KARNATAKA IMPROVEMENT BOARDS ACT, 1976

11 of 1976

29 January, 1976

STATEMENT OF OBJECTS AND REASONS [KARNATAKA ACT No. 11 OF 1976] Karnataka Gazette, dated 29-1-1976 In urban areas there have been haphazard growth and development, much to the detriment of the general public, who have been deprived of even normal civic amenities. Unless the irregular growth is immediately checked and properly regulated, it will continue to grow and in course of time the position becomes irremediable. Existing municipal bodies with their numerous duties cannot effectively attend to this work. Establishment of separate bodies for the purpose, therefore, is very necessary. Such bodies can pay concentrated and undivided attention to this problem. Also one of the very important items in the Prime Minister's 20-Point Programme is socialisation of urban lands. Implementation of this programme involves quick and speedy process of acquisition of land, formation of layouts and providing civic amenities and distribution of sites to the deserving public. The municipal bodies cannot achieve this objective quickly and expeditiously. A separate body can do the work better. Having regard to the urgency and importance of the matter, an ordinance was promulgated. This Bill is to replace the said ordinance. Initially such separate bodies are established in areas with a population exceeding one lakh. STATEMENT OF OBJECTS AND REASONS [KARNATAKA ACT No. 15 OF 1981] Karnataka Gazette, Extraordinary, dated 3-2-1981 Sub-section (1) of Section 3 of the Improvement Boards Act, 1976 (Karnataka Act 11 of 1976) provides for the establishment of Improvement Boards in urban areas, that is, local areas within the jurisdiction of local authorities namely, municipal corporation, municipal council, sanitary board or notified area committee. The proposed amendments are intended to enable the Improvement Board or to undertake development works outside the limits of a local authority wherever necessary. Hence this Bill. STATEMENT OF OBJECTS AND REASONS [KARNATAKA ACT No. 13 OF 1985] Karnataka Gazette, Extraordinary, dated 20-3-1985 Bagalkot town will get submerged with the construction of the Almatti Dam up to a crest level of 1680 feet in the 1st stage of the Upper Krishna Project. The Almatti Dam is expected to reach the crest level of 1680 feet by June 1987. Hence Government has decided to shift the affected portion of Bagalkot town to a higher location and to construct a new township. It is proposed to constitute a statutory body with statutory powers called the Bagalkot Town Development Authority. The Authority shall take expeditious steps to shift that portion of Bagalkot town which is going to be submerged and for this purpose an Action Plan Committee shall be constituted. There shall also be a High Level Review Committee with the Chief Minister as Chairman. The Authority shall execute the work approved by the Action Plan Committee and shall comply with the directions issued from time to time by the Action Plan Committee and the High Level Review Committee. The Chief Engineer of the Bagalkot Town Development Authority shall be the Chief Executive and Administrative Officer of the Authority. Hence the Bill. STATEMENT OF OBJECTS AND REASONS [KARNATAKA ACT No. 40 OF 1986] Karnataka Gazette, Extraordinary, dated 19-8-1986 It is considered necessary to include the Minister for Urban Development as one of the members of the High Level Review Committee to review the progress of works done by the Bagalkot Town Development Authority under Section 12-C of the Karnataka Improvement Boards Act, 1976. An ordinance was promulgated for the said purpose. This Bill seeks to replace the said ordinance.

An Act to provide for the establishment of Improvement Boards for the development of urban areas in the State of Karnataka and for matters connected therewith. Whereas it is expedient to provide for the establishment of Improvement Boards for the development of urban areas in the State of Karnataka; Be it enacted by the Karnataka State Legislature in the Twenty-seventh Year of the Republic of India as follows:

CHAPTER 1 Preliminary

Section1 Short title, extent and commencement

(1) This Act may be called the Karnataka Improvement Boards Act, 1976.

(2) It extends to the whole of the State of Karnataka.

(3) It shall be deemed to have come into force on the twentieth day of November, 1975 in the urban areas comprising the Hubli-Dharwar Municipal Corporation and the cities of Belgaum, Bellary, Bijapur, Bhadravathi, Davangere, Gulbarga and Shimoga, and on such date and in such other urban areas as the State Government may, by notification, specify and different dates may be specified for different urban areas.

Section2 Definitions

(1) In this Act, unless the context otherwise requires,

(a) "Board" means an Improvement Board established under Section 3 for any urban area;

(b) "Chairman" means the Chairman of the Board;

(c) "Development" with its grammatical variations means the carrying out of building, engineering or other operations in on, over or under the land or the making of any material change in any building or land and includes re-development but does not include regulation and development of drinking water and drainage facilities and slum clearance or slum improvement;

(d) "Development Scheme" means a scheme prepared and sanctioned under this Act for purposes of the development of an urban area;

(e) "Engineering operations" includes the formation or laying out of means of access to a road or the laying out of means of water supply;

(f) "Government" means the State Government;

(g) "Improvement" with its grammatical variations means re-development of any built up area, whether partly built or fully built for the purpose of improving the environment conditions of the locality by undertaking work such as widening of roads, extending or augmenting civic amenities, community facilities, utilities and services but does not include regulation and development of drinking water and drainage facilities and slum clearance or slum improvement;

(h) "Improvement Scheme" means a scheme prepared and sanctioned under this Act for purposes of the improvement of an urban area;

(i) "Land" includes benefits to arise out of land and things attached to the earth or permanently fastened to anything attached to the earth;

(j) "Local authority" means a Municipal Corporation, Municipal Council, Sanitary Board or a Notified Area Committee constituted or continued under any law for the time being in force;

(k) "Member" means a member of the Board;

(l) "Planning Authority" means a Planning Authority as defined in clause (7) of Section 2 of the Karnataka Town and Country Planning Act, 1961;

(m) "Section" means a section of this Act;

(n) "Street" has the same meaning as in the Karnataka Municipalities Act, 1964;

(o) "Urban area" means any local area which is within the jurisdiction of a Local Authority 11. Inserted by Act No. 15 of 1981, w.e.f. 7-4-1981. [and includes such other area adjacent to the limits of the Local Authority, as the Government may, from time to time, by notification, specify;]

(2) All other words and expressions used herein but not defined shall have the meanings respectively assigned to them in the respective Municipal laws in force in the area.

CHAPTER 2 Improvement Boards

Section3 Establishment and Incorporation of Improvement Boards

(1) As soon as may be, after the commencement of this Act the Government, may by notification, establish for the purposes of this Act a Board for any urban area to be called the "The Improvement Board of ....".

(2) The Board shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power to acquire, hold and dispose of property and to contract and shall by the said name sue and be sued.

22. Sub-section (3) of Section 3 inserted by Act No. 15 of 1981, w.e.f. 7-4-1981.

[(3) The jurisdiction of the Board constituted in respect of any urban area shall stand extended to such other areas as may be notified under clause (o) of sub-section (1) of Section 2 in respect of such urban area, with effect from the date of such notification.]

Section4 Constitution of the Board

The Board shall consist of the following members, namely: 33. Clause (a) inserted by Act No. 13 of 1985 and shall be deemed to have come into force w.e.f. 10-10-1984.

[(a) "Bagalkot Town Area" means the area comprising the Bagalkot City Municipality constituted or continued under the Karnataka Municipalities Act, 1964 and such other area adjacent thereto, as the Government may, from time to time, by notification specify.]

44. The existing clause (a) relettered as clause (aa) by Act No. 13 of 1985 and shall be deemed to have come into force w.e.f. 10-10-1984.

[(aa) a Chairman who shall be appointed by the Government 55. Inserted by Act No. 13 of 1985 and shall be deemed to have come into force w.e.f. 10-10-1984. [and includes the Bagalkot Town Development Authority constituted under Section 12-A;]

(b) an Officer of the Town and Country Planning Department not below the rank of an Assistant Director of Town and Country Planning appointed by the Government;

(c) the Executive Engineer of the division;

11. Inserted by Act No. 13 of 1985 and shall be deemed to have come into force w.e.f. 10-10-1984.

[(cc) two persons, of whom one shall be a woman and one shall be a person belonging to the Scheduled Castes or the Scheduled Tribes, who shall be appointed by the Government;]

(d) two persons who are ordinarily resident in the urban area for which the Board is constituted, appointed by the Government; and

(e) two elected representatives of the Local Authority concerned.

Section5 Term of office

(1) Subject to the pleasure of the Government, the Chairman and other members appointed by the Government shall hold office for a period of three years:

Provided that the term of office of the representatives of the Local Authority shall come to an end when he ceases to be a councillor or member or when the Local Authority is superseded.

(2) The Chairman or a member, other than an ex-officio member, may resign his office by writing under his hand addressed to the Government but shall continue in office until his resignation is accepted.

(3) No act or proceeding of the Board shall be invalid by reason only of the existence of any vacancy or defect in the constitution of the Board.

Section6 Casual vacancy

Any casual vacancy in the office of a member other than the Chairman occasioned by death, resignation or disqualification of such member or occasioned by virtue of the proviso to sub-section (1) of Section 5 shall be filled within one month of the occurrence of the vacancy in the same manner and subject so far as may be, to the same conditions specified in Section 4 11. Inserted by Act No. 13 of 1985 and shall be deemed to have come into force w.e.f. 10-10-1984. [or Section 12-A]:

Provided that the representatives of a superseded Local Authority shall be nominated by the Government:

Provided further that the member so chosen or nominated shall continue in office for the remainder of the term of the member in whose place he is appointed.

Section7 Disqualification for office of membership

(1) A person shall be disqualified of being appointed as and for being a member if he

(a) has been convicted and sentenced to imprisonment for an offence which in the opinion of the Government involve moral turpitude; or

(b) is of unsound mind and stands so declared by a competent court; or

(c) is an undischarged insolvent; or

(d) has been removed or dismissed from the service of the Central Government or a State Government or a Corporation owned or controlled by the Central Government or a State Government; or

(e) has directly or indirectly by himself or his partner any share or interest in any work done by the order of the Board or in any

(f) being an elected member ceases to be a Councillor or a member of the Local Authority concerned;

(g) is employed as paid legal practitioner on behalf of the Board or accepts employment as legal practitioner against the Board.

(2) A person shall not be disqualified under clause (e) of sub- section (1) or be deemed to have any share or interest in any contract or employment within the meaning of the said clause by reason only of his having a share or interest in any newspaper in which any advertisement relating to the affairs of the Board is inserted.

Section8 Removal of member

The Government shall remove a member if

(a) he becomes subject to any of the disqualifications mentioned in Section 7:

Provided that no member shall be removed on the ground that he has become subject to the disqualification mentioned in clause (e) of that section, unless he has been given an opportunity of making his representation against the proposal; or

(b) he refuses to act or becomes incapable of acting; or

(c) he, without obtaining leave of absence from the Board, absents from three consecutive meetings of the Board; or

(d) in the opinion of the Government he has so abused his position as to render his continuance in office detrimental to the public interest:

Provided that no member shall be removed under this clause unless he has been given an opportunity of making his representation against the proposal.

Section9 Meetings of the Board

(1) The meetings of the Board shall be convened by the Chairman and shall be held at any place within the jurisdiction of the Board.

(2) The Board shall meet at such time and shall observe such rules of procedure in regard to the transaction of business at its meetings (including quorum) as may be provided by the bye-laws.

(3) If, for any reason the Chairman is unable to attend any meeting, any other member chosen by the members present at the meeting shall preside at the meeting.

(4) All questions which come up before any meeting of the Board shall be decided by a majority of the votes of the members present and voting and in the event of an equality of votes, the Chairman or in his absence, the person presiding shall have and exercise a second or casting vote.

(5) A member shall not, at any meeting of the Board take part in the discussion of or vote on any matter in which he has directly or indirectly by himself or his partner, any share or interest.

Section10 Proceedings presumed to be good and valid

No disqualification of or defect in the appointment of any person acting as Chairman or member shall be deemed to vitiate any act or proceeding of the Board if such act or proceeding is otherwise in accordance with the provisions of this Act.

Section11 Execution of contracts

(1) Every contract shall be made on behalf of the Board by the Chairman:

Provided that

(a) no contract involving an expenditure exceeding 11. Substituted for the words "twenty-five thousand" by Act No. 19 of 1984, w.e.f. 21-4-1984. [two lakhs] rupees shall be made except with the previous sanction of the Government;

(b)

(i) no contract involving an expenditure exceeding 22. Substituted for the words "ten thousand" by Act No. 19 of 1984, w.e.f. 21-4-1984. [fifteen thousand] rupees but not exceeding 33. Substituted for the words "twenty-five thousand" by Act No. 19 of 1984, w.e.f. 21-4-1984. [two lakhs] rupees shall, subject to clause (a), be made without the previous sanction of the Board;

(ii) no estimate or tender involving an expenditure of 44. Substituted for the words "twenty-five thousand" by Act No. 19 of 1984, w.e.f. 21-4-1984. [two lakhs] rupees or more, shall, subject to clause (a), be sanctioned or accepted without the previous sanction of the Board.

(2) Sub-section (1) shall apply to every variation or abandonment of a contract or estimate.

(3) Every contract made by the Chairman shall, subject to the approval of the Board, be entered into in such manner and form as may be prescribed.

(4) Any contract not made and executed as provided in this section and the rules made thereunder shall not be binding on the Board.

Section12 Duties of Chairman

The Chairman shall

(1) attend every meeting of the Board, unless prevented by sickness or other reasonable cause;

(2) any into effect the resolutions of the Board;

(3) keep and conduct the Board's correspondence;

(4) carry out and execute such schemes and works as the Government may require under sub-section (3) of Section 13 and incur, subject to the other provisions of this Act, necessary expenditure therefor;

(5) exercise supervision and control over the acts and proceedings of all Officers and servants of the Board in matters of executive administration and in matters concerning the accounts and records of the Board; and to the extent specified in Section 54 dispose of all questions relating to the service conditions of Officers and servants, and their pay, privileges and allowances;

(6) furnish to the Government a copy of the minutes of the Board's proceedings and also furnish any returns or other information which the Government may, from time to time, call for; and

(7) perform such other duties as are imposed on him by or under this Act.

CHAPTER 2A Bagalkot Town Development Authority

11. Clause (iv-a) inserted by Act No. 40 of 1986 and shall be deemed to have come into force w.e.f. 6-6-1986.  Section12A Constitution and incorporation of Bagalkot Town Development Authority

(1) The Government shall by notification, constitute for the Bagalkot Town Area an authority to be called the Bagalkot Town Development Authority (hereinafter in this Chapter referred to as the Authority).

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and common seal, with power to acquire, hold and dispose of property and to contract and shall by the said name sue and be sued.

