservation of land for community facilities and services;

Proposals for designation of sites for service industries, industrial estates and any other development on an extensive scale;

Preservation, conservation and development of areas of natural scenary and landscape;

Preservation of features, structures or places of historical, natural, architectural and scientific interest and educational value 1[and of heritage buildings and heritage precincts];

Proposals for flood control and prevention of river pollution;

Proposals of the Central Government, a State Government, Planning Authority or public utility undertaking or any other authority established by law for designation of land as subject to acquisition for public purpose or as specified in a Development plan, having regard to the provisions of section 14 or for development or for securing use of the land in the manner provided by or under this Act;

The filling up or reclamation of low lying, swampy or unhealthy areas, or leveling up of land;

Provisions for permission to be granted for controlling and regulating the use and development of land within the jurisdiction of a local authority including 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 location, number, size, height, number of storey’s and character of buildings and density of population allowed in a specified area, the use and purposes to which buildings or specified areas of land may or may not be appropriated, the sub-division of plots the discontinuance of objectionable users 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 and boarding’s and other matters as may be considered necessary for carrying out the objects of this Act.

In addition to section 22, section 59 provides following contents;

The laying out or re-laying out of land, either vacant or already built upon, including areas of comprehensive development;

The suspension, as far as may be necessary for the proper carrying out of the scheme, of any rule, by-law, regulation, notification or order made or issued under any law for the time being in force which the Legislature of the State is competent to make;

Such other matter not inconsistent with the object of this Act, as may be directed by the State Government.

Section 60-(Source-M.R.T.P. Act 1966)

Actual approach towards the preparation of Town Planning Scheme starts under this section.

Power of Planning Authority to resolve on declaration of intention to make Scheme:-

Area for development through Town Planning Scheme is selected from sanctioned Development Plan.

A Planning Authority may by resolution declare its intention to make a town planning scheme in respect of any part of the area within its jurisdiction.

Not later than thirty days from the date of such declaration of intention to make a scheme (hereinafter referred to as the declaration), the Planning Authority shall publish the declaration in the Official Gazette, and in such other manner as may be prescribed and dispatch a copy thereof (together with a copy of the plan showing the area to be included in the scheme) to the State Government and also to the Director of Town Planning.

A copy of the plan shall be open to the inspection of the public at all reasonable hours at the head office of the Planning Authority.

Section 61-(Reference-M.R.T.P. Act 1966)

This section provides for preparation and publication of draft scheme by planning authority.

Making and publication of draft scheme [by means of notice]:-

This section provides for preparation and publication of draft scheme by planning authority within the period of 12 months from the date of declaration and invites suggestions and objections from land owners. This period is expandable by State Government by six months to complete the procedure otherwise declaration lapses. In such case Government has powers to get the scheme prepared and published through officer appointed by the Government. Under the Maharashtra Town Planning Scheme Rules framed under this Act, owners will receive the public notice as well as individual notice from the planning authority, explaining the proposal of the draft scheme for public opinions and suggestions. The objective is to give attention to give consideration to such objections and suggestions (if necessary) before finalizing the draft scheme. Then the planning authority can make changes accordingly before finalizing the draft scheme.

Section 62-(Reference-M.R.T.P. Act 1966)

Inclusion of additional area in draft scheme:-

As per this section during the preparation of draft scheme planning authority can add additional area in its draft scheme, by informing the State Government and giving notice in the Official Gazette, and also in one or more local newspapers, include such additional area in the scheme; and thereupon, all the provisions of sections 59, 60 and 61 shall apply in relation to such additional area as they apply to any original area of the scheme and the draft scheme shall be prepared for the original area and such additional area and submitted to the State Government for sanction.

Section 63-(Reference-M.R.T.P. Act 1966)

Power of State Government to require Planning Authority to make scheme:-

As per section 59 preparation of Town Planning Scheme is voluntary, Government have reserved powers under section 63 to direct the Town Planning Authority to make and publish the scheme for specified area and submit it to Government for sanction. If the Planning Authority fails to make the declaration of intention to make a scheme within three months from the date of direction made under sub-section (1) the State Government may by notification in the Official Gazette appoint an officer to make and submit the draft scheme for the selected land to the State Government and thereupon the provisions of sections 60, 61 and 62 shall, as far as may be applicable, apply to the making of such a scheme.

