Provisions for cases in which value of developed plots is less than the amount payable by owner

(1) If, for any reason the total amount, which would be due to the Planning and Development Authority under the provisions of this Act from the owner of a plot to be included in the final scheme exceeds the value of such plot estimated on the assumption that the scheme has been completed, the Planning and Development Authority may direct the owner of such plot to make payment to the Planning and Development Authority of the amount of such excess.

1. (2) If the owner fails to make the payment referred to in sub-section (1) within the prescribed period, the Planning and Development Authority shall acquire the original plot of such defaulter on payment of compensation estimated at its market value on the date of the declaration of intention to make a scheme or the date of notification under section 63 and without reference to improvements contemplated in the scheme, to the owner and other persons interested in the plot, and thereupon the said plot included in the final scheme shall vest absolutely in t he Planning and Development Authority free from all encumbrances: Provided that the payment made by the Planning and Development Authority on account of the value of the original plot shall not be included in the cost of the scheme.