(1) Upon enforcement of this Act in any area or areas under sub-section (3) of section 1, the Government shall, for the purposes of proper development of such area or areas, by notiflcation, declare such area or areas to be a development area for the purposes of this Act and shall assign a name to such area.
(2) The Government may, by notification and in accordance with such rules as may be made in that behalf ..
(a) exclude from a development area any area comprised therein; or
(b) include in a development area any other area.
(3) As soon as may be, after the declaration of a development area under subsection (1), the Government shall, by notification in the Official Gazette, constitute for the said development area a Development Authority, with effect from such date as may be specified therein.
(4) Every Authority so constituted shall be a body corporate by the name of the development area for which it is consltuted having a perpetual succession and a common seal with power to acquire, hold, manage and dispose of property, both movable and immovable, and shall by the said name sue and be sued.
(5) The Authority shall consist of the following members, namely:-
(a) The Chairman. who shall be appointed by the Government;
(b) The Vice-Chairman, who shall be an officer of the Government to be appointed by the Government and shall be the whole-time Chief Executive of the Authority; .
(c) an Engineer Member, to be appointed by the Government;
(d) a Finance and Accounts Member to be appointed by the Government;
(e) a Town Planning Member to be appointed by the Government;
(f) an Urban Designer or Architect Member to be appointed by the Government;
(g) Secretary,' Urban Development and Housing Department, Government of Sikkim or his representative, member ex-officio; and
(h) Chairman of urban local bodies comprised within the development area, members ex-officio.
(6) The Vice-Chairman shall be a whole-time member and any of tile members appointed under clause (c), (d), (e) and (f) of sub-section (5) may either be whole-time or part-time members.
(7) The Chairman, the Vice-Chairman and the whole time members shall be entitled to receive from tile funds of the Authority such salaries and allowances, if any, and governed by such conditions of service as may be prescribed by rules made in this behalf.
(8) The Chairman, Vice-Chairman and members appointed under clauses (c) to (f) of sub - section (5) shall hold office during the pleasure of the Government.
(9) Any member specified in clauses (c), (d), (9) and (f) of sub-section (5), if part time, and the members specified in clause (h) of that sub-section may be paid from the funds of the Authority such allowances, if any, as may be fixed by the Government in this behalf.
(10).A. member, other than an ex-officio member, may resign his office by writing under his hand addressed to the Government, but shall continue in office until his reslqnation is accepted by the Government.
(1 i) No act or proceedings of the Authority shall be invalid by reason of any vacancy in, or defect in the constitution of the Authority.
13 Power to 22.
withdraw a development area from operation of this Act.
Appointment of local authority as development authority. ' Functions and powers of development authority.
(12) The Authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of its business at its meetings (including quorum at meetings) as may be prescribed.
(1) The Government may, if it is of opinion that it is necessary so todo in the public interest, by notification, withdraw from the operation of the relevant provisions of this Act, the whole or a part of any development area declared thereunder.
(2) When a notification is issued under sub-section (1) in respect of any development area or part thereof-
(a) the relevant provisions of this Act and all rules, regulations, bye-laws, notifications, orders, directions and powers made, issued orconferred thereunder shall, cease to apply to tile said area or part and the Authority, if any, constituted, under this Act shall cease to have jurisdiction in respect of the said area or part, as the case may be, but where any Authority has been constituted exclusively for such area or part. such Authority shall, on the date of the notification, stand dissolved; .
(b) the Government shall, in consultation with the Board, and the local authority or authorities concerned, frame a Scheme determining the portion of the balance of the fund of the Authority concerned which shall vest in the Government and in the local authority or authorities concerned, and the manner in which the properties and liabilities of the Authority shall be apportioned between the Government and such local authority or authorities, and on the Scheme being notified in the Official Gazette, the fund, property and liabilities of the Authority shall vest and be apportioned accordingly.