The Arunachal Pradesh Gazette

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 126, Vol. XXXIII, Naharlagun, Friday, May 8, 2026, Vaisakha 18, 1948 (Saka)

THE ARUNACHAL PRADESH URBAN AND COUNTRY PLANNING (AMENDMENT) ACT, 2026

(Act No. 10 of 2026)

Act

further to amend the Arunachal Pradesh Urban and Country Act, 2007 (No. 3 of 2008).

BE, it enacted by the Legislative Assembly of Arunachal Pradesh in the seventy-seventh year of Republic

of India as follows : -

(1)

This Act may be called the Arunachal Pradesh Urban and Country (Amendment)

Act, 2026.

(2)

It shall come into force on the date of its publication in the Official Gazette.

In the Arunachal Pradesh Urban and Country Act, 2007 (Act No. 3 of 2008) hereinafter

referred to as the principal Act, after sub-section (XXIX) of Section 2, the following sub-

sections shall be inserted namely : -

(xxx)

"Development Control Regulation" means regulations for development in

proposed zones.

(xxxi)

"final plot" means a plot reconstituted from an original plot and allotted in a

town planning scheme as a final plot ;

(xxxii)

"local area plan" means a statutory planning mechanism to guide and facilitate

re-development of already developed areas of the city in a systematic and

organised manner ;

(xxxiii) “operational construction" means any construction whether temporary or

permanent, which is necessary for the operation, maintenance, development

or execution of any of the following services, namely : -

(a)

Railway ;

(b)

National highway ;

(c)

National waterways ;

(d)

Major ports ;

(e)

Airways and aerodromes ;

(f)

Posts and telegraphs, telephone, wireless, broadcasting and other like forms

of communication ;

(g)

Regional grid for electricity ;

Short title and

Commencement

and application.

Amendment of

Section.

GOVERNMENT OF ARUNACHAL PRADESH

LAW, LEGISLATIVE AND JUSTICE DEPARTMENT

CIVIL SECRETARIAT

ITANAGAR

————

NOTIFICATION

The 7th May, 2026

No. LAW/LEGN-2/2026.—The following Act of the Arunachal Pradesh Legislative Assembly which was

passed in the Sixth Session of the Eighth Legislative Assembly and received the assent of the Governor of

Arunachal Pradesh is hereby published for general information.

(Received the assent of the Governor on 5th May, 2026

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(h)

Any other service which the State Government may, if it is of opinion that

the operation, maintenance, development or execution of such service is

essential to the life of the community, by notification, declare to be a

service for the purposes of this clause.

Explanation - For the removal of doubts, it is hereby declared that the

construction of-

(a)

New residential buildings (other than gate, lodges, quarters for limited

essential operational staff and the like) roads and drains in railway

colonies, hotels, clubs, institutes and schools, in the case of railways ;

and

(b)

A new building new structure or new installation or new extension

thereof, in the case of any other service,

(xxxiv) "outgrowth" means expansion of city/ town taken place beyond the statutory

(Municipalities or Census town or city) limits but it is not qualified as an

independent town.

(xxxv) "owner" in relation to any property includes any person who is, for the time

being, receiving or entitled to receive, whether on his own account or on account

of or on behalf or, or for the benefit of, any other person or as an agent, trustee,

guardian, manager or receiver for any other person or for any religious or

charitable institution, the rents or profits of the property; and also includes a

mortgagee in possession thereof ;

(xxxvi) "plot" means a portion of land held in one ownership and numbered and shown

as one plot in a town planning scheme ;

(xxxvii) "reconstituted plot" means a plot which is in any way altered by the making of

town planning scheme ;

Explanation - For the purposes of this clause "altered" includes the alteration

of ownership of a plot.

(xxxviii) "Regional Plan" means a plan for the region prepared under this Act and approved

by the State Government ;

(xxxix) "residence" includes the use for human habitation of any land or building or

part thereof, the use of gardens, grounds, garages, stables and out-houses, if

any appertaining to such land or building and the expression "residential" shall

be construed accordingly ;

(xl)

"scheme" means a town planning scheme prepared under this Act, and includes

a plan or plans, together with the descriptive matter, if any, relating to such

scheme ;

(xli)

"site plan" means a detailed architectural drawing that exhibits the form, location

and orientation of a building on a site.

(xlii)

"sponge city" means an area that acts like a sponge, soaking up and retaining

water during rain and storms and releasing it slowly.

(xliii)

"Town Planning Scheme" means a comprehensive plan for a particular area

within the framework of the Development Plan/ Master Plan, if any or for the

local planning area. The planning process consists of merging and redistribution

of land parcels in the urban expansion zone.

(xliv)

"Transit Oriented Development" is the integration of land use with Transport

Systems, which is essentially any development, macro or micro that is focused

around a transit node, and facilitates complete ease of access to the transit

facility thereby inducing people to prefer walk and use public transport over

personal modes of transport ;

(xlv)

"Transferable Development Right" means a development right to transfer the

potential of a plot designated for a public purpose in a plan under this Act,

expressed in terms of total permissible built-up space calculated on the basis

of floor area ratio allowable for that plot, for utilization by the owner himself/

herself or by way of transfer by him/her to someone else from the present

location to a specified area in the plan as additional built-up space over and

above the permissible limit in lieu of compensation for the surrender of the

concerned plot free from all encumbrances to the Urban Local Body (ULB)

Development Authority.

(xlvi)

"urban areas" means a human settlement with a high population density and

an infrastructure of built environment.

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(xlvii)

"zonal plan" - A Zonal Development Plan means a plan for each Zone (Division)

containing information regarding the provision of social infrastructure, parks

and open spaces, circulation system etc.

(xlviii)

"zoning regulation" means regulation for the use of land, buildings built thereon,

consistent with maintain the minimum standard of density of building, protection

of open spaces, sanitation and environmental hygiene etc. for the different

zones proposed in the Zoning Plan of the Development Plan.

In the principal Act, after Section 38, following chapter and sections shall be inserted.

“Chapter- VII-1

Town Planning Scheme

(1)

Subject to the provisions of this Act or any other law for the time being in force-

(i)

a Local Planning Authority may for the purpose of implementing the proposals in

the final Development plan or in respect of any land which is likely to be in the

course of development or which is already built upon, prepare one or more town

planning schemes for the area within its jurisdiction, or any part thereof ;

(ii)

a town planning scheme may make provision for any of the following matters,

that is to say :

(a)

any of the matters specified in sub- section (2) of Section 18 and sub-section (2)

of Section 19 of the Act ;

(b)

the laying out or re-laying out of land, either vacant or already built upon,

including areas of comprehensive development ;

(1)

the filling-up or reclamation of low-lying, swampy or unhealthy area,

or levelling-up of land ;

(2)

layout of new streets or roads, construction, diversion, extension,

alteration, improvement and closing up of streets and roads and

discontinuance of communications ;

(3)

the construction, alteration and removal of buildings, bridges and other

structures ;

(4)

the allotment or reservation of land for open spaces, gardens, recreation

grounds, schools, markets, green-belts, dairies, transport facilities

and public purposes of all kinds ;

(5)

drainage, inclusive of sewerage, surface or sub-soil drainage and

sewage disposal ;

(6)

lighting ;

(7)

water supply ;

(8)

the preservation of objects of historical or national interest or natural

beauty, and of building actually used for religious purposes ;

(c)

the suspension, as far as may be necessary for the proper carrying out of

the scheme, of any rule, bye-law, regulation, notification or order made or

issued under any law for the time being in force which the Legislature of

the State is competent to make ;

(d)

such other matter not inconsistent with the object of this Act, as may be

directed by the State Government.

