PUNJAB DEVELOPMENT OF CITIES ACT, 1976

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THE PUNJAB DEVELOPMENT OF CITIES ACT, 1976 
(XIX of 1976) 
CONTENTS 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement 
2. Definitions 
3. Declaration of any area to be a city and alteration of the limits thereof 
4. Application of this Act and establishment of an Authority 
5. Disqualification of members 
6. Meetings 
CHAPTER II 
POWERS AND FUNCTIONS OF THE AUTHORITY 
7. Powers and functions of Authority 
8. Delegation 
9. Appointment of officers and employees 
10. Committees 
CHAPTER III 
DIRECTOR-GENERAL 
11. Appointment and terms of office 
CHAPTER IV 
PREPARATION AND EXECUTION OF SCHEMES 
12. Preparation of schemes 
13. Modification of schemes 
14. Power to give directions 
15. Power to execute any scheme 
CHAPTER V 
GENERAL 
16. Directions by Government 
16A. Transfer of functions, etc 
17. Controlled Area 
18. Power to act as Local [Government] 
19. Power to remove sources of pollution 
20. Beautification 
21. Borrowing money 
22. Power to levy betterment fee 
23. Assessment of betterment fee 
CHAPTER VI 
ACQUISITION 
24. Liability to acquisition 
25. Application of Act No. VIII of 1973 
CHAPTER VII 
FINANCE, ACCOUNTS AND AUDIT 
26. Authority Fund 
27. Rates & Fees 
28. Fees on tubewells 
29. Accounts 
30. Budget 
31. Audit 
CHAPTER VIII 
PENALTY AND PROCEDURE 
32. Penalty and procedure 
33. Causing damage to property and disobedience of orders 
34. Cognizance of offence by Courts 
CHAPTER IX 
MISCELLANEOUS 
35. Annual report 
36. Recovery of dues 
37. Conversion of property to a different use 
38. Summary ejectment of unauthorized occupants 
39. Removal of building etc. erected or used in contravention of this Act 
40. Members, Officers & employees to be public servants 
41. Immunity of the Authority and its employees 
42. Jurisdiction of courts barred 
43. Power to make rules 
44. Power to make regulations 
45. This Act to prevail over other laws 
46. Authority to replace the Improvement Trust 
CHAPTER X 
REPEAL 
47. Repeal & savings 
48. Repeal of Punjab Ordinance No. XI of 1976 
SCHEDULE 
TEXT 
1
THE PUNJAB DEVELOPMENT OF CITIES ACT, 1976 
(XIX of 1976) 
[16th December, 1976] 
An 
Act 
to provide for the development of cities in the Punjab. 
Preamble.– WHEREAS it is expedient in the public interest to establish a 
comprehensive system of planning and development in order to improve the quality 
of life in the cities of the Punjab, establish an integrated development approach and 
a continuing process of planning and development, to ensure optimum utilization of 
resources, economical and effective utilization of land and to evolve policies and 
programmes, relating to the improvement of the environment of housing, industrial 
development, traffic, transportation, health, education, water supply, sewerage, 
drainage, solid waste disposal and matters connected therewith and incidental 
thereto: 
It is hereby enacted as follows:– 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement.– (1) This Act may be called the 
Punjab Development of Cities Act, 1976. 
(2) It shall extend to the whole of the Province of the Punjab. 
2
[(3) It applies to the cities of Multan and 
3
[Faisalabad] declared as such 
under sub-section (1) of section 3 of the Punjab Development of Cities Ordinance, 
1976 (No. XI of 1976), with effect from the 22nd October, 1976 and shall apply to 
such other city or cities as the Government may, by notification, specify from time to 
time.] 
4
[2. Definitions.– In this Act– 
(a) “Agency” means an Agency established by the Authority to perform 
one or more of its functions under the Act; 
(b) “area” means the whole or any part of the city; 
(c) “Authority” means the Authority established under section 4 of the Act; 
                                                 
1This Act was passed by the Punjab Assembly on 24th November, 1976; assented to by the Governor of the Punjab on 16th 
December, 1976; and, published in the Punjab Gazette (Extraordinary), dated 16th December, 1976, pages 2757-2770. 
2Substituted by the Punjab Development of Cities (Amendment) Ordinance, 1981 (VII of 1981); and published in the Punjab 
Gazette (Extraordinary), dated 23.5.1981, pages 360-A to 360-B, s.2 (w.e.f. 16.12.1976). 
3Substituted for the word “Lyallpur” by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006); and published in 
the Punjab Gazette (Extraordinary), dated 2.11.2006, pages 1557-1559, s.2. 