(3) The Authority shall consist of the following members, namely:

(i) a Chairman who shall be appointed by the Government;

(ii) the Member of the Parliament representing part or whole of Bagalkot Town Area;

(iii) the Members of the Karnataka Legislative Assembly representing a part or whole of Bagalkot Town Area;

(iv) the President of the City Municipal Council, Bagalkot;

(v) the Secretary to Government, Finance Department, Government of Karnataka, or his nominee;

(vi) the Secretary to Government, Housing and Urban Development Department, Government of Karnataka, or his nominee;

(vii) the Secretary to Government, Public Works, Command Area Development and Electricity Department, Government of Karnataka, or his nominee;

(viii) the Chief Engineer, Upper Krishna project, Dam Zone, Almatti;

(ix) the Deputy Director of Town planning, Belgaum;

(x) the Deputy Commissioner, Bijapur District;

(xi) three non-official members being residents of Bagalkot Town Area appointed by the Government; and

(xii) the Chief Engineer of the Authority who shall be the member-secretary.

(4) The Authority shall execute the works approved by the Action Plan Committee constituted under Section 12-B. Chapter II-A and Sections 12-A to 12-G inserted by Act No. 13 of 1985 and shall be deemed to have come into force w.e.f. 10-10-1984.

(5) Subject to the provisions of Sections 12-A, 12-B, 12-C, 12-D, 12-E, 12-1 and 12-G, the provisions of this Act shall mutatis mutandis apply to the Authority.

Section12B Action Plan Committee

(1) In addition to the other powers and duties of the Authority under this Act, the Authority shall take expeditious steps to shift that portion of the Bagalkot Town Area which is to be submerged by the Almatti Dam and for this purpose, there shall be constituted an Action Plan Committee consisting of the following members, namely:

(i) the Additional Chief Secretary to Government of Karnataka whe shall be the Chairman;

(ii) the Commissioner and Secretary to Government, Revenue Department, Government of Karnataka;

(iii) the Secretary to Government, Housing and Urban Development Department, Government of Karnataka;

(iv) the Secretaries to Government, Public Works, Command Area Development and Electricity Department, Government of Karnataka;

(v) the Secretary to Government, Finance Department, Government of Karnataka.

(vi) the Director, Karnataka Engineering Research Station, Krishnaraja Sagar;

(vii) the Chief Architect to Government of Karnataka;

(viii) the Director of Town Planning, Government of Karnataka;

(ix) the Chief Engineer, Upper Krishna Project, Dam Zone, Almatti;

(x) the Divisional Commissioner, Belgaum Division, Belgaum;

(xi) the Divisional Joint Director, Health and Family Welfare Services, Belgaum Division, Belgaum, and

(xii) the Chief Engineer of the Authority who shall be the member-secretary:

(2) The Authority shall be bound by the directions, orders and instructions issued from time to time by the Action Plan Committee or the High Level Review Committee constituted under Section 12-C.

Section12C High Level Review Committee

To review the progress of works done by the Authority there shall be a High Level Review Committee consisting of the following members, namely:

(i) the Chief Minister, Karnataka, who shall be the Chairman;

(ii) The Minister in-charge of Public Works, Karnataka;

(iii) the Minister in-charge of Irrigation, Karnataka;

(iv) the Minister in-charge of Bijapur District;

11. Clause (iv-a) inserted by Act No. 40 of 1986 and shall be deemed to have come into force w.e.f. 6-6-1986.

[(iva) the Minister in-charge of Urban Development, Karnataka;]

(v) the Additional Chief Secretary to Government of Karnataka;

(vi) the Development Commissioner, Government of Karnataka;

(vii) the Secretary to Government, Finance Department, Government of Karnataka;

(viii) the Secretary to Government, Housing and Urban Development Department, Government of Karnataka; and

(ix) the Secretary to Government, Public Works, Command Area Development and Electricity Department, Government of Karnataka or his nominee who shall be the member-convenor.

Section12D Powers of Different authorities

(1) The Chief Engineer of the Authority (hereinafter referred to in this Chapter as the Chief Engineer) may, on behalf of the Authority, sanction any estimate, call for tenders or enter into any contract or agreement the value or amount whereof shall not exceed ten lakhs of rupees in such manner and form as according to the law for the time being in force would bind him, if such contract or agreement were on his own behalf; and every such contract or agreement shall be reported to the Authority at its next meeting.

(2) The Authority may sanction any estimate, call for tenders or enter into any contract or agreement the value or amount whereof exceeds ten lakhs of rupees but does not exceed fifty lakhs of rupees; and where the value or amount of any estimate, contract or agreement exceeds fifty lakhs of rupees the same shall not be entered into except with the previous sanction of the Government.

(3) Every contract or agreement on behalf of the Authority other than a contract or agreement referred to in sub-section (1) shall be in writing and shall be signed by the Chief Engineer and sealed with the common seal of the Authority.

(4) The common seal of the authority shall be in the custody of the Chief Engineer who shall personally affix the seal to any contract or instrument.

(5) The acceptance of any tender shall be subject to such rules as may be prescribed.

(6) A contract not made or executed as provided in this section and the rules made thereunder shall be null and void and shall not be binding on the Authority.

Section12E Appointment of Chief Engineer

(1) The Government shall appoint an Officer not below the rank of a Chief Engineer to be the Chief Engineer of the Authority.

(2) The Chief Engineer shall receive such monthly salary and other allowance as the Government may from time to time, determine.

(3) The Government may, from time to time, grant leave of absence for such period as it thinks fit to the Chief Engineer. A copy of every order granting such leave shall be communicated to the Chairman.

Section12F Powers and duties of Chief Engineer

(1) The Chief Engineer shall be the Chief Executive and Administrative Officer of the Authority.

(2) The Chief Engineer shall, in addition to performing such functions as are conferred on him by or under this Act or under any law for the time being in force,

(a) carry into effect the resolutions of the Authority;

(b) keep and conduct the Authority's correspondence;

(c) carry out and execute such schemes and works as the Government may direct and incur necessary expenditure therefor;

(d) be responsible for implementing the schemes of the Authority;

(e) operate the accounts of the Authority and be responsible for the maintenance of the accounts of the Authority;

(f) exercise supervision and control over the accounts and proceedings of all Officers and servants of the Authority in matters of executive administration and in the matters concerning the accounts and records of the authority and exercise the powers of the Chairman under sub-section (1) of Section 54 relating to the Officers and servants of the Authority;

(g) furnish to the Government a copy of the minutes of the Authority's proceedings and any return or other information which the Government may, from time to time, call for;

(h) authenticate by his signature all permissions, orders, decisions, notices and other documents of the Authority and the orders of the Chairman: and

(l) have all the powers of a major Head of the Department of the State Government under the Karnataka State Civil Service Rules for the time being in force as respects the Officers and servants of the Authority.

Section12G Powers to remove difficulties

(1) Notwithstanding anything contained in this Act, if any difficulty arises in giving effect to the provisions of this Act in its application to the Authority, the Government may, by order, make such modification to the Act or to any rule or bye-law made thereunder as it may consider necessary to remove such difficulty.

(2) Every order made under sub-section (1) shall be laid as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one or more successive sessions and if before the expiry or the session immediately following the session or the successive sessions, both Houses agree in making any modification to the order or the annulment of the order, the order shall, with effect from the date on which the modification or annulment is notified by the Government in the official Gazette, have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything done under such order.]

CHAPTER 3 Duties and Powers

Section13 Power of Board to undertake works and incur expenditure for development, improvements, etc.

(1) The Board may subject to the control of the Government,

(a) draw up detailed schemes (hereinafter referred to as Development Schemes or Improvement Schemes) for the development or improvement or both of the areas within its limits; and

(b) undertake and execute any such Development Schemes or Improvement Schemes as may be necessary from time to time and incur expenditure therefor.

(2) The Board may also from time to time make any new or additional Development Schemes or Improvement Schemes

(i) on its own initiative from its resources; or

(ii) at the request of the Local Authority concerned, if such Local Authority places at the disposal of the Board the necessary funds for framing and carrying out any such schemes:

Provided that the schemes of the Board referred to in clause (a) of subsection (1) and in this sub-section shall be prepared in conformity with the Outline Development Plan or Comprehensive Development Plan, if any, of the Planning Authority of the area concerned.

(3) Notwithstanding anything contained in sub-sections (1) and (2) but subject to conformity with the Outline Development or Comprehensive Development Plans referred to in sub-section (2), the Government may, when it deems necessary, require the Board to take up any Development Scheme or Improvement Scheme or work and execute it in accordance with such terms and conditions as may be specified by the Government.

Section14 Particulars to be provided for in a Development Scheme or Improvement Scheme.

Every Development Scheme or Improvement Scheme under Section 13

(1) shall, within the limits of the area comprised in the scheme, provide for

(a) acquisition of any land which, in the opinion of the Board, is necessary for the execution of the Scheme; and

(b) laying or re-laying out of all or any land including the construction and reconstruction of buildings and the formation and alteration of streets;

(2) may, within the limits aforesaid, provide for

(a) raising any land which the Board may deem expedient to raise for the better drainage of the locality;

(b) forming open spaces for the better ventilation of the area comprised in the scheme or any adjoining area;

(c) the whole or any part of the sanitary arrangements required;

(d) sites for parks, playgrounds, stadium, recreation grounds, school buildings, markets, motor vehicles stands, theatres, police stations, post offices, co-operative societies, public urinals and latrines, petrol service stations, hospitals, dispensaries, banks, burial and cremation grounds and sites for public purposes of other kinds;

(3) may, within the limits aforesaid, provide for the construction of houses for the accommodation of the persons to the displaced in the execution of the Scheme and such accommodation shall be deemed to include shops.

Section15 Procedure after preparation of the Scheme

(1) When any Development Scheme or Improvement Scheme has been prepared, the Board shall prepare a draft of a notification stating the fact of a Scheme having been made and naming a place where the particulars of the Scheme, a map of the area comprised therein and a statement specifying the land which it is proposed to acquire and of the land in regard to which it is proposed to recover a betterment tax may be seen at all reasonable hours and shall

(a) communicate a copy of such notification to the Local Authority concerned which shall, within sixty days from the date of receipt thereof, forward to the Board, for transmission to the Government as hereinafter provided, any representation which the Local Authority may think fit to make with regard to the Scheme; and

(b) cause a copy of the said notification to be published in the official Gazette and affixed in some conspicuous part of the Board's office, the Deputy Commissioner's office, the office of the Local Authority concerned and in such other places as the Board may consider necessary.

(2) If no representation is received from the Local Authority within the time specified in the communication under clause (a) of sub-section (1), the concurrence of the Local Authority to the proposal shall be deemed to have been given.

(3) During the thirty days next following the day on which such notification is published in the official Gazette, the Board shall serve a notice on every person whose name appears in the assessment list of the Local Authority within the local limits of whose jurisdiction the area comprised in the Scheme is situated or in the land revenue register as being primarily liable to pay the property tax or land revenue assessment on any building or land which it is proposed to acquire in executing the Scheme requiring such person to show cause within thirty days why such acquisition of the building or the land and the recovery of the betterment tax as specified in the notice should not be made.

Section16 Forwardal of Scheme

(1) Upon compliance with the foregoing provisions with respect to the publication and service of notices of the Scheme, the Board shall, after consideration of any representation received under Section 15 and after making such modifications in the Scheme as it may deem fit, apply to the Government for sanction to the Scheme.

(2) The application for sanction shall, save in the case provided for by sub-section (3), be accompanied, by

(a) a description with full particulars of the Scheme including the reasons for any modifications made therein;

(b) complete plans and estimates of the cost executing the scheme;

(c) a statement specifying the land proposed to be acquired;

(d) any representation received under sub-section (1) of Section 15;

(e) a schedule showing the rateable value, entered in the assessment list of the Local Authority at the date of the publication of a notification relating to the land under Section 15, of the land revenue assessment of all land specified in the statement under clause (c); and

(f) such further particulars, if any, as may be prescribed.

(3) When under any Development Scheme or Improvement Scheme provision is made for the construction of houses the Board may, after complying with the provisions of Section 15, submit to the Government for sanction plans and estimates for the construction of such houses and on receipt of such sanction the provisions of Section 17 shall, with all necessary modifications, be applicable to the part of the Scheme providing for the construction of such houses, as if such part were the Scheme.

Section17 Sanction to Scheme and republication in case of modification

(1) The Government may sanction either with or without modification or may refuse to sanction or may return for reconsideration, a Development Scheme or Improvement Scheme submitted to it under Section 16.

(2) If a Scheme returned for reconsideration under sub-section (1) is modified by the Board, the Board shall, if the modification affects the boundaries of the area comprised in the scheme or involves the acquisition of any land not previously proposed to be acquired, publish the modified scheme in the manner specified in Section 15.

Section18 Upon sanction, declaration to be published giving particulars of land to be acquired

(1) Upon sanction of the Scheme, the Government shall publish in the official Gazette a declaration stating the fact of such sanction and that the land proposed to be acquired by the Board for the purposes of the Scheme is required for a public purpose.

(2) The declaration shall state the limits within which the land proposed to be acquired is situated, the purpose for which it is needed, its approximate area and the place where a plan of the land may be inspected.

(3) The said declaration shall be conclusive evidence that the land is needed for a public purpose, and the Board shall, upon the publication of the said declaration proceed to execute the scheme.

(4) If at any time it appears to the Board that an improvement can be made in any part of the Scheme, the Board may alter the scheme for the purpose of making such improvement and shall subject to the provisions of sub-sections (5) and (6) forthwith proceed to execute the scheme as altered.

(5) If the estimated cost of executing the scheme as altered exceed, by a greater sum than five per cent of the estimated cost of executing the scheme as sanctioned, the Board shall not, without the previous sanction of the Government, proceed to execute the scheme as altered.

(6) If the scheme as altered involves the acquisition otherwise than by agreement, of any land other than that specified in the Schedule referred to in clause (e) of sub-section (2) of Section 16 the provisions of Sections 15 and 16 and of sub-section (1) of this section shall apply to the part of the scheme so altered, in the same manner as if such altered part were the Scheme.

Section19 Levy of betterment tax

(1) Where as a consequence of execution of any Development or Improvement Scheme, the market value of any land in the area comprised in the scheme which is not required for the execution thereof has, in the opinion of the Board, increased or will increase, the Board shall be entitled to levy on the owner of the land or any person having an interest therein a betterment tax in respect of the increase in value of the land resulting, from the execution of such scheme.

(2) Such increase in value shall be the amount by which the value of the land, on the completion of the execution of the scheme, estimated as if the land were clear of buildings exceeds the value of the land prior to the execution of the scheme estimated in like manner, and the betterment tax shall be one third of such increase in value.

Section20 Assessment of betterment tax by the Board

(1) When it appears to the Board that any Development or Improvement Scheme is sufficiently advanced to enable the amount of the betterment tax to be determined, the Board may, by an order made in this behalf, declare that for the purpose of determining the betterment tax the execution of the Scheme shall be deemed to have been completed and shall thereupon give notice in writing to the owner of the property or any person having an interest therein that the Board proposes to assess the amount of the betterment tax in respect of the property under Section 19.