(2)

In making provisions in a draft town planning scheme for any of the

matters referred to in clause (ii) of sub-section (1), it shall be lawful

for a Local Planning Authority with the approval of the Director of

Town Planning/ Chief Town Planner and subject to the provisions of

Section 38J to provide for suitable amendment of the Development

Plan/ Master Plan.

(1)

A Local Planning Authority may by resolution declare its intention to make a

town planning scheme in respect of any part of the area within its jurisdiction.

(2)

Not later than thirty days from the date of such declaration of intention to make

a scheme hereinafter referred to as the declaration, the Local Planning Authority

shall publish the declaration in the Official Gazette, and in such other manner

as may be prescribed and despatch a copy thereof (together with a copy of the

plan showing the area to be included in the scheme) to the State Government

or to the Director of Town Planning/ Chief Town Planner.

Insertion of New

Chapter VII-1

and sections.

Preparation of

town planning

schemes.

38A.

Power of Local

Planning

Authority to

resolve on

declaration of

intention

38B

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

Inclusion of

additional area

in draft scheme

38D

Power of State

Government to

require Local

Planning

Authority to

make scheme :

38E

Contents of draft

scheme.

38F

(3)

A copy of the plan shall be opened for inspection of the public at all reasonable hours

at the head office of the Local Planning Authority.

(1)

Not later than nine months from the date of the declaration, subject, however,

to sub-section (3) of Section-38C, the Local Planning Authority shall, in

consultation with the Director of Town Planning/ Chief Town Planner, make a

draft scheme for the area in respect of which the declaration was made, and

publish a notice in the Official Gazette, and in such other manner as may be

prescribed stating that the draft scheme in respect of such area has been

made. The notice shall state the name of the place where a copy thereof shall

be available for inspection by the public and shall also state that copies thereof

or any extract therefrom certified to be correct shall be available for sale to the

public at a reasonable price.

(2)

If the Local Planning Authority fails to make a draft scheme and publish a notice

regarding its making within the period specified in sub-section (1) or within the

period extended under sub-section (3), the declaration shall lapse, unless the

State Government appoints an Officer to prepare and submit the draft scheme

to the State Government on behalf of the Local Planning Authority not later than

[nine months] from the date of such appointment or the extended period under

sub-section (3); but any such lapse of declaration shall not debar the Local

Planning Authority from making a fresh declaration any time in respect of the

same area.

(3)

The State Government may, on application made by the Local Planning

Authority or, as the case may be, the officer, by notification in the Official

Gazette, extend the period specified in sub-section (1) or (2) by such period

not exceeding [three months] as may be specified in the notification.

If at any time before a draft scheme is prepared and submitted to the State

Government for sanction, the Local Planning Authority or the officer is of the opinion,

or on any representation made to it or him/her that an additional area be included

within the said scheme, the Local Planning Authority or the officer may, after

informing the State Government and giving notice in the Official Gazette, and also

in one or more local newspapers, include such additional area in the scheme; and

thereupon, all the provisions of Sections 38A, 38B and 38C shall apply in relation

to such additional area as they apply to any original area of the scheme and the

draft scheme shall be prepared for the original area and such additional area and

submitted to the State Government for sanction.

(1)

Notwithstanding anything contained in this Act, the State Government may, in

respect of any Local Planning Authority after making such inquiry as it deems

necessary, direct that Authority to make and submit for its sanction, a draft

scheme in respect of any land in regard to which a town planning scheme

may be made after a notice regarding its making has been duly published in

the prescribed manner.

(2)

If the Local Planning Authority fails to make the declaration of intention to

make a scheme within three months from the date of direction made under

sub-section (1), the State Government may by notification in the Official

Gazette, appoint an officer to make and submit the draft scheme for the land

to the State Government after a notice regarding its making has been duly

published as aforesaid and thereupon the provisions of Sections 38B, 38C

and 38D shall, as far as may be applicable, apply to the making of such a

scheme.

A draft scheme shall contain the following particulars so far as may be necessary,

that is to say, -

(1)

the ownership, area and tenure of each original plot ;

(2)

reservation, acquisition or allotment of land required under sub-clause (ii)(a) of

sub-section (1) of Section 38A with a general indication of the uses to which

such land is to be put and the terms and conditions subject to which, such land

is to be put to such uses ;

(3)

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

reconstitution ;

(4)

an estimate of the total cost of the scheme and the net cost to be borne by the

Local Planning Authority ;

(5)

a full description of all the details of the scheme with respect to such matters

referred to in clause (ii) of sub-section (1) of Section 38A as may be applicable;

Preparation and

publication of

draft scheme (by

means of notice)

38C

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(6)

the laying out or re-laying out of land either vacant or already built upon including

areas of comprehensive development ;

(7)

the filling up or reclamation of low-lying swamp or unhealthy areas or levelling

up of land ;

(a)

the allotment of land from the total area covered under the scheme, to the

extent of, -

(i)

the reservation of land to the extent of ten per cent. of the total area

covered under the scheme, for the purpose of providing housing

accommodation to the members of economically weaker section and

for lower income group and for persons dispossessed in the scheme ;

(ii)

the allotment of land to the extent of forty per cent of the total area

covered under the scheme, in the aggregate, for any or all of the

following purposes, namely

(1)

for roads ;

(2)

for parks, playgrounds, garden and open spaces ;

(3)

social infrastructure such as schools, dispensary, fire brigade

and public utility place ;

(4)

sale by Local Planning Authority for residential, commercial or

industrial use depending upon the nature of development :

Provided that, -

(i)

the proceeds from the sale of land referred to in sub-clause

4(ii) of clause (a) of sub-section (7) shall be used for the

purpose of providing infrastructural facilities in the area

covered under the scheme ;

(ii)

the use of land allotted for the purposes referred to in 2 of

clause (a) of sub- section (7) shall not be changed by variation

of scheme for a purpose other than the purpose for which it

is so allotted ;

(iii)

the land allotted for the purposes referred to in sub-clause 3

of clause (a) of sub-section (7) may be allowed to be

developed, without variation of scheme, for any public

purpose not contrary to the intent of the provisions of the

draft scheme.

(8)

any other prescribed particulars.

(1)

In the draft scheme, the size and shape of every reconstituted plot shall be

determined, so far as may be, to render it suitable for building purposes

and where a plot is already built upon, to ensure that the buildings as far

as possible comply with the provisions of the scheme as regards open

spaces.

(2)

For the purpose of sub-section (1), a draft scheme may contain proposals-

(a)

to form a final plot by reconstitution of an original plot by alteration of

the boundaries of the original plot, if necessary ;

(b)

to form a final plot from an original plot by the transfer wholly or partly

of the adjoining lands ;

(c)

to provide, with the consent of the owners, that two or more original

plots each of which is held in ownership in severally or in joint ownership

shall hereafter, with or without alteration of boundaries be held in

ownership in common as a final plot ;

(d)

to allot a final plot to any owner dispossessed of land in furtherance of

the scheme ; and

(e)

to transfer the ownership of an original plot from one person to another.