4Substituted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014); and published in the Punjab Gazette 
(Extraordinary), dated 19..3.2014, pages 2817-2821, s.2 
(d) “Chairman” means Chairman of the Authority; 
(e) “Chief Officer” means the Chief Officer of the Municipal Corporation; 
(f) “city” means an area declared by the Government to be a city for 
purposes of this Act; 
(g) “Commissioner” means Commissioner of the Division; 
(h) “controlled area” means an area notified as controlled area by the 
Authority; 
(i) “Director General” means the Director General of the Authority 
appointed under section 11 of this Act;  
(j) “District Coordination Officer” means the District Coordination Officer of 
the District and includes any other officer appointed by the Government 
to exercise all or any of the powers and discharge any of the functions 
of the District Coordination Officer by whatever designation called; 
(k) “Government” means Government of the Punjab; 
(l) “Government agency” includes─ 
(i) a division, department, bureau, section, commission, board, 
office, or unit of the Government; 
(ii) a local government; and 
(iii) a developmental or any other public authority, company or 
corporation owned or controlled by the Government or a local 
government; 
(m) “land” includes earth, water and air, above, below or on the surface and 
any improvements in the structure customarily regarded as land and 
the benefits arising out of land and things attached to earth or 
permanently fastened to earth;  
(n) “local government” means a local government as defined in the Punjab 
Local Government Act 2013 (XVIII of 2013) or under any other law for 
the time being in force;  
(o) “Mayor” means the Mayor of the Municipal Corporation concerned; 
(p) “member” means a member of the Authority and includes its Chairman; 
(q) “person” includes an individual, company, firm, institution, Government 
agency, co-operative society or association of individuals whether 
incorporated or not; and 
(r) “prescribed” means prescribed by rules or regulations.] 
3.  Declaration of any area to be a city and alteration of the limits thereof.– 
(1) For the purpose of this Act, the Government may, by notification, declare any 
area to be a city. 
(2) The Government may, at any time, extend, curtail or otherwise alter the 
limits of a city. 
4.  Application of this Act and establishment of an Authority.– (1) The 
Government may 
5
[* * *] establish an Authority for the city to which this Act has been 
applied 
6
[:] 
7
[Provided that in the case of the cities of Multan and 
8
[Faisalabad] declared as 
such under sub-section (1) of section 3 of the Punjab Development of Cities 
Ordinance, 1976 (XI of 1976), the Multan Development Authority and the 
9
[Faisalabad] Development Authority shall be deemed to have been validly 
established with effect from the 22nd of October, 1976.] 
(2) The Authority shall be known by the name as may be specified by the 
Government. 
(3) The Authority shall be a body corporate, having perpetual succession 
and a common seal with powers, subject to the provisions of this Act, to acquire, 
hold and transfer property both movable and immovable, and may, by its name sue 
or be sued. 
10
[(4) The Authority shall consist of the Chairman who shall be the Chief 
Minister or any other person nominated by him, and the following members:– 
(a) three members, including one woman member, of Provincial Assembly 
of the Punjab to be nominated by the Government; 
(b) Mayor; 
(c) Chairman Planning and Development Board or his representative not 
below the rank of Additional Secretary; 
(d) Secretary to Government, Finance Department or his representative 
not below the rank of Additional Secretary; 
(e) Secretary to Government, Housing, Urban Development and Public 
Health Engineering Department or his representative not below the 
rank of Additional Secretary; 
(f) Secretary to Government, Local Government and Community 
Development Department or his representative not below the rank of 
Additional Secretary; 
(g) Commissioner; 
(h) District Coordination Officer; 
(i) Director General; 
                                                 
5The commas and words “by notification,” deleted by the Punjab Development of Cities (Amendment) Ordinance, 1981 (VII of 
1981); and published in the Punjab Gazette (Extraordinary), dated 23.5.1981, pages 360-A to 360-B, s.3 (w.e.f 16th December, 
1976). 
6Substituted ibid, for a full-stop. 
7Added ibid. 
8Substituted for the word “Lyallpur” by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006); and published in 
the Punjab Gazette (Extraordinary), dated 2.11.2006, pages 1557-1559, s.4. 
9Ibid. 
10Substituted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014) ; and published in the Punjab Gazette 
(Extraordinary), dated 19.3.2014, pages 2817-2821, s.3. Earlier substituted by the Punjab Development of Cities (Amendment) 
Act 2006 (XVI of 2006); and published in the Punjab Gazette (Extraordinary), dated 2.11.2006, pages 1557-1559, s.4 and by 
the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002); and published in the Punjab Gazette 
(Extraordinary), dated 8.8.2002, pages 2589-2593, s.3. 
(j) all Managing Directors; and 
(k) two technical experts to be nominated by the Government 
11
[.]] 
 
12
[(5) The Government may, by notification, alter, increase or 
decrease the membership of the Authority.] 
(6) 
13
[* * * * * * * * * * *   ] 
(7) No act or proceedings of the Authority shall be invalid merely by reason 
of any vacancy in, or defect in, the constitution of the Authority. 
14
[(8)  The Government may designate one or more members of the Authority 
as Vice Chairman. 
(9) A Vice Chairman shall perform such functions as may be assigned to 
him by the Authority.] 
5.  Disqualification of members.– No person shall be, or shall continue to be a 
member who– 
(a) is or, at any time, has been convicted of an offence involving moral 
turpitude; or 
(b) is or, at any time, has been adjudicated insolvent; or 
(c) is found to be a lunatic or of unsound mind; or  
(d) is a minor; or 
(e) has a financial interest in, any scheme or a conflicting interest, directly 
or indirectly, between his interests as a member and his private 
interests, and has failed to disclose such interest in writing to the 
Government. 
6. Meetings.– (1) The Authority shall meet at such place and at such time and 
shall observe such rules of procedure in regard to transaction of business at its 
meetings as may be prescribed. 