(2) The Board shall then assess the amount of betterment tax payable by the person concerned after giving such person an opportunity of being heard and such person shall, within sixty days from the date of receipt of the notice in writing of such assessment from the Board, inform the Board in writing whether or not he accepts the assessment.

(3) When the assessment proposed by the Board is accepted by the person concerned within the period specified in sub-section (2) such assessment shall be final.

(4) If the person concerned does not accept the assessment or fails to give the Board the information required by sub-section (2) within the period specified therein the Board shall make a reference to the District Court for determining the betterment tax payable by such person.

Section21 Manner of payment of betterment tax

The betterment tax determined under Section 20 shall be paid within such time and in such number of instalments not exceeding ten as may be specified by the Board together with interest at such rates as may be prescribed.

Section22 Recovery of betterment tax

Where any person liable to pay betterment tax fails to pay the same within the time specified by the Board or makes default in payment of two consecutive instalments or any three instalments, the Board shall be entitled to recover the whole of the amount due together with interest from the said person or his successor-in-interest in such land in the manner provided in Chapter VII of the Karnataka Municipalities Act, 1964, for the recovery of taxes and if the said money is not so recovered, the Chairman may, after giving public notice of his intention to do so, and not less than one month after the publication of such notice sell the land or the interest of the said person or his successor-in-interest in such land by public auction and may deduct the said money and the expenses of the sale from the proceeds of the sale and shall pay the balance (if any) to the defaulter.

Section23 Payment no bar for acquisition under a fresh declaration

If any land, in respect of which the payment of a betterment tax has been accepted or determined under Section 20 be subsequently required for any of the purposes of this Act, the acceptance or payment shall not be deemed to prevent the acquisition of the land in pursuance of a fresh declaration published under section 6 of the Land Acquisition Act, 1894.

Section24 Power of Board to take up works for further Development

Notwithstanding anything contained in this Act, the Board may, with the previous sanction of the Government, take up such works in regard to any area as the Board considers necessary or desirable for the further development of that area.

Section25 Crediting Betterment tax collected to the funds of the Local Authority in certain cases

Where the increase in value of any land is as a result of the execution of a Development or Improvement Scheme made at the request of a Local Authority and for which the Local Authority has placed at the disposal of the Board necessary funds, the betterment tax collected by the Board from the person concerned shall, after deducting ten per cent thereof as collection charges, be credited by the Board to the Local Authority.

Section26 Board to execute schemes within three years

The Board shall execute a Development Scheme or an Improvement Scheme within a period of three years from the date of sanction of the Scheme:

Provided that the Government may, by order, extend the time for execution.

CHAPTER 4 General

Section27 Land vested in a Local Authority and required by the Board for formation or alteration of street to be vested temporarily in the Board

Whenever under any Development or Improvement Scheme, the whole or any part of any existing public street or other land vested in a Local Authority is included in the site of any part of a street to be formed, altered, widened, diverted, raised, re-arranged or re-constructed by the Board, the Board shall give notice to the Local Authority concerned that the whole or a part, as the case may be, of such existing street or other land (hereinafter called the "part required") is required by it as part of a street to be dealt with as aforesaid, and the part required shall, thereupon subject to the provisions of sub-section (1) of Section 29, be vested in the Board.

Section28 Board to exercise powers and functions of local authorities

(1) In any urban area or part thereof to which this Act applies, the Government may, by notification, declare that from such date and for such period and subject to such restrictions and modifications, if any, as may be specified in the notification, the powers and functions of the Local Authority or a standing committee thereof shall be exercised and discharged by the Board:

Provided that the Local Authority shall be consulted before making such declaration, if such area or part thereof lies within the limits of the Local Authority.

(2) On the making of a declaration under sub-section (1), notwithstanding anything contained in any other law for the time being in force, the Local Authority or any standing committee or Officer thereof shall not be competent to exercise or discharge the powers or functions conferred or imposed on the Board by such declaration.

(3) The Board may delegate any of the functions exercisable by it under sub-section (1) to any Officer or servant of the Board.

(4) The exercise or discharge of any of the powers or functions delegated under sub-section (3), shall be subject to such limitations, conditions and control as may be laid down by the Board.

Section29 Streets on completion and open spaces to vest in and be maintained by the Local Authority

(1) The Government, after consulting the Local Authority and in being satisfied that any street formed by the Board has been duly levelled, paved, metalled, flagged, channelled, drained and sewered in the manner provided for in the plans of any Scheme sanctioned by the Government and that such lamps, lamp-posts and other apparatus as are, in its opinion, necessary for the lighting thereof and should be provided by the Board have been so provided shall declare such street to be a public street, and such street shall thereupon vest or revest, as the case may be, in the Local Authority and the Local Authority shall thence forward maintain, keep in repair, light and cleanse such street. If the Local Authority concerned does not reply within sixty days when it is consulted by the Government, its concurrence shall be deemed to have been given.

(2) Any open space reserved for ventilation and the areas reserved for motor parks, playgrounds, public urinals and latrines, burial and cremation grounds in any part of the area within the jurisdiction of the Local Authority and provided by the Board as part of any Development Scheme or Improvement Scheme sanctioned by the Government shall be transferred on completion to the Local Authority and shall thereupon vest in the Local Authority.

(3) Any dispute which arises between the Board and the Local Authority in regard to interpreting or implementing the provisions of this section shall be determined by the Government, whose decision shall be final.

Section30 Board not to sell or otherwise dispose of sites in certain cases

The Board shall not sell or otherwise dispose of any sites for the purpose of constructing buildings thereon for the accommodation of persons until all the improvements specified in Section 29 have been substantially provided for.

Section31 Forming of new extensions or layouts or making new private streets

(1) Notwithstanding anything to the contrary in any law for the time being in force, no person shall form or attempt to form any extension or layout for the purpose of constructing buildings thereon without the express sanction in writing of the Board and except in accordance with such conditions as the Board may specify:

Provided that where any such extension or layout lies within the limits of a Local Authority, the Board shall not sanction the formation of such extension or layout without the concurrence of the Local Authority. The concurrence of the Local Authority shall be deemed to have been given if it fails to convey its opinion within sixty days after it,is consulted:

Provided further that where the Local Authority and the Board do not agree on the formation of, or the conditions relating to the execution or layout, the matter shall be referred to the Government whose decision thereon shall be final.

(2) Any person intending to form an extension or layout or to make a new private street shall send to the Chairman, a written application with plans and estimates showing such particulars, as may be prescribed by bye-laws made by the Board.

(3) The provisions of this Act and of any rules or bye-laws made under it as to the level and width of streets and the height of buildings abutting thereon, shall apply also in the case of streets referred to in that sub-section shall be subject to the approval of the Board.

(4) Within six months after the receipt of any application under sub-section (2), the Board shall sanction the forming of the extension or layout or the making of streets on such conditions as it may think fit or disallow it or ask for further information with regard to it.

(5) The Board may require the applicant to deposit, before sanctioning the application, the amount necessary for meeting the expenditure for making roads, side-drains, culverts, underground drainage and water supply and lighting and the charges for such other purposes as the applicant may be called upon by the Board to deposit, provided he agrees to transfer the ownership of the roads, drains, water supply mains and open spaces laid out by him to the Board permanently without claiming any compensation therefor.

(6) Such sanction may be refused,

(i) if the proposed street would conflict with any arrangements which have been made or which are, in the opinion of the Board likely to be made, for carrying out any general scheme of street improvement or other Schemes of Improvement or Development by the Board;

(ii) if the proposed street does not conform to the provisions of this Act, and the rules and bye-laws made under it;

(iii) if the proposed street is not designed so as to connect at one end with a street which is already open; or

(iv) if the layout, in the opinion of the Board, cannot be fitted with any existing or proposed Development or Improvement Schemes of the Board.

(7) No person shall form a layout or make any new private street without the sanction of or otherwise than in conformity with the conditions imposed in this behalf by the Board. If the Board requires further information from the applicant, no steps shall be taken by him to form the layout or make the street until orders have been passed by the Board after the receipt of such information: Provided that the passing of such orders shall not, in any case, be delayed

for more than six months after the Board has received all the information which it considers necessary to enable it to deal finally with the said application.

(8) If the Board does not refuse sanction within six months from the date of receipt of the application under sub-section (2) or when information is called for under sub-section (7), within six months from the date such information is furnished, such sanction shall be deemed to have been granted and the applicant may proceed to form the extension or layout or to make the street but not so to contravene any of the provisions of this Act and the rules or bye-laws made under it.

(9) Every extension or layout, for the formation of which sanction is granted or deemed to have been granted under this section shall be in conformity with the Outline Development Plan or the Comprehensive Development Plan if any of the Planning Authority.

(10) Any person who forms or attempts to form any extension or layout in contravention of the provisions of sub-section (1) or sub-section (2) or makes any street without or otherwise than in conformity with the orders of the Board under sub-section (7) shall be liable, on conviction, to fine which may extend to one thousand rupees.

Section32 Alteration or demolition of extension, layout or streets

(1) If any person forms an extension or layout or makes any street referred to in Section 31 or puts up any building without or otherwise than in conformity with the orders of the Board under the said section, the Board may, whether or not such person be prosecuted under this Act, by notice

(a) require him to show sufficient cause by a written statement signed by him and sent to the Board on or before such day as may be specified in the notice, why such extension, layout or street should not be altered to the satisfaction of the Board or if such alteration be deemed impracticable by the Board, why such extension, layout or street should not be demolished, or

(b) require him to appear before the Board either personally or by a duly authorised agent on such day and at such time and place as may be specified in the notice and show cause as aforesaid.

(2) If any person on whom such notice is served fails to show sufficient cause to the satisfaction of the Board why such extension, layout or street should not be so altered or demolished, the Board, may for reasons to be recorded in writing direct the alteration or demolition of such extension, lay-out or street.

(3) If any person fails to comply with any direction issued under subsection (2) the Board may carry out the direction and recover the cost incurred therefor from such person as if it were arrears of land revenue.

Section32A Prohibition of unauthorised occupation of land

11. Section 32-A inserted by Act No. 34 of 1984, w.e.f. 26-6-1984.

[(1) Any person who unauthorisedly enters upon and uses or occupies any land belonging to the Board to the use or occupation of which he is not entitled or has ceased to be entitled, shall, on conviction, be punished with imprisonment for a term which may extend to three years and with fine which may extend to five thousand rupees.

(2) Any person who having unauthorisedly occupied, whether before or after the commencement of the Karnataka Municipal Corporations and certain other Laws (Amendment) Act, 1984 any land belonging to the Board to the use or occupation of which he is not entitled or has ceased to be entitled, fails to vacate such land in pursuance of an order under sub- section (1) of Section 5 of the Karnataka Public Premises (Eviction of Unauthorised Occupants) Act, 1974 (Karnataka Act 32 of 1974), shall, on conviction, be punished with imprisonment for a term which may extend to three years and with fine which may extend to five thousand rupees and with a further fine which may extend to fifty rupees per acre of land or part thereof for every day on which the occupation continues after the date of the first conviction for such offence.

(3) Whoever intentionally aids or abets the commission by any other person of an offence punishable under sub-section (1) or sub-section (2) shall, on conviction be punishable with the same punishment provided for such offence under the said sub-sections.]

Section33 Power of Board to order work to be carried out or to carry it out itself in default

(1) The Board may,

(a) if any person permitted to carry out the work relating to the forming of the extension or lay-out or the making of a street, does not carry it out; or

(b) if any private street or part thereof is not levelled, paved, metalled, flagged, channelled, sewered, conserved or lighted to the satisfaction of the Board, by notice, require the person forming the extension or layout or the owners of such street or part and the owners of buildings and lands abutting such street or part, including in cases where the owners of the land or the

(2) If any such work is not carried out within the time specified in the notice under sub-section (1), the Board may, if it thinks fit, execute it and the expenses incurred shall be paid by the persons or owners referred to in sub-section (1) in such proportions as may be determined by the Board, such expenses may be recovered from the persons concerned as if they were arrears of land revenue.

CHAPTER 5 Acquisition of Land

Section34 Board to have power to acquire land by agreement

Subject to the provisions of this Act and with the previous approval of the Government the Board may enter into an agreement with the owner of any land or any interest therein whether situated within or without the urban area for the purchase or lease of such land or interest therein for the purpose of this Act. 11. Proviso added by Act No. 19 of 1984, w.e.f. 21-4-1984.

[Provided that the Board may enter into an agreement with the previous approval of the Deputy Commissioner of the district where the total area of such land does not exceed five hectares and of the Divisional Commissioner of the division where the total area of such land exceeds five hectares but does not exceed ten hectares.]

Section35 Provisions applicable to the acquisition of land otherwise than by agreement

(1) The acquisition otherwise than by agreement of land within or without the urban area under this Act shall be regulated by the provisions so far as they are applicable of the Land Acquisition Act, 1894.

(2) For the purpose of sub-section (2) of Section 50 of the Land Acquisition Act, 1894, the Board shall be deemed to be the Local Authority concerned.

(3) After the land vests in the Government under Sectionl6 of the Land Acquisition Act, 1894, the Deputy Commissioner shall, upon payment of the cost of the acquisition, and upon the Board agreeing to pay any further costs which may be incurred on account of the acquisition, transfer the land to the Board, and the land shall thereupon vest in the Board.

CHAPTER 6 Property and Finance

Section36 Power of Government to transfer to Board lands belonging to it or to a Local Authority

(1) The Government may, by notification, for the purposes of this Act and subject to such limitations and conditions as it may impose and to the provisions hereinafter contained, transfer to and vest in the Board any land belonging to Government or to a Local Authority.

(2) No land belonging to a Local Authority shall be vested in the Board under sub-section (1) except after consulting such Local Authority.

(3) Whenever it appears to the Government that any land vested in the Board under sub-section (1) is not required by the Board for purposes -of this Act or any other land vesting in the Board is required by the Government or Local Authority, the Government may, by notification, direct that the land shall revest in or stand transferred to the Government or the Local Authority concerned, as the case may be.

Section37 Power of Board to lease, sell or transfer property

Subject to such restrictions, conditions and limitations as may be prescribed, the Board shall have power to lease, sell or otherwise transfer any movable or immovable property which belongs to it, and to appropriate or apply any land vested in or acquired by it for the formation of open spaces or for building purposes or in any other manner for the purpose of any development scheme.

Section38 Power of Board to borrow

(1) The Board may, from time to time with the previous sanction of the Government and subject to such conditions as may be prescribed in the behalf, borrow any sum required for the purpose of this Act.

(2) The rules made by the Government for the purpose of this section may empower the Board to borrow by the issue of debentures and to make arrangement with the bankers.