Where under clause (ii)(a) of sub-section (1) of section 38A the purposes to which

the buildings or areas may not be appropriated have been specified, then the building

or area shall cease to be used for a purpose other than the purposes specified in

the scheme within such time as may be specified in the final scheme ; and the

person affected by this provision shall be entitled to such compensation, from the

Local Planning Authority as may be determined by the Arbitrator :

Reconstituted

plot

38G

Compensation

for

discontinuance

of use

38H

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

Objections to

draft scheme to

be considered

38 I

Power of State

Government to

sanction draft

scheme

38J

Effect of sanction

draft scheme

38K

Restrictions on

use and

development of

land after

declaration for

town planning

scheme

38L

Provided that, in ascertaining whether compensation be paid, the time within which

the person affected was permitted to change the user shall be taken into consideration.

If within thirty days from the date of the publication of notice regarding the preparation

of the draft scheme, any person affected thereby communicates in writing any objection

relating to such scheme, the Local Planning Authority, or the officer appointed under

sub-section (2) of Section 38 C or Section 38E shall consider such objection and

may, at any time before submitting the draft scheme to the State Government as

hereinafter provided, modify such scheme as it or he/she thinks fit.

(1)

The Local Planning Authority or, as the case may be, the officer aforesaid shall,

not later than [three months] from the date of the publication of the notice in the

Official Gazette, regarding the making of the draft scheme, submit the same

with any modifications which it or he/she may have made therein together with

a copy of objections received by it or him /her to the State Government and

shall at the same time apply for its sanction.

(2)

On receiving such application, after making such inquiry as it may think fit and

consulting the Director of Town Planning/Chief Town Planner, the State

Government may, not later than [three months] from the date of its submission,

by notification in the Official Gazette, either sanction such draft scheme with or

without modifications and subject to such conditions as it may think fit to impose

or refuse to give sanction.

(3)

If the State Government sanctions such scheme, it shall in such notification

state at what place and time the draft scheme shall be open to the inspection

of the public and the State Government shall also state therein that copies of

the scheme or any extract therefrom certified to be correct shall on application

be available for sale to public at a reasonable price.

(1)

Where a draft scheme has been sanctioned by the State Government under

sub-section (2) of Section 38J (hereinafter in this section, referred to as "the

sanctioned draft scheme"), all lands required by the Appropriate Authority for

the purposes specified in sub-clauses (b)(2), (b)(5), (b)(6) and (b)(7) of clause

(ii) of sub-section (1) of Section 38A shall vest absolutely in the Appropriate

Authority free from all encumbrances.

(2)

Nothing in sub-section (1) shall affect any right of the owner of the land vesting

in the Appropriate Authority under that sub-section.

(3)

The provisions of Sections 38 ZF and 38ZG shall, mutatis mutandis applies, to

the sanctioned draft scheme as if, -sanctioned draft scheme were a preliminary

scheme.

(1)

On or after the date on which a declaration of intention to make a scheme is

published in the Official Gazette-

(a)

no person shall within the area included in the scheme, institute or change

the use of any land or building or carry out any development, unless such

person has applied for and obtained the necessary permission which shall

be contained in a commencement certificate granted by the Local Planning

Authority in the prescribed form ;

(b)

the Local Planning Authority on receipt of such application shall at once

furnish the applicant with a written acknowledgment of its receipt, and

(i)

in the case of a Local Planning Authority other than a municipal

corporation, after inquiry and where an Arbitrator has been appointed

in respect of a draft scheme after obtaining his/her approval ; or

(ii)

in the case of a municipal corporation/council, after inquiry, may either

grant or refuse such certificate, or grant it subject to such conditions

as the Local Planning Authority may, with the previous approval of the

State Government thinks fit to impose.

(2)

If a municipal corporation gives permission under clause (b) of sub-section (1),

it shall inform the Arbitrator/State Government accordingly, and shall send him/

her a copy of the plan :

Provided that, a municipal corporation/council shall not grant a

commencement certificate for any purpose which is in conflict with the provisions

of the draft scheme, unless the corporation/council first obtains concurrence of

the Arbitrator/State Government for the necessary change in the proposal of the

draft scheme.

(3)

If a Local Planning Authority communicates no decision to the applicant within

two months from the date of such acknowledgment, the applicant shall be

deemed to have been granted such certificate.

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(4)

If any person contravenes the provisions contained in clause (a) or clause (b) of

sub-section (1), the Local Planning Authority may direct such person by notice

in writing to stop any development in progress, and after making inquiry in the

prescribed manner, remove, pull down or alter any building or other development

or restore the land in respect of which such contravention is made to its original

condition.

(5)

Any expense incurred by the Local Planning Authority under sub-section (4)

shall be a sum due to the Local Planning Authority under this Act from the

person in default or the owner of the plot.

(6)

The provisions of Chapter VII shall, mutatis mutandis apply in relation to the

development and use of land included in a town planning scheme in so far as

they are not inconsistent with the provisions of the Chapter.

(7)

The restrictions imposed by this Section shall cease to operate in the event of

the State Government refusing to sanction the draft scheme or the final scheme

or in the event of the withdrawal of the scheme under section 38ZD or in the

event of the declaration lapsing under sub-section (2) of Section 38C.

(1)

Where a Local Planning Authority has published a declaration under Section

38C the State Government may, on an application of the Local Planning Authority

by order published in the Official Gazette, suspend to such extent only as may

be necessary for the proper carrying out of the scheme any rule, bye law,

regulation, notification or order made or issued under any law which the Legislature

of the State is competent to amend.

(2)

Any order issued under sub-section (1) shall cease to operate in the event of the

State Government refusing to sanction the scheme, or in the event of the

withdrawal of the scheme under Section 38ZD or in the event of the coming into

force of the final scheme or in the event of the declaration lapsing under sub-

section (2) of Section 38C.

(1)

Where there is a disputed claim as to the ownership of any piece of land included

in an area in respect of which a declaration of intention to make a town planning

scheme has been made and any entry in the record of rights or mutation register

relevant to such disputed claim is inaccurate or inconclusive, an inquiry may be

held on an application being made by the Local Planning Authority or the Arbitrator

at any time prior to the date on which the arbitrator draws up the final scheme

under sub-section (3) of Section 38O by such officer as the State Government

may appoint for the purpose of deciding who shall be deemed to be owner for

the purposes of this Act.

(2)

Such decision shall not be subject to appeal but it shall not operate as a bar to

a regular suit.

(3)

Such decision shall, in the event of a civil court passing a decree which is

inconsistent therewith, be corrected, modified or rescinded in accordance with

such decree as soon as practicable after such decree has been brought to the

notice of the Local Planning Authority either by the Civil Court or by some person

affected by such decree.

(4)

Where such a decree of the civil court is passed after final scheme has been

sanctioned by the State Government under Section 38ZC, such final scheme

shall be deemed to have been suitably varied by reason of such decree.

(1)

Within one month from the date on which the sanction of the State Government

to the draft scheme is published in the Official Gazette, the State Government

shall for purposes of one or more planning schemes received by it for sanction

appoint any person possessing such qualifications as may be prescribed to be

an Arbitrator with sufficient establishment and his/her duties shall be as hereinafter

provided.

(2)

The State Government may, if it thinks fit at any time, remove for incompetence

or misconduct or replace for any good and sufficient reason an Arbitrator appointed

under this section and shall forthwith appoint another person to take his/her

place and any proceeding pending before the Arbitrator immediately before the

date of his/her removal or replacement shall be continued and disposed of by

the new Arbitrator appointed in his/her place.