15
[(2) The meetings of the Authority shall be presided over by– 
(i) the Chairman; 
(ii) in the absence of the Chairman, the Vice Chairman; 
(iii) in case there are more than one Vice Chairmen, in accordance with 
such priority as may be determined by the Authority; and 
                                                 
11Misprinted in the Original Gazette as semi-colon. 
12Substituted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014) ; and published in the Punjab Gazette 
(Extraordinary), dated 19.3.2014, pages 2817-2821, s.3. Earlier substituted by the Punjab Development of Cities (Amendment) 
Act 2006 (XVI of 2006); and published in the Punjab Gazette (Extraordinary), dated 2.11.2006, pages 1557-1559, s.4. 
13Deleted by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002); and published in the Punjab 
Gazette (Extraordinary), dated 8.8.2002, pages 2589-2593, s.3, which will remain in force under the Provisional Constitution 
(Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months prescribed under Article 
128 of the Constitution of the Islamic Republic of Pakistan. 
14Added by the Punjab Development of Cities (Amendment) Act 1998 (IV of 1998); and published in the Punjab Gazette 
(Extraordinary), dated 8.5.1998, pages 775-776, s.2. 
15Substituted by the Punjab Development of Cities (Amendment) Act 1998 (IV of 1998) ; and published in the Punjab Gazette 
(Extraordinary), dated 8.5.1998, pages 775-776, s.3. 
(iv)  in the absence of the Chairman as well as the Vice Chairman, by a 
member of the Authority elected for the purpose by the members 
present, from amongst themselves.] 
CHAPTER II 
POWERS AND FUNCTIONS OF THE AUTHORITY 
7. Powers and functions of Authority.– (1) Subject to the provisions of this Act 
and any rules framed thereunder, the Authority may exercise such powers and take 
such measures as may be necessary for carrying out the purposes of this Act. 
(2) Without prejudice to the generality of the provisions of the foregoing 
sub-section, the Authority may:– 
(i) initiate and maintain a continuous process of comprehensive 
development planning for the area with the objective of preparing a 
development plan; 
(ii) periodically update such a Development Plan and coordinate its 
implementation by the Authority or Government agencies within the 
area; 
(iii) develop, operate and maintain water supply, sewerage and drainage 
system within the area; 
(iv) prepare Annual Development Programme for the area, ensure 
compliance of the Annual Development Programme with priorities 
established in the development plan after its preparation and evaluate 
performance under the Annual Development Programme at the end of 
each year; 
(v) establish, maintain and periodically revise as necessary, planning 
controls and building regulations for the area to:– 
(a)  provide appropriate urban design and protect public safety; and 
(b)  ensure compliance with the development plan after its 
preparation. 
(vi) prepare, implement and enforce schemes for environmental 
improvements, housing, urban renewal including slums improvement 
and re-development, solid waste disposal, transportation and traffic, 
health and education facilities and preservation of objects or places of 
historical, archaeological, scientific, cultural and recreational 
importance; 
(vii) take any steps or adopt any measures for the face lifting and 
beautification of the area; 
(viii) acquire property, both movable and immovable; 
(ix) sell, lease, exchange or otherwise dispose of any property vested in it; 
(x) undertake any works and incur any expenditure; 
(xi) procure machinery instruments or any other material required by it; 
(xii) enter into contracts; 
(xiii) cause studies, surveys, experiments, technical researches or 
contribute towards the cost of any such studies, surveys, experiments 
or technical researches made by any other Agency; 
(xiv) issue interim development order for the area for which a scheme is 
under preparation and restrict or regulate by general or special order, 
any change in the use of land and alteration in building structure and 
installation; 
(xv) seek and obtain advice and assistance for the preparation of any 
scheme, or for the execution of any scheme from any Government 
Agency or person and such Agency or person shall give the advice and 
assistance sought by the Authority to the best of its ability, knowledge 
and judgement and the additional expenditure, if any, involved in giving 
such advice or assistance shall be borne by the Authority; and 
(xvi)  establish an agency/agencies and entrust to it such powers and 
functions as it may deem fit with the approval of the Government. 
8. Delegation.– The Authority may, by general or special orders, delegate to the 
Director-General or a Committee constituted under section 10 or a member or an 
officer of the Authority, any of its powers, duties or functions under this Act, subject 
to such conditions as it may think fit to impose. 
9. Appointment of officers and employees.– The Authority may appoint such 
officers, advisors, experts, consultants and employees, as it considers necessary for 
the efficient performance of its functions on such terms and conditions as it may 
deem fit. 
10. Committees.– The Authority may constitute such financial, technical and 
advisory committees as may be deemed necessary for carrying out the purposes of 
this Act and such committees shall exercise such powers and perform such functions 
as may be delegated or assigned to them by the Authority. 
CHAPTER III 
DIRECTOR-GENERAL 
11. Appointment and terms of office.– (1) The Director-General shall be 
appointed by Government on such terms and conditions as may be determined by 
the Government. 
(2) The Director-General shall be the Chief Executive of the Authority and 
shall– 
(a) be a whole time 
16
[or part time] officer of the Authority; and  
(b) perform such duties as may be assigned to him and exercise such 
powers as may be delegated to him by the Authority. 
