(1) The State Government shall, with effect from such date as may be notified in the Official Gazette, levy a charge (hereinafter referred to as the development charge), on the carrying out of any development in any of the urban agglomerations.
(2) The development charge shall be levied at such rates as may be specified by the State Government by notification in the Official Gazette, so, however, that such rates shall not exceed—
(i) in urban agglomeration of category A—rupees one lakh per hectare of land;
(ii) in urban agglomeration of category B—rupees seventy-five thousand per hectare of land;
(iii) in urban agglomeration of category C—rupees sixty thousand per hectare of land;
(iv) in urban agglomeration of category D—rupees forty thousand per hectare of land:
Provided that the State Government may, in the public interest, by notification, published in the Official Gazette, fix lower rates of development charge for different types of development.
(3) The development charge shall be collected from any person who owns the land or building.