(3)

The Arbitrator shall, after following the prescribed procedure, sub-divide the

town planning scheme into a preliminary scheme and a final scheme. The

Arbitrator shall prepare preliminary scheme within nine months and as far as

possible the final scheme within eighteen months, from the date of his

appointment :

Power of State

Government to

suspend rule,

bye- law, etc.

38M

Disputed

ownership

38N

The Arbitrator

and the

Tribunal of

appeal

38O

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

Provided that, the State Government may, by an order in writing, extend the said

period by such further period not exceeding three months in the aggregate and

any such order extending the period may be made so as to have retrospective

effect :

(4)

In the preliminary scheme, the Arbitrator shall, -

(i)

after notice given by him/her in the prescribed manner, define, demarcate

and decide the areas allotted to, or reserved for the public purpose or

purposes of the Local Planning Authority and also the final plots ;

(ii)

after notice given by him/her in the prescribed manner, decide the person or

persons to whom a final plot is to be allotted ; when such plot is to be

allotted; and when such plot is to be allotted to persons in ownership in

common, decide the shares of such persons ;

(iii)

provide for the total or partial transfer of any right in an original plot to a

final plot or provide for the transfer of any right in an original plot in accordance

with the provisions of Section 38ZR.

(iv)

determine the period within which the works provided in the scheme shall

be completed by the Appropriate Authority.

(5)

The Arbitrator shall submit the preliminary scheme so prepared to the State

Government for sanction and shall also prepare and submit to the State

Government the final scheme for sanction in accordance with the provisions of

sub-section (6).

(6)

In the final scheme, the Arbitrator shall, -

(i)

estimate the amount of compensation payable under Section 38H ;

(ii)

calculate the proportion in which the increment in respect of the final plots

included in the final scheme shall be liable to contribution to the cost of the

scheme in accordance with the provisions contained in Section 38ZN ;

(iii)

estimate the value of and fix the difference between the values of the original

plots and the values of the final plots included in the final scheme, in

accordance with the provisions contained in clause (f) of sub-section (1) of

Section 38ZN ;

(iv)

estimate the compensation payable for the loss of the area of the original

plot in accordance with the provisions contained in clause (f) of sub-section

(1) of Section 38ZN in respect of any original plot which is wholly acquired

under the scheme ;

(v)

estimate the value of final plots included in the final scheme and the

increment to accrue in respect of such plots in accordance with the

provisions of Section 38ZO ;

(vi) determine the amount to be deducted from or added to, as the case may

be, the contribution leviable from a person in accordance with the provisions

contained in Section 38ZQ ;

(vii) estimate in reference to claims made before him/her, after the notice given

by him/her in the prescribed manner, the compensation to be paid to the

owner of any property or right injuriously affected by the making of a town

planning scheme in accordance with the provisions contained in Section

38ZS ;

(viii) determine whether the areas allotted or reserved for the public purpose or

purposes of the Local Planning Authority are beneficial wholly or partly to

the owners or residents within the area of the scheme ;

(ix) estimate the proportion of the sums payable as compensation of each plot

used, allotted or reserved for the public purpose or purposes of the Local

Planning Authority which is beneficial partly to the owners or residents

within the area of the scheme and partly to the general public, which shall

be included in the cost of the scheme ;

(x)

determine the proportion of contribution to be levied on each plot used,

allotted or reserved for a public purpose or purposes of the Local Planning

Authority which is beneficial partly to the owners or residents within the

area of the scheme and partly to the general public ;

(xi)

determine the amount of exemption, if any, from the payment of the

contribution that may be granted in respect of plots or portions thereof

exclusively used or occupied for religious or charitable purposes on the

date on which the final scheme is drawn up under sub-section (7) ;

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(xii) calculate the contribution to be levied on each final plot included in the

final scheme ;

(xiii) where a plot is subject to a mortgage with possession or a lease, decide

the proportion of compensation payable to or contribution payable by the

mortgagee or lessee on one hand and the mortgagor or lessor on the

other.

(7)

The Arbitrator shall draw in the prescribed form the preliminary and final schemes

in accordance with the draft scheme :

Provided that, -

(a)

he/she may make variation in the draft scheme ;

(b)

he/she may, with the previous sanction of the State Government, after

hearing the Local Planning Authority and any owners who may raise

objections, make substantial variations in the draft scheme.

Explanation - For the purposes of clause (b) of this provision, "substantial

variation" means increase in the total cost of the draft scheme by more

than twenty per cent. or, two lakhs' rupees, whichever is higher, on account

of the provision of new works or the reservation of additional sites for public

purposes included in the final scheme drawn up by the Arbitrator.

Except in matters arising out of [clauses (i), (ii), (iv), (v) and clauses (vii) to

(xiii) (both inclusive) of sub-section (6)] of Section 38O, every decision of

the Arbitrator shall be final and conclusive and binding on all parties including

the Local Planning Authority.

Any decision of the Arbitrator under [clauses (i), (ii), (iv), (v) and clauses (vii) to (xiii)

(both inclusive) of sub-section (6)] of Section 38O, shall be forthwith communicated to

the party concerned including the Local Planning Authority ; and any party aggrieved

by such decision may, within two months from the date of communication of the

decision, apply to the Arbitrator to make a reference to the Tribunal of Appeal for

decision of the appeal.

(1)

The provisions of Sections 5, 12 and 14 of the Indian Limitation Act, 1963

shall apply to appeals submitted under this Section.

(1)

The Tribunal of Appeal shall consist of a President and two Assessors.

(2)

The President shall- be the District Judge or the Civil Judge of the Senior

Division as may be appointed by the State Government on the

recommendation of the District Judge :

Provided that, the State Government may, if it thinks fit, appoint as

President any person who has held the post (i) Judge of the High Court

and (ii) elsewhere of a Judge of the District Court.

(3)

The President shall appoint fit and proper persons as Assessors, who

shall as far as possibly have knowledge, or experience of town planning,

valuation of land or civil engineering.

(4)

The President and the Assessors shall be appointed members of the

Tribunal of Appeal for such period as may be required by such Tribunal to

decide an appeal made against the decision under clauses (ii), (v), (vii),

(ix) or clause (x) sub-section (6) of Section 38O.

(5)

The State Government may, if it thinks fit, remove for incompetence or

misconduct or any other good and sufficient reason any Assessor appointed

under sub-section (3).

(6)

If any Assessor is removed or dies or refuses or neglects to act or becomes

incapable of acting, the President shall appoint forthwith a fit and proper

person to take the place of such Assessor.

(1)

The Arbitrator shall be present at the proceedings before the Tribunal of Appeal.

He/she shall not be required to give evidence in such proceedings but the

President may require him/her to assist the Tribunal in an advisory capacity.

(2)

Where the Arbitrator is required under sub-section (1) to assist the Tribunal of

Appeal, he/she shall, save where he/she is a salaried officer of Government, be

entitled to such fees as the State Government may from time to time determine.

The Tribunal of Appeal may sit either at the headquarters of the President or at any

other place within the local limits of his/her jurisdiction which he/she may deem

convenient for the consideration and decision of any matter before such Tribunal.

Certain

decisions of

Arbitrator to

be final.

38P

Appeal

38Q

Constitution of

Tribunal of

Appeal.