                                                 
16Inserted by the Punjab Development of Cities (Amendment) Ordinance, 1982 (I of 1982); and published in the Punjab Gazette 
(Extraordinary), dated 27.2.1982, s.2. 
CHAPTER IV 
PREPARATION AND EXECUTION OF SCHEMES 
12. Preparation of Schemes.– (1) The Authority shall, in such form and in such 
manner as may be prescribed, prepare schemes for the area or any part thereof and 
execute or have them executed in the prescribed manner. 
(2) All such schemes prepared by the Authority shall be submitted to the 
Government for its approval, except those schemes, the provisional estimated cost 
of which does not exceed such limit as may be prescribed by rules or for which no 
loan or grant is required from the Government. 
(3) The Authority shall publish the sanctioning of any scheme in the official 
Gazette. 
(4) The publication of a sanction under sub-section (3), shall be conclusive 
evidence that the scheme has been duly framed and sanctioned. 
(5) No planning or development scheme shall be prepared by any person 
or 
17
[local government] as defined in the 
18
[Punjab Local Government Act 2013 (XVIII 
of 2013)] or Government agency within the area except with the concurrence of the 
Authority. 
19
[(6) In every scheme provision for a plot or plots for mosques shall be 
made.] 
13. Modification of schemes.– Any scheme prepared under this Act, may at any 
time, be amended, modified or abandoned by the Authority, in such form and in such 
manner as may be prescribed. 
14. Power to give directions.– (1) The Authority may require a Government 
agency within whose jurisdiction any particular locality or aspect of development 
covered by a scheme lies:– 
(a) to execute a scheme in consultation with the Authority; 
(b) to take over and maintain any of the works and services in the area; 
(c) to provide any amenity in relation to the land which in the opinion of the 
Authority ought to be provided; and 
(d) to enforce regulations, on behalf of the Authority. 
(2) The expenditure incurred on the execution of any scheme or on the 
taking over or maintenance of any work, or the enforcement of regulations, under 
this section, shall be borne as may be agreed to between the Authority and the 
                                                 
17Substituted for the words “local council as defined in the Punjab Local Government Act, 1975” by the Punjab Development of 
Cities (Amendment) Ordinance, 2002 (XLII of 2002) ; and published in the Punjab Gazette (Extraordinary), dated 8.8.2002, 
pages 2589-2593, s.4, which will remain in force under the Provisional Constitution (Amendment) Order 1999 (9 of 1999), 
Article 4, notwithstanding the maximum limit of three months prescribed under Article 128 of the Constitution of the Islamic 
Republic of Pakistan. 
18Substituted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014) ; and published in the Punjab Gazette 
(Extraordinary), dated 19.3.2014, pages 2817-2821, s.4. 
19Added by the Punjab Development of Cities (Amendment) Ordinance, 1984 (XXVII of 1984); and published in the Punjab 
Gazette (Extraordinary), dated 17.12.1984, pages 2023-2024, s.2. 
Government Agency and in the event of disagreement, as may be determined by the 
Government within a prescribed period. 
15.  Power to execute any scheme.– (1) Where the Authority is satisfied that any 
direction given by it under sub-section (1) of section 14, with regard to any scheme, 
has not been carried out by the Government Agency, the Authority may, itself 
undertake any work for the execution of that scheme and the cost thereof, shall be 
borne as may be agreed between the Authority and the Government Agency and in 
the event of disagreement, as may be determined by the Government. 
(2)  Where any work is undertaken by the Authority under sub-section (1), it 
shall be deemed to have, for the purpose of execution of such work, all the powers 
which may be exercised under any law for the time being in force, by the 
Government Agency concerned. 
CHAPTER V 
GENERAL 
16. Directions by Government.– The Authority shall, in discharging its functions, 
act and be guided, by such directions as Government may give to it from time to 
time. 
20
[16-A. Transfer of functions, etc.– Where the Authority ceases to perform a 
function and another organization controlled by the Government assumes that 
function, the Government may direct– 
(i) that the servants of the Authority connected with that function shall 
become servants of the said organization on such terms and conditions 
as the said organization may determine, subject to the condition that 
the said terms and conditions are not less favourable than those 
admissible to them as servants of the Authority; and 
(ii) that such part of the Fund of the Authority as the Government may 
determine shall stand transferred to the said organization.] 
17. Controlled Area.– The Authority may issue in respect of a controlled area 
such directions as it considers fit and appropriate and do all such things as may be 
necessary for the prevention of haphazard growth, encroachments and unauthorised 
constructions in such area. 
18. Power to act as Local 
21
[Government].– The Government may, by a 
notification in the official Gazette, authorise the Authority to exercise and perform 
such powers and functions as a local 
22
[Government] may exercise and perform in 
relation to its local area under the 
23
[Punjab Local Government Act 2013 (XVIII of 
                                                 
20Added by the Punjab Development Authorities Laws (Amendment) Act, 1999 (VII of 1999); and published in the Punjab 
Gazette (Extraordinary), dated 11.2.1999, pages 315-316, s.2. 
21Substituted for the word “council” by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002) ; and 
published in the Punjab Gazette (Extraordinary), dated 8.8.2002, pages 2589-2593, s.5, which will remain in force under the 
Provisional Constitution (Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum limit of three months 
prescribed under Article 128 of the Constitution of the Islamic Republic of Pakistan. 
