Declaration of planning areas, their amalgamation, sub-division, etc.— (1) The

Government may, by notification declare any area to be a planning area for the purposes of this Act, and on such declaration, this Act shall apply to such area:

Provided that no cantonment area or part thereof shall be included in a planning area.

1. (2) Every notification issued under sub-section (1) shall define the limits of the area to which the notification relates.
2. (3) The Government may, after consultation with the Board, amalgamate two or more planning areas into one planning area or sub-divide a planning area into different planning areas and may include any such sub-divided area or areas in any other planning area.
3. (4) The Government may, by notification, direct that all or any of the rules, regulations, bye-laws, notifications, orders, directions and powers made, issued or conferred and in force in any planning area at the time of amalgamation, sub-division or inclusion under sub-section (3) shall apply to the planning area or areas as so amalgamated or sub-divided or included, with such exceptions, adaptation or modifications as may be specified in the notification, and thereupon such rules, regulations, bye-laws, orders, directions and powers shall apply to such planning area or areas without further publication.
4. (5) Where planning areas are amalgamated or sub-divided, or such sub-divided areas are included in any other planning area, the Government shall, after consulting the Board, the Planning and Development Authority or Authorities concerned, frame a scheme determining the portion or portions of the balance of the fund of the Planning and Development Authorities or Authority which shall vest in the Planning and Development Authority or Authorities concerned and the manner in which the properties and liabilities of the Planning and Development Authority or Authorities shall be apportioned amongst them and on the scheme being notified in the Official Gazette, the fund, property and liabilities shall vest and be apportioned accordingly.