(3) Debentures issued by the Board shall be in such form as the Board may, with the sanction of the Government, from time to time determine.

(4) Every debenture shall be signed by the Chairman and one other member of the Board.

(5) Loans borrowed and debentures issued under this section may be guaranteed by the Government as to the repayment of principal and payment of interest at such rate as may be fixed by the Government.

Section39 Board Fund, the items to be credited to such Fund and its deposit

(1) The Board shall have and maintain its own Fund to which shall be credited

(a) all moneys received by the Board from the Government by way of grants, loans, advances or otherwise;

(b) all fees, fines and charges received by the Board under this Act;

(c) all moneys received by the Board from the disposal of lands, buildings or other property movable or immovable;

(d) all moneys received by the Board by way of rents and profits or in any other manner from any other source.

(2) The Fund shall be applied by the Board in the administration of this Act and for no other purposes.

(3) The Board shall keep such sum of money out of its Fund as may be prescribed in the Government Treasury and any money in excess of it shall be deposited in a Scheduled Bank or invested in such manner as may be approved by the Government.

Section40 Laying of annual estimate of income and expenditure

(1) The Chairman shall, at a special meeting to be held not later than the first day of February in each year, lay before the Board an estimate of the income and of the expenditure of the Board for the year commencing on the first day of April then next ensuing in such detail and form as the Board shall, from time to time, direct.

(2) Such estimate shall make provision for the efficient administration of this Act and a copy of the estimate shall be sent by post or otherwise to each member of the Board at least ten clear days prior to the date of the meeting.

Section41 Board to approve or amend such estimates

The Board shall consider the estimate so submitted to it and shall approve the same either unaltered or subject to such alterations as it thinks fit.

Section42 Estimates to be submitted to Government for sanction

The estimate, as approved by the Board shall be submitted to the Government which may either sanction or disallow such estimate or any portion thereof and return the same for amendment. The Board shall forthwith amend the estimate so returned and shall re-submit the amended estimate to the Government. A copy of the estimate as sanctioned by the Government shall be sent to the local authorities concerned.

Section43 Supplementary estimates may be prepared and submitted when necessary

The Board may, at any time during the year for which any estimate has been sanctioned, cause a supplementary estimate to be prepared and submitted to it. Every such supplementary estimate shall be considered and approved by the Board and submitted to the Government for sanction and a copy of the estimate as sanctioned shall be sent to the Local Authority concerned, in the same manner as if it were an original annual estimate.

Section44 Provisions regarding expenditure

No sum shall be expended by or on behalf of the Board, unless included in the estimate or a supplementary estimate:

Provided that an expenditure not exceeding twenty-five thousand rupees may be incurred, though not so included, in unforeseen circumstances or to satisfy a decree of a court and in such a case the Chairman shall make a report, as soon as practicable, to the Government indicating the circumstances in which the expenditure was incurred and the source from which it is proposed to be met:

Provided further that any such expenditure shall be included in a supplementary estimate to be approved and sanctioned in the manner laid down in Section 43.

Section45 Power to make reappropriation

Subject to such rules as may be made under this Act, the Board may, within the sanctioned budget make reappropriations from one sub-head to another or from one minor head to another minor head under the same major head of account.

Section46 Audit of Accounts

(1) The accounts of the Board shall be audited annually by an auditor appointed by the Government.

(2) The auditor shall, for the purpose of the audit, have access to all the accounts and other records of the Board.

(3) The Board shall pay from its fund such charges for the audit as may be prescribed.

Section47 Power of auditor to require production of documents and attendance of persons concerned

(1) The Auditor may

(a) require in writing the production of such vouchers, statements, returns, correspondence, notes or other documents in relation to the accounts as he may think fit;

(b) require in writing any salaried servant of the Board accountable for or having the custody or control of such vouchers, statements, returns, correspondence, notes or other documents or of any property of the Board or any person having directly or indirectly by himself or his partner, any share or interest in any contract with or under the Board to appear in person before him at the Board office and answer any question;

(c) in the event of a clarification being required on any specific point from the Chairman or any Officer or member in writing, require such person to furnish the clarification on such point.

(2) The auditor may, in any requisition made under sub-section (1) fix a reasonable period not being less than three days within which the said requisition shall be complied with.

(3) The auditor shall give to the Board not less than two weeks' notice in writing of the date on which he proposes to commence the audit:

Provided that notwithstanding anything contained in this sub-section, the auditor may, for special reasons which shall be recorded in writing, give shorter notice than two weeks or commence a special or detailed audit if so directed by the Government without giving notice.

Section48 Penalty for disobeying requisition under Section 47

Any person who wilfully neglects or refuses to comply with any requisition lawfully made upon him under clauses (a), (b) or (c) of sub-section (1) of Section 47 shall, on conviction, be punished with fine which may extend to two hundred rupees:

Provided that no proceedings under this section shall be instituted except with the sanction of the Government or such other Officer as the Government may authorise in this behalf:

Provided further that before giving such sanction the Government or the authorised Officer shall call upon the person against whom the proceedings are to be instituted to show cause why the sanction should not be given.

Section49 Audit Report

(1) The auditor shall include in his report a statement of.

(a) every payment which appears to him to be contrary to law,

(b) the amount of any deficiency or loss which appears to have been caused by the gross negligence or misconduct of any person;

(c) the amount of any sum received which ought to have been but is not brought into account by any person, and

(d) any material impropriety or irregularity which he may observe in the accounts other than those mentioned in clauses (a), (b) and (c).

(2) Within three months after the completion of the audit, the auditor shall send a report on the accounts audited and examined to the Board.

Section50 Board to remedy defects

(1) Within two months of the receipt of the report under Section 49, the Chairman shall place it before a meeting of the Board together with a statement of the action taken or proposed to be taken to remedy any defect or irregularity that may have been pointed out in such report and an explanation in regard thereto and shall with the approval of the Board, remedy the defects or irregularities. He shall also as soon as may be, after the decision of the Board send to the Controller, State Accounts Department, intimation of having remedied the defects or irregularities pointed out in the report, or shall, within the said period, supply the Controller, any further explanation in regard to such defects or irregularities as the Board may decide to give.

(2) On receipt of such intimation or explanation the Controller may,

(a) accept the explanation given by the Board and withdraw the objection;

(b) direct that the matter be re-investigated at the next audit or at any earlier date; or

(c) hold that the defects or irregularities have not been removed or remedied.

(3) The Controller, shall send a report to the Government and shall forward a copy of such report to the Chairman. The Controller shall state in the report whether in his opinion the defects or irregularities have or have not been removed or remedied and indicate whether the defects or irregularities can be regularised or whether they can be condoned. He shall also state whether the amounts to which the defects or irregularities relate should, in his opinion, be surcharged or charged. 11. Inserted by Act No. 13 of 1985 and shall be deemed to have come into force w.e.f. 10-10-1984. [The audited accounts and the report shall be laid before each House of the State Legislature, as soon as may be, after it is received by the Government.]

(4) The Board shall include in its next administration report such portions of the report under Section 49 as deal with defects and irregularities falling under clause (c) of sub-section(2), the explanation if any, given under sub-section (1) and the final report of the Controller thereon under sub-section (3).

(5) Nothing in this section shall preclude the Controller, at any time from bringing to the notice of the Government any matter which appears to him to involve criminal misappropriation or fraud or deserves special attention or immediate investigation.

Section51 Government to surcharge or charge illegal payment or loss caused by negligence or misconduct

(1) The Government may, after considering the report of the Controller and after taking the explanation of the person concerned or making such further enquiry as it may consider necessary, by order disallow any item which appears to it to be contrary to law and surcharge the same on the person making or authorising the making of the illegal payment; and may charge any person responsible therefor the amount of any deficiency or loss caused by the negligence or misconduct of that person, or any such amount received which ought to have been, but is not brought into account by that person and shall, in every such case, certify the amount due from such person.

(2) The Government shall state in writing the reason for its decision in respect of every surcharge or charge and shall send by registered post a copy thereof to the person against whom it is made.

(3) If a person to whom a copy of the Government decision is sent under sub-section (2) refuses to take delivery thereof he shall be deemed to have duly received it on the day on which it was refused by him.

Section52 Recovery of surcharge and charge how made

(1) The amount surcharged or charged shall be paid by the person concerned within one month from the date of communication of the order under Section 51, into the treasury or bank holding the funds of the Board.

(2) The said sum, if not so paid, shall be recovered as arrears of land revenue.

CHAPTER 7 Officers and Servants of the Board

Section53 Schedule of Officers and servants to be submitted for sanction of Government

The Board shall, from time to time, prepare and submit for the sanction of the Government a schedule of the staff of Officers and servants whom it may consider necessary and proper to employ for its purposes. Such schedule shall also set forth the amount and nature of the salaries and allowances which the Board proposes for each such Officer or servant. No alteration in the sanctioned schedule shall be made without prior sanction of the Government.

Section54 Appointments by whom to be made

(1) Subject to the provisions of Section 365 of the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964), the rules and bye-laws made under this Act and of the schedule for the time being in force sanctioned by the Government under Section 53, the powers of appointing, promoting, suspending, dismissing, fining, reducing or granting leave to the Officers and servants of the Board (not being Officers of the Government lent to or working under the Board) shall be exercised, in the case of Officers and servants whose monthly salary does not exceed two hundred and fifty rupees by the Chairman and in every other case by the Board:

Provided that in the case of Officers of the Government lent to the Board, the Chairman may exercise the powers of granting leave and sanctioning increments and after following the prescribed procedure, of withholding increments and shall report the fact to the Head of the Department to which such Officer belongs.

(2) The power of dispensing with the services of any Officer or servant of the Board, otherwise than by reason of such Officer's or servant's misconduct or of permitting any such Officer or servant to retire on a pension, gratuity or compassionate allowance shall, subject to the aforesaid provisions, be exercised only by the Board.

(3) Any party aggrieved by an order of the Board under sub-section (2) may appeal to the Government within thirty days of the order.

CHAPTER 8 Control

Section55 Control by Government

The Board shall carry out such directions as may be issued to it from time to time by the Government under the provisions of the Act for the efficient administration of the Board and its affairs.

Section56 Action in case of defaults by Board

If the Board fails to carry out any direction issued under Section 55 within the period, if any, fixed in such direction, the Government may make arrangements to take such action and recover all expenses connected therewith from out of the Board's Funds.

Section57 Power to cancel or modify by order, etc.

If in the opinion of the Government the execution of any order or resolution of the Board or the doing of anything which is about to be done or being done by or on behalf of the Board is unjust, unlawful or improper or is causing or is likely to cause loss or damage to or prejudice to the interests of the Board or is causing or likely to cause injury or annoyance to the public or breach of the peace, the Government may, by order, cancel or modify such order or resolution or pass such other order as it deems fit:

Provided that before passing an order under this section, the Government shall give the Board an opportunity of making representation against the proposed order:

Provided further that pending action under this section, the Government may direct the stay of the execution of any order or resolution of the Board or the doing of anything by or on behalf of the Board subject to such conditions as it may think fit.

Section58 Supersession of the Board

(1) If the Government is satisfied that the Board has made default in performing any duties imposed on it by or under this Act or any other law or has abused its power or is acting in a manner prejudicial to the interests of the Board or its finances the Government may by notification, supersede and reconstitute the Board:

Provided that before issuing the notification under this sub- section the Government shall give an opportunity to the Board to make a representation why it should not be superseded and shall consider the representation, if any, made.

(2) After the supersession of the Board not until it is reconstituted, the powers, duties and functions of the Board shall be exercised by such Officer or Officers as the Government may appoint.

Section59 Dissolution of the Board

(1) Where the Government is satisfied that the purpose for which the Board was established has been substantially achieved so as to render the existence of the Board unnecessary, it may, by order published in the official Gazette, declare that the Board shall be dissolved with effect from such date as may be specified in the order and thereupon the Board shall be deemed to be dissolved accordingly.

(2) From the said date,

(a) all the properties, funds, dues which are vested in of realisable by the Board shall vest in or be realisable by the Local Authority concerned;

(b) all Government lands placed at the disposal of the Board shall revert to the Government;

(c) all liabilities which are enforceable against the Board shall be enforceable against the Local Authority concerned; and

(d) for the purpose of carrying out any development which has not been fully carried out by the Board and for the purpose of realising the properties, funds and dues referred to in clause (a), the functions of the Board shall be discharged by the Local Authority concerned.

(3) When the Board is dissolved under sub-section (1), the Government may pass such orders as it deems necessary in respect of the Officers and servants of the Board.

Section60 Penalty for being interested in contracts with the Board

If any member or Officer or servant of the Board knowingly acquires, directly or indirectly by himself or by a partner, employer or servant, any share or interest in any contract or employment with, by or on behalf of the Board he shall be deemed to have committed the offence under Section 168 of the Indian Penal Code:

Provided that a person shall not be deemed to have any share or interest, in such contract or employment by reason only of his having a share or interest if any, in any newspaper in which any advertisement relating to the affairs of the Board is inserted.

Section61 Members and Officers to be public servants

Every member and every Officer or other employee of the Board shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code.

Section62 Sanction of prosecutions

No court shall take cognisance of an offence under this Act, the rules or bye-laws made thereunder except on the complaint made with the previous sanction of the Board by such Officer as the Board may authorise in this behalf.

Section63 Fines to be credited to Board Fund

All fines recovered under this Act by or under the order of a court shall be paid to the credit of the Board Fund.

Section64 Recovery of sums due

Save as otherwise provided in Section 22 all sums due by any person to the Board on account of sale proceeds of property vested in or acquired by the Board or otherwise howsoever and remaining in arrears after fifteen days from the date of service on such person of a notice of demand may be recovered in any one or more of the following ways, namely:

(1) by distraint and sale, by or under the orders of the Board, of the movable property of such person; and

(2) as arrears of land revenue, on the written application of the Board in this behalf to the Deputy Commissioner of the district in which proceedings are required to be taken.

Section65 Protection of action taken in good faith

No suit, prosecution or other legal proceedings shall lie against the Board, the Chairman, member, Officer or servant of the Board or any person acting under the orders or directions of the Board for anything which is in good faith done or intended to be done under this Act or any rule or bye law made thereunder.

Section66 Service of notice

Save as otherwise provided any notice or order issued or made under this Act shall be served in the prescribed manner.

Section67 Offences by companies

(1) Where an offence under this Act is committed by a company, the company as well as every person in charge of and responsible to the company for the conduct of its business at the time of the commission of the offence, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he prove that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or that the commission of the offence is attributable to any neglect on the part of any director, manager, secretary or other Officer of the company, such director, manager, secretary or other Officer, shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Section68 Effect of other laws

(1) Save as provided in this Act the provisions of this Act shall be in addition to and not in derogation of any other law.