22Ibid. 
23Substituted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014) ; and published in the Punjab Gazette 
(Extraordinary), dated 19.3.2014, pages 2817-2821, s.5. 
2013)], in an area in which schemes are undertaken by the Authority or which is 
declared as controlled area. 
19. Power to remove sources of pollution.– The Authority shall have full 
powers to undertake improvements of the environment of the area or any part 
thereof and to check, replace, eliminate, remove, demolish, conserve, re-settle or 
relocate the sources of environmental pollution such as milch cattle, horses or other 
animals, tongas, vehicular exhaust, industrial waste, solid waste, congestion, blight 
and slums etc: 
Provided that the Authority shall provide alternate accommodation or 
compensation to be determined in accordance with the provisions in Chapter VI, to 
any person evicted from the premises owned by him. 
20. Beautification.– The Authority shall also undertake beautification of the area 
or part thereof, in any manner it deems fit, or prepare schemes and prescribe 
environmental standards to be adopted by the Government Agencies or persons or 
direct any Government Agency or person to undertake any improvements or 
activities for beautification of the area or part thereof. 
21. Borrowing money.– (1) The Authority shall be deemed to be a “Local 
Authority” for the purpose of borrowing money and any scheme or Project prepared 
or undertaken by the Authority, shall be deemed to be “work” as defined in Section 2 
of the Local Authorities Loans Act, 1914 (Act No. IX of 1914): 
Provided that no local or foreign loan shall be obtained by the Authority 
without the previous sanction of the Government. 
(2) The Authority may, in consultation with the Finance Department, 
Government of the Punjab, borrow money or raise funds by issuing bonds or 
debentures or otherwise for carrying out the purposes of this Act at such rate of 
interest as may be approved by the Government. 
22. Power to levy betterment fee.– Where any new scheme has been executed 
by the Authority by providing services or amentities in any locality, the Authority may, 
with the previous consent of Government, levy upon the owner of the property or any 
person having an interest therein, a betterment fee on account of the execution of 
the scheme. 
23. Assessment of betterment fee.– (1) When it appears to the Authority that 
any particular development scheme is sufficiently advanced to enable the amount of 
the betterment fee to be determined, the Authority may, by an order made in this 
behalf, declare that for the purpose of determining the betterment fee, 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 any person having an interest therein, 
that the Authority proposes to assess the amount of the betterment fee in respect of 
the property under Section 22. 
(2) The betterment fee under Section 22 or under sub-section (1) of this 
Section, shall be assessed and be payable in the manner prescribed. 
CHAPTER VI 
ACQUISITION 
24
[24. Acquisition.– The Authority may, in accordance with law, acquire any land or 
property within the controlled area.] 
25. 
25
[* * * * * * * * * * * *   ] 
CHAPTER VII 
FINANCE, ACCOUNTS AND AUDIT 
26. Authority Fund.– (1) There shall be formed a fund to be known as the 
“Authority Fund’ which shall vest in the Authority and shall be utilized by the Authority 
in connection with its functions under this Act including the payment of salaries and 
remunerations to the members, officers, servants, experts and consultants of the 
Authority. 
(2) To the credit of the Authority Fund, shall be credited:– 
a) all moneys received from Government; 
b) all moneys received from Federal Government or any international 
agency or any other body by way of grants, loans, advances or 
otherwise; 
c) all fees, rates and charges received by the Authority under this Act; 
d) all moneys received by the Authority from the disposal of lands, 
buildings and other properties movable and immovable; 
e) proceeds from the self financing schemes of urban development and 
environmental sanitation; and 
f) all other sums receivable by the Authority. 
(3) Authority Fund will have two separate heads namely “Urban 
Development” and “Water Supply and Sanitation”. 
(4) The Authority may keep in current account of any scheduled bank such 
sums as may be prescribed and any amount in excess of the said amount shall be 
invested in Government securities, Government sponsored saving schemes or in 
such manner as may be determined by the Government. 
Explanation.– For the purpose of this sub-section Government, includes Federal 
Government. 
26
[(5) In case of deficit revenue of the Authority, the 
27
[*****] Government shall 
provide, from its own revenue or from any other source, such sum as may be 
necessary for the efficient performance of the functions of the Authority.] 
                                                 
24Substituted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014) ; and published in the Punjab Gazette 
(Extraordinary), dated 19.3.2014, pages 2817-2821, s.6. 
25Omitted ibid., s.7. 
26Inserted by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006) ); and published in the Punjab Gazette 
(Extraordinary), dated 2.11.2006, pages 1557-1559, s.5. 
27Omitted the words “City District” by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014); and published in 
the Punjab Gazette (Extraordinary), dated 19..3.2014, pages 2817-2821, s.8 
27. Rates & Fees.– (1) With the previous consent of the 
28
[
29
[
30
[*****]]] Government, 
adequate funds may be raised by the Authority from time to time, to meet the cost of 
its schemes by imposing rates, fees and other charges. 
(2) The rates, fees and other charges for water supply, sewerage and 
drainage schemes shall be such as to provide sufficient revenues:– 
(i) to cover the operating expenses including taxes, if any, and interest to 
provide adequate maintenance; 
(ii) to cover repayment of loans; and 
(iii) to finance the normal year to year extension of any of such schemes 
and to provide a reasonable portion of the cost of future major 
expansion of such schemes. 
