Slum Clearance Act 1956

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THE SLUM AREAS (IMPROVEMENT AND CLEARANCE) ACT, 1956 

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ARRANGEMENT OF SECTIONS 

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CHAPTER I 

PRELIMINARY 

SECTIONS 

1. Short title, extent and commencement. 

2. Definitions. 

 

CHAPTER II 

SLUM AREAS 

3. Declaration of slum areas. 

 

CHAPTER III 

SLUM IMPROVEMENT 

4. Power of competent authority to require improvement of buildings unfit for human habitation. 

5. Inforcement of notice requiring execution of works of improvement. 

6. Expenses of maintenance of works of improvement etc., to be recoverable from the occupiers of 

buildings. 

6A. Restriction on building, etc., in slum areas. 

7. Power of competent authority to order demolition of buildings unfit for human habitation. 

8. Procedure to be followed where demolition order has been made. 

 

CHAPTER IV 

SLUM CLEARANCE AND RE-DEVELOPMENT 

9. Power to declare any slum area to be a clearance area. 

10. Slum clearance order. 

11. Power of competent authority to re-develop clearance area. 

 

CHAPTER V 

ACQUISITION OF LAND 

12. Power of Central Government to acquire land. 

13. Land acquired by Central Government to be made available to the competent authority. 

14. Right to receive compensation. 

15. Basis for determination of compensation. 

16. Apportionment of compensation. 

17. Payment of compensation or deposit of the same in court. 

18. Powers of competent authority in relation to determination of compensation, etc. 

 

CHAPTER VI 

PROTECTION OF TENANTS IN SLUM AREAS FROM EVICTION 

19. Proceedings for eviction of tenants not to be taken without permission of the competent authority. 

20. Appeals. 

20A. Restoration of possession of premises vacated by a tenant. 

20B. Rent of buildings in slum areas. 



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SECTIONS 

21. Chapter not to apply to eviction of tenants from certain buildings. 

 

CHAPTER VII 

MISCELLANEOUS 

22. Powers of entry. 

23. Powers of inspection. 

24.  Power to enter land adjoining land where work is in progress. 

25. Breaking into buildings. 

26. Entry to be made in the day time. 

27. Owner's consent ordinarily to be obtained. 

28. Power of eviction to be exercised only by the competent authority. 

29. Power to remove offensive or dangerous trades from slum areas. 

30. Appeals. 

31. Service of notices, etc. 

32. Penalties. 

33. Order of demolition of buildings in certain cases. 

34. Jurisdiction of courts. 

35. Previous sanction of the competent authority or officers authorised by it, for prosecution. 

36. Power to delegate. 

37. Protection of action taken in good faith. 

37A. Bar of jurisdiction. 

38. Competent authority, etc., to be public servants. 

39. Act to over-ride other laws. 

40. Power to make rules. 

THE SCHEDULE. 

  



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THE SLUM AREAS (IMPROVEMENT AND CLEARANCE) ACT, 1956 

ACT NO. 96 OF 1956 

[29th December, 1956.]  

An Act to provide for the improvement and clearance of slum areas in certain Union territories 

and for the protection of tenants in such areas from eviction. 

BE it enacted by Parliament in the Seventh Year of the Republic of India as follows:― 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.―(1) This Act may be called the Slum Areas 

(Improvement and Clearance) Act, 1956. 

(2) It extends to all Union territories except the Union territories of the Andaman and Nicobar Islands 

and the Laccadive, Minicoy and Amindivi Islands. 

(3) It shall come into force in a Union territory on such date
1
 as the Central Government may, by 

notification in the Official Gazette, appoint; and different dates may be appointed for different Union 

territories. 

2. Definitions.―In this Act, unless the context otherwise requires,― 

(a) “Administrator” means the Administrator of a Union territory; 

(b) “building” includes any structure or erection or any part of a building as so defined but does 

not include plant or machinery comprised in a building; 

(c) “competent authority” means such officer or authority as the Administrator may, by 

notification in the Official Gazette, appoint as the competent authority for the purposes of this Act; 

 (d) “erection” in relation to a building includes extension, alteration or re-erection; 

2
[(e) “land” includes benefits to arise out of land, and things attached to the earth or permanently 

fastened to anything attached to the earth; 

(f) “occupier” includes― 

(a) any person who for the time being is paying or is liable to pay to the owner the rent or any 

portion of the rent of the land or building in respect of which such rent is paid or is payable; 

(b) an owner in occupation of, or otherwise using his land or building; 

(c) a rent-free tenant of any land or building; 

(d) a licensee in occupation of any land or building; and 

(e) any person who is liable to pay to the owner damages for the use and occupation of any 

land or building;] 

(g) “owner” includes any person who is receiving or is entitled to receive the rent of any building 

or land whether on his own account or on behalf of himself and others or as agent or trustee, or who 

would so receive the rent or be entitled to receive it if the building or land were let to a tenant; 

(h) “prescribed” means prescribed by rules made under this Act; and  

                                                           
1. 8th February, 1957 in respect of the Union territory of Delhi, vide Notification No. S.R.O. 421, dated 4th February, 1957, see 

Gazette of India, Extraordinary, Part II, sec. 3(ii). 

1st April, 1958 in respect of the Union territory of Tripura, vide Notification No. S.R.O. 414, dated 31st March, 1958, see 

Gazette of India, Extraordinary, Part II, sec. 3(ii). 

Extended to Pondicherry Act 26 of 1968. 