38R

Arbitrator to

assist

Tribunal in

advisory

capacity and

his/her

remuneration

38S

Place where

Tribunal may

sit

38T

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

All questions of law and procedure shall be decided by the President. All other

questions shall be decided by the President and the two Assessors or by a majority.

(1)

The Tribunal of Appeal shall, after making such inquiry as it may think fit, decide

all matters arising out of clauses (ii), (v), (vii), (ix) or clause (x) sub-section (6)

of Section 38O in respect of appeals referred to the Tribunal: and may either

confirm the proposals of the Arbitrator or direct him/her where necessary to

reconsider, vary or modify his/her proposals only in respect of such matters

aforesaid.

(2)

Every decision of the Tribunal of Appeal shall be final and conclusive and binding

on all persons and parties including the Planning Authorities.

Nothing contained in this Act shall be deemed to constitute the Tribunal of

Appeal to be a Court.

(1)

The President and the Assessors shall, save where they are salaried Government

Officers, be entitled to such remuneration, either by way of monthly salary or

by way of fees or partly in one way and partly in the other, as the State

Government may, from time to time, decide :

Provided that, in exceptional cases where the scheme is a large one or the

work involved is complicated, the State Government may authorise the President

and the Assessors, even if they are salaried Government Officers to receive

such special salary or remuneration, as the State Government may by order,

decide from time to time.

(2)

The salary of the President of the Tribunal of Appeal or an Assessor who is a

salaried Government Officer and any remuneration payable under sub-section

(1) of this Section and fees payable to an Arbitrator under sub-section (2) of

Section 38S and all expenses incidental to the working of the Tribunal of Appeal

shall, unless the State Government otherwise determines, be defrayed out of

the funds of the Local Planning Authority and shall be added to the cost of the

scheme.

(1)

Where no appeal has been made under Section 38Q, the decisions of the

Arbitrator under clauses (ii), (v), (vii), (ix) or clause (x) sub-section (6) of Section

38O shall be final and binding on the parties.

(2)

The Tribunal of Appeal shall send a copy of its decision in appeal to the Arbitrator

who shall then, where necessary, make variation in the scheme in accordance

with such decision and may also rectify such errors or omissions, if any, as

may have been brought to his/her notice after publication of the final scheme as

drawn up by him/her under sub-section (1) and (2) of Section 38V ; and the

Arbitrator shall forward such final scheme together with a copy of his/her decisions

under Section 38O and a copy of the decision of the Tribunal of Appeal in

appeal to the State Government for the sanction of the final scheme.

(1)

Where a Local Planning Authority thinks that, in the interest of the public, it is

necessary to undertake forthwith any of the works included in a draft scheme

for a public purpose, the Local Planning Authority shall make an application

through the Arbitrator to the State Government to vest in it the land without any

building shown in the draft scheme.

(2)

The State Government may, if satisfied that it is urgently necessary in the

public interest to empower the Local Planning Authority to enter on such land

for the purpose of executing any of such works, direct the Arbitrator, by notification

in the Official Gazette, to take possession of the land, or may, after recording

its reasons refuse to make any such direction :

Provided that, no such direction shall be made without the Arbitrator giving

a hearing to any person or Local Planning Authority affected by such direction,

and considering the report of the Arbitrator in that behalf.

(3)

The Arbitrator shall then give a notice in the prescribed manner to the person

interested in the land the possession of which is to be taken by Arbitrator

requiring him/her to give possession of his/her land to the Arbitrator or any

person authorised by him/her in this behalf within a period of one month from

the date of service of notice ; and if no possession is delivered within the period

specified in the notice, the Arbitrator shall take possession of the land and shall

handover the land to the Local Planning Authority. Such land shall thereupon,

notwithstanding anything contained in this Act, vest absolutely in the Local

Planning Authority free from all encumbrances.

Decision of

question of law

and other

questions

38U

38V

Powers of

Tribunal to

decide

matter finally

38W

Tribunal not

to be Court

38X

Remuneration

of Arbitrator

and

Assessors

and

payment of

incidental

expenses of

Tribunal

Decision of

Arbitrator to

be final in

certain

matters

38Y

Possession

of land in

advance of

town

planning

scheme

38Z

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(1)

If the Arbitrator is opposed or impeded in taking possession of the land under

Section 38Z, he/she shall request the Superintendent of Police, or as the case

may be, the District Magistrate to enforce the delivery of possession of the land

to the Arbitrator. The Superintendent of Police or the District Magistrate, as the

case may be, shall take or cause to be taken such steps and use or cause to

be used such force as may be reasonably necessary for securing the delivery of

possession of the land to the Arbitrator.

(2)

For the avoidance of doubt, it is hereby declared that the power to take steps

under sub-section (1) includes the power to enter upon any land or other property

whatsoever.

(1) Where possession of land is taken by the Arbitrator under Section 38Z or 38ZA,

the person interested in such land shall be entitled to interest at the rate of 4per

cent per annum on the amount of compensation payable to him/her under the

final scheme in respect of the said land from the date on which such possession

is taken till the date on which amount of compensation is paid to him/her by the

Local Planning Authority.

(2)

The Local Planning Authority may, at the request of the person interested, pay

after consulting the Arbitrator, where possession of land is taken, the Local

Planning Authority, or Development Authority, or as the case may be, the

Appropriate Authority may, at the request of the person interested, pay an advance

not exceeding two-thirds of the amount estimated to be payable to such person

on account of the land after executing an agreement.

(3)

Unless otherwise provided in this Act, a Local Planning Authority or Development

Authority shall be competent to make any agreement with any person or party

in respect of any matter which is provided for under this Act subject to the right

of the State Government to modify or disallow such agreement.

(4)

Such agreement shall not in any way affect the rights of the State Government

or third parties, but it shall be binding on the parties to the agreement

notwithstanding any decision that may be passed by the State Government :

Provided that, if the agreement is modified by the State Government, either

party shall have the option of avoiding it if it so elects.

(1)

On receipt of the preliminary scheme or, as the case may be, the final scheme,

the State Government may, -

(a)

in the case of the preliminary scheme, within a period of two months from

the date of its receipt, and

(b)

in the case of the final scheme, within a period of three months from the

date of its receipt, by notification in the Official Gazette, sanction the

preliminary scheme or the final scheme or refuse to give such sanction,

provided that in sanctioning any scheme, the State Government may make

such modifications as may, in its opinion, be necessary for the purpose of

correcting an error, irregularity or informality.

(2)

Where the State Government sanctions the preliminary scheme or the final

scheme, it shall state in the notification,

(a)

the place at which the scheme shall be kept open for inspection by the

public ; and

(b)

a date (which shall not be earlier than one month after the date of the

publication of the notification) in which all the liabilities created by the

scheme shall come into force:

Provided that, the State Government may, from time to time, by

notification in the Official Gazette, extend such date, by such period, not

exceeding three months at a time, as it thinks fit.

(3)

On and after the date fixed in such notification, the preliminary scheme or the final

scheme, as the case may be, shall have effect as if it were enacted in this Act.

(1)

If at any time before the preliminary scheme is forwarded by the Arbitrator to the

State Government, a representation is made to the Arbitrator by the Local

Planning Authority and a majority of the owners in the area that the scheme

should be withdrawn, the Arbitrator shall, after inviting from all persons interested

in the scheme objections to such representation, forward such representation

together with the objections, if any, to the State Government.