28. Fees on tubewells.– (1) The Authority shall have the exclusive right to use 
ground water resources within the area. 
(2) No person shall, without the permission of the Authority install a 
tubewell, for commercial purposes, at such places within the area, as may be notified 
in the official Gazette by the Authority. 
(3) The Authority may levy rates on the persons or bodies who have 
installed or may install tubewells for commercial purposes, within its jurisdiction. 
29. Accounts.– The Authority and its agencies shall maintain proper accounts 
and other relevant records and prepare annual statement of accounts in such form 
as may be prescribed. 
31
[30. Budget.– (1) The Authority shall prepare, in such manner and at such time as 
may be prescribed, a budget in respect of the next ensuing financial year showing 
the estimated receipts and expenditure of the Authority and each of its Agencies and 
shall submit the budget to the Government for approval. 
(2) If the Government fails to approve the budget, with or without 
modifications, within thirty days of its receipt, the budget prepared by the Authority 
shall be deemed to be the approved budget of the Authority.] 
31. Audit.– The accounts of the Authority and each of its agencies shall be 
audited annually by such duly qualified Auditors or Government Audit Agencies or 
both as may be appointed by the Authority and each agency respectively, with the 
                                                 
28Inserted the words “Tehsil Municipal Administration, in whose jurisdiction the scheme is located and the Provincial” by the 
Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002); and published in the Punjab Gazette 
(Extraordinary), dated 8.8.2002, pages 2589-2593, s.6 
29The words “Tehsil Municipal Administration, in whose jurisdiction the scheme is located” was substituted for the words “City 
District Government” by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006); and published in the Punjab 
Gazette (Extraordinary), dated 2.11.2006, pages 1557-1559, s.6 
30Omitted the words “City District Government and the Provincial” by the Punjab Development of Cities (Amendment) Act 2014 
(V of 2014); and published in the Punjab Gazette (Extraordinary), dated 19.3.2014, pages 2817-2821, s.9. 
31Substituted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014); and published in the Punjab Gazette 
(Extraordinary), dated 19.3.2014, pages 2817-2821, s.10. Earlier substituted by the Punjab Development of Cities 
(Amendment) Act 2006 (XVI of 2006)); and published in the Punjab Gazette (Extraordinary), dated 2.11.2006, pages 1557-
1559, s.7 and by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002); and published in the Punjab 
Gazette (Extraordinary), dated 8.8.2002, pages 2589-2593, s.7. 
approval of Government. The Authority shall also make necessary arrangements for 
pre-audit or concurrent audit of account. 
CHAPTER VIII 
PENALTY AND PROCEDURE 
32
[32. Penalty.– (1) If a person contravenes any provision of this Act, or any rules or 
regulations made under this Act, he shall, if no other penalty is provided for such 
contravention, be liable to punishment with an imprisonment for a term which may 
extend to one year or with fine which may extend to two hundred thousand rupees or 
with both. 
(2) The Magistrate competent to try an offence under subsection (1) may 
try the offence in a summary manner in accordance with the provisions of sections 
260 to 265 of the Code of Criminal Procedure, 1898 (V of 1898).] 
33. Causing damage to property and disobedience of orders.– (1) Whoever 
wilfully causes damage, or allows damage to be caused to any property which vests 
in the Authority or unlawfully converts it to his own or any other person’s use, shall 
be punishable with imprisonment for a term which may extend to six months, or with 
fine or with both. 
(2) Whoever refuses or wilfully neglects to provide any officer or servant of 
the Authority with the means necessary for entering into any premises for the 
purpose of collecting any information or making an examination or enquiry in relation 
to any water works, shall be punishable with imprisonment extending to one year or 
fine or with both. 
(3) Whoever without lawful excuse, fails or refuses to comply with any 
direction or order issued by the Authority under this Act, shall be guilty of an offence 
punishable under Section 32. 
(4) Whoever attempts to commit or abets the commission of an offence 
punishable under this Act, shall be deemed to have committed that offence. 
(5) Any Magistrate empowered for the time being to try in a summary way 
the offence specified in sub-section (1) of Section 260 of the Code of Criminal 
Procedure, 1898, may if such Magistrate thinks fit, on application being made in this 
behalf by the prosecution, try an offence punishable under this Act, in accordance 
with the provisions contained in Sections 262 to 265 of the said Code. 
33
[34. Offences and cognizance.– (1) If a person commits an offence specified in– 
(a) Part-A of the Schedule appended to this Act, such person shall be 
liable to punishment with imprisonment for a term which may extend to 
seven years or with fine which may extend to five hundred thousand 
rupees or with both and where an accused was directed by the 
Authority for immediate discontinuance of the offence, the Court may 
impose a further fine which may extend to fifty thousand rupees for 
                                                 
32Substituted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014); and published in the Punjab Gazette 
(Extraordinary), dated 19.3.2014, pages 2817-2821, s.11. 
33Substituted ibid., s.12. 
every day during the period the accused has persisted in the offence 
from the date of its commission; and 
(b) Part-B of the Schedule appended to this Act, he shall be liable to 
punishment with imprisonment for a term which may extend to three 
years or with fine which may extend to one hundred thousand rupees 
or with both and where an accused was directed by the Authority for 
immediate discontinuance of the offence, the Court may impose a 
further fine which may extend to ten thousand rupees for every day 
during the period the accused has persisted in the offence from the 
date of its commission. 