Section 64-(Reference-M.R.T.P. Act 1966)

This section deals with detail particulars of Town Planning Scheme-

Contents of draft Scheme:-

The ownership, area and tenure of each original plot;

Reservation, acquisition or allotment of land required under sub-clause (1) of clause (b) of section 59 with the 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 to such uses;

The extent to which it is proposed to alter the boundaries of the original plots by reconstitution;

An estimate of the total cost of the scheme and the net cost to be borne by the Planning Authority;

A full description of all the details of the scheme with respect to such matters referred to in clause (b) of section 59 as may be applicable;

The laying out or re-laying out of land either vacant or already built upon including areas of comprehensive development;

The filling up or reclamation of low lying, swamp or unhealthy areas or leveling up of land;

Any other prescribed particulars.

Section 65-(Reference-M.R.T.P. Act 1966)

Reconstituted plot:-

This section allows to Planning Authority to form a Final Plot (F.P.) by making necessary changes in Original Plot (O.P.) by alteration of boundary to form Final Plot which is appropriate size to build the structure.

(1) In the draft 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 a plot is already built upon, to ensure that the buildings as far as possible comply with the provisions of the scheme as regards open spaces.

Section 66-(Reference-M.R.T.P. Act 1966)

Compensation for discontinuance of use:-

This section provides Compensation for discontinuance of use due to proposal of Town Planning Scheme.

Section 67-(Reference-M.R.T.P. Act 1966)

Objections to draft scheme to be considered:-

Under this section any person who is affected by scheme proposal communicates in writing any objection relating to such scheme within the thirty days of time from the date of publication of notice regarding preparation of draft scheme, the Planning Authority or Officer appointed under sub-section (2) of section 61 or section 63 shall consider such objection and may, at any time before submitting the draft scheme to the State Government as hereinafter provided, modify such scheme as it or he thinks fit.

Section 68-(Reference-M.R.T.P. Act 1966)

Power of State Government to sanction draft scheme:-

Under Section 68(1) Planning Authority submit the Draft Scheme for the purpose of sanctioning from State Government within a period of six months from the date of publication of Draft Scheme with any modification by Planning Authority made there in with the copy of objections received from the land owners.

Under Section 68(2) on receiving such application, after making such inquiry as it may think fit and consulting the Director of Town Planning, the State Government may, either sanction such draft scheme with or without modifications and subject to such conditions as it may think fit to impose or refuse to give sanction within the period of six months but it is extendable by Government.

Under Section 68(3) (3) if the State Government sanctions such scheme, it shall in such modification state at what place and time the draft scheme shall be open to the inspection of the public.

Section 69-(Reference-M.R.T.P. Act 1966)

Restrictions on use and development of land after declaration for town planning scheme:-

Under this section once the declaration of intention to prepare the scheme after notification in Maharashtra Government Gazette and in one or two local news paper then there will be restriction on use and development of land. As per this section unless such person has applied for and obtained the necessary permission which shall be contained in a commencement certificate granted by the Planning Authority in the prescribed form, then development can happen.

If any person contravenes the provisions contained in clause (a) or clause (b) of subsection (1), the Planning Authority may direct such person by notice in writing to stop any development in progress, and after making inquiry in the prescribed manner, remove, pull down or alter any building, or other development or restore the land in respect of which such contravention is made to its original condition.

Section 70-(Reference-M.R.T.P. Act 1966)

Power of State Government to suspend rule, bye-law etc:-

For proper smooth working the scheme State Government has power to suspend the rules, regulation notification, order and bylaws.

Section 71-(Reference-M.R.T.P. Act 1966)

Disputed ownership:-

If in any case there is disputed ownership of land within the demarcated area of Town Planning Scheme then Government have power to decide owner of that particular land by appointing special officer. However this decision is not subject to appeal again.

(B) The Arbitrator and the Tribunal of Appeal

Section 72-(Reference-M.R.T.P. Act 1966)

Basically this is most important second stage; it starts with appointment of Arbitrator. This is first stage physical approach towards the implementation of Town Planning Scheme. In this section Government gives some powers and duties to Arbitrator to complete the work.

Arbitrator; his powers and duties:-

Government appoints the arbitrator within the period of one month from the date of publication of draft scheme by State Government. As per this section Government has powers to remove appointed Arbitrator because of incompetence or misconduct or replace for any good and sufficient reason and shall appointed another person to take his place.

