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In many cities in India, including Ahmedabad, urban expansion and disorganized development in the outskirts are prevalent. Although development plans aim to regulate development, they often result in the expansion of the city towards the periphery. Peri-urban areas face significant challenges due to unplanned development, with market dynamics significantly influencing their shaping. Due to development restrictions within AUDA, developers have moved their focus to villages or places outside AUDA's authority. Unplanned development in and beyond AUDA's jurisdiction has led to haphazard growth, and the aim of the research is to streamline development in the peri-urban areas by creating a framework and policy for planned development. The research examines the statutory framework and institutional mechanisms governing peri-urban development, identifies factors influencing peri-urban development, and formulates strategies for planned development to provide guidance to AUDA and beyond. The research suggests improvements in planning, legal, and institutional aspects to promote planned development in peri-urban areas.