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Draft Rules
The Uttar Pradesh Urban Planning & Development (Assessment, Levy and
Collection of Development Fee) Rules, 2013
In exercise of the powers conferred by sub-section (2)(c) of Section-55 read with subsection (2)-A of Section-15 of the Uttar Pradesh Urban Planning and Development Act,
1973, the Government of Uttar Pradesh makes the following rules:
1.

2.

Short title, commencement and extent

(1)

These rules may be called the Uttar Pradesh Urban Planning & Development
(Assessment, Levy and Collection of Development Fee) Rules, 2013.

(2)

These rules shall come into force with effect from the date of publication in
the official Gazette or such other date as specified therein.

(3)

These rules shall be applicable to all the Development Areas.

Definitionsin these Rules, unless the context otherwise requires:

(a)

Act means the Uttar Pradesh Urban Planning and Development Act, 1973;

(b)

'Amenity' means road, water supply, street-lighting, drainage, sewerage,

public works and such other convenience as the State Government may, by
notification in the Gazette specify to be an amenity;

(c)

Applicant means any person or body making an application under Section-15

of the Act to obtain permission referred to in Section-14 of the Act;

(d)

"Built-up Area" means the area within a development area of which the
greater part has been developed as commercial, industrial, residential or
others and which has usually been provided with facilities like roads, water
supply, sewerage and electricity, etc. and has been delineated as such by the
Authority;

(e)

'Development Area' means any area declared to be a development area under

Section-3 of the Act;

(f)

'Developed Area' means the area within a development area where all facilities
like road, water supply, drainage, sewerage, electricity, solid waste disposal,
parks and open spaces and community facilities, etc. have been provided in
accordance with an approved layout plan or sub-division plan and has been
delineated as such by the Authority;

(g)

'Development Authority' or 'the Authority' in relation to any development area,

means the Development Authority constituted under Section-4 of the Act for
that area;

(h)

'Development Fee' means the fee levied upon a person or body under Section15 of the Act for construction of road, drain, sewer line, electric supply and
water supply lines in the development area by the Authority;

(i)

'Floor Area Ratio' (FAR) means the quotient obtained by dividing the total
covered area (plinth area) on all floors by the area of the plot;

(j)

'Purchasable FAR' means additional FAR (over and above the permissible FAR)
which may be purchased by the applicant on payment of prescribed charges in
accordance with the provisions of the Building Bye-laws.

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(k)

'Purchasable Units' mean additional dwelling units (over and above the
permissible dwelling units) which may be purchased by the applicant on
payment of prescribed charges.

(l)

'Redevelopment' means rehabilitation or new construction on a site by

renovating or replacing pre-existing uses with new development or
construction in accordance with a sub-division plan or layout plan approved by
the Authority;

(m) 'Sub-division plan' means a plan or layout plan showing sub-division of any
land or portion thereof into more than one plot or parcel for the purpose of
sale or otherwise;
(n)

'Undeveloped area' means the area within a development area other than the
'built-up' and 'developed area' and has been delineated as such by the
Authority;

Words and expressions, not defined in these rules but defined in the Act, shall
wherever used in these rules, be construed to have the meanings respectively
assigned to them in the Act.
3.

Levy of Development Fee

The development fee shall be levied in accordance with these rules where an
application has been made to the Authority for obtaining development or building
permit.
Provided that no development fee shall be levied in the following
circumstances:(a) Where an applicant submits application for building permit in built-up or
developed area without increasing the existing area of land, density and FAR.
(b) Where an applicant submits application for development permit for an area
where development is to be carried out by the applicant himself at his own cost
as per the agreement signed between the applicant and the Authority.
Provided that the Authority may authorize an owner to execute certain
development works at the sole expense of the owner as may be specified in
the agreement. Such agreement shall further specify that where the owner
carries out development in accordance with the agreement, the Authority shall
not charge any development fee against such development.
(c) Where an applicant submits an application for re-development or
reconstruction of a building without increasing the existing area of land or FAR
or number of dwelling units.
(d) Where an applicant submits an application for grant of purchasable FAR or
purchasable units.
(e) Where an applicant submits an application for revision of development or
building permit granted to him earlier and for which development fee has
already been paid by him.
Provided that in case the land area under revised plan increases, the
applicant shall be liable to pay the development fee for such increased land
area in accordance with these rules.

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4.