Subsection 3 – In accordance with the prescribed procedure, every Arbitrator shall, (Duties and Power of Arbitrator as it is)-

After notice given by him in the prescribed manner define, demarcate and decide the areas allotted to, or reserved for the public purpose or purposes of the Planning Authority, and also the final plots;

After notice given by him in the prescribed manner, decide the person or persons to whom a final plot is to be allotted; and when such plot is to be allotted to persons in ownership in common, decide the shares of such persons;

Estimate the value of and fix the difference between the values of the original plots and the values of the final plots included in the final scheme, in accordance with the provisions contained in clause (f) of sub-section (1) of section 97;

Estimate the compensation payable for the loss of the area of the original plot in accordance with the provisions contained in clause (f) of sub-section (1) of section 97 in respect of any original plot which is wholly acquired under the scheme;

Determine whether the areas allotted or reserved for the public purpose or purposes of the Planning Authority are beneficial wholly or partly to the owners or residents within the area of the scheme;

Estimate the proportion of the sums payable as compensation on each plot used, allotted or reserved for the public purpose or purposes of the Planning Authority which is beneficial partly to the owners or residents within the area of the scheme and partly to the general public, which shall be included in the costs of the scheme;

Determine the proportion of contribution to be levied on each plot used, allotted or reserved for the public purposes or purpose of the Planning Authority which is beneficial partly to the owners or residents within the area of the scheme and partly to the general public;

Determine the amount of exemptions, if any, from the payment of the contribution that may be granted in respect of plots or portions thereof exclusively used or occupied for religious or charitable purposes at the date of which the final scheme is drawn up under clause (xviii) of this sub-section;

Estimate the value of final plots included in the final scheme and the increment to accrue in respect of such plots in accordance with the provisions of section 98; calculate the proportion in which the increment in respect of the final plots included in the final scheme shall be liable to contribution to the cost of the scheme in accordance with the provisions contained in section 97;

Calculate the contribution to be levied on each final plot included in the final scheme;

Determine the amount to be deducted from or added to, as the case may be, the contribution livable from a person in accordance with the provisions contained in section 100;

Provide for the total or partial transfer of any right in an original plot to a final plot or provide for the extinction of any right in an original plot in accordance with the provisions contained in section 101;

Estimate the amount of compensation payable under section 66;

Where a plot is subject to a mortgage with possession or a lease, decide the proportion of compensation payable to or contribution payable by the mortgagee or lessee on one hand and the mortgagor or lesser on the other;

Estimate in reference to claims made before him, after the notice given by him in the prescribed manner, the compensation to be paid to the owner of any property or right injuriously affected by the making of a town planning scheme in accordance with the provisions contained in section 102;

Determine the period in which the works provided in the scheme shall be completed by the Planning Authority;

Draw in the prescribed form the final scheme in accordance with the draft scheme;

Provided that –

He may make variations from the draft scheme;

He may with the previous sanction of the State Government after hearing the Planning Authority and any owners who may raise objections make substantial variations in the draft scheme.

Explanation: – For the purpose of sub-clause (b) of this proviso, “substantial variation” means increase in the total cost of the draft scheme by more than 20 per cent or two lakhs of rupees whichever is higher, on account of the provisions of new works or the reservation of additional sites for public purposes included in the final scheme drawn up by the Arbitrator.

This section further explains Arbitrator shall decide all matters referred to in sub-section (3) within a period of twelve months from the date of his appointment. Time period can extendable by Government without any specific limit by a notification in the Official Gazette the period for deciding all the matters referred to in that sub-section (3) or any extended period therefore.

Section 73-(Reference-M.R.T.P. Act 1966)

Certain decisions of Arbitrator to be final:-

Except in matters arising out of clauses (iv) to (xi) both inclusive, and clauses (xiv), (xv) and (xvi) of sub-section (3) of section 72, every decision of the Arbitrator shall be final and conclusive and binding on all parties including the Planning Authority.

Section 74-(Reference-M.R.T.P. Act 1966)


Any decision of the Arbitrator under clauses (vi) to (xi) both inclusive and clauses (xiv), (xv) and (xvi) of sub-section (3) of section 72 shall be forthwith communicated to the party concerned including the Planning Authority; and any party aggrieved by such decision may, within two months from the date of communication of the decision, apply to the Arbitrator to make a reference to the Tribunal of Appeal for decision of the appeal.

