11.1 Development charges notes

1. 11.1.1MRTP Act Sections 124A–124B: levy of development charge, user categories and rates

   Chapter VI-A of the MRTP Act (ss.124A–124L with s.124K-1, inserted in 1992) makes every Planning or Development Authority levy a development charge on development, use or change of use that needs permission; s.124B classifies users into four categories and fixes minimum rates through the Second Schedule, expressed as a percentage of the ready-reckoner rate of developed land.

   Standard · 10 min · Read here
2. 11.1.2MRTP Act Sections 124B(2A)–124D: MIDC rates, vital urban transport projects and commencement

   Section 124B lets MIDC (as Special Planning Authority) charge lower rates, raises the charge by 100% where the State declares a Vital Urban Transport Project (s.124B(2-1A), 2015), and lays down the procedure for changing rates — a special-meeting resolution plus State sanction — after which s.124C (commencement on the State's date) and s.124D (local publication) apply.

   Standard · 8 min · Full course
3. 11.1.3MRTP Act Sections 124E–124F: assessment, payment, interest, recovery and exemptions

   Under s.124E the person developing land applies for assessment, the Authority assesses after a report and a hearing, and the amount must be paid within 30 days, failing which 12% a year interest runs (18% before Mah. 44 of 2025); unpaid charge is a first charge on the property, recoverable as arrears of land revenue; s.124F gives full exemption to Government and local authority land and partial exemption by notification for named institutions and townships.

   Standard · 9 min · Full course
4. 11.1.4MRTP Act Sections 124G–124L: appeals, enhancement and refund, Development Fund, penalty and overriding effect

   An assessment can be appealed to the State Government or an officer not below Deputy Secretary (s.124G) within 45 days after depositing the full amount (s.124H); differences after appeal carry 12% interest either way (s.124I; 18% before Mah. 44 of 2025); all receipts go to a separate Development Fund (s.124J); building without paying invites a stop notice, demolition and 3 months–3 years jail (s.124K); and the Chapter overrides other laws (s.124L).

   Standard · 9 min · Full course
5. 11.1.5Development charge numericals: land, building, combined use, interest and penalty

   Development charge sums need only three things — the area, the ASR rate of developed land per sq m, and the Second Schedule percentage (0.5% land, 2% building, ×1.5 industrial, ×2 commercial) — and interest, refund and penalty questions use 12% simple interest (18% before Mah. 44 of 2025) and the s.124K fine limits.

   Standard · 7 min · Full course

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