Assessment of Development Fee

(a)

The development fee for any proposed development or construction in the

undeveloped area shall be levied and collected on the basis of gross area of
the land multiplied by the rates prescribed by the Authority and the
multiplication factor as specified below:
Plot size

Multiplication Factor

Up to 2000 Sqm.

1.0

More than 2000 Sqm. upto 10,000 Sqm.

0.8

More than 10,000 Sqm. upto 50,000 Sqm.

0.7

More than 50,000 Sqm.

0.6

Explanation:
(I) Development fee shall be computed on telescopic basis i.e., development
fee for a particular land area shall be calculated beginning from the
lowest slab and terminating at the plot size under consideration.
(II) The rate prescribed by the Authority shall mean the rate as applicable on
the date of submission of application to the Authority.
(b)

5.

Any proposed development or construction which may require strengthening

of infrastructure services in the built-up or developed area, development fee
for the additional residential units and additional non-residential floor area
(other than purchasable units or purchasable FAR), shall be assessed and
collected in accordance with the rates prescribed by the Authority.

Rates of Development Fee

(a)

Subject to these rules, the rates for development fee shall be prescribed by
the Authority keeping in view the norms and specifications of and the
development and construction cost of various infrastructure services and
amenities to be provided in a particular area.

(b) In addition to the development fee payable pursuant to the provisions of rule4 (a) and (b), the Authority may levy a supplementary development fee not
exceeding 25 percent of the development fee for provision of city level
infrastructure.
Provided that in case of impact-oriented or zone-based development
e.g., transit oriented development along mass transit corridors, an additional
development fee as prescribed by the Authority, may also be levied.
6.

Payment of Development Fee

Subject to the provisions of the Act and the rules hereunder, the applicant shall pay
the full amount of development fee, as levied by the Authority, prior to the grant of
permission under Section-15 of the Act;

Provided that the Vice-Chairman of the Authority may permit payment of

development fee in installments with 12 percent annual rate of interest, if the
applicant furnishes a bank guarantee equivalent to the amount of installments or
alternatively mortgages saleable land of equivalent value of residential, commercial
or mixed use (except the land reserved for the housing of Economically Weaker
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Section and Low Income Group) in favour of the Authority as security against
payment of the installments. The bank guarantee or the mortgaged land, as the
case may be, shall be released in proportion to payment of installments by the
applicant in accordance with the prescribed time-schedule.
Provided further that in case of default in the timely payment of
installments, the applicant shall be liable to pay a penal interest at the rate of
15 percent per annum.
7.

8.

Development Fund
(a)

All money collected as development fee shall be credited to a separate

account to be known as 'Development Fund' in any nationalized bank.

(b)

The fund shall be kept in the interest bearing account and shall be operated
by the Vice-Chairman or any other officer of the Authority authorized in his
behalf in accordance with these rules.

(c)

The fund shall be utilized for provision of infrastructure services and amenities
like construction of road, drainage, sewerage, water supply, electric supply,
etc. in that particular area from where the development fee has been
collected.

(d)

90 percent of the fund shall be utilized for capital expenditure

(i.e. provision of infrastructure services and amenities) and remaining
10 percent as revenue expenditure to meet the expenses and contingencies
incidental thereto.

(e)

The Authority shall utilize the fund most expeditiously within a time-frame
decided by the Authority and, if the amount collected from an area is
inadequate to carry out the required works, the Authority shall execute such
works in a phased manner to ensure earliest utilization of the development
fund.

Revision of Rates of Development Fee

The rates of development fee shall be revised annually by the Authority with effect
from 1st of April every year in conformity with the Central Public Works Department
(CPWD) Cost Index.
Provided that if the CPWD Cost Index is not available, the rates of
development fee shall be revised by the Authority on the basis of such equivalent
index as may be notified by the State Government in this regard.

9.

Recovery of arrears
Any amount due to the Authority on account of the development fee under these
Rules shall be recovered as the arrears of the land revenue in accordance with the
provisions of Section-40 of the Act.

10. Annual Statement of Development Fee

The Vice-Chairman of the Authority shall furnish to the Board of the Authority a
statement in respect of Development Fund for the preceding year, which shall
contain area-wise information regarding the total amount collected by the Authority
as the development fee and details of its utilization. Such statement shall be
furnished in first meeting of the Board of the Authority to be held every financial
year and its copy shall also be sent to the State Government.
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