Superinten-

dent of

Police or

Magistrate to

enforce

delivery of

possession

of land

38ZA

Owner of

land of

which

possession

is taken

entitled to

interest

38ZB

38ZC

Sanction of

State

Government

preliminary

or final

scheme

Withdrawal of

scheme

38ZD

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(2)

After making such inquiry as it may think fit, the State Government may, by

notification in the Official Gazette, direct that the scheme shall be withdrawn;

and upon such withdrawal, no further proceedings shall be taken in regard to

such scheme.

On and after the day on which a preliminary scheme comes into force-

(a)

all lands required by the Local Planning Authority shall, unless it is otherwise

determined in such scheme, vest absolutely in the Local Planning Authority

free from all encumbrances ;

(b)

all rights in the original plots which have been reconstituted shall determine

and the reconstituted plots shall become subject to the rights settled by

Arbitrator ;

(1)

On and after the day on which a preliminary scheme comes into force, any

person continuing to occupy any land which he/she is not entitled to occupy

under the preliminary scheme may, in accordance with the prescribed procedure,

be summarily evicted by the Local Planning Authority or any of its officers

authorised in that behalf by that Authority.

(2)

If the Local Planning Authority is opposed or impeded in evicting such person or

taking possession of the land from such person, the Superintendent of Police,

or as the case may be, the District Magistrate shall at the request of the Local

Planning Authority enforce the eviction of such person or secure delivery of

possession of the land to the Local Planning Authority as may be necessary.

(1)

On and after the day on which a preliminary scheme comes into force, the

Local Planning Authority may, after giving the prescribed notice and in

accordance with the provisions of the scheme, -

(a)

remove, pull down or alter any building or other work in the area included in

the scheme which is such as to contravene the scheme or in the erection

of which or carrying out of which, any provision of the scheme has not

been complied with;

(b)

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

scheme, in any case where it appears to the Local Planning Authority that

delay in the execution of the work would prejudice the efficient operation

of the scheme.

(2)

Any expenses incurred by the Local Planning Authority under this section may

be recovered from the person in default or from the owner of the original plot in

the manner provided for the recovery of sums due to the Local Planning Authority

under the provisions of this Act.

(3)

If any action taken by the Local Planning Authority is questioned, the matter

shall be referred to the State Government or any officer authorised by the State

Government in this behalf; and the decision of the State Government or of the

officer, as the case may be, shall be final and conclusive and binding on all

persons.

(4)

No person shall be entitled to compensation in respect of any damage, loss or

injury resulting from any action taken by the Appropriate Authority under the

provisions of this section except in respect of the building constructed or work

begun before the date referred to in sub-section (1) and only in so far as such

building or work has proceeded until that date :

Provided that, any claim to compensation, which is not barred by this sub-

section shall be subject to the condition of any agreement entered into between

the claimant and the Appropriate Authority.

(5)

The provisions of this section shall not apply to any operational construction

undertaken by the State Government or the Central Government.

(1)

If after the final scheme has come into force, the Local Planning Authority

considers that the scheme is defective on account of an error, irregularity or

informality or that the scheme needs variation or modification of a minor nature,

the Local Planning Authority may apply in writing to the State Government for

variation of the scheme.

(2)

If, on receiving such application or otherwise, the State Government is satisfied

that the variation required is not substantial, the State Government shall, by

notification in the Official Gazette, authorise or direct the Local Planning

Authority to prepare a draft of such variation and publish a notice in the Official

Gazette and in such other manner as may be prescribed stating that a draft

variation has been prepared.

Effect of

preliminary

scheme

38ZE

Power of

Local

Planning

Authority to

evict

summarily

38ZF

Power to

enforce

scheme.

38ZG

38ZH

Power to

vary scheme

on ground of

error,

irregularity

informality.

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(3)

The notice of preparation of draft variation published under sub-section (2) shall

state every amendment proposed to be made in the scheme and if any such

amendment relates to a matter specified in any of the sub-clauses (a) to (b) of

clause (ii) of sub-section (1) of Section 38A, the draft variation shall also

contain such other particulars as may be prescribed.

(4)

The draft variation shall be open to the inspection of the public at the office of

the Local Planning Authority during office hours and copies of such draft variation

or any extract therefrom certified to be correct shall be available for sale to the

public at a reasonable price.

(5)

Not later than one month of the date of the publication of the notice regarding

preparation of draft variation, any person affected thereby may communicate in

writing his/her objections to such variation to the State Government, and send

a copy thereof to the Local Planning Authority.

(6)

After receiving the objections under sub-section (5), the State Government may,

after consulting the Local Planning Authority and after making such enquiry as

it may think fit, by notification in the Official Gazette, -

(a)

appoint an Arbitrator, and thereupon the provisions of this Chapter shall,

so far as may be, apply to such draft variation, as if it were a draft scheme

submitted to the State Government for sanction;

(b)

sanction the variation with or without modifications ; or

(c)

refuse to sanction the variation.

(7)

From the date of the notification sanctioning the variation, with or without

modifications, such variation shall take effect as if it were incorporated in the

scheme.

Notwithstanding anything contained in Section 38ZC, a town planning scheme may at

any time be varied by a subsequent scheme made, published by means of notice and

sanctioned in accordance with this Act ;

Provided that, when a scheme is so varied, the provisions of this Chapter shall

so far as may be applicable, apply to such variation and making of subsequent

scheme; and the date of the declaration of intention of the Local Planning Authority

to vary the scheme shall, for the purposes of Sections 38L, 38M, 38ZN, 38ZO and

38ZQ, be deemed to be the date of declaration of intention to make a scheme

referred to in those sections.

In the event of a town planning scheme being withdrawn or sanction to a final scheme

being refused by the State Government, the State Government may direct that the

costs of the scheme shall be borne by the Local Planning Authority or be paid to the

Local Planning Authority by the owners concerned, in such proportion as the State

Government may in each case determine.

Every party to any proceeding before an Arbitrator or the Tribunal of Appeal shall be

entitled to appear either in person or by his/her agent authorised in writing in that

behalf.

For the purpose of this Act, an officer appointed under sub-section (1) of Section

38N or an Arbitrator or the Tribunal of Appeal may summon and enforce the attendance

of witnesses including the parties interested or any of them and compel them to give

evidence and compel the production of documents by the same means and as far

as possible, in the same manner as is provided in the case of a Civil Court by the

Code of Civil Procedure, 1908.

(1)

When the State Government or two or more Planning Authorities are of opinion

that the interests of contiguous areas within the jurisdiction of such Planning

Authorities can best be served by the making of a joint development plan or a

joint town planning scheme, the Local Planning Authority, with prior approval of

the State Urban and Country Planning Board constitute a Sub-Divisional Local

Planning Authority under sub-section (5) of Section 9 of the Act.

(2)

Such Sub-Divisional Local Planning Authority, when duly constituted, shall make

a declaration of the intention to make a joint development plan or a joint town

planning scheme in respect of the contiguous areas in the manner provided in

section 38B and thereafter, the Sub-Divisional Local Planning Authority shall

have all the powers and be liable to all the duties of a Local Planning Authority

under this Act and all the foregoing provisions of this Act in respect of the

procedure to be followed in preparing, publishing and submitting a development

plan, or, as the case may be, a town planning scheme for sanction of the State

Government shall apply so far as may be applicable.

