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Development charges

As per sub-section (1) of section 59 of Town and Country Planning Act, planning authorities including local authorities where such local authority is the local planning authority are empowered to levy development charges towards issue of planning permission to persons for the development of land or building or institution of use or change of use.
These rates are as prescribed under section 60 of the Act and are different for different parts of the planning area and for different uses.
The rates are sanctioned by Government and enforced after due publicity was given in the Government Gazette as required under the Act.

The development charges are assessed on application to the planning authority or to the executive authority of local authority as the case may be.
Whether one has applied for permission or not, application for assessment should be made.
If no such application for assessment is made yet or
no application for permission is submitted,
the planning authority or the executive authority of local authority will institute action to assess and collect the demand charges by issuing a notice in writing on the person liable to such payment after following due procedures including site inspection.

Once assessed, and demand raised and the demand notice served to the developer, and interest at the rate of 6 percentum for default since the date fixed for payment will also be collected from the person instituting change or developing land or constructing the building

The development charges are to be paid by Demand Draft drawn on any Nationalized Banks, drawn in favour of the Member Secretary, Madurai Local Planning Authority. option is also there to remit the amount directly into the bank account of the Madurai Local Planning Authority and produce the orgional chalan for having remitted the amount.

where the local authority is delegated powers to issue planning permission, the local authority will collect the development charges and remit them to the Planning authority.

The Development Charges fixed by the Government towards developments within the jurisdiction of Madurai Local Planning Area in G.O.Ms.No.396 Housing and Urban Development Department Dt.12.09.1996 and communicated in the Proceedings of the Director of Town and Country Planning Roc.No.16723/97/MP2 dt.16.06.1997 and General Notification published in Tamilnadu Government Gazatte No.3 Part VI - Section 1, pages 131 to 133 dated 28.01.1998 is as follows:

Type of DevelopmentRate for SiteRate for Building
1.ResidentialRs.1.50 per Sq.mtsRs.4.00 per Sq.mts
2.CommercialRs.3.00 per Sq.mtsRs.8.00 per Sq.mts
3.InstitutionRs.1.00 per Sq.mtsRs.2.67 per Sq.mts
4.IndustrialRs.2.25 per Sq.mtsRs.6.00 per Sq.mts