(1) The person on whom development charge is assessed shall pay the amount within such date, not more than sixty days from the date fixed by the Commissioner, to a Treasury or the Reserve Bank of India and upon such payment the Commissioner shall grant a certificate to the effect that the development charge has been paid.
(2) In the event of non-payment of the development charge within the due date, the Commissioner may, after giving an opportunity to the assessee of being heard, impose a penalty not exceeding one and a half times the development charge, and such penalty together with the development charge shall then be deposited in a Treasury or in the Reserve Bank of India within such date as may be fixed by the Commissioner.