THE UTTAR PRADESH INDUSTRIAL AREA DEVELOPMENT (AMENDMENT) ACT, 2016

[Act No. 10 of 2016]

PREAMBLE

An Act further to amend the Uttar Pradesh Industrial Area Development Act, 1976.

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

Section 1 - Short title

This Act may be called the Uttar Pradesh Industrial Area Development (Amendment) Act, 2016.

Section 2 - Amendment of section 2 of U.P

In section 2 of the Uttar Pradesh Industrial Area Development Act, 1976 (Act no. 6 of 1976), hereinafter referred to as the principal Act,-

(a)      in clause (a)-

(i)       for the word "roads" the words "roads, bridges, flyovers, underpasses" shall be substituted;

(ii)      after words "town refuse", the words, "facilities relating to health, education, transport, disaster management, fuel, power public transport, broad band connectivity and gas pipe-lines" shall be added.

(b)      after clause (b), the following clause shall be inserted, namely:-

"(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; "

(c)      after clause (c) the following clauses shall be inserted, namely:-

"(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";

(d)      after clause (d) the following clauses shall be inserted, namely:-

"(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)      after clause (e) the following clauses shall be inserted, namely:-

"(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)       after clause (f) the following clauses shall be inserted, namely:-

"(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".

Section 3 - Amendment of section 3

In section 3 of the principal Act,-

(a)      for sub-sections (1) the following sub-sections shall be substituted, namely:-

"(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";

(b)      In sub-section (3) for the words "the Secretary to the Government" and the words "Joint secretary" where ever occurring the words "the Principal Secretary" to the Government" and the words "Special Secretary" shall respectively be substituted."

Section 4 - Amendment of section 6

In section 6 of the principal Act,-

(a)      in sub-section (2) for clauses (e), (f), (g) and (h) the following clauses shall be substituted namely:-

"(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"

(b)      after sub-section (2) the following sub-section shall be inserted, namely:-

"(3)  For carrying out or achieving the planned development within the industrial development area, the Authority may incorporate a company or more than one company owned by the Authority either wholly or partly by the State Government and partly by the Central Government, under the provisions of the Companies Act, 2013.

(4)   The share capital, the Memorandum of Association and the Articles of Association of the company referred to in sub-section (3) shall be such as may be approved by the Authority from time to time:

Provided that, in cases where the share capital is partly held by the State Government, the share capital, the Memorandum of the Association and the Articles of Association under this sub-section shall be approved by the State Government.

(5)  The company formed under sub-section (3) shall carry out such functions as may be entrusted to it by the Memorandum of Association.

(6)   Where in the opinion of the Authority, as a consequence of any  development scheme having been executed by the Authority in the special investment region or the industrial development area, the value of any property in that area which has been benefited by the development, has increased or is likely to increase, the Authority shall be entitled to levy upon the owner of the property or any person having an interest therein a betterment charge in respect of the increase in value of the property resulting from the execution of the development:

Provided that, no betterment charge shall be levied in respect of land owned by the Government:

Provided further that, where any land belonging to the Government has been granted by way of lease or licence by the Government to a person, whether any building situate thereon or not, shall be subject to a betterment charge under this sub-section".

Section 5 - Amendment of section 9

In section 9 of the principal Act in sub-section (2) after clause (i) the following clause shall be inserted, namely:-

"(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."

Section 6 - Insertion of new sections, 11-A and 11-B

After section 11 of the principal Act, the following sections shall be inserted, namely:-

"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."

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.

Section 7 - Insertion of new section 12-B

After section 12-A of the principal Act, the following section shall be inserted, namely:-

"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 8 - Amendment of section 13

In section 13 of the principal Act, for the words" occupier makes any default in payment of any" the words "Occupier makes any default in payment of any amount of shall be substituted.

Section 9 - Insertion of new section 13-A

After section 13 of the principal Act, the following section shall be inserted, namely:-

"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".

Section 10 - Amendment of section 15

In section 15 of the principal Act, for the words "five thousand rupees" the words "fifty thousand rupees". Shall be substituted.

Section 11 - Amendment of section 16

In section 16 of the principal Act, after clause (c) the following clauses shall be inserted, namely:-

"(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.

Section 12 - Insertion of section 16-A and 16-B

After section 16 of the principal Act, the following sections shall be inserted, namely:-

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.

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."

Section 13 - Overriding effect

The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any Uttar Pradesh Act for the time being in force.