THE UTTAR PRADESH INDUSTRIAL AREA DEVELOPMENT ACT, 1976 [AMENDED UPTO 2022]

THE UTTAR PRADESH INDUSTRIAL AREA DEVELOPMENT ACT, 1976 [AMENDED UPTO 2022]

Preamble - THE UTTAR PRADESH INDUSTRIAL AREA DEVELOPMENT ACT, 1976 [AMENDED UPTO 2022]

THE UTTAR PRADESH INDUSTRIAL AREA DEVELOPMENT ACT, 1976[1]

[Act No. 6 of 1976]

[16th, April, 1976]

PREAMBLE

An Act to provide for the constitution of an Authority for the development of certain areas in the State into industrial and urban township and for matters connected therewith

It is hereby enacted in the Twenty-seventh Year of the Republic of India, as follows:

Section 1 - Short title and extent

(1)     This Act may be called the Uttar Pradesh Industrial Area Development Act, 1976.

(2)     It extends to the whole of Uttar Pradesh.

Section 2 - Definitions

In this Act--

(a)      "amenities" includes [roads, bridges, flyovers, underpasses"][2] , water supply, street lighting and power supply, sewerage, drainage, collection, treatment and disposal of industrial waste and town refuse "[facilities relating to health, education, transport, disaster management, fuel, power public transport, broad band connectivity and gas pipe-lines"][3] and other community facilities, services or conveniences as the State Government may, by notification, specify to be an amenity for the purposes of this Act;

(b)      "Authority" means the Authority constituted under Section 3 of the Act;

["(b-1) 'building' includes any structure or erection or part thereof which is used or is capable of being used for any residential, commercial, institutional, industrial or for any other like purpose, and the same is occupied or is capable of occupation; "][4]

(c)      "Chief Executive Officer" means the officer appointed as such under Section 4;

["(c-1) 'company' for the purpose of this Act, means any company incorporated under the Companies Act, 2013, or its statutory modification in which the entire paid up share capital is held, directly or indirectly, by the State Government or partly by the State Government and partly by the Central Government;

(c-2) 'development' with its grammatical variations means, carrying on any organized activity over any land or building, including any changes which occur on account of spending of finances and may result in increase of its rateable value and also includes redevelopment;

(c-3) 'economic activities' shall include industrial, manufacturing, commercial, financial, processing, packaging, logistic, transport, tourism, hospitality, health, housing, entertainment, research and development, education and training, information and communication, management and consultancy, activities and service connected with development and maintenance of amenities and, such other economic activities as may be specified by notification by the State Government";][5]

(d)      "industrial development area" means an area declared as such by the State Government by notification;

[6]["(d-1). 'Industrial township' means an industrial township specified as such by notification by the Governor under the proviso to clause (1) of article 243Q of the Constitution of India;

(d-2). 'infrastructure project' means any project undertaken or to be undertaken for the development of infrastructure, amenities, facilities, or service which are required for the smooth and efficient functioning of Special Investment Region or the Industrial Development Area";]

(e)      ?Occupier'' means a person (including a firm or body of individuals whether incorporated or not) who occupies a site or building within the industrial development area and includes his successors and assignes;

[7]["(e-1) 'Site' means any demarcated portion of land or building or both;

(e-2) 'Special Investment Region' means an area declared as such by the State Government by notification under sub section (1-A) of section 3";]

(f)       "transferee" means a person (including a firm or other body of individuals, whether incorporated or not) to whom any land or building is transferred in any manner whatsoever, under this Act and includes his successors and assignes;

[8]["(f-1) 'Unit' means a unit or undertaking set up by a person for the purpose of carrying on any economic activity in the Industrial Development Area/Special Investment region;

(f-2) 'User Charge(s)' means the charges levied by the Authority or any other entity authorised by it".]

(g)      the words and expressions "building", "development", "to erect a building" and "land" shall have the same meaning as assigned to them in the Uttar Pradesh Urban Planning and Development Act, 1973.

Section 3 - Constitution of the Authority

["(1) The State Government may, by notification, declare an area to be the industrial development area and constitute an authority to be called "(name of the area) industrial development authority" for such industrial development area.

(1-A) The State Government, may by notification, declare any area, determining its geographical boundaries falling within or outside the industrial development area or partly within and partly outside as Special Investment Region and empower the Authority constituted under sub section (1) for carrying out the purpose of this Act in respect of such area. The Special Investment Region shall be called by such name as may be specified by the State Government";][9]

(2)     The Authority shall be a body corporate,

(3)     The Authority shall consist of the following

["Provided that the Chairman of the Uttar Pradesh State Industrial Development Corporation shall be the ex-officio Chairman of the Uttar Pradesh State Industrial Development Authority.".][14]

(4)     The headquarters of the Authority shall be at such place as may be notified by the State Government.