2. Subs. by Act 43 of 1964, s. 2, for clauses (e) and (f) (w.e.f. 27-2-1965). 



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[(i) “slum clearance” means the clearance of any slum area by the demolition and removal of 

buildings therefrom; 

1
[(j) “work of improvement” includes in relation to any building in a slum area the execution of 

any one or more of the following works, namely:― 

(i) necessary repairs; 

(ii) structural alterations; 

(iii) provision of light points, water taps and bathing places; 

(iv) construction of drains, open or covered; 

(v) provision of latrines, including conversion of dry latrines into water-borne latrines; 

(vi) provision of additional or improved fixtures or fittings; 

(vii) opening up or paving of courtyards; 

(viii) removal of rubbish; and 

(ix) any other work including the demolition of any building or any part thereof which in the 

opinion of the competent authority is necessary for executing any of the works specified above.] 

CHAPTER II 

SLUM AREAS 

3. Declaration of slum areas.―(1) Where the competent authority upon report from any of its 

officers or other information in its possession is satisfied as respects any area that the buildings in that 

area― 

(a) are in any respect unfit for human habitation; or 

(b) are by reason of dilapidation, overcrowding, faulty arrangement and design of such buildings, 

narrowness or faulty arrangement of streets, lack of ventilation, light or sanitation facilities, or any 

combination of these factors, are detrimental to safety, health or morals, 

it may, by notification in the Official Gazette, declare such area to be a slum area. 

(2) In determining whether a building is unfit for human habitation for the purposes of this Act, 

regard shall be had to its condition in respect of the following matters, that is to say― 

(a) repair; 

(b) stability; 

(c) freedom from damp; 

(d) natural light and air; 

(e) water supply; 

(f) drainage and sanitary conveniences; 

(g) facilities for storage, preparation and cooking of food and for the disposal of waste water; 

and the building shall be deemed to be unfit as aforesaid if and only if it is so far defective in one or more 

of the said matters that it is not reasonably suitable for occupation in that condition. 

CHAPTER III 

SLUM IMPROVEMENT 

4. Power of competent authority to require improvement of buildings unfit for human 

habitation.―(1) Where the competent authority upon report from any of its officers or other information 

in its possession is satisfied that any building in a slum area is in any respect unfit for human habitation, it 

                                                           
1. Ins. by Act 43 of 1964, s. 2 (w.e.f. 27-2-1965). 



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may, unless in its opinion the building is not capable at a reasonable expense of being rendered so fit, 

serve upon the owner of the building a notice requiring him within such time not being less than thirty 

days as may be specified in the notice to execute the works of improvement specified therein and stating 

that in the opinion of the authority those works will render the building fit for human habitation: 

1
[Provided that where the owner of the building is different from the owner of the land on which the 

building stands and the works of improvement required to be executed relate to provision of water taps, 

bathing places construction of drains, open or covered, as the case may be, provision of water-borne 

latrines or removal of rubbish and such works are to be executed outside the building, the notice shall be 

served upon the owner of the land.] 

(2) In addition to serving a notice under this section on the owner, the competent authority may serve 

a copy of the notice on any other person having an interest in the building 
1
[or the land on which the 

building stands] whether as lessee, mortgagee or otherwise. 

(3) In determining, for the purposes of this Act, whether a building can be rendered fit for human 

habitation at a reasonable expense, regard shall be had to the estimated cost of the works necessary to 

render it so fit and the value which it is estimated that the building will have when the works are 

completed. 

5. Inforcement of notice requiring execution of works of improvement.―(1) If a notice under 

section 4 requiring the owner of the building 
2
[or of the land on which the building stands, as the case 

may be,] to execute works of improvement is not complied with, then, after the expiration of the time 

specified in the notice the competent authority may itself do the works required to be done by the notice. 

(2) All expenses incurred by the competent authority under this section, together with interest, at such 

rate as the Central Government may by order fix, from the date when a demand for the expenses is made 

until payment, may be recovered by the competent authority from the owner of the building 
2
[or of the 

land on which the building stands, as the case may be,] as arrears of land revenue: 

Provided that if the owner proves that he― 

(a) is receiving the rent merely as agent or trustee for some other person; and 

(b) has not in his hands on behalf of that other person sufficient money to satisfy the whole 

demand of the authority, his liability shall be limited to the total amount of the money which he has in 

his hands as aforesaid. 

3
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6. Expenses of maintenance of works of improvement, etc., to be recoverable from the occupiers 

of buildings.―Where works of improvement have been executed in relation to any building in a slum 

area in pursuance of the provisions of sections 4 and 5, the expenses incurred by the competent authority 

or, as the case may be, any local authority in connection with the maintenance of such works of 

improvement or the enjoyment of amenities and conveniences rendered possible by such works shall be 

recoverable from the occupier or occupiers of the building as arrears of land revenue. 

4
[6A. Restriction on building, etc., in slum areas.―(1) The competent authority may, by 

notification in the Official Gazette, direct that no person shall erect any building in a slum area except 

with the previous permission in writing of the competent authority. 

(2) Every notification issued under sub-section (1) shall cease to have effect on the expiration of two 

years from the date thereof except as respects things done or omitted to be done before such cesser. 

(3) Every person desiring to obtain the permission referred to in sub-section (1) shall make an 

application in writing to the competent authority in such form and containing such information in respect 

of the erection of the building to which the application relates as may be prescribed. 

                                                           
1. Ins. by Act 43 of 1964, s. 3 (w.e.f. 27-2-1965). 

2. Ins. by s. 4, ibid. (w.e.f. 27-2-1965). 

3. Omitted by, s. 4, ibid. (w.e.f. 27-2-1965). 

4. Ins. by s. 5, ibid. (w.e.f. 27-2-1965). 



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(4) On receipt of such application, the competent authority, after making such inquiry as it considers 

necessary, shall, by order in writing,― 

(a) either grant the permission subject to such terms and conditions, if any, as may be specified in 

the order; or 

(b) refuse to grant such permission: 

Provided that before making an order refusing such permission, the applicant shall be given a 

reasonable opportunity to show cause why the permission should not be refused. 