(2) An offence punishable under subsection (1) shall be cognizable on a 
complaint in writing of an officer authorized by the Authority to the officer incharge of 
the police station.] 
CHAPTER IX 
MISCELLANEOUS 
35. Annual report.– (1) The Authority shall prepare for every year a report of its 
activities during that year and submit the report to the 
34
[
35
[
36
[*****]]] Government in 
such form and on or before such date, as may be prescribed. 
(2) The report referred to in sub-section (1) shall be laid before the 
Provincial Assembly of the Punjab within six months of its receipt by the 
Government. 
36.  Recovery of dues.– Any sum due to the Authority from, or any sum wrongly 
paid by the Authority to any person under this Act, shall be recoverable as arrears of 
land revenue. 
37
[37. Conversion of property to a different use.– If a person converts a property 
to use or purpose other than the one provided under a scheme, master plan or 
classification map within the controlled area without the previous approval in writing 
of the Authority, he shall be liable to punishment with imprisonment for a term which 
may extend to one year or with fine which may extend to ten thousand rupees per 
day from the date of its conversion till the default continues or with both.] 
38. Summary ejectment of unauthorised occupants.– The Authority or any 
person authorised by it in this behalf may summarily eject any person in 
unauthorised occupation of any land or property vested in the Authority and may for 
such ejectment use such force as may be necessary. 
                                                 
34Inserted the words “Tehsil Municipal Administration, in which the maximum area under the jurisdiction of the Authority falls, 
and the Provincial” by the Punjab Development of Cities (Amendment) Ordinance, 2002 (XLII of 2002); and published in the 
Punjab Gazette (Extraordinary), dated 8.8.2002, pages 2589-2593, s.8 
35The words “Tehsil Municipal Administration, in which the maximum area under the jurisdiction of the Authority falls,” was 
substituted for the words “City District Government” by the Punjab Development of Cities (Amendment) Act 2006 (XVI of 2006); 
and published in the Punjab Gazette (Extraordinary), dated 2.11.2006, pages 1557-1559, s.6 
36Omitted the words “City District Government and the Provincial” by the Punjab Development of Cities (Amendment) Act 2014 
(V of 2014); and published in the Punjab Gazette (Extraordinary), dated 19.3.2014, pages 2817-2821, s.13. 
37Substituted ibid., s.14. 
38
[Provided that no action under this section shall be taken without providing 
an opportunity of being heard to the person to be affected thereby.] 
39. Removal of building etc. erected or used in contravention of this Act.– 
(1) If any building, structure, work or land is erected, constructed or used in 
contravention of the provisions of this Act or any rules, regulations or orders made 
thereunder, the Authority or any person authorised by it in this behalf, may, by order 
in writing, require the owner, occupier, user or person in control of such building, 
structure, work or land to remove, demolish or alter the building, structure or work or 
to use it in such manner so as to bring such erection, construction or use in 
accordance with the said provisions of this Act. 
(2) If an order under sub-section (1), in respect of any building, structure, 
work or land is not complied with within such time, as may be specified therein, the 
Authority or any person authorised by it in this behalf may, after giving the person 
affected by the order an opportunity of being heard, remove, demolish or alter the 
building, structure or work, or stop the use of the land and in so doing, may use such 
force as may be necessary and may also recover the cost thereof from the person 
responsible for the erection, construction or use of the building, structure, work or 
land in contravention of the provisions as aforesaid. 
40. Members, Officers & employees to be public servants.– The Chairman, 
39
[Vice Chairmen] members, Director-General, Officers, servants, Experts and 
Consultants of the Authority when acting or purporting to act in pursuance of any of 
the provisions of this Act, be deemed to be public servants within the meaning of 
section 21 of the Pakistan Penal Code. 
41. Immunity of the Authority and its employees.– No suit, prosecution or any 
other legal proceedings shall lie against the Authority, the Chairman, 
40
[Vice 
Chairmen] Director-General, any Member, Officer, Servant, Expert or Consultant of 
the Authority in respect of anything done or intended to be done in good faith under 
this Act. 
42. Jurisdiction of courts barred.– Save as otherwise provided by this Act, no 
court or other Authority, shall have jurisdiction to question the legality of anything 
done or any action taken under this Act by or at the instance of the Authority. 
43. Power to make rules.– Subject to the provisions of this Act, Government 
may make rules for carrying into effect the purposes of this Act. 
44. Power to make regulations.– Subject to the provisions of this Act and the 
rules framed thereunder, the Authority may make regulations as may be necessary 
to carry out the purposes of this Act. 
45. This Act to prevail over other laws.– Subject to the Constitution, in the 
event of any conflict or inconsistency between the provisions of this Act and the 
                                                 
38Added by the Punjab Development of Cities (Amendment) Ordinance, 1984 (XXVII of 1984); and published in the Punjab 
Gazette (Extraordinary), dated 17.12.1984, pages 2023-2024, s.2. 
39Inserted by the Punjab Development of Cities (Amendment) Act 1998 (IV of 1998) ; and published in the Punjab Gazette 
(Extraordinary), dated 8.5.1998, pages 775-776, s.4. 
