1. Directions by Government:The Authority shall, in discharging its functions, act and be guided, by such directions as Government may give to it from time to time.

16-A. Transfer of functions, etc: Where the Authority ceases to perform a function and another organization controlled by the Government assumes that function, the Government may direct–

(i)  that the servants of the Authority connected with that function shall become servants of the said organization on such terms and conditions as the said organization may determine, subject to the condition that the said terms and conditions are not less favourable than those admissible to them as servants of the Authority; and

(ii)  that such part of the Fund of the Authority as the Government may determine shall stand transferred to the said organization.

  1. Controlled area.–The Authority may issue in respect of a controlled area such directions as it considers fit and appropriate and do all such things as may be necessary for the prevention of haphazard growth, encroachments and unauthorised constructions in such area.


  1. Power to act as local government:The Government may, by a notification in the official Gazette, authorise the Authority to exercise and perform such powers and functions as a local government may exercise and perform in relation to its local area under the Punjab Local Government Act 2013 (XVIII of 2013), in an area in which schemes are undertaken by the Authority or which is declared as controlled area.
  2. Power to remove sources of pollution:The Authority shall have full powers to undertake improvements of the environment of the area or any part thereof and to check, replace, eliminate, remove, demolish, conserve, re-settle or relocate the sources of environmental pollution such as milch cattle, horses or other animals, tongas, vehicular exhaust, industrial waste, solid waste, congestion, blight and slums etc:

Provided that the Authority shall provide alternate accommodation or compensation to be determined in accordance with the provisions in Chapter VI, to any person evicted from the premises owned by him.

  1. Beautification:The Authority shall also undertake beautification of the area or part thereof, in any manner it deems fit, or prepare schemes and prescribe environmental standards to be adopted by the Government agencies or persons or direct any Government agency or person to undertake any improvements or activities for beautification of the area or part thereof.
  2. Borrowing money: (1) The Authority shall be deemed to be a “Local Authority” for the purpose of borrowing money and any scheme or project prepared or undertaken by the Authority, shall be deemed to be “work” as defined in section 2 of the Local Authorities Loans Act, 1914 (Act No. IX of 1914):

Provided that no local or foreign loan shall be obtained by the Authority without the previous sanction of the Government.

(2)  The Authority may, in consultation with the Finance Department, Government of the Punjab, borrow money or raise funds by issuing bonds or debentures or otherwise for carrying out the purposes of this Act at such rate of interest as may be approved by the Government.

  1. Power to levy betterment fee: Where any new scheme has been executed by the Authority by providing services or amenities in any locality, the Authority may, with the previous consent of Government, levy upon the owner of the property or any person having an interest therein, a betterment fee on account of the execution of the scheme.
  2. Assessment of betterment fee: (1) When it appears to the Authority that any particular development scheme is sufficiently advanced to enable the amount of the betterment fee to be determined, the Authority may, by an order made in this behalf, declare that for the purpose of determining the betterment fee, the execution of the scheme shall be deemed to have been completed and shall, thereupon give notice in writing to the owner of the property or any person having an interest therein, that the Authority proposes to assess the amount of the betterment fee in respect of the property under section 22.

(2)  The betterment fee under section 22 or under sub-section (1) of this section, shall be assessed and be payable in the manner prescribed.