(5) Nothing contained in sub-section (1) shall apply to― 

(a) any works of improvement required to be executed by a notice under sub-section (1) of 

section 4 or in pursuance of an undertaking given under sub-section (2) of section 7; or 

(b) the erection of any building in any area in respect of which a slum clearance order has been 

made under section 10.] 

7. Power of competent authority to order demolition of buildings unfit for human 

habitation.―Where a competent authority upon a report from any of its officers or other information in 

its possession is satisfied that any building within a slum area is unfit for human habitation and is not 

capable at a reasonable expense of being rendered so fit, it shall serve upon the owner of the building, and 

upon any other person having an interest in the building, whether as lessee, mortgagee or otherwise, a 

notice to show cause within such time as may be specified in the notice as to why an order of demolition 

of the building should not be made. 

(2) If any of the persons upon whom a notice has been served under sub-section (1), appears in 

pursuance thereof before the competent authority and gives an undertaking to the authority that such 

person shall within a period specified by the authority execute such works of improvement in relation to 

the building as will in the opinion of the authority render the building fit for human habitation, or that it 

shall not be used for human habitation until the authority on being satisfied that it has been rendered fit 

for that purpose cancels the undertaking, the authority shall not make any order of demolition of the 

building. 

(3) If no such undertaking as is mentioned in sub-section (2) is given, or if in a case where any such 

undertaking has been given any work of improvement to which the undertaking relates is not carried out 

within the specified period or the building is at any time used in contravention of the terms of the 

undertaking, the competent authority shall forthwith make an order of demolition of the building 

requiring that the building shall be vacated within a period to be specified in the order not being less than 

thirty days from the date of the order, and that it shall be demolished within six weeks after the expiration 

of that period.  

8. Procedure to be followed where demolition order has been made.―(1) Where an order for 

demolition of a building under section 7 has been made the owner of the building or any other person 

having an interest therein shall demolish that building within the time specified in that behalf by the 

order; and if the building is not demolished within that time the competent authority shall enter and 

demolish the building and sell the materials thereof. 

(2) Any expenses incurred by the competent authority under sub-section (1), if not satisfied out of the 

proceeds of sale of materials of the building shall be recoverable from the owner of the building or any 

other person having an interest therein as arrears of land revenue. 

CHAPTER IV 

SLUM CLEARANCE AND RE-DEVELOPMENT 

9. Power to declare any slum area to be a clearance area.―(1) Where the competent authority 

upon a report from any of its officers or other information in its possession is satisfied as respects any 

slum area that the most satisfactory method of dealing with the conditions in the area is the demolition of 

all the buildings in the area, the authority shall by an order notified in the Official Gazette declare the area 



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to be a clearance area, that is to say, an area to be cleared of all buildings in accordance with the 

provisions of this Act: 

Provided that any building in the area which is not unfit for human habitation or dangerous or 

injurious to health may be excluded from the declaration if the authority considers it necessary. 

(2) The competent authority shall forthwith transmit to the Administrator a copy of the declaration 

under this section together with a statement of the number of persons who on a date specified in the 

statement were occupying buildings comprised in the clearance area. 

10. Slum clearance order.―(1) As soon as may be after the competent authority has declared any 

slum area to be a clearance area, it shall make a slum clearance order in relation to that area ordering the 

demolition of each of the buildings specified therein and requiring each such building to be vacated 

within such time as may be specified in the order and submit the order to the Administrator for 

confirmation. 

(2) The Administrator may either confirm the order in to or subject to such variations as he considers 

necessary or reject the order. 

(3) If the Administrator confirms the order, the order shall become operative from the date of such 

confirmation. 

(4) When a slum clearance order has become operative, the owners of buildings to which the order 

applies shall demolish the buildings before the expiration of six weeks from the date on which the 

buildings are required by the order to be vacated or before the expiration of such longer period as in the 

circumstances of the case the competent authority may deem reasonable. 

(5) If the buildings are not demolished before the expiration of the period mentioned in sub-section 

(4) the competent authority shall enter and demolish the buildings and sell the materials thereof. 

(6) Any expenses incurred by the competent authority in demolishing any building shall, if not 

satisfied out of the proceeds of sale of materials thereof, be recoverable by the competent authority as 

arrears of land revenue. 

1
[(7) Subject to the provisions of this Act, where a slum clearance order has become operative, the 

owner of the land to which the order applies may re-develop the land in accordance with plans approved 

by the competent authority and subject to such restrictions and conditions (including a condition with 

regard to the time within which the re-development shall be completed), if any, as that authority may 

think fit to impose: 

Provided that an owner who is aggrieved by a restriction or condition so imposed on the user of his 

land or by a subsequent refusal of the competent authority to cancel or modify any such restriction or 

condition may, within such time as may be prescribed, appeal to the Administrator and the Administrator 

shall make such order in the matter as he thinks proper and his decision shall be final.] 

(8) No person shall commence or cause to be commenced any work in contravention of a plan 

approved or a restriction or condition imposed under sub-section (7). 

2
[11. Power of competent authority to re-develop clearance area.―(1) Notwithstanding anything 

contained in sub-section (7) of section 10, the competent authority may at any time after the land has been 

cleared of the buildings in accordance with a slum clearance order but before the work of re-development 

of that land has been commenced by the owner, by order, determine to re-develop the land if that 

authority is satisfied that it is necessary in the public interest to do so. 

(2) Where land has been cleared of the buildings in accordance with a slum clearance order, the 

competent authority, if it is satisfied that the land has been, or is being, re-developed by the owner thereof 

in contravention of plans approved by the authority or any restrictions or conditions imposed under  

sub-section (7) of section 10 or has not been re-developed within the time, if any, specified under such 

conditions, may, by order, determine to re-develop the land: 

                                                           
1. Subs. by Act 43 of 1964, s. 6, for sub-section (7) (w.e.f. 27-2-1965). 

2. Subs. by s. 7, ibid., for section 11 (w.e.f. 27-2-1965). 



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Provided that before passing such order, the owner shall be given a reasonable opportunity to show 

cause why the order should not be passed.] 