Section 75 & 76-(Reference-M.R.T.P. Act 1966)

Section 75 is about Constitution of Tribunal Appeal- consist of a President and two Assessors. The President shall – in Greater Bombay, be the Principal Judge of the Bombay City Civil Court or such other Judge of the said Court as may be appointed by the State Government on the recommendation of the Principal Judge; and

Two Assessors who are appointed by President should have knowledge and experience of Town Planning, Valuation of and Civil engineering.

Section 76 is about Arbitrator to assist Tribunal in advisory capacity and his remuneration:-

The Arbitrator has to attend all the proceedings before the Tribunal and he has to assites the Tribunal in advisory capacity.

Section 79-(Reference-M.R.T.P. Act 1966)

Power of Tribunal to decide matter finally:-

Every decision of the Tribunal of Appeal shall be final and conclusive and binding on all persons and parties including the Planning Authority.

Section 82-(Reference-M.R.T.P. Act 1966)

Decisions of Arbitrator to be final in certain matters:-

As per this section in reference with decision of tribunal appeal Arbitrator can make the variation in the Scheme and submit the Final Scheme to State Government for sanction.

Section 83-(Reference-M.R.T.P. Act 1966)

Possession of land in advance of town planning scheme:-

As per this section in case of urgency it provides advance possession of land in case of urgency.

Section 86-(Reference-M.R.T.P. Act 1966)

Sanction by State Government to final Scheme:-

As per this section within the period of 4 months State Government sanctions or refuses to sanction the Final Scheme which is submitted by Arbitrator. Time limit of 4 months is extendable by Government side. If any error, irregularity, and any informality is observed by Government then there scope is limit up to the correction of the same. After sanctioning of such scheme Government decides date on which scheme get implemented under M.R.T.P. Act 1966.

Section 88-(Reference-M.R.T.P. Act 1966)

Effect of final scheme:-

This section basically talks about effects of the final Scheme On and after the day on which a final scheme comes into force –

All lands required by the Planning Authority shall, unless it is otherwise determined in such scheme, vest absolutely in the Planning Authority free from all encumbrances;

All rights in the original plots which have been reconstituted shall determine, and the reconstituted plots shall become subject to the rights settled by Arbitrator;

The Planning Authority shall hand over possession of final plots to the owners to whom they are allotted in the final scheme.

(C) Enforcement of Schemes-

Section 89-(Reference-M.R.T.P. Act 1966)

Power of Planning Authority to evict summarily:-

On and after the day on which a final scheme comes into force, any person continuing to occupy any land which he is not entitled to occupy under the final scheme may, in accordance with the prescribed procedure be summarily evicted by the Planning Authority or any of its officers authorized in that behalf by that Authority.

Section 90-(Reference-M.R.T.P. Act 1966)

Power to enforce scheme:-

As per this section planning authority has powers to enforce the scheme through the prescribed notice and in accordance with the provisions of the scheme, –

Remove, pull down or alter any building or other works in the area included in the scheme which affects the execution of the scheme.

Execute any work which it is the duty of any person to execute under the scheme.

(D) Variation of Schemes

Section 91-(Reference-M.R.T.P. Act 1966)

Power to vary schemes on ground of error, irregularity or informality:-

If Planning Authority considers that the scheme is defective on account of an error, irregularity or informality or that the scheme needs the variation or modification of a minor nature, the Planning Authority may apply in writing to the State Government for variation of the scheme.

Section 92-(Reference-M.R.T.P. Act 1966)

Power to vary town planning scheme:-

This section provides for variation of the scheme by making the subsequent scheme.

(G) Finance of Schemes

Section 97-(Reference-M.R.T.P. Act 1966)

Cost of scheme:-

From the Section 97 finance of Town Planning Scheme is explained in detail which includes execution/construction work of scheme, cost for preparation of Scheme by Planning Authority, Legal expenses cost for Arbitrator, Tribunal of Appeal etc.

Work proposed in the Scheme by Planning Authority or by Arbitrator like roads, drainage/ culverts, electricity, parks, gardens, open spaces/maidan, water supply and other work proposed in the scheme, the estimated cost of above works is as per rates mention scheme book which is prepared and published by Arbitrator.

If in any case land owner is suffered by any public reservations, then the compensation is payable to the owner under applicable section of the Act. The rate of compensation is calculated on the date on which scheme is declared.

Cost for preparation of the Scheme by expertise like Planning Authority and Local Authority, cost for Arbitrator, cost for Tribunal of Appeal, and cost for Legal expenses.

With addition of these three cost the total gross cost is calculated of the scheme.