Power to

vary town

planning

scheme

38ZI

Apportionment

of cost of

scheme

withdrawn or

not

sanctioned

38ZJ

Power to

compel

attendance

of witness

38ZL

Right to

appear by

recognised

agent

38ZK

Joint

development

plans and

joint town

planning

schemes

38ZM

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(3)

The joint development plan or the joint town planning scheme shall specify the

parts of the joint development plan or the joint town planning scheme to be

executed by the several Planning Authorities in the several contiguous areas

and the several parts of the joint development plan or joint town planning scheme

shall, when the joint development plan or the joint town planning scheme is

sanctioned by the State Government under Section 38ZC, have effect in the

several contiguous areas as if they are separate development plans or town

planning schemes :

Provided that, a joint development plan, or a joint town planning scheme

may be executed partly or wholly by the two or more Planning Authorities

concerned jointly as they may decide in this behalf.

(1)

The cost of a town planning scheme shall include, -

(a)

all sums payable by a Local Planning Authority under the provisions of this

Act which are not specifically excluded from the costs of the scheme ;

(b)

all sums spent or estimated to be spent by a Local Planning Authority with

reference to the period during which the preliminary scheme is to be

implemented, after it is sanctioned under Section 38ZC ;

(c)

all sums payable as compensation for land reserved or allotted for any

public purpose or purpose of a Local Planning Authority which is solely

beneficial to the owners or residents within the area of the scheme ;

(d)

such portion of the sums payable as compensation for land reserved or

allotted for any public purpose or purpose of the Local Planning Authority

which is beneficial partly to the owners or residents within the area of the

scheme and partly to the general public, as is attributable to the benefit

accruing to the owner or residents within the area of the scheme from

such reservation or allotment ;

(e)

all legal expenses incurred by the Local Planning Authority in the making

and in the execution of the scheme ;

(f)

the amount by which the total of the values of the original plots exceeds the

total of the values of the plots included in the final scheme, each of such

plots being estimated at its market value at the date of declaration of

intention to make a scheme, with all the buildings and works thereon at

that date and without reference to improvements contemplated in the

scheme other than improvements due to the alteration of its boundaries.

(g)

twenty per cent of the amount of the cost of the infrastructure provided in

the area adjacent to the area of the scheme as is necessary for the purpose

of and incidental to the scheme.

(2)

If in any case the total of the values of the plots included in the final scheme

exceeds the total of the value of the original plots, each of such plots being

estimated in the manner provided in clause (f) of sub-section (1), then the amount

of such excess shall be deducted in arriving at the costs of the scheme as

defined in sub-section (1).

For the purposes of this Act, the increment shall be deemed to be the amount

by which at the date of the declaration of intention to make a scheme, the

market value of any plot with reference to the improvements contemplated in

the scheme on the assumption that the scheme has been completed would

exceed on the same date the market value of the same plot estimated without

reference to such improvements :

Provided that, in estimating such values, the value of buildings or other

works erected or in the course of erection on such plot shall not be taken into

consideration.

(1)

The cost of the scheme shall be met wholly or in part by a contribution to be

levied by the Local Planning Authority on each final plot included in the final

scheme calculated in proportion to the increment which is estimated to accrue

in respect of such plot by the Arbitrator :

Provided that-

(i)

no such contribution shall exceed half the increment estimated by the

Arbitrator to accrue in respect of such final plot, subject to the condition

that where the total cost of a scheme exceeded half the total amount of

increments, the proportion of such contribution shall not be less than half

the increment ;

Cost of

schemes

38ZN

Contribution

towards cost

of scheme

38ZP

Calculation

of increment

38ZO

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(ii)

no such contribution shall be levied on a plot used, allotted or reserved, for

a public purpose or purpose of the Local Planning Authority, such plot

being solely for the benefit of the owners or residents within the area of the

scheme ;

(iii)

the contribution levied on a plot used, allotted or reserved for a public

purpose or purposes of the Local Planning Authority which is beneficial

partly to the owners or residents within the area of the scheme and partly

to the general public shall be calculated in the proportion to the benefit

estimated to accrue to the general public from such use, allotment or

reservation.

(2)

The owner of each final plot included in a final scheme shall be primarily liable

for the payment of the contribution leviable in respect of such plot.

The amount by which the total value of final plots included in a final scheme with all

the buildings and works thereon allotted to the person falls short of or exceeds the

total value of the original plots with all the buildings and works thereon of such

person shall be deducted from or added to, as the case may be, the contribution

leviable from such person, each of such plots being estimated at its market value at

the date of the declaration of intention to make a scheme and without reference to

improvements contempt in the scheme other than improvements due to the alteration

of its boundaries :

Provided that, in lieu of the amount that qualifies to be deducted from the

contribution leviable from a person, the Local Planning Authority or the Arbitrator

may, at the request of such person, grant FSI (Floor Space Index) equivalent to the

reduction in the area of his/her original plot resulting from reconstitution.

Any right in an original plot which in the opinion of the Arbitrator is capable of being

transferred wholly or in part, without prejudice to the making of a town planning

scheme to a final plot shall be so transferred and any right in an original plot which

in the opinion of the Arbitrator is not capable of being so transferred shall be

extinguished :

Provided that, an agricultural lease shall not be transferred from an original plot

to a final plot without the consent of all the parties to such lease.

The owner of any property or right which is injuriously affected by the making of a

town planning scheme shall, subject to provisions of Section 38ZR, if he/she makes

a claim before the Arbitrator within sixty days of the receipt of the notice from the

Arbitrator, be entitled to obtain compensation in respect thereof from the Local Planning

Authority or from any person benefited or partly from the Local Planning Authority

and partly from such person as the Arbitrator may in each case determine.

(1)

No compensation shall be payable in respect of any property or private right of

any sort which is alleged to be injuriously affected by reason of any provisions

contained in the town planning scheme, if under any other law for the time

being in force applicable to the area for which such scheme is made, no

compensation is payable for such injurious affection.

(2)

Property or a private right of any sort shall not be deemed to be injuriously

affected by reason of any provision inserted in a town planning scheme which

with a view to securing the amenity of the area included in such scheme or any

part thereof, imposes any conditions and restrictions in regard to any of the

matters specified in sub-section (2) of Section 38F.

(3)

If the owner of an original plot is not provided with a final plot in the final scheme

or if the contribution to be levied from him/her under Section 38ZQ is less than

the total amount to be deducted therefrom under any of the provisions of this

Act, the net amount of his/her loss shall be payable to him/her by the Local

Planning Authority in cash or in such other way as may be agreed upon by the

parties.

(1)

If from any cause the total amount which would be due to a Local Planning

Authority under the provisions of this Act from the owner of a final plot to be

included in the final scheme exceeds the value of such plot estimated on the

assumption that the scheme has been completed, the Arbitrator shall, at the

request of the Local Planning Authority, direct the owner of such plot to make

payment to the Local Planning Authority of the amount of such excess.

Certain

amount to

be added to

or deducted

from

contribution

leviable from

person

38ZQ

Compensation

in respect of

property or

right

injuriously

affected by

scheme.

38ZS

Transfer of

right from

original to

reconstituted

plot or

extinction of

such right

38ZR

Exclusion or

limitation of

compensation

in certain

cases.

38ZT

Provision for

case in which

value of

developed plot is

less than amount

payable by

owner.

38ZV

Provision for

cases in which

amount

payable to

owner exceeds

amount due

from him/her.