40Ibid., s.5 
provisions of any other law for the time being in force, the provisions of this Act shall, 
to the extent of such conflict or inconsistency, prevail. 
46.  Authority to replace the Improvement Trust.– On the establishment of the 
Authority under this Act– 
(i)  all functions and powers with respect to the formulation, sanction and 
execution of schemes, and all functions heretofore performed by the 
Improvement Trust, shall be exercised and performed by the Authority. 
(ii)  all properties, assets and liabilities pertaining to the Improvement Trust 
shall vest in and be the assets and liabilities, as the case may be, of 
the Authority. 
CHAPTER X 
REPEAL 
47. Repeal & savings.– (1) On the establishment of the Authority under this Act, 
the Town Improvement Act, 1922, shall cease to apply to the area and all schemes, 
projects, or works started under the said Act but not completed shall be taken over 
by the Authority and executed under the provisions of this Act. 
(2) Notwithstanding the fact of the Town Improvement Act, 1922, ceasing 
to apply to the Areas:– 
(i) all rules, regulations and orders made, notifications issued, land 
acquired, schemes prepared or executed, rates and fees imposed, 
penalties, or other charges levied, contracts entered into, suits 
instituted by or against the Improvement Trust or any other right 
accrued, or liability incurred or action taken, or proceedings initiated, 
shall so far as they are consistent with the provisions of this Act, 
continue in force and be deemed to have been made, imposed, levied, 
entered into, instituted, prepared, executed, accrued or incurred, taken 
and initiated under this Act; 
(ii) the provisions of Sections 45,56,57,58,59,60,61,62,63,64 and 65 of the 
Town Improvement Act, 1922, shall continue to apply in so far as the 
acquisitions made under the Land Acquisition Act, 1894, are 
concerned. 
48. Repeal of Punjab Ordinance No. XI of 1976.– The Punjab Development of 
Cities Ordinance, 1976 (Punjab Ordinance No. XI of 1976), is hereby repealed. 
41
[SCHEDULE 
(see section 34) 
Part-A 
1. Discharging any dangerous chemical, inflammable, hazardous or offensive 
article in any drain, or sewer, public water course or public land vested in, 
managed, maintained or controlled by the Authority or an Agency in such 
manner as causes or is likely to cause danger to persons passing by or living 
or working in neighbourhood, or risk or injury to property or causing harm to 
the environment. 
2. Failure of industrial or commercial concerns or such property holders to 
provide adequate and safe disposal of affluent or prevention of their mixing up 
with the water supply or sewerage system. 
Part-B 
1. Willfully obstructing any officer or servant of Authority or any person 
authorized to exercise power conferred under this Act. 
2. Failure to deliver back possession of a property to the Authority on expiration 
or cancellation of lease or allotment or exemption of a plot. 
3. Doing an act without license, approval or permission when the doing of such 
act requires a license or permission under any of the provisions of the Act, the 
rules or regulations. 
4. Violation of the master plan, building plan or sanctioned site development 
scheme including the plans and schemes sanctioned under the repealed 
enactments, allotting, selling or using the land for the purpose other than the 
approved layout plan. 
5. Erection or re-erection of building over set back area or parking area or 
building line area required to be left open under the rules or bylaws for using 
such space for any purpose which is not approved. 
6. Changing or converting into any other use any portion of a commercial or 
residential building or area specified or earmarked for public parking or 
amenities. 
7. Establishing any parking stand on any property or on any open space and 
public park or land vested in or managed, maintained or controlled by the 
Authority or any Agency. 
8. Establishing temporary shops or running any restaurant or vending stalls for 
eatables, wooden khokas or any sort of commercial activity on any road, 
street, footpath, public place, over a drain, or any other property vesting in the 
Authority. 
9. Obstructing or tampering with any road, street, drain or sewer pipe or 
pavement or tampering with any main pipe, meter or any apparatus or 
                                                 
41Inserted by the Punjab Development of Cities (Amendment) Act 2014 (V of 2014) ); and published in the Punjab Gazette 
(Extraordinary), dated 19.3.2014, pages 2817-2821, s.15. 
appliance for the supply of water or sewerage system or laying out a drain or 
altering any drain in a street or road. 
10. Connecting any house drain with a drain in a public street without approval of 
the Authority. 
11. Drawing off, diverting or taking any water except with the permission required 
under this Act, rules or regulations. 
12. Willfully causing damage, or allowing damage to be caused to any property 
which vests in the Authority, or which is intended to be acquired by the 
Authority, or unlawfully converting it to his own or any other person’s use. 
13. Refusal or willfully neglecting to provide any officer or servant of the Authority 
with the means necessary for entering into any premises for purposes of 
collecting any information or making an examination or enquiry in relation to 
any water works. 
14. Failure or neglect of the sponsor to abide by or fulfill the commitment made to 
a person regarding allotment of a plot, housing unit or price of the same in any 
scheme. 
15. Without lawful excuse, filing or refusing to comply with any direction or order 
issued by the Authority under this Act. 
16. Unauthorized occupation without permission of the owner of land or plot in a 
housing scheme developed and controlled by the Authority. 
17. Attempting to commit or abetting the commission of an offence punishable 
under this Act.]