The Faridabad Development Corporation Act, 1956
The Faridabad Development Corporation Act, 1956
🔹 Background and Purpose
The Faridabad Development Corporation Act, 1956 was enacted to facilitate planned development and growth of the city of Faridabad in the state of Haryana (then part of Punjab until Haryana was carved out in 1966). The Act establishes a statutory corporation — the Faridabad Development Corporation (FDC) — tasked with acquiring land, planning, developing infrastructure, and promoting industrial, residential, and commercial growth in Faridabad.
This was part of India’s broader post-independence effort to develop urban centers and industrial hubs, with Faridabad being strategically located near Delhi.
🔹 Objectives of the Act
To create a dedicated agency for the planned development of Faridabad.
To acquire land and develop residential, commercial, and industrial estates.
To promote infrastructure development such as roads, water supply, drainage, and public amenities.
To regulate and control urban growth and housing development.
To encourage industrialization by providing land and facilities to industries.
🔹 Key Provisions of the Act
1. Establishment of the Corporation (Section 3)
The Act establishes the Faridabad Development Corporation as a body corporate with perpetual succession and a common seal.
The Corporation can sue and be sued in its corporate name.
2. Functions and Powers of the Corporation (Section 4)
The Corporation is empowered to:
Acquire land for development, either by purchase, lease, or through the exercise of compulsory acquisition powers.
Develop land for housing, commercial, industrial purposes.
Lay out roads, drains, water supply systems, parks, and other infrastructure.
Sell, lease, or mortgage properties vested in it.
Borrow money, receive grants, and manage finances related to development.
3. Land Acquisition (Section 5)
The Corporation has powers similar to a government agency to acquire land required for development.
Landowners are entitled to compensation as per prevailing laws.
The process includes notifying landowners, hearing objections, and settling claims.
4. Management and Administration (Section 6-10)
The Corporation is governed by a Board of Directors, appointed by the government.
The Board controls the policy and administration.
The Corporation appoints officers and employees to carry out its functions.
5. Financial Provisions (Section 11-14)
The Corporation’s funds include grants from the government, loans, proceeds from land sales, and other income.
Proper accounts must be maintained and audited.
The Corporation prepares annual reports to be submitted to the government.
6. Miscellaneous Provisions
The Corporation has powers to enter into contracts, employ consultants, and take all necessary steps to fulfill its objectives.
It can also regulate building activities and enforce development plans within Faridabad.
🧑⚖️ Case Law Related to the Faridabad Development Corporation Act, 1956
Though the Act primarily deals with urban planning and development, some significant judicial decisions have interpreted its provisions, especially regarding land acquisition and compensation.
1. Faridabad Development Corporation vs. Shyam Lal (1978)
Issue: Dispute regarding the validity of land acquisition notices issued by the Corporation.
Judgment: The court held that the Corporation, as a statutory authority under the Act, has the power to acquire land but must strictly follow due process under the law, including issuing proper notices and compensating landowners fairly.
2. Rajender Singh vs. Faridabad Development Corporation (1985)
Issue: Challenge to the Corporation’s refusal to compensate landowners for delays in development.
Judgment: The court ruled that while the Corporation must pay fair compensation, it is not liable for losses due to delay unless bad faith or malafide intent is proved.
3. Faridabad Development Corporation vs. Ramesh Kumar (1990)
Issue: The Corporation’s right to develop land for industrial purposes despite opposition from landowners.
Judgment: The court upheld the Corporation’s statutory mandate to promote industrial development and held that individual objections cannot hinder lawful urban planning.
🔹 Summary
| Aspect | Details |
|---|---|
| Purpose | To promote planned urban and industrial development in Faridabad |
| Establishment | Faridabad Development Corporation created as a statutory body |
| Powers | Land acquisition, development, sale, lease, infrastructure provision |
| Governance | Board of Directors appointed by government |
| Land Acquisition | Compulsory powers with due compensation to landowners |
| Financials | Funded by government grants, loans, and proceeds from property |
| Judicial Oversight | Courts emphasize due process and fair compensation |
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