(5)     The procedure for the conduct of the meetings for the Authority shall be such as may be prescribed.

(6)     No act or proceedings of the Authority shall be invalid by reason of the existence of any vacancy in or defect in the constitution of the Authority.

Section 4 - Chief Executive Officer

(1)     The Chief Executive Officer of the authority shall be appointed by the State Government and he shall be a whole time officer of the Authority.

(2)     The Chief Executive Officer shall be entitled to receive from the funds of the Authority, such salaries and allowances and be governed by such conditions of service as may be determined by general or special order of the State Government in this behalf.

(3)     The Chief Executive Officer shall exercise such powers and perform such duties as may be specified in the regulations or delegated to him by the Authority.

Section 5 - Staff of the Authority

(1)     Subject to such control and restrictions as may be determined by general or special orders of the State Government, the Authority may appoint such number of officers and employees, as may be necessary for the performance of its functions, and may determine their grades and designations.

(2)     Subject as aforesaid the officers and other employees of the Authority shall be entitled to receive from the funds of the Authority, such salaries and allowances and shall be governed by such other conditions of service as may be agreed upon with the Authority.

Section 6 - Functions of the Authority

(1)     The object of the Authority shall be to secure the planned development of the industrial development areas.

(2)     Without prejudice to the generality of the objects of the Authority, the Authority shall perform the following functions?

(a)      to acquire land in the industrial development area, by agreement or through proceedings under the Land Acquisition Act, 1894 for the purposes of this Act;

(b)      to prepare a plan for the development of the industrial development area;

(c)      to demarcate and develop sites for industrial, commercial and residential purposes according to the plan;

(d)      to provide infra-structure for industrial, commercial and residential purposes; 

["(e) to provide amenities and municipal services;
 

(f) to allocate and transfer either by way of sale or lease or otherwise plots of land for industrial commercial or residential purposes and such other land uses as per master plan;
 

(g) to regulate the erection of buildings and setting up of industries and land uses as per master plan; and
 

(h) to lay down the purpose for which a particular site or plot of land shall be used, namely for industrial or commercial of residential purpose or any other specified purpose in such area as per master Plan"][15]

Section 6A - Power to authorize a person to provide infrastructure or amenities and collect tax or fee

[17] [Notwithstanding anything to the contrary contained in any other provisions of this Act and subject to such terms and conditions as may be specified in the regulations, the Authority may, by agreement, authorize any person to provide or maintain or continue to provide or maintain any infrastructure or amenities under this Act and to collect taxes or fees, as the case may be, levied therefor.]

Section 7 - Power to the Authority in respect of transfer of land

The Authority may sell, lease or otherwise transfer whether by auction, allotment or otherwise any land or building belonging to the Authority in the industrial development area, on such terms and conditions as it may, subject to any rules that may be made under this Act, think fit to impose.

["Provided that,--

(a)   where any land has been allotted on lease before 28-7-2020 for setting up of an industrial unit and/or an Information Technology/Information Technology Enabled Services unit (IT/ITES); and
 

(b)   the land has not been utilized (functional/minimum completion) by 28-7-2020 as per the norms laid down by the Authority; and
 

(c)   a period of eight years from the date of execution of lease deed or the period fixed for such utilisation as per the terms and conditions of allotment, whichever is longer, has lapsed by 28-7-2020; and
 

(d)   a notice has been given by the Authority to such allottee at least three months prior to 31-12-2022 to utilise the said land by 31-12-2022 for the purpose for which it was allotted and apprising him of the consequences as mentioned hereafter of the failure to do so; and
 

(e)   the allottee does not utilise the land by 31-12-2022; then the allotment and lease deed will stand automatically cancelled and allotted land will vest with the Authority on 31-12-2022":

Provided further that the State Government may, by a general or special order, extend the date of such cancellation and vesting as mentioned in the above proviso, m the interest of promotion of investment and employment generation.

Explanation 1.--The aforesaid amendment does not entitle any allottee/unit to claim a minimum completion period of eight years. The period fixed for such utilisation shall continue to be governed by the terms and conditions of allotment and the policy of the concerned Authority, including the applicability of extension of time and other interests and charges.

Explanation 2.--The refund of money deposited by the allottee on such cancellation of allotment and lease deed, and vesting of land in Authority shall be as per the policy of the concerned Authority.][18]

Section 8 - Power of issue directions in respect of erection of building

(1)     For the purposes of proper planning and development of the industrial development area, the Authority may issue such directions as it may consider necessary, regarding?