(2) Where a Board is constituted for and is functioning in any urban area the provisions contained in Chapter VIII of the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964) shall not be applicable to such area.

CHAPTER 9 Miscellaneous

Section69 Rules

(1) The Government may, by notification and after previous publication, make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters, namely:

(a) allowances payable to the Chairman and non-official members;

(b) the manner and form in which any contract of the Board may be executed under Section 11;

(c) the further particulars to be furnished in the application for sanction of a scheme under Section 16;

(d) the manner of payment of betterment tax;

(e) the procedure, conditions and restrictions subject to which and the form in which the Board may let on hire, lease, sell or otherwise convey any movable or immovable property;

(f) the amount of money to be kept by the Board in the Government Treasury;

(g) the form in which, and the time within which, the budget estimates of the Board shall be prepared and submitted to the Government;

(h) any other matter for which rules have to be made or necessary under this Act.

(3) In making a rule under this section, the Government may provide that a person guilty of a breach thereof shall be punishable with fine which may extend to one hundred rupees and in the case of a continuing breach, with additional fine which may extend to fifty rupees for every day during which such breach continues after receipt of a notice from the Board requiring such person to discontinue the breach.

(4) A rule under this Act may be made with retrospective effect and when such a rule is made the reasons for making the rule shall be specified in a statement laid before both Houses of the State Legislature. Subject to any modification made under sub-section (5) every rule made under this Act shall have effect as if enacted in this Act.

(5) Every rule made under this Act shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if before the expiry of the session immediately following the session or the successive session aforesaid both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall from the date on which the modification or annulment is notified by the Government in the official Gazette, have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under such rule.

Section70 Power of Board to make bye-laws

(1) Subject to the provisions of this Act and the rules made thereunder the Board may from time to time, make, alter or rescind bye-laws

(a) for regulating the delegation of the powers and duties of the Board to an Officer of the Board;

(b) for the guidance of persons employed by it under this Act;

(c) for regulating the matters relating to the recruitment, discipline and other conditions of service of the Officers and servants of the Board, not being Officers of the Government lent to or working under the Board;

(d) for the management, use and regulation of houses constructed under any Scheme;

(e) for regulating the construction and reconstruction of buildings in regard to the following matters, namely, the notice to be submitted, the line of frontage with neighbouring buildings the free space to be left about the building, the level and width of foundation, the stability of structure and materials to be used and the provision to be made for drainage, and ventilation;

(f) for the forming of extensions or lay-outs and the laying out of private streets, the information and plans to be submitted with the application for permission to form extensions or lay-outs and to make private streets, and for regulating the level and width of streets and the height of buildings abutting thereon;

(g) relating to the construction of footpaths, erection of streetlights and planting of trees; and

(h) generally for carrying out the purposes of this Act.

(2) In making a bye-law under sub-section (1), the Board may provide that a breach thereof shall be punishable with fine which may extend to one hundred rupees and in the case of a continuing breach with additional fine which may extend to fifty rupees for every day during which such breach continues after notice is received from the Board requiring such person to discontinue the breach.

(3) Any such bye-law may also provide that a person contravening the same shall be required to remedy the mischief, if any caused by such breach.

(4) The Board shall, before making any bye-law under this section, publish in the official Gazette for the information of persons likely to be affected thereby, a draft of the proposed bye-law together with a notice specifying a date not being earlier than thirty days from the date of publication of the draft of the proposed bye-law on or after which the draft will be taken into consideration, and shall before making the bye-law consider any objection or suggestion received with respect to the said draft before the date so specified.

(5) No bye-law made by the Board under this section shall have effect until it has been approved by the Government and every such bye-law shall be submitted to the Government along with a statement containing the views of the Board on the objections and suggestion-s if any, received and a copy of that notice published under the sub-section (4) and every objection or suggestion received with respect to the draft bye-law.

(6) The Government while approving a bye-law may make any change therein which appears to it to be necessary.

(7) Every bye-law as approved by the Government shall be published in the official Gazette and shall come into force from such date not being earlier to the date of publication of the bye-laws in the Gazette as may be specified by the Board and when no such date is specified, on the date of such publication.

Section71 Rules and bye-laws to be exhibited

The rules and bye-laws made under Sections 69 and 70 shall be exhibited at such places as may be prescribed and copies shall be made available for sale by the Board.

Section72 Repeal of the Karnataka Ordinance No. 20 of 1975

(1) The Karnataka Improvement Boards Ordinance, 1975 (Karnataka Ordinance No. 20 of 1975) is hereby, repealed.

(2) Notwithstanding such repeal anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.

RULE

BAGALKOT TOWN DEVELOPMENT AUTHORITY (ALLOTMENT OF SITES)RULES, 1993

Whereas, the draft of the following rules was published as required by sub-section (1) of Section 69 of the Karnataka Improvement Boards Act, 1976. (Karnataka Act 11 of 1976) in Notification No. HUD 786 MIB 93, dated 16th October, 1993 in Part IV, Section 2-C(i) of the Karnataka Gazette, Extraordinary, inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of its publication in the Official Gazette. And, whereas, the said Gazette, was made available to the public on 11th November, 1993. And, whereas, the objections and suggestions received within the period specified above have been considered. Now, therefore, in exercise of the powers conferred by Section 69 of the Karnataka Improvement Boards Act, 1976 (Karnataka Act 11 of 1976), the Government of Karnataka hereby makes the following rules, namely:

Rule1 Title, commencement and application

(1) These rules may be called the Bagalkot Town Development Authority (Allotment of Sites) Rules, 1993.

(2) They shall come into force from the date of their publication in the Official Gazette.

(3) Notwithstanding anything contained in the Karnataka Improvement Board Rules, 1976, the provisions of these rules shall apply in respect of allotment on sites by the Bagalkot Town Development Authority.

Rule2 Definitions

In these rules unless the context otherwise requires.

(a) "Allottee" means the persons to whom a site is allotted under these rules;

(b) "Authority" means the Bagalkot Town Development Authority;

(c) "Backward Tribes" means the Backward tribes notified in Order No. SWL 66 BCA 86, dated the thirteenth day of October, 1986 or in such other order as may be issued from time to time;

(d) "Civic Amenity" means.

(i) a market, a post office, a telephone exchange, a bank, a fair price shop, a milk booth, a school, a dispensary, a hospital, a pathological laboratory, a maternity home, a child care centre, a library, a gymnasium, a bus stand or a bus depot;

(ii) a recreation centre run by the Government or the Authority;

(iii) A centre for educational, social or cultural activity established by the Central Government or the State Government or by a body established by the Central Government or the State Government;

(iv) a centre for educational, religious, social or cultural activities or for philanthropic service run by a Co-operative Society Registered under the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959) or a Society Registered under the Karnataka Societies Registration Act, 1960 (Karnataka Act 17 of 1960) or by a Trust created wholly for charitable, Educational or religious purpose;

(v) a Police Station, and Area Office or a Service Station of the Authority or the Karnataka Urban Water Supply and Drainage Board or the Karnataka Electricity Board; and

(vi) Such other amenity as the Government may, by notification specify;

(e) "Commercial Site" means any site formed in any extension or lay out earmarked for locating a cinema theatre, a hotel or restaurant, a shopping centre, a shop, a market area and includes sites for locating any business or commercial enterprises or undertaking but does not include any site earmarked for the location of any factory or any industry or any site earmarked for dwelling purpose;

(f) "Corner Site" means a site at the junction of two roads having more than one side of the site facing the roads;

(g) "Displaced person" means and includes.

(i) a person residing in the submergible portion of Bagalkot Town and who will be displaced due to submergence;

(ii) a person residing in the non-submergible area or Bagalkot Town, whose immovable property in the submergible portion of Bagalkot Town is acquired;

(iii) a person in occupation as a tenant (for residence, business, trade, or other avocations) of immovable property situated in the submergible portion of Bagalkot Town for 11. Substituted for the words "not less than ten years" by Notification No. RD 190 REH 97, dated 16-12-1997, w.e.f. 19-12-1997 [not less than

(h) "Family" in relation to a person means such person, the wife or husband, as the case may be, of such person and the children wholly dependent on him;

(i) "Form" means a form appended to these rules;

(j) "Income" means the annual income of a person or family;

(k) "Migrant" means a person who is actually not affected by submersion under Almatti, Reservoir within the municipal limits of Ba- galkot City Municipality but migrated to the Bagalkot Town not less than ten years before the first preliminary notification issued under Section 4 of the Land Acquisition Act, 1894;

(1) "Physically handicapped person" means a person who is physically handicapped and duly certified as such by a Government Doctor;

(m) "Scheduled Castes" and "Scheduled Tribes" means the Scheduled Castes and Scheduled Tribes specified in respect of the State of Karnataka in the Constitution (Scheduled Castes) Order, 1950, and the constitution (Scheduled Tribes) Order, 1950, for the time being in force;

11. Clause (n) omitted by Notification No. UDD 194 MIB 95(P), dated 25-10-1996, w.e.f. 5-11-1996 (n) "Slum Dweller" x x x x x;

(o) "Stray Site" means a site which was once allotted but subsequently the allotment was either cancelled by the authority or surrendered by the allottee or a site which has been formed on account of readjustment in the plan subsequent to the issue of notification inviting applications for allotment of sites.

Rule3 Category of Sites

(1) The following categories of sites shall be made available by the authority in the New Bagalkot Township for allotment to the displaced persons, migrants and other persons who are entitled for allotment of sites under these rules, namely.

Category

 Site in meters

 Area in sq. mts.

A

B

C

D

E

 8x9

9x12

12x18

15x24

18x27

 72

108

216

360

496

(2) The total number of sites in each category shall be determined by the authority.

Rule4 Allotment of sites

(1) One site measuring 72 sq. meters shall be

(2) In case the displaced family requires a site of dimensions higher than 72 sq. meters. it shall be entitled to have such site on payment of difference in cost over and above the area of 72 sq. meters at the rates specified in the tables in sub-rule (3) the cost of site shall be as specified in the table below.

Type

 Size

 Rates to be paid by displaced families Rs.

 Rates to be paid by families of Major sons of P-D. Fs.

 Rates to be paid by migrants

(1)

 (2)

 (3)

 (4)

 (5)

A

 72 sq. mts.

 Rs. 75 per sq. mt. which shall be free of cost in the case of the eligible project displaced persons

 75 per sq. mts.

 100 per sq. mts.

B

 108 sq. mts.

 75 per sq. mts.

 75 per sq. mts.

 125 per sq. mts.

C.

 216 sq. mts.

 95 per sq. mts.

 95 per sq. mts.

 219 per sq. mts.

D.

 360 sq. mts.

 95 per sq. mts.

 95 per sq. mts.

 219 per sq. mts.

E.

 486 sq. mts.

 95 per sq. mts.

 95 per sq. mts.

 219 per sq. mts.

Explanation. "Displaced family" in relation to a person means such person, the wife or husband, as the case may be of such person and the children wholly dependent on him who, either as owner or tenant (Including Municipal tenant) was residing in the submergible portion of Bagalkot Town for 22. Substituted for the words "not less than ten years" by Notification No. RD 190 REH 97, dated 15-12-1997, w.e.f. 19-12-1997 [not less than five years] preceding the date of issue of notification under Section 4 of the Land Acquisition Act, 1894:

33. Proviso substituted by Notification No. UDD 194 MIB 95 (P), dated 25-10-1996, w.e.f. 5-11-1996 [Provided that not more than two children (whether Male or Female) of the head of a displaced family who had attained majority on the date of issue of notification under Section 4 of the Land Acquisition Act, 1894, shall be deemed and construed as separate family for the purpose of allotment of site under these rules and such separate family for the purpose of allotment of site shall be selected by the displaced family failing which the Bagalkot Town Development Authority shall select them. Such separate family of the displaced family shall not be entitled for allotment of site exceeding an area of 72 Square Metres or any site of portion of a site free of cost:]

44. Second proviso inserted by Notification No. UDD 658 MIB 96, dated 24-9-1997, w.e.f. 24-9-1997 [Provided further that not more than two adult brothers of the displaced family or where such adult brother is not alive the widow of such

(1) the brothers of displaced family had attained the age of eighteen years and was residing in the same house of the displaced family;

(ii) he establishes with evidence to the effect that he had separate kitchen and separate ration card; and

(iii) if there are more than two brothers in the displaced family the beneficiaries among them shall be selected by the P.D.F., failing which the Bagalkot Town Development Authority shall select them.]

11. Sub-rule (3) inserted by Notification No. UDD 596 MIB 96, dated 12-12-1996, w.e.f. 13-12-1996 [(3) To allot plots measuring 6M X 9M (72 Sq. Mtrs.) 22. The words "and ex gratia amount" omitted by GSR 57, dated 24-4-1997, w.e.f. 2-5-1997 [x x x x x] of unmarried daughters of more than 35 years age of P.D. Fs at the cost prescribed in column 4 of the Table specified under sub-rule (2).]

(4)

(i) The allotment of sites would be on the basis of first priority for project displaced families, second priority for deemed separate families (as given in proviso to Explanation to sub-clause (3) above) and third priority to migrants and others;

(ii) Allotment of site numbers to eligible families as per the priority given above would be done by category wise separate draws of lots.

(5) All corner sites and commercial sites shall be disposed of by public auction and the provisions of the Karnataka Urban Development Authorities (Disposal of Corner and Commercial Sites) Rules, 1991 shall mutatis mutandis apply.

(6) Displaced persons or family shall not be liable to pay towards connection charges for the services such as water, power sewage if they have been enjoying these facilities in the old Bagalkot Town subject to the conditions that they shall construct houses in the new Bagalkot Township within two years from the date of allotment of site and that they shall bring water supply and sanitary connections upto their property edge facing the road.

Rule5 Registration

(1) Every disposed person or family or Migrant 33. The brackets and words "(except slum dwellers)" omitted by Notification No. RD 190 REH 97, dated 15-12-1997, w.e.f. 19-12-1997 [x x x x x] desiring a site shall register his name in the office of the authority on payment of rupees ten.

(2) A migrant seeking registration shall pay registration fee as specified in the table.

TABLE

Area of Sites

 Registration Fee

 Rs.

(a) 360 sq. mts. and above

 1,000

(b) Between 216 sq. mts359 sqm.

 500

(c) Below 216 sq. mts.

 100

(3) Registration made shall be valid for subsequent allotment unless the applicant has withdrawn the registration. Seventy five per cent of registration fee shall be refunded to applicant if he withdraws his registration.

Rule6 Application

(1) A person or family registered under Rule 5 shall apply in Form III to the Authority for allotment of site along with initial deposit of one eighth of the notified cost of the site. Application forms may be obtained from the office of the authority on payment of a sum of rupees fifty which amount shall not be refunded.