Section 98-(Reference-M.R.T.P. Act 1966)

Calculation of increment:-

In the Section 98, calculation of increment of individual plot is done which is because of declaration of Scheme.

Basically increment is the hike in amount which is because of declaration of intention to make the scheme. Increment is basically difference between amounts of the market value on the date of declaration of the scheme with reference to improvements in services has been completed with consideration of change in shape, size and accessibility and original plot value without declaration of scheme without such improvements. Provided that, estimating such values, the value of buildings or other works erected or in the course of erection on such plot shall not be taken into consideration.

Section 99-(Reference-M.R.T.P. Act 1966)

Contribution towards cost of scheme:-

Basically it is the contribution levy by Planning Authority to meet the cost of the scheme. Planning Authority has authority to levy charges on Final Plot which is limited up to the 50% of increment of Final Plot value. Basic Aim of this contribution is to meet the cost of scheme as wholly or partly. If in any case this contribution is exceeds the scheme value then percentage of contribution reduce considerably in accordance to meet the cost of the scheme.

(H) Compensation

Section 102-(Reference-M.R.T.P. Act 1966)

Compensation in respect of property or right injuriously affected by scheme:-

The owner of any property or right which is injuriously affected by the making of a town planning scheme shall, subject to provisions of section 101, if he makes a claim before the Arbitrator within sixty days of the receipt of the notice from the Arbitrator, be entitled to obtain compensation in respect thereof from the Planning Authority or from any person benefited or party from the Planning Authority and partly from such person, as the Arbitrator may in each case determine.


Duplication of Work-

Government Sanctioning- Sanctioning from Government side requires two times first at sanctioning at draft stage and secondly sanctioning at final stage which is usually takes too much time.

Also in case of preparation of draft scheme and preparation of final scheme is prepared by two different entities. Preparation of draft scheme is by Planning Authority and preparation of final scheme is by Arbitrator.

Time Required-

Time required for sanctioning scheme from the stage of preparation the scheme is 24 months, the main reason for this is because of poor land records.

With reference to flow chart and different stages of preparation of Town Planning Scheme, there is no time limit mention in the Act for the constitution of Tribunal Appeal up to the stage of sanction of final scheme.

Though there is define time limit for preparation of Draft Development Plan (within the period of three years after the commencement of this Act through section 21) there is no time limit mention in the Act to sanction the Development Plan from State Government side.

Area Limit-

No ceiling limit for the area to be included in the M.R.T.P. Act, there may be possibility to create adverse effect in terms of delivery the service land in urban areas also it will check in further analysis of data which are collected form Town Planning Department, Pune.

Implementation Process-

As per the Act process of implementation starts only after the Sanctioning from Government which is usually takes almost 3.5 years. While from analysis of collected data it takes almost 6 years to start actual implementation process.

Betterment Contribution-

In the process of Town Planning Scheme Betterment Contribution is the important financial part to meet the cost of the scheme. As per M.R.T.P. Act the Betterment Contribution is limited up to the 50% of increment. Concern is the declaration of betterment contribution is on the date of declaration of intension to make the Town Planning Scheme where as the cost of development work is estimated on before the declaration of award.

Current Issues-

In addition to the findings current issues which are come in front while discussion of with senior Town Planners and experts in the same field.


As per M.R.T.P. Act authority cast obligation to prepare Development with reference to Regional Plan but there is no similar obligation to implement the Development Plan. (Discussion with Snr Town Planner Mr.Anil Kulkarni_ on 25-01-13)


Reservations on the private lands for various public purposes serve no useful purpose. By and large these reservation remains on the paper itself and over the period of time these reserved land either encroached by slum dwellers or unauthorized construction by private developers. (Paper presented by Omkar Parishwad_2011 & Discussion with Mr. Sanjay Saoji –Town Planner_Central Building, Pune)


Even in the case of TPS also the town planning officers are taking long time in its preparation due to poor form of Land Records. (Discussion with Snr Town Planner Mr.Anil Kulkarni_ on 25-01-13)


Valuation of particular plot was difficult because of its location, land records (hissa of family members). And on other side owners have unsatisfactory feelings because of jantry rates and actual rates are varied. (Discussion with Snr Town Planner Mr.Anil Kulkarni_ on 25-01-13)

Source of Finance-

The act must have very strong structural framework like clear cut provision for the source of finance and how the plan is to be implemented within the time frame so as to achieve the objective of the plan. (Discussion with Snr Town Planner Mr.Anil Kulkarni_ on 25-01-13)

Looking at above scenario there are more loopholes to delay the scheme. These points need to further elaborate to simplify the process of Town Planning Scheme. Also further study will cover international experience about the Land Development Mechanism to get the experience of smooth development.