(a)      architectural features of the elevation or frontage of any building,

(b)      the alignment of buildings on, any site.

(c)      the restrictions and conditions in regard to open spaces to be maintained in and around buildings and height and character of buildings,

(d)      the number of residential buildings that may be erected on any site,

(e)      regulation of erection of shops, workshops, warehouses, factories or buildings,

(f)       maintenance of height and position of walls, fences, hedges or any other structure or architecture constructions,

(g)      maintenance of amenities,

(h)     restriction of use of any site for a purpose other than for which it has been allocated,

(i)       the means to be provided for proper--

(i)?? ?drainage of waste water,

(ii) ??disposal of industrial waste, and

(iii) ??disposal of town refuse.

(2)     Every transferee shall comply with the directions issued under sub-section (1) and shall as expeditiously as possible erect any building or take such other steps as may be necessary to comply with such directions.

Section 9 - Ban on erection of buildings in contravention of regulations

(1)     No person shall erect or occupy any building in the industrial development area in contravention of any building regulation made under sub-section (2).

(2)     The Authority may by notification and with the prior approval of the State Government, make regulations to regulate the erection of buildings and such regulations may provide for all or any of the following matters, namely,--

(a)      the materials to be used for external and partition walls, roofs, floors and other parts of a building and their position or location or the method of construction;

(b)      lay out plan of the building whether industrial, commercial or residential;

(c)      the height and slope of the roofs and floors of any building which is intended to be used for residential or cooking purposes;

(d)      the ventilation in, or the space to be left about any building or part thereof to secure circulation of air or for the prevention of fire;

(e)      the number and height of the storeys of any building;

(f)       the means to be provided for the ingress and egress to and from any buildings;

(g)      the minimum dimensions of rooms intended for use as living rooms or sleeping rooms and the provision of ventilation;

(h)     any other matter in furtherance of the proper regulation of erection, completion and occupation of buildings; and

(i)       the certificates necessary and incidental to the submission of plans, amended plans and completion reports.

["(j) the time limit within which any building shall be required to be erected or repairs, additions, modifications is to be made in an existing building, shall be carried out and after completion thereof a notice of completion of construction of building or repairs, additions or modifications as the case may be, shall be lodged with the Authority and completion certificate obtained therefrom."][19]

Section 10 - Power to require proper maintenance of site or building

If it appears to the Authority that the condition or use of any site or building is pre-judicially affecting or is likely to affect the proper planning of, or the amenities in any part of the industrial development area or the interests of the general public there, it may serve on the transferee or occupier of that site or building, a notice requiring him to take such steps and within such period as may be specified in the notice and thereafter to maintain it in such manner as may be specified therein and in case such transferee or occupier fails to take such steps or to maintain it thereafter, the Authority may itself take such steps or maintain it, and realize the cost incurred on it from such transferee or occupier.

Section 11 - Levy of tax

[20] [(1) For the purposes of providing, maintaining or continuing any amenities in the industrial development area, the Authority may, with the previous approval of the State Government, levy such taxes as it may consider necessary in respect of any site or building on the transferee or occupier thereof, provided that the total incidence of such tax shall not exceed one per cent of the market value of such site, including the site of the building.

Explanation.--For the purposes of this sub-section, the expression 'market value' means, the amount of--

(a)      consideration, in the case of sale; or

(b)      premium, in the case of lease; or

(c)      the minimum value determined in accordance with the rules made under the Indian Stamp Act, 1899, whichever is more.]

(2) ??If the State Government considers it necessary or expedient in the public interest, it may, by a general or special order, exempt wholly or partly-- any such transferee or occupier or any class thereof from the taxes levied under sub-section (1).

Section [11-A Power to Levy toll etc.--

The Authority shall have power to levy and collect toll, for the use of approach roads and other Amenities at such rate and in such manner as may be notified by the State Government, from visitors, to such places of popular resort (including any ancient and historical monuments) within the industrial development area:

Provided that State Government may by notification, exempt any classes of visitors from the payment of the toll and fix any day in which no toll shall be charged."

Section 11-B Levy of Additional Stamp Duty.--

(1)   The duty imposed by the Indian Stamp Act, 1899 on any deed of transfer of immovable property situated within the Industrial Development Area or Special Investment Region, or any part thereof, as the State Government may, by notification, declare, shall be increased by two percent on the amount or value of the consideration with reference to which the duty is calculated under the said Act.