(2) Application shall be presented either in person or sent by registered post so as to reach the office of the authority before the date and time fixed for receipt of such applications. Applications received after the date and time fixed or which are defective or incorrect, shall be rejected.

Rule7 Principle of selection of application for allotment of sites

Sites shall be allotted among the different categories of migrants as follows.

Explanation. If at the time of making an allotment sufficient number of applications from persons belonging to category (a) are not received then the remaining sites reserved for that category shall be transferred to category (b) and if sufficient number of applications from persons belonging to categories (a) and (b) are not received then the remaining sites reserved for the categories shall be transferred to category (c) and if sufficient number of applications from persons belonging to categories (a), (b), (c), (d), (e), (f) and (g) are not received, then the remaining sites reserved for these categories shall be transferred to category (h).

Rule8 Value of Sites

Value of a site notified while inviting applications may be altered by the authority with the previous sanction of the Government.

Rule9 Conditions of allotment and sale of site

The allotment of a site under these rules shall be subject to the following conditions.

(a) The allottee (other than a displaced family or family residing in slum area desiring a site measuring not exceeding 72 sq. mtrs) shall within a period of ninety days from the date of receipt of notice of allotment, pay to the authority the balance sital value deducting the initial deposit. If the said value is not paid within a period of ninety days, further extension of time for a period not exceeding sixty days shall be given and the allottee shall pay in addition an interest at the rate of fifteen per cent on the said amount for the extended period. If the amount is not paid within such extended period also the registration fee shall be liable to forfeiture and the allotment cancelled without prior intimation.

(b) After payment under clause (a) is made, the authority shall call upon the allottee to execute a lease cum-sale agreement in Form IV for a period of ten years and after the execution of such agreement by the allottee and authority, the same shall be got registered by the allottee. If the agreement is not executed within forty-five days after the authority has called upon the allottee to execute such agreement, the registration fee paid by the allottee shall be forfeited, the allotment of the site cancelled, and the amount paid by the allottee after deducting such expenditure as much have been incurred by the authority, be refunded to him;

(c) Every allottee shall construct a building on the site within a period of two years or extended period in accordance with the plans and designs approved by the authority. If in any case it is considered necessary to add any additional conditions the authority may make such additions in the lease-cum-sale agreement;

(d) Until the site is conveyed to the allottee, the amount paid by the allottee for the purchase of the site shall be held by the authority as security deposit for a period not exceeding forty-five days for the due performances of the terms and conditions of the allotment and the lease-cum-sale agreement entered into between the authority and the allottee;

(e) The allottee shall comply with the conditions of the agreement executed by him and the building and other bye-laws of the authority, or as the case may be, the local authority for the time being in force;

(f) If the building is not constructed within the period specified in clause (c) or the extended period the allotment shall after reasonable notice to the allottee be cancelled;

(g) With effect from the date of taking possession of the site the allottee or his heirs and successors shall be liable to pay the taxes, fees and cesses payable in respect of the site and any building erected thereon;

(h) If the particulars furnished by the applicant in the prescribed application form for allotment of site are found to be incorrect or false the sital value deposited shall be forfeited and the site shall be resumed by the authority.

Rule10 Restrictions and conditions on sale sites

(1) The conveyance of sites in favour of allottee (hereinafter referred to as purchaser shall be subject to the following restrictions, conditions and limitations, namely.

(a) In the case of a site on which a building has not been constructed.

(i) the purchaser shall construct a building on the site within such period as may be specified by the authority, as per plans, designs, and conditions to be approved by the authority or in conformity with the provisions of the Karnataka Municipalities Act, 1964 and the Bye-laws made thereunder;

(ii) the purchaser shall not without the approval of the authority, construct on the site any building other than a building for which the site was allotted, granted or sold;

(iii) the purchaser shall not alienate the site within a period of ten years from the date of the conveyance except by mortgage in favour of the Government of India or the Government of Karnataka, the Life Insurance Corporation of India or the Karnataka Housing Board or Housing Development Finance Corporation or a Co-operative Society approved by the authority or any Corporation set up, owned or controlled by the State Government or the Central Government, to secure money advanced by such Government, Corporation, Company, Board, Society or Corporation, as the case may be, for the construction of the building on the site;

(b) in the case of a site on which a building has been constructed, the purchaser shall not alienate the site and building constructed thereon within a period of ten years from the date of agreement, except by mortgage in favour of the Government of India, the Government of Karnataka, the life Insurance Corporation of India, or the Karnataka Housing Board or any Company or Co-operative Society approved by the authority to secure moneys advanced by such Government, Corporation, Board or Society or Company for the construction of the building on the site.

(2) In the event of the purchaser committing breach of any of the conditions in sub-clauses (iii) of clause (a) and clause (b) of sub- section (1), the authority may at any time after giving the purchaser reasonable notice, resume the site free from all encumbrances. The purchaser may remove all things which he has attached to the earth:

Provided that if he has left the site in the State in which he received it, all transactions entered into in contravention of the conditions, specified in sub-clause (iii) of clause (a) and clause (b) of sub- section (1) shall be null and void ab initio.

Explanation. In this rule, reference to the authority shall be deemed to include the reference to the Chief Engineer authorised by the authority by a general resolution to exercise any power vested in the authority.

(3) Notwithstanding anything contained in sub-rules (1) and (2) but without prejudice to the provisions of Rule 9 where the purchaser applies that for reasons beyond his control he was unable to reside in the town of Bagalkot by reasons of his insolvency or impecuniosity it is necessary for him to sell the site or site and building, if any, he might have put up thereon, the authority may, with the previous approval of the Government either.

(a) require him to surrender the site, (where there is no building) in its favour; or

(b) where a building is put up, permit him to sell the vacant site and building:

Provided that. (i) in case covered by clause (a), the authority shall pay to the allottee the allotted value of the site;

(ii) in case covered by class (b) the purchaser shall pay to the authority a sum equal to the amount of interest at twelve per cent per annum on the allotted value of the site.

Rule11 Voluntary Surrender

The allottee may at any time after allotment, surrender the site allotted to him by the authority. On such surrender the authority shall refund all amounts paid by the purchaser to the authority in respect of the said site.

Rule12 Disposal of Civic Amenity Sites

The authority shall dispose of civic amenity sites in accordance with the Karnataka Urban Development Authority (Allotment of Civic Amenity Sites) Rules, 1991.

Rule13 Disposal of Stray Sites

The authority shall dispose of stray sites with the prior approval of the Government and in accordance with the guidelines issued by the Government.

APPENDIX 1 AGREEMENT

FORM 1

[See Rule 4(l)(b)]

AGREEMENT

An agreement made this day........19......between the Bagalkot Town Development Authority hereinafter called the Lessor/Vendor (which term shall wherever the context so permits, mean and include its successors in interest and assigns) of the one part and.....hereinafter called the Lessee (which term shall wherever the context so permits mean and include his/her heirs, executors, administrators and legal representatives) of the other part.

Whereas, the Bagalkot Town Development Authority Advertised for allotment of building sites in.....Extension.

And, whereas, one of such building site in Site No......more fully described in the Schedule hereunder and referred to as property.

And, whereas, the Lessee/Vendee agreed to do so subject to the terms and conditions specified in the Bagalkot Town Development Authority (Allotment of Sites) Rules, 1993 and the terms and conditions hereinafter contained.

And, whereas, the lessor/vendor has agreed to give the site free of cost to the lessee and the lessee has agreed to take it on lease subject to terms and conditions specified in the said rules.

Now this indenture witnesseth:

(1) The lessee is hereby put in possession of the property and the lessee shall occupy the property as a tenant thereof for a period of 15 years from the date of taking possession.

(2) The lessee shall construct a building in the property as per plans, designs and conditions to be approved by the lessor/vendor and in conformity with the provisions of the Karnataka Municipalities Act, 1964 and bye-laws made thereunder within two years from the date of this agreement:

Provided that where the Lessor/Vendor for sufficient reasons extends in any particular case the time for construction of building, the Lessee shall construct the building within such extended period.

(3) The Lessee/Purchaser shall not sub-divide the property or construct more than one dwelling house on it.

The expression 'Dwelling House' means building constructed to be used wholly for human habitation and shall not include any apartments to the building whether attached thereto or not used a shop or a building of ware house or building in which manufactory operations are conducted by mechanical power or otherwise.

(4) The lessee shall not alienate the site or the building that may be constructed thereon during the period of tenancy. The Lessor/Vendor may, however permit the mortgage of the right, title and interest of the lessee in favour of the Government of Karnataka, the Central Government or bodies corporate like Karnataka Housing Board or the Life Insurance Corporation of India, Housing Co-operative Societies or Banks to secure moneys advanced by such Government or bodies for the construction of the building.

(5) The property shall not be put to any other use except as residential building without the consent in writing of Lessor/Vendor

(6) The Lessee/Purchaser shall be liable to pay all outgoing with reference to the property including taxes due to the Government and the Municipality.

(7) On matters not specifically stipulated in these presents the Lessor/Vendor shall be entitled to give directions to the lessee which the lessee shall carry out and default in carrying out such directions will be a breach of conditions of these presents.

(8) In the event of the Lessee committing breach of any conditions of this agreement or the provisions of the Bagalkot Town Development Authority (Allotment of Sites) Rules, 1993, the Lessor/Vendor may determine the tenancy at any time after giving the Lessee/Purchaser fifteen days notice ending with the month of the tenancy, and take possession of the property. The Lessor/Vendor may also forfeit twelve and a half per cent of the amount treated as security deposit under clause of these presents.

(9) If the lessee has performed all the conditions mentioned herein and committed no breach thereof the lessor/vendor shall, at the end of 15 years referred to in clause I, confirm the property to the lessee and all attendant expenses in connection with such as stamp duty, registration charges etc., shall be borne by the lessee.

(10) The Lessee/Purchaser hereby also confirms that this agreement shall be subject to the terms and conditions specified in Bagalkot Town Development Authority (Allotment of Sites) Rules, 1993 and agreed to by the Lessee/Purchaser in his/her application or allotment of the site.

(11) In case the Lessee is evicted under Clause 9 he/she shall not be entitled to claim from the Lessor/Vendor any compensation towards the value of the Improvement or the super structure erected by him/her on the schedule property by virtue of and in pursuance of these presents.

THE SCHEDULE

Site No........formed by the Bagalkot Town Development Authority in Block No..........in the..............Extension,

Site bounded on

East by:

West by:

North by:

South:

and measuring East to West.........North to South........in all measuring..........Square feet/Square meters.

In witness whereof the parties have fixed their signature of this agreement Witness.

1.

2.

Secretary,

Bagalkot Town Development Authority,

Bagalkot

Witness:

1.

2.

Lessee

APPENDIX 2 Bagalkot Town Development Authority

FORM 2

[See Rule 5(1)]

Bagalkot Town Development Authority

Application for Registration for a site Registration No.

Name of the Persons Registered (in Block letters)   Address   Annual Income   Whether registration fee paid: Amount D.D. No.: Date: Name of the Bank and the Branch   Whether the applicant is a domicile of Karnataka State for a period of not less than 10 years. (Affidavit should be enclosed)  

Signature of the registered person:

Signature of the person receiving the deposit:

Bagalkot:

Date:

APPENDIX 3 Bagalkot Town Development Authority, Bagalkot

FORM 3

[See Rule 6(1)]

Bagalkot Town Development Authority, Bagalkot

Application form for allotment of sites:

Sector No.

Number:

1. Name of the applicant (in Block Letters)   2. Father/Husband's Name   3. Date of Birth   4. Address   5. Annual Income   6. Married or unmarried, if married number of dependent children   7. Registration Number and Date   8. Initial Deposit   Bank Name Bank D.D. No. Bank Cheque No. Date: 9. Under which of the following categories are you applying for a site (Tick one only) (Caste Certificate or Certificate of employer or Head of the Office, as the case may be should be enclosed)    (a) Backward Tribe    (b) Scheduled Tribes    (c) Scheduled Castes    (d) Member of the Armed Forces of the Union ex-serviceman and Members of the families of deceasec servicemen    (e) State Government employee    (f) Employees of the Central Government and Public Sector Undertakings, and Statutory Bodies owned or controlled by the State Government or Central Government    (g) Physically Handicapped persons    (h) General Public    (i) To be allotted at the discretion of the authority with preference being given to persons who have outstanding achievements in the Arts, Science or Sports or any other -field   10. Size of site applied for   11. 1696 In what level are you staying in the to be submerged Bagalkot Town Below 1696 or 1731   12. Are you having a house or site in the to be submergible Bagalkot Town   13. Have you been domiciled in Karnataka State for not less than ten years immediately prior to the date of registration   14. Do you, your wife/husband or your dependent children or your dependent parents or your dependent brothers or sisters own a site or a house in the Bagalkot area or have been allotted a site or a house in the Bagalkot Area by the B.T.D.A. or any other authority.  

I hereby declare that the above information is true to the best of my knowledge and nothing has been suppressed. If the above information furnished by me is found to be wrong or false, my application for allotment shall be rejected and the amount paid be forfeited to the.

B.T.D.A. Bagalkot Date: Signature of applicant

APPENDIX 4 Lease-Cum-Sale Deed

FORM 4

[See Rule 9(b)]

Lease-Cum-Sale Deed

This deed of sale made and executed at Bagalkot on the day one thousand nine hundred and.......by Executive Engineer, Bagalkot Town Development Authority, Bagalkot, hereinafter called the 'Vendor' (which term shall mean and include his successor-on-office) of the one part and Sri/Smt..............................S/o, D/o, W/o..........aged about............years........residing at..........(hereinafter called the Purchaser which terms shall mean and include his/her heirs, executors, administrators and assigns) of the other part witnesses.

Whereas, the Vendor has allotted on out-right sale the purchase the site No........which is fully described in the schedule below, under the Bagalkot Town Development Authority Rules, 1992 under Allotment Letter No.........

Whereas, the purchaser has paid the full sital value of Rupees.......in Cash/D.D. No........and the Vendor has acknowledged the receipt of the same.

Now this indenture witnesses that the vendor for having received the valuable consideration of Rs........from the purchaser, as absolute owner, do hereby put the purchaser in actual possession of the Scheduled site, and conveys to the purchaser all that part and parcel of Scheduled site, to have, to hold and to enjoy the same peacefully for ever as his/her personal and absolute property under the existing allotment policy rules and regulations of the B.T.D.A.

The expenses of such registration shall be borne by the purchaser.

THE SCHEDULE

Site No............formed by the Bagalkot Town Development

Authority in Sector No...........

Site bounded on

East by:

West by:

North by:

South by:

and measuring East to West...............North to South.............in all measuring.......Square Feet/square metres.

In witness where of the parties have fixed their signature to this agreement.

Witnesses:

1.

2.

Secretary,

Bagalkot Town Development Authority,

Bagalkot.

Witnesses:

1.

