(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 State Government, declare that such betterment fee shall be payable also in respect of any land which is not situated in the area comprised in the scheme but is adjacent to, and within half a kilometre of the boundaries of, that area, if such land will be increased in value consequent on the execution of the scheme.