Chapter 06

International & National Experience

International Experience-


Land Pooling and Readjustment Scheme-

In Australia this mechanism basically comprises of land development and land management mechanism. The concept of this land management mechanism is very much similar to Town Planning Scheme in Maharashtra.

In the word of R.W. Archer who describes land pooling “as a technique for carrying out unified servicing and subdivision of separate land holdings in urban fringe areas for their planned urban development.” He further describes procedures under the western Australian T.P. and Development Act 1928-84 in the following words.

“When undertaking of pooling the project, the council first prepares ‘planning scheme’ to define, authorize and regulate the project. This scheme is exhibited and reviewed and then approved by the minister. The council then assembles the private, government and public land in the scheme area by compulsory acquisition, and without paying any compensation. It designs and carries out the infrastructure works and then services and subdivides land in to building sites, using borrowed funds to finance it works. The council sell some of the sites to recover its outlays and costs to repay the loan, and then passes the other sites back to the land owners as ‘compensation’ for their lands’

(Source-R.W. Archer, Land Pooling & Re-subdivision in Western Australia – The American Journal of Economics & Sociology, April 1988, Page 207 & Nagarlok Oct.-Dec. 1964 Vol. XVI Page.104)

In Western Australia the authority known as “Local Council” is responsible for Land Pooling Projects to implement the Land Use Plans.

Another method to do the in Australia to do the land pooling schemes is ‘Guided Development.’ also in this method Council is responsible for the urban development. In this method Council first prepares the plan which comprises the street layout, open spaces etc and then construct the infrastructure and improvement works needed to allow private land subdivision to proceed. All the land holders are responsible to meet the cost of the scheme. Land acquisition is done at all the plot holders and recovery of the cost of the scheme is done by levy charges on land while distributing subdivided land to the land owners. Initiative for subdivisions remains with the land owners but these projects often stimulate them to subdivide their land promptly. (Source-R.W. Archer, Nagarlok Oct.-Dec. 1964 Vol. XVI Page.103)

Experience from above scenario about Land Pooling Schemes by Government with innovative techniques for unified subdivision of separate land holdings for planned urban development that is possible in three aspects i.e. politically, financially and administratively. In case of politically possible because it is supported by most of land owners, financially possible because there is no expenses on land assembly and expenses on works and on providing services can be recovered from the land values increases generated by the Pooling Projects. Lastly it is administratively possible because council can learn technique by beginning with small scale pooling projects and hiring consultant project managers to manage them.

While guided development is similar to development charge procedure common in some states but with the difference that development charge in not related to the actual cost of works as is done in the Guided Development Projects. Land Pooling technique is similar to ‘Town Planning Scheme’ in Maharashtra and Gujarat with the difference that recovery of betterment is in the form of ‘land’ in Land Pooling Scheme instead of ‘Cash’ as in Town Planning Schemes in Maharashtra and Gujarat.

Basically Land Pooling Scheme involves steps starts with pooling through acquisition without compensation, Relaying of Pooled land, carrying out infrastructure works and subdivision of land, Reallocating part of developed land back to the owners and selling the surplus land to meet the cost of development. Difference between Land Pooling Schemes and Town Planning Schemes is cost recovery. Another important point of difference is that in land pooling technique initiative for land subdivision and for increasing supply of developed land is with the public sector authority rather than with private land owners as under the Town Planning Schemes. (Source-Land Pooling and Readjustment Schemes by H.D. Khopardekar and Shri. G.J. Keskar 1987 Page no-08)


Land Readjustment Projects-

Basically the concept of land development mechanism is very much similar to the Land Pooling Schemes in Western Australia or Town Planning Schemes in India. In Korea the mechanism is known ‘Land Readjustment Projects.’ In this process Public Authority plays major important role to assemble small parcels of land without any compensation to the land owners, it then get developed with services and subdivides in land for urban use and from this subdivided land parcels most of the land parcels are get back to the original land owners with reduction in original plot area. The reduced land is used for the development for public purpose. Cost of the development meet through the auction of remaining sites. Such schemes are takes place in two ways either by initiative takes place by Government side or by agreeing 80% of land owners to do the development through Land Readjustment Projects from the designated area. The Public Authority who is responsible for the development of urban areas prepares a plan for targeted area with the characteristics like re-plots the land in building plots and sites for public purpose like rods, gardens, schools, hospitals, markets etc. Public Authority is also responsible for the development of services like water supply, drainage and sewerage, electricity etc. Value of newly formed building plots are with higher value, adequate building plots are reserved by the Public Authority/Government for the purpose of auction to meet the cost of development. As explained earlier remaining building plots redistributed to original land owners in proportion to the contribution to the land. The location of new plots is either on the same site or it is nearby location. Thus the Korean pattern of land development is almost similar to the Australian pattern with recovery of cost of scheme (cost recovery through sale/auction of plots).