CHAPTER V 

ACQUISITION OF LAND 

12. Power of Central Government to acquire land.―(1) Where on any representation from the 

competent authority it appears to the Central Government that, in order to enable the authority to execute 

any work of improvement in relation to any building in a slum area or to re-develop any clearance area, it 

is necessary that land within, adjoining or surrounded by any such area should be acquired, the Central 

Government may acquire the land by publishing in the Official Gazette a notice to the effect that the 

Central Government has decided to acquire the land in pursuance of this section: 

Provided that, before publishing such notice, the Central Government may call upon the owner of, or 

any other person who, in the opinion of the Central Government, may be interested in, such land to show 

cause why it should not be acquired; and after considering the cause, if any, shown by the owner or any 

other person interested in the land, the Central Government may pass such order as it deems fit. 

(2) When a notice as aforesaid is published in the Official Gazette, the land shall, on and from the 

date on which the notice is so published, vest absolutely in the Central Government free from all 

encumbrances. 

13. Land acquired by Central Government to be made available to the competent 

authority.―Where any land in a slum area or clearance area has been acquired under this Act the Central 

Government shall make the land available to the competent authority for the purpose of executing any 

work of improvement or carrying out any order of demolition or for the purpose of re-development: 

1
[Provided that where on any representation from the competent authority, the Central Government is 

satisfied that any such land or any portion thereof is unsuitable for the purposes mentioned in this section, 

the Central Government may use the land or allow it to be used for such other public purpose or purposes 

as it may deem fit.] 

14. Right to receive compensation.―Every person having any interest in any land acquired under 

this Act shall be entitled to receive from the Central Government compensation as provided hereafter in 

this Act. 

15. Basis for determination of compensation.―(1) The amount payable as compensation in respect 

of any land acquired under this Act shall be an amount equal to sixty times the net average monthly 

income actually derived from such land during the period of five consecutive years immediately 

preceding the date of publication of the notice referred to in section 12. 

(2) The net average monthly income referred to in sub-section (1) shall be calculated in the manner 

and in accordance with the principles set out in the Schedule. 

(3) The competent authority shall, after holding an inquiry in the prescribed manner, determine in 

accordance with the provisions of sub-section (2) the net average monthly income actually derived from 

the land and publish a notice in the Official Gazette specifying the amount so determined and calling 

upon the owner of the land and every person interested therein to intimate to it before a date specified in 

the notice whether such owner or person agrees to the amount so determined and if he does not so agree, 

what amount he claims to be the net average monthly income actually derived from the land. 

(4) Any person who does not agree to the amount of the net average monthly income determined by 

the competent authority under sub-section (3) and claims a sum in excess of that amount may prefer an 

appeal to the Administrator within thirty days from the date specified in the notice referred to in that  

sub-section. 

(5) On appeal the Administrator shall, after hearing the appellant, determine the, net average monthly 

income and his determination shall be final and shall not be questioned in any court of law. 

                                                           
1. Added by Act 43 of 1964, s. 8 (w.e.f. 27-2-1965). 



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(6) Where there is any building on the land in respect of which the net average monthly income has 

been determined, no separate compensation shall be paid in respect of such building: 

Provided that where the owner of the land and the owner of the building on such land are different, 

the competent authority shall apportion the amount of compensation between the owner of the land and 

the owner of the building 
1
[in the same proportion as the market price of the land bears to the market price 

of the building on the date of the acquisition]. 

2
*    *    *    *    *  

16. Apportionment of compensation.―(1) Where several persons claim to be interested in the 

amount of compensation determined under section 15, the competent authority shall determine the 

persons who in its opinion are entitled to receive compensation and the amount payable to each of them. 

(2) If any dispute arises as to the apportionment of compensation or any part thereof, or as to the 

persons to whom the same or any part thereof is payable, the competent authority may refer the dispute to 

the decision of the Administrator; and the Administrator in deciding any such dispute shall follow, as far 

as may be, the provisions of Part III of the Land Acquisition Act, 1894 (1 of 1894). 

17. Payment of compensation or deposit of the same in court.―(1) After the amount of 

compensation has been determined, the competent authority shall on behalf of the Central Government 

tender payment of, and pay, the compensation to the persons entitled thereto. 

(2) If the persons entitled to compensation do not consent to receive it, or if there be any dispute as to 

the title to receive compensation or as to the apportionment of it, the competent authority shall deposit the 

amount of the compensation in the court of the District Judge and that court shall deal with the amount so 

deposited in the manner laid down in sections 32 and 33 of the Land Acquisition Act, 1894 (1 of 1894). 

18. Powers of competent authority in relation to determination of compensation, etc.―(1) The 

competent authority may, for the purposes of determining the amount of compensation or apportionment 

thereof, require, by order, any person to furnish such information in his possession as may be specified in 

the order. 

(2) The competent authority shall, while holding inquiry under section 15, have all the powers of a 

civil court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the 

following matters, namely:― 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b) requiring the discovery and production of any document; 

(c) reception of evidence on affidavits; 

(d) requisitioning any public record from any court or office; 

(e) issuing commissions for examination of witnesses. 

