8.1 Town planning schemes notes

1. 8.1.1Town planning schemes: concept, land pooling, joint schemes and stages

   A town planning scheme (TPS) pools the irregular plots of an area, takes out land for roads and amenities, and returns reshaped "final plots" to the owners, paying for the works out of a share of the rise in land value; in Maharashtra it is made under Chapter V (ss.59–112) of the MRTP Act, 1966.

   Standard · 8 min · Read here
2. 8.1.2MRTP Act Sections 59–61: purposes and contents of a scheme, declaration of intention and time limits

   Section 59 says why and for what a town planning scheme may be made; s.60 starts the scheme with a resolution declaring intention, published within 30 days, and s.60A requires a Town Planning Officer from that day; s.61 requires the draft scheme within nine months, failing which the Divisional Joint Director of Town Planning completes it.

   Standard · 9 min · Full course
3. 8.1.3MRTP Act Sections 62–67: making the draft scheme – original and final plots, allotment (s.64(g-1)), reconstitution and objections

   Sections 62–67 cover the making of the draft scheme: adding area (s.62), the State's power to order a scheme (s.63), what the draft must contain, including land shares for housing and public uses (s.64), how plots are reconstituted (s.65), compensation for stopping a use (s.66) and objections within 30 days (s.67).

   Standard · 8 min · Full course
4. 8.1.4MRTP Act Sections 68–71: sanction of the draft scheme, vesting under s.68A and effect of declaration (s.69)

   The Planning Authority submits the draft scheme to the State Government, which sanctions or refuses it (s.68); on sanction, land for roads and basic services vests at once (s.68A); from the declaration onwards, development in the area needs a commencement certificate (s.69); the State may suspend conflicting rules (s.70) and settle disputed ownership (s.71).

   Standard · 8 min · Full course
5. 8.1.5MRTP Act Sections 72–73: the Arbitrator – appointment, duties, time limits and finality

   After the draft scheme is sanctioned, the State appoints an Arbitrator (s.72), a quasi-judicial officer who hears owners, lays out the final plots and fixes the money side of the scheme; his decisions are final (s.73) except on the valuation and compensation matters that can go to the Tribunal of Appeal.

   Standard · 8 min · Full course
6. 8.1.6MRTP Act Sections 74–82: appeals and the Tribunal of Appeal

   A party unhappy with the Arbitrator's valuation or compensation decisions may, within two months, ask him to refer the matter to a Tribunal of Appeal of one President and two Assessors (ss.74–75); the Tribunal's decision is final, it is not a court, and its costs are part of the scheme cost (ss.79–82).

   Standard · 8 min · Full course
7. 8.1.7MRTP Act Sections 83–94: advance possession, preliminary and final schemes, withdrawal and summary eviction

   The Planning Authority may get urgent public-purpose land early through the Arbitrator (ss.83–85); the State sanctions the preliminary and final schemes (s.86), on which land vests and rights are re-settled (s.88); the scheme can be withdrawn (s.87), enforced by eviction and removal (ss.89–90) and varied later (ss.91–92).

   Standard · 10 min · Full course
8. 8.1.8MRTP Act Sections 95–100: cost of scheme, increment, contribution and FSI/TDR adjustment

   Section 97 lists what makes up the cost of a scheme, s.98 defines the increment (the rise in land value due to the scheme), s.99 recovers the cost by a contribution of at most half the increment on each final plot, and s.100 adjusts that contribution for land an owner gains or loses, now also by FSI or TDR.

   Standard · 7 min · Full course
9. 8.1.9MRTP Act Sections 101–112: injurious affection, owners without final plots, net amount payable and surplus

   The closing sections of Chapter V settle rights and money: rights move from original to final plots (s.101), injuriously affected owners claim within 60 days (s.102), owners who lose out are paid (s.104), others pay the net amount in up to ten instalments at 6% (s.107), dues are a first charge (s.109) and any surplus is spent, with the Joint Director's approval, on more amenities in the scheme or infrastructure in another scheme (s.110).

   Standard · 8 min · Full course
10. 8.1.10TPS numericals: original, semi-final and final plot values, increment, contribution and net demand

    Every TPS sum uses three values of a plot at the date of declaration — original (OV), semi-final (SFV) and final (FV) — from which come the increment (FV − SFV), the contribution (at most half of it), the credit for land lost (OV − SFV) and the net demand.

    Standard · 7 min · Full course
11. 8.1.11Gujarat TPUDA 1976 compared with MRTP: Town Planning Officer, preliminary and final schemes and land shares

    Gujarat's TPUDA 1976 runs town planning schemes through an "appropriate authority" and a Town Planning Officer who prepares a preliminary (physical) and a final (financial) scheme, with fixed land shares for roads, open space, social infrastructure and sale; Maharashtra's MRTP Act uses the Planning Authority and the Arbitrator and has moved closer to this model through its 2014 and 2025 amendments.

    Standard · 6 min · Full course

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