Land Readjustment Scheme-

Process of Land Readjustment Scheme in Taiwan is given below-

Select area eligible for consolidation

Seek consent from owners

Formulate project and gain approval

Survey Area

Start Planning

Assess land value

Exchange or merge land plots

Promulgate consolidation plans

Begin construction work

Redistribute land allocate

Rearrange data

Prepare report

(Source-Land Pooling and Readjustment Schemes by H.D. Khopardekar and Shri. G.J. Keskar 1987 Page no-10)


As discussed earlier Germany is the first country to introduce the concept of zoning, pooling and readjustment of land. In this method land is pooled together for decided area and Development Plan is prepared for decided area with public amenities like roads, schools, hospitals, market etc. Land which is remained after providing the public amentias get redistributed among the original land owners. This method was firstly introduced in the Frankfurt when Adikes was the Mayor. This process is therefore known as ‘Lex Adickes’ then onwards it is widely used in the Germany. In this method every land owner is supposed to be surrender about 40% of land for public purpose without claiming compensation therefore. In this method also Local Authority is responsible to construct the public amenities.


In India Town Planning Scheme are implemented since 1915 through Bombay Town Planning Act when Maharashtra and Gujarat was joint state. Now also in Maharashtra and Gujarat the technique of Town Planning Schemes are widely used to develop the urban land. Now other states of India are also use this technique for the development of urban areas.

Experience in Gujarat-

While looking at the history of Maharashtra and Gujarat was the single state known as Bombay state. Gujarat was formed by bifurcation Bombay state in to two parts named as Maharashtra and Gujarat in 1961. For the development purpose Bombay Town Planning Act, 1954 was followed for land development. In Gujarat this Act was replaced by Gujarat Urban Development and Town Planning Act, 1976. Reforms made in Gujarat Act are as follows-

Preparation of Town Planning Scheme is divided in two main parts-

Preparation of Preliminary Scheme- (i.e. Physical planning of the scheme)

Preparation of Final Scheme- (i.e. Financial aspect of the scheme)

Planning authority is responsible for preparation of physical plan; process starts with the declaration of intension to make the Town Planning Scheme for selected area. Then the detail survey is done for the preparation of Draft Plan. The Draft Scheme is then published in official Gazette for the objections and suggestions from the land owners of the same area within the period of one month from date of publication. Objections and suggestion are considered for the preparation of final shape and submitted to State Government for approval. After approval of Government the scheme is referred as Preliminary Scheme. Next step is appointment of Officer by Government who act as an Arbitrator to final the scheme. The officer is designated as Town Planning Officer (TPO) of the scheme. If necessary Town Planning Officer have authority to make some necessary changes if required in physical plan. After necessary changes TPO can submit the proposal to Government for sanction. After approval from Government next important step is authority can start the implementation of the scheme. Last stage of the scheme is known as Final Scheme, which involves financial aspect at this stage. TPO verifies the financial aspect of the scheme which is work out by the development Authority. TPO invites the objections regarding the financial part of the scheme and settled the matter. As the financial part is over final scheme is submitted to the Government for sanction the scheme. As soon as Government approval the scheme is known as Final Town Planning Scheme. After this stage Development authority can start implementing the financial part of the scheme (payment of compensation and collection of contribution from owners).

Under this Act the two things are separately handle at two different stages like operative stage and other is financial part. Operative part which consists of layout and reconstitution of plots can be separately finalized by Arbitrator as a preliminary scheme and can separately sanction by Government. Immediately after the sanction from Government, planning authority can start execution of work. Decision on valuation matters and litigation of appeals from the land owners is separately dealt. This is better provision adopted by State Government to speed up the provision compare to the M.R.T.P. Act.