CHAPTER VI 

PROTECTION OF TENANTS IN SLUM AREAS FROM EVICTION 

3
[19. Proceedings for eviction of tenants not to be taken without permission of the competent 

authority.―(1) Notwithstanding anything contained in any other law for the time being in force, no 

person shall, except with the previous permission in writing of the competent authority,― 

(a) institute, after the commencement of the Slum Areas (Improvement and Clearance) 

Amendment Act, 1964, any suit or proceeding for obtaining any decree or order for the eviction of a 

tenant from any building or land in a slum area; or 

                                                           
1. Subs. by Act 43 of 1964, s. 9, for “in such proportion as he considers reasonable” (w.e.f. 27-2-1965). 

2. Second proviso omitted by s. 9, ibid. (w.e.f. 27-2-1965). 

3. Subs. by s. 10, ibid., for section 19 (w.e.f. 27-2-1965). 



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(b) where any decree or order is obtained in any suit or proceeding instituted before such 

commencement for the eviction of a tenant from any building or land in such area, execute such 

decree or order. 

(2) Every person desiring to obtain the permission referred to in sub-section (1) shall make an 

application in writing to the competent authority in such form and containing such particulars as may be 

prescribed. 

(3) On receipt of such application, the competent authority, after giving an opportunity to the parties 

of being heard and after making such summary inquiry into the circumstances of the case as it thinks fit, 

shall by order in writing, either grant or refuse to grant such permission. 

(4) In granting or refusing to grant the permission under sub-section (3), the competent authority shall 

take into account the following factors, namely:― 

(a) whether alternative accommodation within the means of the tenant would be available to him 

if he were evicted; 

(b) whether the eviction is in the interest of improvement and clearance of the slum areas; 

(c) such other factors, if any, as may be prescribed. 

(5) Where the competent authority refuses to grant the permission, it shall record a brief statement of 

the reasons for such refusal and furnish a copy thereof to the applicant.]  

1
[20. Appeals.―Any person aggrieved by an order of the competent authority refusing to grant the 

permission referred to in sub-section (1) of section 6A or referred to in sub-section (1) of section 19 may, 

within such time as may be prescribed, prefer an appeal to the Administrator and the Administrator may, 

after hearing the appellant, decide such appeal and his decision shall be final.] 

2
[20A. Restoration of possession of premises vacated by a tenant.―(1) Where a tenant in 

occupation of any building in a slum area vacates any building or is evicted therefrom on the ground that 

it was required for the purpose of executing any work of improvement or for the purpose of re-election of 

the building, the tenant may, within such time as may be prescribed, file a declaration with the competent 

authority that he desires to be replaced in occupation of the building after the completion of the work of 

improvement or re-erection of the building, as the case may be. 

(2) On receipt of such declaration, the competent authority, shall by order require the owner of the 

building to furnish to it, within such time as may be prescribed, the plans of the work of improvement or 

re-erection of the building and estimates of the cost thereof and such other particulars as may be 

necessary and shall, on the basis of such plans and estimates and particulars, if any, furnished and having 

regard to the provisions of sub-section (3) of section 20B and after holding such inquiry as it may think 

fit, provisionally determine the rent that would be payable by the tenant if he were to be replaced in 

occupation of the building in pursuance of the declaration made by him under sub-section (1).  

(3) The rent provisionally determined under sub-section (2) shall be communicated in the prescribed 

manner to the tenant and the owner. 

(4) If the tenant after the receipt of such communication intimates in writing to the competent 

authority within such time as may be prescribed that when he is replaced in occupation of the building in 

pursuance of the declaration made by him under sub-section (1), he would pay to the owner until the rent 

is finally determined under section 20B the rent provisionally determined under sub-section (2), the 

competent authority shall direct the owner to place the tenant in occupation of the building after the 

completion of the work of improvement or re-erection of the building, as the case may be, and the owner 

shall be bound to comply with such direction. 

20B. Rent of buildings in slum areas.―(1) Where any building in a slum area is let to a tenant after 

the execution of any work of improvement or after it has been re-erected, the rent of the building shall be 

determined in accordance with the provisions of this section. 

                                                           
1. Subs. by Act 43 of 1964, s. 11, for section 20 (w.e.f. 27-2-1965). 

2. Ins. by s. 12, ibid. (w.e.f. 27-2-1965). 



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(2) Where any such building is let to a tenant other than a tenant who is placed in possession of the 

building in pursuance of a direction issued under sub-section (4) of section 20A, the tenant shall be liable 

to pay to the owner― 

(a) if there is a general law relating to the control of rents in force in the area in which the 

building is situated and applicable to that building, the rent determined in accordance with the 

provisions of that law; 

(b) if there is no such law in force in such area, such rent as may be agreed upon between the 

owner and the tenant. 

(3) Where any such building is let to a tenant in pursuance of a direction issued under sub-section (4) 

of section 20A, the tenant shall, notwithstanding any law relating to the control of rents in force in the 

area be liable to pay to the owner― 

(a) if any work of improvement has been executed in relation to the building, an annual rent of a 

sum equivalent to the aggregate of the following amounts, namely:― 

(i) the annual rent the tenant was paying immediately before he vacated the building for the 

purpose of execution of the work of improvement; 

(ii) six per cent. of the cost of the work of improvement; and 

(iii) six per cent. of a sum equivalent to the compensation payable in respect of any land 

which may have been acquired for the purpose of effecting such improvement as if such land 

were acquired under section 12 on the date of the commencement of the work of improvement; 

(b) if the building has been re-erected, an annual rent of a sum equivalent to four per cent. of the 

aggregate cost of reconstruction of the building and the cost of the land on which the building is  

re-erected. 

Explanation.―For the purposes of this clause, the cost of the land shall be deemed to be a sum 

equivalent to the compensation payable in respect of the land if it were acquired under section 12 on 

the date of commencement of the reconstruction of the building. 

(4) The rent payable by a tenant in respect of any building under sub-section (3) shall, on an 

application made by the tenant or the owner, be determined by the authority referred to in sub-section (5): 

Provided that an application for determination of such rent by the owner or the tenant shall not, 

except for sufficient cause, be entertained by such authority after the expiry of ninety days from the 

completion of the work of improvement or re-erection of the building, as the case may be. 