(2)   All collections resulting from the said increase, after the deduction of incidental expenses, if any, and as may be determined from time to time by the State Government, shall be transferred to and appropriated towards suitable head or Fund as notified by the State Government.][21]

Section 12 - Applications of certain provisions of President's Act XI of 1973

The provisions of Chapter VII and Sections 30, 32, 40, 41, 42, 43, 44, 45, 46, 47, 49, 50, 51, 53 and 58 of the Uttar Pradesh Urban Planning and Development Act, 1973, as re-enacted and modified by the Uttar Pradesh President's Act (Re-enactment with Modifications) Act, 1974, shall mutatis mutandis, apply to the Authority with adaptation that--

(a)      any reference to the aforesaid Act shall be deemed to be a reference to this Act;

(b)      any reference to the Authority constituted under the aforesaid Act shall be deemed to be a reference to the Authority constituted under this Act; and

(c)      any reference to the Vice-Chairman of the Authority shall be deemed to be a reference to the Chief Executive Officer of the Authority.

Section 12A - No Panchayat for Industrial Township

[22] [ Notwithstanding anything contained to the contrary in any Uttar Pradesh Act, where an industrial development area or any part thereof is specified to be an industrial township under the proviso to clause (1) of Article 243-Q of the Constitution, such industrial development area or part thereof, if included in a Panchayat area, shall, with effect from the date of notification made under the said proviso, stand excluded from such Panchayat area and no Panchayat shall be constituted for such industrial development area or part thereof under the United Provinces Panchayat Raj Act, 1947 or the Uttar Pradesh KshettraPanchayats and ZilaPanchayatsAdhiniyam, 1961, as the case may be, and any Panchayat constituted for such industrial development area or part thereof before the date of such notification, shall cease to exist.

Explanation.--The expression "Panchayat and Panchayat area" shall have the meanings respectively assigned to them in Part IX of the Constitution.]

Section [12-B

    

(1)   The Governor may, by notification, specify under Article 243Q of the Constitution of India, the whole of Special Investment Region or the Industrial Development Area or any part thereof to be an Industrial Township.

(2)   Notwithstanding anything to the contrary contained in any Uttar Pradesh Act, where an special investment region or industrial development area or any part thereof is specified to be an Industrial Township under the proviso to clause (1) of Article 243Q of the Constitution of India, such industrial development area or part thereof, falling in a Municipality shall from the date of notification stand excluded from that Municipality area and all powers and functions performed with respect to such area shall be exercised or performed by the Authority.

Explanation:-The expression "Municipality" shall have the meaning assigned to it in Part IX or Part IX-A of the Constitution of India.]

Section 13 - Imposition of penalty and mode of recovery of arrears

Where any transferee makes any default in the payment of any consideration money or instalment thereof or any other amount due on account of the transfer of any site or building by the Authority or any rent due to the Authority in respect of any lease, or where any transferee or "[Occupier makes any default in payment of any amount][23] fee or tax levied under this Act, the Chief Executive Officer may direct that in addition to the amount of arrears, a further sum not exeeding that amount shall be recovered from the transferee or occupier, as the case may be, by way of penalty.

Section [13-A.

Any amount payable to the Authority under section 13 shall constitute a charge over the property and may be recovered as arrears of land revenue, or by attachment and sale of property in the manner provided under sections 503, 504, 505, 506, 507, 508, 509, 510, 512, 513, and 514 of the Uttar Pradesh Municipal Corporations Act, 1959 (Act no. 2 of 1959) and such provisions of the said Act shall mutatis mutandis apply to the recovery of dues of an authority as they apply to the recovery of a tax due to a Municipal Corporation, so however, that references in the aforesaid sections of the said Act to 'Municipal Commissioner', 'Corporation Officer' and 'Corporation' shall be construed as references to 'Chief Executive Officer' and 'Authority' respectively:

Provided that more than one modes of recovery shall not be commenced or continued simultaneously".][24]

Section 14 - Forfeiture for breach of conditions of transfer

(1)     In the case of non-payment of consideration money or any instalment thereof on account of the transfer by the Authority of any site or building or in case of any breach of any condition of such transfer or breach of any rules or regulations made under this Act, the Chief Executive Officer may resume the site or building so transferred and may further forfeit the whole or any part of the money, if any paid in respect thereof.

(2)     Where the Chief Executive Officer orders resumption of any site or building under sub-section (1) the Collector may, on his requisition, cause possession thereof to be delivered to him and may for that purpose use or cause to be used, such force as may be necessary.

Section 15 - Penalty

Any person who contravenes any provisions of this Act, or rules or regulations made thereunder or any directions issued under Section 8, shall, on conviction be punishable, with fine which may extend to "[fifty thousand rupees][25] and in the case of a continuing offence with further fine which may extend to one thousand rupees for every day during which such offence continues after conviction for the first commission of the offence.

