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

(1) If, from any cause, the total amount which would be due to the Planning 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 Town Planning Officer shall, at the request of the Planning Authority, direct the owner of such plot to make payment to the Planning Authority of the amount of such excess.

1. (2) If such owner fails to make such payment within the prescribed period, the Town Planning Officer shall, if the Planning Authority so requests, acquire the original plot of such defaulter and apportion the compensation among the owner and other persons interested in the plot on payment by the Planning Authority of the value of such plot estimated at its market value on the date of the declaration of intention to make a scheme or the date of a notification under section 31 and without reference to improvements contemplated in the scheme, and thereupon the plot included in the final scheme shall vest absolutely in the Planning Authority free from all encumbrances, but subject to the provisions of this Act: Provided that the payment made by the Planning Authority on account of the value of the original plot shall not be included in the costs of the scheme.