2.

Lessee / Purchaser.

ANNEXURE 1 ANNEXURE

ANNEXURE 1

The authority shall allot civic amenity sites at the following rates.

Sl.

No.

 Category

 Rates for displaced persons / Institution

 Rates for Migrant

(1)

 (2)

 (3)

 (4)

1.

 State and Central Government Buildings

 Free of Cost

 Free of Cost

2.

 Semi-Government or Autonomous bodies, public utility services requiring bigger area for functioning (institutions like KSRTC, KEB, APMC, Agro Industries etc.

 Free of cost to the extent of land they loose. Additional area if required will be allotted @ Rs. 2 sq. ft. to the extent permissible as per planning standards

 Rs. 2 per sq. ft.

3.

 (a) Private Educational, cultural National building, education oriented institutions

 (1) Free of cost to those who do not claim compensation for land to the extent they loose and Additional area if required will be allotted @ Rs. 2 sq. ft. to the extent permissible as per planning standards.

 Rs. 25 per sq. ft.

  b. Institutions engaged in Banking, Insurance and other like financial under takings to be allotted on 30 mtrs. wide main road.

 (2) For Displaced persons / institutions who claim compensation will be allotted at Rs. 25 per sq. ft.

 Same as abov

 c. Lodging, Cinema House, Drama theatres, social club, community hall, private nursing Homes etc.

 d. Sports, Clubs, Institutions, Cultural Clubs, and like institutions, engaged in the promotion of sports, culture and Art activities

   e. Service oriented Industries engaged in Public utility service requiring small sized sites but in a busy locality. Special caution is necessary while allotting as they should not cause nuisance to the neighbourers.

f. Temples, Churches, Mosques, Religious houses and other places worshiped by the public.

 g. Godowns, Garages

  h. Petrol Bank

 i. Petrol Bank with service station

 4.

 shops, of smaller Dimensions in market sector

 Shops will be built and sold on no profit no loss basis to the affected persons

 5.

 Small scale industry like other industries will be placed in a area reserved for each purpose

 Decision on such matters will be taken in the authority from time to time

6.

 Petty shops in each sector will be made available

 They will be distributed on nominal rent for poor people after taking prior permission in the authority meeting.

 (1) The authority may decide from time to time as to nature of the institutions to be covered in the above mentioned category

(2) The rates prescribed above are valid only for a period of three years only.

KARNATAKA IMPROVEMENT BOARDS RULES, 1976

In exercise of the powers conferred by Section 69 of the Karnataka Improvement Boards Act, 1976 (Karnataka Act 11 of 1976) the Government of Karnataka hereby makes the following rules

Rule1 Title and commencement

(1) These rules may be called the Karnataka Improvement Boards Rules, 1976.

(2) They shall come into force at once

Rule2 Definitions

In these rules unless the context otherwise requires.

(1) "Allottee" means the person to whom a site is allotted under these rules;

(2) "Backward Class" a person shall be considered to belong to the backward class if.

(i) he is.

(a) an actual cultivator;

(b) an artisan;

(c) a petty businessman;

(d) holding an appointment in inferior service (i.e., Class IV) in Government service or corresponding service under local bodies, autonomous bodies or private employment including casual labour; or

(e) engaged in any occupation involving manual labour;

(3) "Board" means an improvement Board established for any urban area under Section 3;

(4) "Chairman" means a Chairman of the Board;

(5) "Family" in relation to a person means such person, the wife or husband as the case may be of such person, and the children, grand children, parents, sisters and brothers of such person and wholly dependent on such person;

(6) "Form" means a form appended to these rules;

(7) "Income" means the fixed annual income of a person;

(8) "Member" means a member of the Board;

(9) "Act" means the Karnataka Improvement Boards Act, 1976 (Karnataka Act 11 of 1976);

(10) "State Government" means the Government of State of Karnataka;

(11) "Section" means a section of the Act;

(12) "Stray Site" means a site which was once allotted but subsequently was either cancelled by the Board or surrendered by the allottee for a site left over inadvertently while notifying the sites for allotment or a site which has been formed on account of readjustment in the plan subsequent to the issue of readjustment in the plan subsequent to the issue of notification inviting applications for allotment of sites.

Rule3 Allowance

(1) Where an official is appointed as Chairman of the Board he shall be paid his grade pay plus a special pay of Rs. 150 per month. Where a non-official is appointed as Chairman of the Board he shall be paid remuneration and other allowances as may be fixed by Government: Provided that where the person appointed is a minister or a legislator he shall not be entitled to any remuneration.

(2) Every member of the Board shall be entitled only to sitting fee of Rs. 40 per day of sitting at the meeting of the Board and no other allowances or remuneration.

Rule4 Leave

(1) The power to grant leave to the Chairman shall vest in the State Government.

(2) Chairman shall be the authority to grant leave of absence to the non-official members to attend the meetings.

Rule5 Travelling allowance

(1) The Chairman performing journey for the purpose of the Board, shall be entitled to travelling allowance at the rates and subject to the conditions specified in the Karnataka Civil Services Rules applicable to Officer of Class I from time to time:

11. Proviso to sub-rule (1) inserted by GSR 164, dated 4-6-1979. Provided that where the Chairman is a non-official he shall be entitled to travelling allowance at the rate of seventy five paise per kilometre.]

(2) An official member shall until he retires from such service or post, continue, to be governed by the travelling allowances rules applicable to him in such service or post. After retirement from such service or post, he shall be governed as regards travelling allowance by sub-rule (1).

Rule6 Proceedings

The proceedings of every meeting of the Board shall be recorded in a minute book kept for the purpose and shall be signed by the Chairman of the meeting of that day or at the next succeeding meeting.

Rule7 Restrictions on matters to be discussed at meetings

Notwithstanding anything contained in these rules the Board shall not be bound to furnish any information at a meeting of the Board, if, in the opinion of the Chairman or member of the Board presiding at the meeting it would not be in the public interest to furnish such information.

Rule8 Offer of site for allotment

(1) Whenever the Board has formed an extension or layout in pursuance of any scheme, the Board may, subject to the general or special orders of the Government, offer any or all the sites in such extension or layout for allotment of sites under these rules.

(2) Due publicity shall be given in respect of the sites for allotment specifying their location, number, the amount payable as earnest money, the last date of submission of applications and such other particulars as the Chairman may consider necessary by affixing a notice to the notice Board of the office of the Board and in other office as the Chairman may decide from time to time and by publication in any one or more daily newspapers published in the concerned city having a wide circulation.

Rule9 Reservation of sites

(1) The Board may with the previous sanction of the Government, set apart sites in any area for allotment to any specified class or specified classes of persons or purposes as it may consider necessary.

(2) Where sites are set apart under sub-rule (1), the procedure to be followed to the allotment of those sites subject to the general or special orders of the Government, be determined by the Board.

Rule10 Allotment of Stray sites

Notwithstanding anything contained in Rule 8 the Board may allot a stray site to a person who is eligible for allotment of a site under Rule 15.

Rule11 Disposal of sites for charitable purposes

Notwithstanding anything contained in these rules, sites may be allotted on lease basis, to registered charitable institutions for purposes of construction of schools, colleges, playgrounds, hostels, temples, community centres and recreation clubs on such rent as may be fixed by the Board. The Government may call for the records and revise the rent if it is satisfied that the rent fixed is too low. After the expiry of the lease period the entire land with Buildings and constructions therein shall vest in the Board free from all encumbrances. But, such sites may be conveyed by the Board to such institutions, after recovering such expenditure if any, as it may have incurred: Provided that no amount towards such expenditure shall be recovered by the Board in the case of persons belonging to backward class, Scheduled Castes and the Scheduled Tribes if so directed by Government.

Rule12 Allottee to be lessee

The site allotted under Rule 8 or Rule 10 shall be deemed to have been leased to the allottee until the lease is determined or the site is conveyed in the name of the allottee in accordance with these rules. During the period of lease, the allottee shall pay to the Board rent at the rate of rupees three per annum where the area of the site does not exceed two hundred square metres, rupees six per annum where the area of the site exceeds two hundred square metres, but does not exceed five hundred square metres and rupees twelve per annum where the area of the site exceeds five hundred square metres before the commencement of each year.

Rule13 Applications

(1) Applications, for allotment of sites shall be in Form 1 which may be obtained from the offices of the Board on payment of a sum of two rupees which amount shall not be refunded. The application shall be attested by a Magistrate of the First Class.

(2) Every application shall be accompanied by the receipt, challan or draft evidencing the deposit of the earnest money under Rule 14.

(3) Every applicant shall indicate the dimensions of the site required by him.

(4) When applications are invited under Rule 8, the application shall be presented in person or sent by registered post so as to reach the office of the Board before the date and time fixed for receipt of such applications. Applications received after the date and time so fixed shall be rejected.

Rule14 Earnest money

Every applicant for a site shall deposit as earnest money an amount equal to twelve and a half per cent of the value of a site of the dimensions applied for and enclose with the application the receipt obtained in token of such deposit, or challan for having credited the amount to the Reserve Bank of India or a draft for the amount drawn in favour of the Chairman: Provided that the money to be deposited by a member of the Scheduled Caste, Scheduled Tribe or wandering tribe or nomadic tribe or semi-nomadic tribe or a denotified tribe shall be three per cent of the value of the site.

Rule15 Eligibility for allotment No person

(1) Who is not ordinarily resident (Living independently or with his family members) in the area within the jurisdiction of the Board for not less than five years immediately before the last date fixed for making application.

(2) Who or any member of his family owns or is a lessee entitled to demand conveyance eventually or has been allotted a site or a house by the Board or any authority shall be eligible to apply for the allotment of a site: Provided that the Board may relax the conditions in the case of persons who are domiciled in Karnataka, but have gone outside the State for employment, business, studies or training and who intent to reside in such area.

Rule16 Principles for selection of applicants for allotment of sites. (1) The Board shall consider the case of each applicants on merits and shall have regard to the following principles in making selection

(i) The status of the applicant i.e., whether he is married or single and his dependent children;

(ii)The income of the applicant and his capacity to purchase a site and build a house therein for his residence: Provided that this condition shall not be considered in case of applicants belonging to scheduled caste, scheduled tribes, wandering tribes, nomadic tribes and other backward classes.

(iii) The number of years the applicant has been waiting for an allotment of site and the fact that he did not secure a site either earlier though he is eligible and had applied for a site;

(iv) Persons who are ex-servicemen or members of the family of the deceased servicemen killed in action during the last ten years.

(2) The sites may be allotted among the different classes of persons as indicated hereunder.

(a) Wandering tribes, nomadic tribes, denotified tribes, semi-nomadic tribes two per cent;

(b) Scheduled Tribes three per cent;

(c) Scheduled Castes Thirteen per cent;

(d) Ex-servicemen or members of the family of deceased servicemen and members of the armed forces of the Union nine per cent;

(e) State Government servants twelve per cent;

(f) Servants of the Central Governments and Corporations ten per cent;

(g) General public fifty-one per cent.

Rule17 Committees

The Board shall constitute a committee called "allotment committee" consisting of three members for considering applications and making recommendations to the Board for allotment. The Chairman of the Board shall be the Chairman of the committee. Of the other two members one shall be elected by the Board from among the members nominated by Government and the other from among the members representing the concerned Municipal Council or Corporation.

Rule18 Selection of applicants

The Board shall consider the recommendations of the allotment committee and after such further enquiry as it deem fit make allotment.

Rule19 Revocation of proposal for allotment of site

(1) The Board may at any time revoke any proposal to dispose off any site under these rules if in its opinion, the area covered by such site has to be reserved for any purpose for the use of inhabitants of the extension concerned.

(2) When a revocation is made under sub-rule (1), the applicants for sites in such area shall be given option to apply for other sites in the extension and any application made accordingly shall be considered along with the other applications for sites in such extensions.

Rule20 Decision of the Board

The Board shall have the right to reject the allotment of sites applied for by an applicant without assigning any reasons. The decision of the Board shall be final and binding on every applicant.

Rule21 Value of site

The value of a site mentioned while inviting applications may be altered by the Board with the sanction of the Government and an allottee may accept the site at the altered price or decline the allotment:

Provided that a person whose annual income is less than rupees three thousand and six hundred shall be entitled to get a site measurement 9.14M x 12.19M (30' x 40') or less at fifty per cent of the value of the site fixed by the Board:

Rule22 Conditions of allotment and Sale of site

The allotment of a site under these rules shall be subject to the following conditions.

(1) The allottee shall within a period of 15 days from the date of receipt of notice of allotment, pay to the Board twelve and a half per cent of the price of the site and if no such payment is made the allottee shall be deemed to have declined the allotment.

(2) The balance of the value of site (less a sum of rupees thirty where the area of the site does not exceed two hundred square metres, rupees sixty where the area of the site exceeds two hundred square metres and does not exceed five hundred square metres and rupees one hundred and twenty where the area exceeds five hundred square metres) shall be paid within 90 days from the date of receipt of the notice of allotment or such extended period not exceeding 22.Substituted for the words "one year" by GSR 126, dated 16-4-1979 and shall be deemed to have come into force w.e.f. 3-9-1976. [two years] as the Chairman may specify. Interest at 33. Substituted for the words "fifteen per cent" by GSR 292, dated 15-11-1984. [eighteen per cent] shall be paid on the said amount for the extended period. If the said amount is not paid within the period of ninety days or the extended period the earnest money paid by the allottee shall be liable to forfeiture and allotment may be cancelled:

Provided that where an allottee is a person.

(i)- Whose annual income does not exceed two thousand and four hundred rupees, he may choose to pay the balance value of the site in quarterly, half yearly or annual installments and the rate of interest on the said amount for the extended period for quarterly payment will be two per cent, for half yearly payment will be three per cent and for the annual payment four per cent;

(ii) Whose annual income exceeds two thousand and four hundred rupees but does not exceed seven thousand and two hundred rupees interest at twelve per cent per annum shall be paid on the said amount for the extended period:

Provided further that where an allottee is a person belonging to a Scheduled Castes or Scheduled Tribes or other Backward Classes or a nomadic tribe or a wandering tribe or a denotified tribe or a family of defence personnel killed or disabled during the recent war and whose annual income from all sources does not exceed rupees five thousand, the balance value of the site required to be paid under this sub-rule shall be paid by him without interest within a period of 6 years from the date of receipt of notice of allotment.

(3) Until the site is conveyed to the allottee the amount paid by the alLottee for the purchase of the site shall be held by the Board as security deposit for the due performance of the terms and conditions of the allotment and the lease-cum-sale agreement entered into between the Board and the allottee.