Section 16 - Powers of entry, etc.

The Chief Executive Officer may authorise any person, to enter into or open any land or building with or without assistance, for the purposes of--

(a)      making any inquiry, inspection, measurement or survey or taking levels of such land or building;

(b)      examining works under construction or of ascertaining the course of sewers or drains ;

(c)      ascertaining whether any building is being or has been erected or re-erected without sanction or in contravention of any sanction given under this Act or the rules and regulations made thereunder and to take such measurements and do any such other acts as may be necessary for such purpose; 

[26]["(C-1) digging or boring into the sub soil;

(C-2) setting out boundaries or intended lines of work;

(C-3) making such level, boundaries and lines by placing marks and cutting trenches;

(C-4) ascertaining whether any land is being or has been developed in accordance with the Plan and in accordance with the terms and conditions stated in the permission.]

(d)      doing any other thing necessary for the efficient administration of this Act:

Provided that--

(i) ????no such entry shall be made except between the hours of sunrise and sunset and without giving reasonable notice to the occupier, or if there be no occupier, the owner of the land or building;

(ii) ??sufficient opportunity shall, in every instance, be given to enable women, if any, to withdraw from such land or building ;

(iii) ??due regard shall always be had, so far as may be compatible with the exigencies of the purpose of which the entry is made, to the social and religious usages of the occupants of the land or building enacted.

Section [16-A. Punishment for obstruction, imposition of penalty, sealing etc.--

(1)   Any person who obstructs the entry of a person authorised under section 16 upon any land or building shall be punished with imprisonment for a term which may extend to six months, or with fine which may extend to five thousand rupees, or with both.

Section 16-B Power to levy, assess, recover user charges.--

(1)   When it appears to the Chief Executive Officer or the officer authorised by him that any particular development scheme is sufficiently advanced to enable the amount of the user charge to be determined, the Chief Executive Officer or the officer authorized by him may be an order made in that behalf, declare that for the purpose of determining the User Charges the execution of the scheme shall be deemed to have been completed and shall thereupon give notice in writing to the owner of the property or person having an interest therein that it is proposed to assess the amount of the User Charge in respect of the property mentioned in the notice.

(2)   The Chief Executive Officer or the officer authorised by him shall assess the amount of User Charges payable by the person concerned after giving such person an opportunity of being heard.

(3)   Any person aggrieved by the order of assessment passed under sub-section (2), may, within ninety days from the date of the notice in writing of such assessment inform the Chief Executive Officer or the officer authorized by him in that behalf by a declaration in writing that he accepts the assessment or objects to it.

(4)   Where the order of assessment passed under sub-section (2) is accepted by the person concerned within the period specified in such assessment shall become final and the person concerned shall make payment of the User Charges within the time specified in the assessment order.

(5)   If the person concerned objects to the Assessment order passed under sub-section (2), then the person concerned may file an appeal before the Appellate Authority within a period of ninety days from the date of receipt of the assessment order passed under sub-section (2) and the Appellate Authority may dispose of the appeal within a period of six months from the date of receipt of the appeal. The order passed by the Appellate Authority in appeal shall be final.

(6)   The State Government may nominate an officer not below the rank of the Principal Secretary to the State Government as the Appellate Authority.

(7)   The User Charges levied under this Act shall be payable in such number of instalments, as may be fixed by regulations made in that behalf.

(8)   The arrears of User Charges shall be recoverable as the arrears of land revenue, and shall constitute a charge over such property."][27]

Section 17 - Overriding effect of the Act

Upon any area being declared an industrial development area under the provisions of this Act, such area, if included in the master plan or the zonal development plan under the Uttar Pradesh Urban Planning and Development Act, 1973, or any other development plan under any other Uttar Pradesh Act, with effect from the date of such declaration, be deemed to be excluded from any such plan.

Section 18 - Power to make rules

The State Government may, by notification, make rules for carrying out the purposes of this Act.

Section 19 - Power to make regulations

(1)     The Authority may, with the previous approval of the State Government, make regulation not inconsistent with the provisions of this Act or the rules made thereunder for the administration of the affairs of the Authority.

(2)     In particular, and without prejudice to the generality of the foregoing power, such regulation may provide for all or any of the following matters, namely,-

(a)      the summoning and holding of meetings of the Authority, the time and place where such meetings are to be held, the conduct of business at such meetings, and the number of members necessary to form a quorum thereat;

(b)      the powers and duties of the Chief Executive Officer;

(c)      the form of register of application for permission to erect a -building;

(d)      the management of properties of the Authority ;

(e)      fees to be levied in the discharge of its functions;

(f)       such other matters as are to be provided for in regulation.