(5) The authority to which the application referred to in sub-section (4) shall be made, shall be― 

(a) where there is a general law relating to the control of rents in force in the area in which the 

building is situate, the authority to whom applications may be made for fixing of rents of buildings 

situate in that area; and for the purpose of determining the rent under this section that authority may 

exercise all or any of the powers it has under the said general law; and the provisions of such law 

including provisions relating to appeals shall apply accordingly; 

(b) if there is no such law in force in that area, such authority as may be specified by rules made 

in this behalf by the Central Government and such rules may provide the procedure that will be 

followed by that authority in determining the rent and also for appeals against the decision of such 

authority. 

(6) Where the rent is finally determined under this section, then the amount of rent paid by the tenant 

shall be adjusted against the rent so finally determined and if the amount so paid falls short of, or is in 

excess of, the rent finally determined, the tenant shall pay the deficiency, or be entitled to a refund, as the 

case may be.] 



12 

 

21. Chapter not to apply to eviction of tenants from certain buildings.―Nothing in this Chapter 

shall apply to or in relation to the 
1
[eviction under any law] of a tenant from any building in a slum area 

belonging to the Government, 
2
[the Delhi Development Authority] or any local authority. 

CHAPTER VII 

MISCELLANEOUS 

22. Powers of entry.―It shall be lawful for any person authorised by the competent authority in this 

behalf to enter into or upon any building or land in a slum area with or without assistants or workmen in 

order to make any inquiry, inspection, measurement, valuation or survey, or to execute any work which is 

authorised by or under this Act or which it is necessary to execute for any of the purposes or in pursuance 

of any of the provisions of this Act or of any rule or order made thereunder. 

23. Powers of inspection.―(1) The competent authority may, by general or special order, authorise 

any person― 

(a) to inspect any drain, latrine, urinal, cesspool, pipe, sewer or channel in or on any building or 

land in a slum area, and in his discretion to cause the ground to be opened for the purpose of 

preventing or removing any nuisance arising from the drain, latrine, urinal, cesspool, pipe, sewer or 

channel, as the case may be; 

(b) to examine works under construction in the slum area, to take levels or to remove, test, 

examine, replace or read any meter. 

(2) If, on such inspection, the opening of the ground is found to be necessary for the prevention or 

removal of a nuisance, the expenses thereby incurred shall be paid by the owner or occupier of the land or 

building, but if it is found that no nuisance exists or but for such opening would have arisen, the ground 

or portion of any building, drain, or other work opened, injured or removed for the purpose of such 

inspection shall be filled in, reinstated, or made good, as the case may be, by the competent authority. 

24. Power to enter land adjoining land where work is in progress.―(1) Any person authorised by 

the competent authority in this behalf may, with or without assistants or workmen, enter on any land 

within fifty yards of any work authorised by or under this Act for the purpose of depositing thereon any 

soil, gravel, stone or other materials, or for obtaining access to such work or for any other purposes 

connected with the carrying on of the same. 

(2) The person so authorised shall, before entering on any land under sub-section (1), state the 

purpose thereof, and shall, if so required by the occupier, or owner, fence off so much of the land as may 

be required for such purpose. 

(3) The person so authorised shall, in exercising any power conferred by this section, do as little 

damage, as may be, and compensation shall be payable by the competent authority to the owner or 

occupier of such land or to both for any such damage whether permanent or temporary. 

25. Breaking into buildings.―It shall be lawful for any person authorised by the competent 

authority in this behalf to make any entry into any place, to open or cause to be opened any door, gate or 

other barrier― 

(a) if he considers the opening thereof necessary for the purpose of such entry; and 

(b) if the owner or occupier is absent, or being present refuses to open such door, gate or barrier. 

26. Entry to be made in the day time.―No entry authorised by or under this Act shall be made 

except between the hours of sunrise and sunset. 

27. Owner's consent ordinarily to be obtained.―
3
[Save as provided in this Act, no building or 

land] shall be entered without the consent of the occupier, or if there is no occupier, of the owner thereof, 

                                                           
1. Subs. by Act 43 of 1964, s. 13, for “execution of any decree or order under any law for the eviction” (w.e.f. 27-2-1965). 

2. Subs. by s. 13, ibid., for “the Delhi Improvement Trust” (w.e.f. 27-2-1965). 

3. Subs. by Act 43 of 1964, s. 14, for “No building or land” (w.e.f. 27-2-1965). 



13 

 

and no such entry shall be made without giving the said occupier or owner, as the case may be, not less 

than twenty four hours’ written notice of the intention to make such entry: 

Provided that no such notice shall be necessary if the place to be inspected is a shed for cattle or a 

latrine, urinal or a work under construction. 

28. Power of eviction to be exercised only by the competent authority.―Where the competent 

authority is satisfied either upon a representation from the owner of a building or upon other information 

in its possession that the occupants of the building have not vacated it in pursuance of any notice, order or 

direction issued or given by the authority, the authority shall, by order, direct the eviction of the occupants 

from the building in such manner and within such time as may be specified in the order 
1
[and for the 

purpose of such eviction may use or cause to be used such force as may be necessary]: 

Provided that before making any order under this section the competent authority shall give a 

reasonable opportunity to the occupants of the building to show cause why they should not be evicted 

therefrom. 

29. Power to remove offensive or dangerous trades from slum areas.―The competent authority 

may, by order in writing, direct any person carrying on any dangerous or offensive trade in a slum area to 

remove the trade from that area within such time as may be specified in the order: 

Provided that no order under this section shall be made unless the person carrying on the trade has 

been afforded a reasonable opportunity of showing cause as to why the order should not be made. 