38ZU

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(2)

If such owner fails to make such payment within the prescribed period, the

Arbitrator shall, if the Local Planning Authority so requests acquire the original

plot of such defaulter and apportion the compensation among the owner and

other persons interested in the plot on payment by the Local Planning Authority

of the value of such plot estimated as its market value at the date of the

declaration of intention to make a scheme and without reference to improvements

contemplated in the scheme ; and thereupon, the plot included in the final scheme

shall vest absolutely in the Local Planning Authority free from all encumbrances

but subject to the provisions of this Act :

Provided that, the payment made by the Local Planning Authority on account

of the value of the original plot shall not be included in the costs of the scheme.

All payments due to be made to any person by a Local Planning Authority under

this Act shall, as far as possible, be made by an adjustment in such person's

account with the Local Planning Authority in respect of the final plot concerned or of

any other plot in which he/she has an interest, and failing such adjustment shall be

paid in cash or in such other way as may be agreed upon by the parties.

(1)

The net amount payable under the provisions of this Act by the owner of a final

plot included in a final scheme may at the option of the contributor be paid in

one sum or annual instalments not exceeding ten. If the owner elects to pay

the amount by instalments, interest at 6 percent per annum shall be charged

on the net amount payable. If the owner of a plot fails to elect the option on or

before the date specified in a notice issued to him/her in that behalf by the

Local Planning Authority, he/she shall be deemed to have elected the option of

paying contribution by instalments and the interest on the contribution shall be

calculated from the date specified in the notice, being the date before which

he/she was required to make an election as aforesaid:

Provided that, where an owner elects to pay the amount in one sum but

fails to do so, interest at 6 percent per annum shall be payable by him/her to

the Local Planning Authority from the date specified in the notice to the date of

payment.

(2)

Where two or more final plots included in a final scheme are in the same

ownership, the net amount payable by such owner under the provisions of this

Act shall be distributed over his/her several final plots in proportion to the

increment which is estimated to accrue in respect of each final plot unless the

owner and the Local Planning Authority agree to a different method of distribution.

(1)

A Local Planning Authority shall be competent to make any agreement with

any person in respect of any matter which is to be provided for in a town

planning scheme subject to the power of the State Government to modify or

disallow such agreement and unless it is otherwise expressly provided therein,

such agreement shall take effect on and after the day on which the town planning

scheme comes into force.

(2)

Such agreement shall not in any way affect the duties of the Arbitrator as stated in

Section 38O or the rights of third parties, but it shall be binding on the parties to the

agreement, notwithstanding any decision that may be passed by the Arbitrator :

Provided that, if any agreement contains any provisions which are

inconsistent with the final scheme as drawn up by the Arbitrator under Section

38O or the final scheme as sanctioned by the State Government under Section

38ZC such an agreement shall be void :

Provided further that, if the agreement is modified by the State Government,

either party shall have the option of avoiding it if it so elects.

(1)

Any sum due to a Local Planning Authority under this Act, rule or any regulation

made thereunder shall be a first charge on the plot on which it is due, subject

to the prior payment of land revenue, if any, due to the Government thereon.

(2)

Any sum due to the Local Planning Authority under this Act, rule or any regulation

made thereunder which is not paid on demand on the day on which it becomes

due or on the day fixed by the Local Planning Authority, shall be recoverable by

the Local Planning Authority from the defaulter as if they were arrears of land

revenue.

Payment by

adjustment of

account.

38ZW

Payment of

net amount

due to Local

Planning

Authority.

38ZX

38ZY

Power of

Local

Planning

Authority to

make

agreement.

38ZZ

Recovery of

arrears.

The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(3)

If any question arises whether a sum is due to the Local Planning Authority

within the meaning of sub-section (2), it shall be referred to a tribunal constituted

by the State Government consisting of one or more persons not connected with

the Local Planning Authority or any authority subordinate to it or with the person

by whom the sum is alleged to be payable which the tribunal shall, after making

such inquiry at it may deem fit and after giving to the person by whom the sum

is alleged to be payable, an opportunity of being heard, decided the question ;

and the decision of the tribunal thereon shall be final and shall not be called in

question in any court or before any other authority.

(4)

The procedure to be followed by the tribunal in deciding questions referred to it

under sub-section (2) shall be such as may be prescribed by the State

Government.

Where after completing and meeting all the costs of a scheme as provided in this

Act, any amount from the sums paid to the Local Planning Authority under this Act

remains as surplus, the Local Planning Authority shall, in consultation with the owners

of the plots, spend such surplus amount for providing further amenities within the

area of the scheme.

(1)

A Local Planning Authority shall complete all the works provided in a final scheme

within the period prescribed in the final scheme by the Arbitrator under sub-

section (3) of Section 38O.

Provided that, in exceptional circumstances on application by the Local

Planning Authority, the State Government may by an order in writing specifying

those circumstances grant to the Local Planning Authority in this behalf further

extension of time as it may think fit.

(2)

If the Local Planning Authority fails to complete the work within the prescribed period

or within the period extended under sub-section (1), the State Government may,

notwithstanding anything contained in subsection (1), require the Local Planning

Authority to complete the works within a further period as it may consider reasonable

or appoint an officer to complete such works at the cost of the Local Planning Authority

and recover the cost from the Local Planning Authority in the manner provided as

below ; -

“Any expenses incurred by the State Government or by such person in exercising

such power or performing such duty shall be paid out of the funds of such Board

or Authority; and if the Board or Authority fails to pay the expenses, then the

State Government may make an order directing any person who for the time

being has custody of any such funds to pay such expenses from such funds,

and such person shall be bound to obey such order”.

Whoever wilfully destroys or injures or without lawful authority removes, a boundary

stone or mark lawfully fixed or constructed, the Collector, on receipt of the intimation

from the Arbitrator or the Local Planning Authority, may order such person to pay a

fine, not exceeding rupees ten thousand for each stone or mark so destroyed, injured

or removed as may in his/her opinion be necessary to defray the expenses of restoring

the same.

In the principal Act, after sub -section (2) of Section 70, the following sub-section (3)

shall be inserted, namely, -

(3)

(a) Unless otherwise provided in this Act, a Local Planning Authority or Development

Authority shall be competent to make any agreement with any person or party

in respect of any matter which is provided for under this Act subject to the right

of the State Government to modify or disallow such agreement.

(b) Such agreement shall not in any way affect the rights of the State Government

or third parties, but it shall be binding on the parties to the agreement

notwithstanding any decision that may be passed by the State Government :

Provided that, if the agreement is modified by the State Government, either

party shall have the option of avoiding it if it so elects.

In the principal Act, after clause (z) of sub-section (2) of Section 71, the following

clause shall be inserted, namely ;

“(za)

for the implementation of development schemes as per the provision of

Development Plan/ Master Plan, may prepare policy documents for Town

Planning Schemes/ Land Pooling Scheme, Local Area Plan, Transit

Oriented Development, Transferable Development Right, Sponge City, New

Town Development Authority, Greenfield cities, Neighbourhood improvement

Plans, City Mobility/City logistics Plan, Risk Informed master Plan etc.

Disposal of

surplus

amount.

38ZAA

Execution of

works in

final scheme

by Local

Planning

Authority.

38ZAB

Penality for

removal of

boundary

stones

38ZAC

Power to

make

agreements

38ZAD

Insertion of

clause (za)