(1) When by the execution of a housing or improvement scheme any land in the area comprised in the scheme which is not required for the execution thereof will, in the opinion of the Board, be increased in value, the Board, in framing the scheme, may declare that betterment fee shall be payable by the owner of the land or any person having an interest therein in respect of the increase in value of the land resulting from the execution of the scheme.
(2) Such increase in value shall be the amount by which the value of the land on the completion of the execution of the scheme estimated as if the land were clear of buildings, exceeds the value of the land prior to the execution of the scheme estimated in the like manner; and the betterment fee shall be one-third of such increase in value.
(3) The Board may, with the previous approval of the Government, declare that such betterment fee shall also be payable in respect of any land not comprised in the scheme but is adjacent to the area comprised in the scheme if such land will be increased in value consequent on the execution of a housing or improvement scheme in the area comprised in the scheme:
Provided that the Board shall, before declaring that any betterment fee shall be payable under this sub-section, serve a notice in such form as may be prescribed, on every person whose name appears in the assessment list of the local authority or planning authority concerned as being primarily liable to pay property tax on any building or land in regard to which the Board proposes to declare that such betterment fee shall be payable and thereupon the provisions of sub-section (2), (3) and (4) of section 42 shall apply to every notice served under this proviso.
Assessment of betterment fee by the Board and notice to persons liable to such fee