30. Appeals.―(1) Except as otherwise expressly provided in this Act, any person aggrieved by any 

notice, order or direction issued or given by the competent authority may appeal to the Administrator 

within a period of thirty days from the date of issue of such notice, order or direction. 

(2) Every appeal under this Act shall be made by petition in writing accompanied by a copy of the 

notice, order or direction appealed against. 

(3) On the admission of an appeal, all proceedings to enforce the notice, order or direction and all 

prosecutions for any contravention thereof shall be held in abeyance pending the decision of the appeal, 

and if the notice, order or direction is set aside on appeal, disobedience thereto shall not be deemed to be 

an offence. 

(4) No appeal shall be decided under this section unless the appellant has been heard or has had a 

reasonable opportunity of being heard in person or through legal practitioner. 

(5) The decision of the Administrator on appeal shall be final and shall not be questioned in any court. 

31. Service of notices, etc.―(1) Every notice, order or direction issued under this Act shall, save as 

otherwise expressly provided in this Act, be served― 

(a) by giving or tendering the notice, order or direction, or by sending it by post to the person for 

whom it is intended; or  

(b) if such person cannot be found, by affixing the notice, order or direction on some conspicuous 

part of his last known place of abode or business, or by giving or tendering the notice, order or 

direction to some adult male member or servant of his family or by causing it to be affixed on some 

conspicuous part of the building or land, if any, to which it relates. 

(2) Where the person on whom a notice, order or direction is to be served is a minor, service upon his 

guardian or upon any adult male member or servant of his family shall be deemed to be the service upon 

the minor. 

(3) Every notice, order or direction which by or under this Act is to be served as a public notice, order 

or direction or as a notice, order or direction which is not required to be served to any individual therein 

specified shall, save as otherwise expressly provided, be deemed to be sufficiently served if a copy 

thereof is affixed in such conspicuous part of the office of the competent authority or in such other public 

                                                           
1. Ins. by Act 43 of 1964, s. 15 (w.e.f. 27-2-1965). 



14 

 

place during such period, or is published in such local newspaper or in such other manner, as the 

competent authority may direct. 

32. Penalties.―(1) Whoever 
1
[fails to comply with] any notice, order or direction issued or given 

under this Act shall be punishable with imprisonment for a term which may extend to three months, or 

with fine which may extend to one thousand rupees, or with both. 

(2) Whoever commences or causes to be commenced any work in contravention of any restriction or 

condition imposed under sub-section (7) of section 10 or any plan for the re-development of a clearance 

area shall be punishable with imprisonment which may extend to three months, or with fine which may 

extend to one thousand rupees, or with both. 

(3) Whoever obstructs the entry of any person authorised under this Act to enter into or upon any 

building or land or molests such person after such entry shall be punishable with fine which may extend 

to one thousand rupees. 

(4) If the person committing an offence under this Act is a company, every person who at the time the 

offence was committed was in charge of, and was responsible to, the company for the conduct of the 

business of the company as well as the company, shall be deemed to be guilty of the offence and shall be 

liable to be proceeded against and punished accordingly: 

Provided that nothing contained in this sub-section shall render any such person liable to any 

punishment provided in this Act if he proves that the offence was committed without his knowledge or 

that he exercised all due diligence to prevent the commission of such offence. 

(5) Notwithstanding anything contained in sub-section (3) where an offence under this Act has been 

committed by a company and it is proved that the offence has been committed with the consent or  

connivance of, or is attributable to any neglect on the part of, any director or manager, secretary or other 

officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 

of that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.―For the purposes of this section― 

(a) “company” means a body corporate and includes a firm or other association of individuals; 

and 

(b) “director” in relation to a firm means a partner in the firm. 

33. Order of demolition of buildings in certain cases.―
2
[(1)] Where the erection of any building 

has been commenced, or is being carried out, or has been completed, in contravention of any restriction or 

condition imposed under sub-section (7) of section 10 or a plan for the re-development of any clearance 

area or in contravention of any notice, order or direction issued or given under this Act the competent 

authority may, in addition to any other remedy that may be resorted to under this Act or under any other 

law, make an order directing that such erection shall be demolished by the owner thereof within such time 

not exceeding two months as may be specified in the order, and on the failure of the owner to comply 

with the order, the competent authority may itself cause the erection to be demolished and the expenses of 

such demolition shall be recoverable from the owner as arrears of land revenue: 

Provided that no such order shall be made unless the owner has been given a reasonable opportunity 

of being heard. 

3
[(2) For the purpose of causing any building to be demolished under sub-section (1), the competent 

authority may use or cause to be used such force as may be necessary.] 

34. Jurisdiction of courts.―No court inferior to that of a magistrate of the first class shall try an 

offence punishable under this Act. 

                                                           
1. Subs. by Act 43 of 1964, s. 16 for “does any act in contravention of” (w.e.f. 27-2-1965). 

2. Section 33 renumbered as sub-section (1) thereof by s. 17, ibid. (w.e.f. 27-2-1965). 
3. Ins. by s. 17, ibid. (w.e.f. 27-2-1965). 



15 

 

35. Previous sanction of the competent authority or officers authorised by it for prosecution.― 

No prosecution for any offence punishable under this Act shall be instituted except with the previous 

sanction of the competent authority or an officer authorised by the competent authority in this behalf. 

36. Power to delegate.―
1
[(1)] The competent authority may, by notification in the Official Gazette, 

direct that any power exercisable by it under this Act may also be exercised, in such cases and subject to 

such conditions, if any, as may be specified in the notification, by such officer or the local authority as 

may be mentioned therein. 

2
[(2) The Central Government may, by notification in the Official Gazette, direct that any power 

exercisable by the Administrator under sub-section (7) of section 10, section 15, section 20 and section 30 

may, subject to such conditions, if any, as may be specified in the notification, be exercised also by the 

Chief Secretary or by such other officer as may be mentioned therein.] 