This Town Planning Scheme is again amended in 1999-

Amendment- (Source-GUD & TP Act)

Procedure of Town Planning Scheme is most of similar to the Bombay Town Planning Act, 1954. However following are the changes made in 1999-

When draft Town Planning Scheme is sanctioned by the Government, lands specified for roads, drains, sewers, electrification and water supply vest absolutely in Appropriate Authority free from all the encumbrances. (Section 48-A)

At city level Development Plan now contains only networks, zoning and Development Control Rules.

About 50% of land pooled out from original plot. The breakup of the same is as below-(section 40 (3)jj)

Road = 15%

Play ground, parks = 5%

Infrastructure such as school, dispensary and public utility spaces etc. = 5%

For sale by appropriate authority for residential, commercial and industrial use = 15%

Housing for socially and economically weaker section = 10%

Instead of keeping reservations for social and environmental infrastructure 10% land of above 50% area are allotted to appropriate authority for public purposes.

Increased FSI is provided for final plots as per Development Control rules like 1.8 FSI.

Town Planning Scheme should be completed within 27 months. (This time limit is withdrawn in 2004)

In addition to the legal provisions following measures are taken for effective implementation for Town Planning Scheme-

Public participation at initial stage- meeting with concern owners

Public Utility Plots- Location of plots is decided at the initial stages of meetings also suggestions are consider for the same.

Public awareness- wide publicity is given to the for implemented schemes to make public awareness and there active participation.

Involvement of Authority- Unit of District Inspector of Land Record is attached to the authority for demarcation / measurement and preparation of base map.

Base Maps- For preparation of base map help from private agencies also taken.

Building Permissions- Building Permission is given considering only 50% of area of original plot with a condition that remaining 50% is kept open. (Chapter 11, modification no. 07)

Modern Technology- Computerization of Government and local authorities for planning and implementation of Town Planning Schemes like AutoCAD and GIS for making base and proposed maps also Total Station Method is used for measurements.

Preparation of Town Planning Scheme goes through different stages starts with one preliminary stage to three legal stages as follows-

Preliminary Stage-

Preparation of Base Map- This is most important stage containing accurate physical plan.

Total Station Survey- Under this section physical survey of the declared area is done with all existing and natural features.

Data Collection- District Inspector of Land Record (DILR) is responsible for the data collection of revenue, land titles etc and also drawings from the Local authority.

Reconciliation (Melavni) – Final Base Map- Reconciliation of each surveyed plots and revenue records is done under this process. Though the process of reconciliation, area and boundary of each revenue survey is finalized, thereafter a final area statement is prepared using the land records for the approval from DILR.

Legal Stages-

Draft Town Planning Scheme-

Before making the Town Planning Scheme under the GTPUDA 1976, the appropriate authority has to do the consultation with the Chief Town Planner for the boundary of T.P. scheme and approval to make the scheme. (Under section 41/1)

Declaration of intension

Preparation of Original Plot Plans (Section 42)

Preparation of Road Network and Final Plot Plan- process of readjustment / reconstitution (Under section 45)

Valuation preparation of Form-F (fig-5)

Owner meeting

Approval of draft scheme and lying of infrastructure

Preliminary Town Planning scheme-

Appointment of Town Planning Officer (TPO)

Public consultation by TPO

Approval of preliminary scheme

Implementation of Scheme

After Government sanction the Preliminary Scheme demarcation of final plots can be done.

Final Town Planning Scheme

Objections pertaining to financial aspect of the scheme- original plot value, semi-final plot value, final plot value, compensation and net contribution / demand are invited.


With the above experience in relation to the international scenario land pooling and readjustment scheme with Town Planning Scheme in Maharashtra the basic difference is in the method of recovery of the cost of the scheme.

In case of Gujarat Town Planning scheme is divided in two major important part i.e. Planning Part and Financial Part. Main difference with the process of Town Planning Scheme in Maharashtra is that implementation process can start immediately after the sanction of Draft Town Planning Scheme by Government.

Chapter 08

Analysis of Eight Town Planning Schemes in Pune City (Maharashtra)


Town Planning Schemes are generally for the betterment of town and improvement of surrounding newly added area These improvement or development are mainly driven by time factor, if the development is timely deliver then results will be better. As discussed earlier the mechanism of Town Planning Schemes have special characteristic like secured planned development, public participation mainly the land owners from the scheme area, reduce the financial burden from Local Authority, implementation of Development Plan. But if T.P. Scheme is not timely implemented then all these special characteristics are not any value. City of Pune is selec