(1) The Municipality may levy such development charge as may be determined by bye-laws, from time to time
(a) on any residential building with a height of more than fourteen meters, or any nonresidential building, having regard to its location along a particular category of street, its use characteristics, and sanctioned built up area, and
(b) for development or redevelopment of any existing-area, in accordance with any development plan or while approving any sub-division plan of that area.
(2) Any such development charge shall be paid in advance by the developer before commencing any activity on the approved plan or sub-division.
(3) In case of redevelopment of the area, the charges shall be payable by all the residents and beneficiaries of the development.
(4) The Municipality shall keep a separate account of such development charge and shall not divert it for any other use.