37. Protection of action taken in good faith.―No suit, prosecution or other legal proceeding shall 

lie against the competent authority or against any person for anything which is in good faith done or 

intended to be done under this Act or the rules made thereunder. 

3
[37A. Bar of jurisdiction.―Save as otherwise expressly provided in this Act, no civil court shall 

have jurisdiction in respect of any matter which the competent authority or any other person is 

empowered by or under this Act, to determine and no injunction shall be granted by any court or other 

authority in respect of any action taken or to be taken in pursuance of any power conferred by or under 

this Act.] 

38. Competent authority, etc., to be public servants.―The competent authority and any person 

authorised by 
4
[it] under this Act shall be deemed to be public servants within the meaning of section 21 

of the Indian Penal Code (45 of 1860). 

39. Act to override other laws.―The provisions of this Act and the rules made thereunder shall have 

effect notwithstanding anything inconsistent therewith contained in any other law. 

40. Power to make rules.―(1) The Central Government may, by notification in the Official Gazette, 

make rules to carry out the purposes of this Act. 

(2) In particular and without prejudice to the generality of the foregoing power such rules may 

provide for all or any of the following matters, namely:― 

(a) the manner, of authentication of notices, orders and other instruments of the competent 

authority; 

(b) the preparation of plans for the re-development of any slum area, and matters to be included in 

such plans; 

5
[(bb) the form in which an application under sub-section (3) of section 6A shall be made and the 

information to be furnished and the fees to be levied in respect of such application; 

(bbb) the manner in which inquiries may be held under sections 15 and 19;] 

(c) the form and manner in which applications for permission under sub-section (2) of section 19 

shall be made and the fees to be levied in respect of such applications; 

(d) the procedure to be followed 
5
[and the factors to be taken into consideration] by the competent 

authority before granting or refusing to grant permission under section 19; 

                                                           
1. Section 36 renumbered as sub-section (1) thereof by Act 43 of 1964, s. 18 (w.e.f. 27-2-1965). 

2. Ins. by s. 18, ibid. (w.e.f. 27-2-1965). 

3. Ins. by s. 19, ibid. (w.e.f. 27-2-1965). 
4. Subs. by Act 58 of 1960, s. 3 and the Second Schedule, for “him” (w.e.f. 26-12-1960). 

5. Ins. by Act 43 of 1964, s. 20 (w.e.f. 27-2-1965). 



16 

 

(e) the time within which an appeal may be preferred under 
1
[sub-section (7) of section 10 or 

section 20]; 

2
[(ee) the time within which a declaration may be filed under sub-section (1) or an intimation may 

be sent under sub-section (4) of section 20A and the fees, if any, to be levied in respect of such 

declaration; 

(eee) the time within which plans, estimates and other particulars referred to in sub-section (2) of 

section 20A may be furnished; 

(eeee) the procedure to be followed by the competent authority for fixing the provisional rent 

under sub-section (2) of section 20A; 

(eeeee) the manner in which the rent provisionally determined under section 20A shall be 

communicated to the tenants and owners; 

(eeeeee) the matters in respect of which provision may be made under sub-section (5) of section 

20B;] 

(f) the officers and local authorities to whom powers may be delegated under section 36; and 

(g) any other matter which has to be, or may be, prescribed. 

3
[(3) Every rule made under this section shall be laid as soon as may be after it is made before each 

House of Parliament while it is in session for a total period of thirty days which may be comprised in one 

session or 
4
[in two or more successive sessions, and if, before the expiry of the session immediately 

following the session, or the successive sessions aforesaid] both Houses agree in making any modification 

in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 

in such modified form or be of no effect, as the case may be; so however that any such modification or 

annulment shall be without prejudice to the validity of anything previously done under that rule.]  

THE SCHEDULE 

(See SECTION 15) 

Principles for determination of the net average monthly income 

1. The competent authority shall first determine the gross rent actually derived by the owner of the 

land acquired including any building on such land during the period of five consecutive years referred to 

in sub-section (1) of section 15. 

2. For such determination the competent authority may hold any local inquiry and obtain, if 

necessary, certified copies of extracts from the property tax assessment books of the municipal or other 

local authority concerned showing the rental value of such land. 

3. The net average monthly income referred to in sub-section (1) of section 15 shall be sixty per cent. 

of the average monthly gross rent which shall be one-sixtieth of the gross rent during the five consecutive 

years as determined by the competent authority under paragraph 1. 

4. Forty per cent. of the gross monthly rental referred to above shall not be taken into consideration in 

determining the net average monthly income but shall be deducted in lieu of the expenditure which the 

owner of the land would normally incur for payment of any property tax to the municipal or other local 

authority, for collection charges, income-tax or bad debts as well as for works of repair and maintenance 

of the buildings, if any, on the land. 

5.Where the land or any portion thereof has been unoccupied or the owner has not been in receipt of 

any rent for the occupation of the land during the whole or any part of the said period of five years, the 

gross rent shall be taken to be the income which the owner would in fact have derived if the land had been 

                                                           
1. Subs. by Act 43 of 1964, s. 20, for “section 20” (w.e.f. 27-2-1965). 

2. Ins. by s. 20, ibid. (w.e.f. 27-2-1965). 

3. Subs. by s. 20, ibid., for sub-section (3) (w.e.f. 27-2-1965). 

4. Subs. by Act 4 of 1986, s. 52, for “in two successive sessions, and if, before the expiry of the session in which it is so laid or 

the session immediately following,” (w.e.f. 15-2-1986). 



17 

 

leased out for rent during the said period, and for this purpose the rent actually derived from the land 

during a period prior or subsequent to the period during which it remained vacant or from similar land in 

the vicinity shall be taken into account.