(4) After the payment under sub-rule (2) is made the Board shall intimate the allottee the actual measurement of the site and the particulars thereof and a lease-cum-sale agreement in Form II shall thereafter be executed by the allottee and the Board and registered by the allottee. If the agreement is not executed within forty-five days after the Board has intimated the actual measurements and price of the site to the allottee, the earnest money paid by the allottee may be forfeited, the allotment of the site may be cancelled and the amount paid by the allottee after deducting the earnest money be refunded to him. Every allottee shall construct a building on the site in accordance with the plan and design approved by the Board. If in any case it is considered necessary to add any additional conditions in the agreement the Board may make such conditions. Approval of the concerned Municipal Council or Corporation of the plans and designs shall be necessary when the layout in which the site is situated is transferred to the control of the said Municipal Council or Corporation.

(5) The allottee shall comply with the conditions of the agreement executed by him and the buildings and other bye-laws of the Board or the concerned Municipality as the case may be for the time being in force.

(6) The allottee shall construct a building within a period of two years from the date of execution of the agreement or such extended period as the Board may in any specified case by written order from him. If the building is not constructed within the said period the allotment may, after reasonable notice to the allottee, be cancelled, the agreement revoked, the lease determined and the allottee evicted from the site from the Board and after forfeiting twelve and a half per cent of the value of the site paid by the allottee the Board shall refund the balance to the allottee.

(7) (a) On the expiry of the period of ten years and if the allotment has not been cancelled or the lease has not been determined in accordance with these rules or the terms of the agreement in the meanwhile the Board shall by notice call upon the allottee to get the sale deed of the site executed at his own cost within the time specified in the said notice;

(b) If the allottee fails to get the sale deed executed within the time so specified the Board shall itself execute the sale deed and recover the cost and other charges, if any, incidental thereto from the allottee as if the said amount is due to the Board.

(8) The allottee shall ordinarily reside or himself make use of the building constructed on the site allotted to him.

(9) With effect from the date of taking possession of the site the allottee or his heirs and successors shall be liable to pay the taxes, fees and cesses payable in respect of the site and any building erected thereon.

(10) If the particulars furnished by the applicant in the prescribed application form for allotment of site are found incorrect or false subsequently, twelve and a half per cent of the site value shall be forfeited after the site is resumed by the Board and the balance amount of site value refunded to the applicant.

Rule23 Restrictions, conditions and limitations on sale of sites.

(1) Notwithstanding anything contained.

(i) These rules or any other rules, bye-laws or orders governing the allotment, grant or sale of sites by the Board for construction of buildings; or

(ii) Any instrument executed in respect of any site allotted, granted or sold by the Board for constructions of buildings. The Chairman may at the request of the allottee, grantee or purchaser of a site execute a deed of conveyance subject to the restrictions, conditions, limitations specified in sub-rule (2).

(2) The conveyance by the Chairman of a site in favour of an allottee, grantee or purchaser of a site (hereinafter referred to as purchaser) shall be subject to the following restrictions, conditions and limitations namely.

(a) In the case of a site on which a building has not been constructed.

(i) the purchaser shall construct a building on the site within such period as may be specified by the Board, as per plans, designs and conditions to be approved by the Board or in conformity with the provisions of the Municipal Laws and the bye-laws made thereunder;

(ii) the purchaser shall not without the approval of the Board, construct on the site any building other than a building for the construction of which a site was allotted, granted or sold;

(iii) the purchaser shall not alienate site within a period of ten years from the date of allotment except by mortgage in favour of the Government of India, the Government of Karnataka, the Life Insurance Corporation of India, the Karnataka Housing Board or any co-operative society approved by the Board or any corporation set-up, owned or controlled by the State Government or the Central Government to secure moneys advanced by such Government, Corporation, Board, Society or Corporations as the case may be for the construction of the building on the site;

(b) In the case of a site on which a building has been constructed, the purchaser shall not alienate the site and the building constructed thereon within a period of ten years from the date of allotment, except.

(i) by mortgage in favour of the Government of India, the Government of Karnataka, the Life Insurance Corporation of India or the Karnataka Housing Board or any Co-operative Society approved by the Board to secure moneys advanced by such Government, Corporation, Board or Society for the construction of the building on the site; or

(ii)with the previous approval of the Board.

(c) In the event of purchaser committing breach of any of the conditions in clause (a) or clause (b), the Board may at any time after giving to the purchaser reasonable notice resume the site free from all encumbrances. The purchaser may remove all things which he has attached to the earth:

Provided he leaves the site in the state in which he received it. All transactions entered into in contravention of conditions specified in clauses (a) and (b) shall be null and void ab initio.

Explanation. In this rule reference to the Board shall be deemed to include the Chairman when authorised by the Board by a general resolution to exercise any power vested in the Board.

(3) Notwithstanding anything contained in sub-rule (2) the Board may with the previous approval of the State Government and payment of such sum not exceeding twelve and a half per cent of the value of the site allotted by the lessee, by order in writing permit the alienation during the period of the lease of the site and the building, if any, constructed thereon, on account of the inability of the lessee to reside in the said site or house for reasons beyond his control or the insolvency or impecuniosity of the lessee. Where such permission is granted, the alienee shall for the purpose of this rules be the lessee subject to all the terms and conditions of the lease deed already executed.

Rule24 Voluntary surrender

An allottee may at any time after allotment surrender the site allotted to him to the Board. On such surrender the Board shall refund all amounts paid by the allottee to the Board in respect of the said site.

Rule25 Revision

(1) Government may suo moto or otherwise call for the record on any decision, order or proceedings of the Chairman or the Board under these rules for the purpose of satisfying itself as to the legality or propriety of such decision, order or proceeding.

(2) If in any case, it appears to the Government that any decision, order or proceedings so called for should be modified, annulled or reversed, Government may pass such order as it may deem fit: Provided that no decision or order shall be modified, annulled or reversed unless a notice has been served on the parties interested and opportunity given to them for making representation to the Government.

Rule26 Savings

Nothing in these rules shall be applicable to the sale or transfer of sites by the Board to

(a) The Karnataka Housing Board for construction of Houses;

(b) The State Government for any purposes;

(c) The Life Insurance Corporation of India, the Karnataka State Road Transport Corporation and the Karnataka Electricity Board.

APPENDIX 1 Form of Application for purchase of site

FORM I

[See

sub-rule (1) of Rule 13]

Form of Application for purchase of site

To

The Chairman,

Improvement Board,

Sir,

I wish to purchase a building site measuring in.......Extension, I agree

to abide by the conditions of allotment and sale of the site contained in Rule 22(b) of the Karnataka Improvement Boards Rules, 1976 and the terms of the lease-cum-sale agreement, copies of which are enclosed in duplicate. also enclose the duplicate copies of the conditions of allotment and sale and lease-cum-sale agreement duly signed

in token of having accepted the conditions therein.

Particulars about me are given below.

1.  Name (in Block letters)   2.  Father's/Husband's name   3.  Age   4.  Whether the applicant belongs to Schedule Caste or Schedule Tribes, Nomadic Tribes, Semi-Nomadic Tribes, Backward classes Denotified Tribes   5.  Whether married or single   6.  (a) Residential address: Permanent, (House No. name of street, locality and town) (b) Present Address: (if different from above) for correspondence with the Board.   7.   (i) Occupation or post (ii) Address (iii) Place of employment or business   8. (a) Annual income of the applicant (both from profession and from properties, if any) (b) Any other means indicating the capacity of the applicant to purchase the site applied for and building a house thereon   9.  Whether the applicant is ordinarily resident in the City or within the jurisdiction of the Local Authority and the period of such residence   10.  Whether any member of the family of which the applicant is a member owns or has been allotted site or a house by the Board or any other authority, within the jurisdiction of Local Authority (furnish details)   11.  (1) Whether the applicant already owns a house or a house-site: (a) in the City (with details) (b) outside the city (with details) (2) Whether he/she has any share in such property and the value of the share thereof   12.  Whether the applicant's wife/husband/minor child owns a house or a house-site (a) in the city (with details) (b) outside the City (with details) (2) Whether the applicant's wife/husband/minor child has any share in such property and the value of the share thereof.   13.  Whether the applicant has transferred the ownership or rights in the house or house-site already allotted to him/her in any of the schemes of the Board or any other authority to somebody else (if so, furnish details)   14.  Whether the applicant or any members of his/her family has already availed of any housing or loan scheme of Govt., local body or Co-operative Society, if so, give details   15.  Whether the applicant applied for allotment of a site or a site with a building in any of the scheme of the Board or and other authority and whether his/her deposit was refunded (if so, furnish details)   16.  Amount of earnest money deposited now (with challan No. and date)  

I hereby solemnly declare that all the above information given by me is true. I shall furnish any additional information in my possession which you may require. If there is any delay on my part to furnish

the necessary information required for the Board, it will be within the

discretion of the Board to reject my application.

If at any time it is found that the information given by me above is incorrect, the Board can cancel the allotment, resume possession of the site and forfeit part or whole of the amount paid by me till then towards cost of the site or deposit.

I am aware that under the rules, I have to build the house myself with

my own resources.

 Station [Signature of Applicant]

Date

Attested Magistrate of

the First Class

Date

APPENDIX 2 Lease-cum-sale Agreement

FORM II

[See Rule 22(4)]

Lease-cum-sale Agreement

An agreement

made this.........day of.......19 ... between the...... ......Improvement Board of.........hereinafter called the Lessor/Vendor which term shall wherever the context so permits mean and include its successors in interest and assigns of the ONE PART and............ hereinafter called Lessee/Purchaser (which term shall wherever the context so permits mean and include his/her heirs, executions, administrators and legal representatives) of the Other Part:

Whereas, the..................Improvement Board advertised for sale of building sites in........Extension:

And, whereas, one of such building site in Site No.......more fully described in the Schedule hereunder and referred to as property:

And, whereas, there were negotiation between the Lessee/Purchaser on the one hand and the Lessor/Vendor on the other for allowing the Lessee/Purchaser to occupy the property as Lessee until the payment in full of the price of the aforesaid site as might be fixed by the Lessor/Vendor as hereinafter provided.

And, whereas, the Lessor/Vendor agreed to do so subject to the terms and conditions specified in the Karnataka Improvement Boards Rules, 1976 and the terms and conditions hereinafter contained:

And, whereas, thus the Lessor/Vendor has agreed to lease the property and the Lessee/Purchaser has agreed to take it on lease subject to the terms and conditions specified in the said rules and the terms and conditions specified hereunder.

Now this indenture witnesseth

1. The Lessee/Purchaser is hereby put in possession of the property and the Lessee/Purchaser shall occupy the property as a tenant

thereof for a period of ten years from (Here enter the date of giving

possession)........or in the event of the lease being determined earlier till the date of such termination.

The amount deposited by the Lessee/Purchaser towards the value of the property shall during the period of tenancy, held by the Lessor/Vendor  as security deposit for the due performance of the terms and conditions of these presents.

2. The Lessee/Purchaser shall pay a sum of rupees.......per year as rent on or before.......... commencing from........

3. The Lessor/Purchaser shall construct a building in the property as per plans, designs and conditions to be approved by the Lessee/Vendor and in conformity with the provisions of the Karnataka Municipalities Act, 1964 and the Bye-laws made thereunder within two years from the date of this agreement Provided that where the Lessor/Vendor for sufficient reasons extends in any particular case the time for construction of such building, the Lessee/Purchaser shall construct the building within such extended period.

4. The Lessee/Purchaser shall not sub-divide the property or construct more than one dwelling house on it. The expression "dwelling house" means a building constructed to be used wholly for human habitation and shall not include any apartments to the building whether

attached thereto or not, used as a shop or a building of warehouse or building in which manufactory operations are conducted by mechanical power or otherwise.

5. The Lessee/Purchaser shall not alienate the site or the building that may be constructed thereon during the period to the tenancy. The Lessor/Vendor may, however permit the mortgage of the

right, title and interest of the Lessee/Purchaser in favour of the Government of Karnataka, the Central Government

or bodies corporate like the Karnataka Housing Board or the Life Insurance Corporation of India, Housing Co- operative Societies or Banks to secure moneys advanced by such Government or bodies for the construction of the building.

6. The Lessee/Purchaser agrees that the Lessor/Vendor may take over possession of the property with the structure thereon if there is any misrepresentation in the application for allotment of site.

7. The property shall not be put to any use except as a residential building  without the consent in writing of Lessor/Vendor.

8. The Lessee/Purchaser shall be liable to pay all outgoings with reference to the property including taxes due to the Government and the Municipality / Corporation.

9. On matters not specifically stipulated in these presents the Lessor/Vendor shall be entitled to give directions to the Lessor/Purchaser which the Lessee/Purchaser shall carry out and default in carrying out such directions will be a breach of conditions of these presents.

10. In the event of the Lessee/Purchaser committing default in the payment of rent or committing breach of any of the conditions of this agreement or the provisions of the Karnataka Improvement Board Rules, 1976, the Lessor/Vendor may determine the tenancy at any time after giving the Lessee/Purchaser fifteen days notice ending with the month of the tenancy and take possession of the property. The Lessor/Vendor may also forfeit twelve and a half per cent of the

amount treated as security deposit under Clause 1 of these presents.

11. At the end of ten years referred to in Clause 1 the total amount of rent paid by the Lessee/Purchaser for the period of the tenancy shall be adjusted towards the balance of the value of the property.

12. If the Lessee/Purchaser has performed all the conditions mentioned herein and committed no breach thereof the Lessor/Vendor shall at the end of ten years referred to in Clause 1 sell the property to the Lessee/Purchaser and all attendant expenses in connection with such sale such as stamp duty, registration  charges, etc., shall be borne by the Lessee/Purchaser.

13. The Lessee/Purchaser hereby also confirms that this agreement shall be subject to the terms and conditions specified in the Karnataka Improvement Boards Rules, 1976 and agreed to by the Lessee/Purchaser in his/her application for allotment of the site.

14. In case the Lessee/Purchaser is evicted under Clause 9 he shall not be entitled to claim from the Lessor/Vendor and compensation towards the value of the Improvement of the super-structure erected by him on the Scheduled property by virtue of and in pursuance of these

presents.

15. It is also agreed between the parties hereto that Rs......(Rupees....... .......) in the hands of the Lessor/Vendor received by them from the Lessee/Purchaser shall be held by them as security for any loss or expense that the Lessor/Vendor may be put to in connection with any legal proceedings including eviction proceedings that may be, taken against the Lessee/Purchaser and all such expenses shall be appropriated by the Lessor/Vendor from and out of the moneys of the Lessee/Purchaser held in their hands.

SCHEDULE 1 SCHEDULE

Site No.................formed by the Improvement Board of......... in Block No..........in the......extension.

Site bound on

East by

West by

North by

South by

and measuring east to west............north to south.......in all measuring...........square feet.

In witness whereof the parties have affixed their signature to this agreement.

The Improvement Board.................

 Witnesses:

1.

2. Lessee/Purchaser

Witnesses:

1.

2.