Updated: Wednesday February 19, 2014/AlArbia'a Rabi' Thani 19, 1435/Budhavara Magha 30, 1935, at 08:47:45 PM
The Disposal of Land by Development Authorities (Regulation) Ordinance, 1997
An Ordinance to regulate the disposal of land by Development Authorities
No.Legis‑3 (VIII)/97, dated 4‑2‑1997.‑‑The following Ordinance promulgated by the Governor of the
Preamble. Whereas, it is expedient to regulate the disposal of land by Development Authorities;
And whereas the Provincial Assembly of the Punjab is
not in session and the Governor of the
Now, therefore, in exercise of the powers conferred on
him under Article 128 of the Constitution of the Islamic Republic of Pakistan,
the Governor of the
l. Short title and commencement.‑‑(1) This Ordinance may be called the Disposal of Land by Development Authorities (Regulation) Ordinance, 1997.
(2) It shall come into force at once.
2. Definitions. In this Ordinance unless there is anything repugnant to the subject or context,---
(1) “Development Authority” means the Lahore Development Authority, the Bahawalpur Development Authority, the Dera Ghazi Khan Development Authority, an authority established under the Development of Cities Act 1976, a Trust established under the Punjab Town Improvement Act 1922 and the Directorate General of Housing and Physical Planning Punjab;
(2) “disabled” means a person who on account of injury received by him in the performance of his functions or voluntary service for or in aid of the Government is handicapped for undertaking any gainful profession or employment to earn his livelihood and is declared as such by a medical board constituted by the Government.
(3) “exemption policy” means the policy approved for a housing scheme whereunder allotment through exemption has been allowed to the land owners in exchange for the land acquired from them;
(4) “housing scheme” means a housing scheme prepared by a Development‑ Authority; and
(5) “land” means‑a‑plot a site or a constructed unit.
3. Categorisation of plots etc.‑‑(1) At the time of sanction of a housing scheme;
(a) the plots in the scheme shall be categorised as residential, commercial, industrial, and public amenity plots; and
(b) the number of plots, the area covered by the plots and the public utility areas shall be indicated in, the scheme.
(2) No alteration of the scheme shall be made without the approval of the competent Authority.
(3) No alteration of a housing scheme which is transferred from one Development Authority to another shall be made except with the approval of the competent authority in the transferee Development Authority.
4. Disposal of land.‑‑In the housing schemes the land shall be disposed of in the following manner:‑‑-
(a) Plots falling in the zone of ten marlas or above and all constructed units shall be disposed of through open auction.
(b) Plots falling in the zone of less than ten Marlas shall be disposed of in the following manner:‑--
(i) 95 % by open auction;
(ii) 3.5 % by allotment to the defence personnel who become permanently disabled or the legal heirs of the defence personnel who lay down their lives in the discharge of official duties; and
(iii) 1.5 % to such person who become permanently disabled in the performance of functions or volunteering services in relation to the affairs of the Government or the legal heirs of the persons who die while performing such functions or services.
(c) The provisions of this section shall apply to the housing schemes in which allocation for defence personnel and Government servants had been made only to the extent the said allocation has not been exhausted.
(d) A plot allotted against an allocation shall not be transferable until all the terms and conditions of the allotment are fulfilled.
(e) In the case of non‑residential plots,---
(i) commercial and industrial plots, sites and constructed units shall be sold through open auction;
(ii) public amenity plots sites for mosques and graveyards shall be allotted in such manner and on such conditions as may be prescribed;
(iii) sites for petrol pumps shall be leased out through open auction; and
(iv) agricultural lands shall be leased out for cultivation only through open auction;
(f) In a scheme where compensation is required to be given in the shape of developed plots, the apportionment of plots for the allocations mentioned in clauses (b)(ii) and (b)(iii) shall be made after deducting the plots to be exempted under the provisions of the Punjab Acquisition of Land (Housing) Act, 1973 read with the Punjab Acquisition of Land (Housing) (Repeal) Act, 1985 or the exemption policy as the case may be.
5. Conversion.‑‑No public utility area or public amenity plot in a housing scheme shall be converted to any other use.
6. Penalty for conversion.‑‑Conversion of a plot or site to a use or purpose other than the one provided in the sanctioned housing scheme except in the prescribed manner shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to Rs.1,000 per day from the date of conversion till the default continues or with both.
7. Removal of buildings etc.‑‑(1) If any building or structure is erected or used in contravention of the provisions of this Ordinance or any rule, made thereunder, the Development Authority concerned may by order in writing require the owner, occupier, user or person in control of such building or structure to remove, demolish or alter the building, structure or work or to use it in such manner so as to bring such structure or use in accordance with the provisions of this Ordinance.
(2) If an order under subsection (1) in respect of any building or structure, is not complied with within such time, as may be specified therein, the Development Authority may, after giving the person affected by the order, an opportunity of being heard, remove, demolish or alter the building or structure and in so doing, may use such force as may be necessary and may also recover the cost therefore, from the person responsible for the structure, construction or use of the building or structure, in contravention of the provisions as aforesaid.
8. Appeal.‑‑An order passed by any officer of a Development Authority affecting allotment, sale, lease or any matter consequential thereto shall be appealable in such manner as may be prescribed.
9. Review Board.‑‑(1) The Government shall constitute a Review Board comprising:---
(i) a person who is, has been or is qualified to be a Judge of the High Court;
(ii) Secretary, Government of
(iii) Secretary, Government of the
(2) The Government shall appoint one of the members of the Board as its Chairman.
(3) The Board shall enquire whether any person has obtained any unlawful gain from a Development Authority.
(4) the Board may initiate inquiry on,---
(i) a reference received from the concerned Development Authority; or
(ii) receipt of a complaint; or
(iii) of his own accord.
(5) The concerned Development Authority shall act in aid of the Board.
(6) If the Board is of the opinion that a prima facie case of obtaining unlawful gain is made out against a person it shall direct the Development Authority concerned to institute appropriate legal proceedings against such person to recover the unlawful gain obtained by him.
(7) Where the Board is of the opinion that a prima facie case of obtaining unlawful gain is not made out against any person, it shall record a finding accordingly.
Explanation.‑‑In this section “unlawful gain” means any gain accruing from obtaining allotment of land from a Development Authority through fraud misrepresentation, political influence or contravention of the law or policy concerning the allotment.
10. Power to make rules.‑‑The Government may make rules for carrying out the purposes of this Ordinance.