Effect of preliminary scheme.

On and after the day on which a 1[preliminary scheme] comes into force-

1. (a) all lands required by the Planning Authority shall, unless it is otherwise determined in such scheme, vest absolutely in the Planning Authority free from all encumbrances;
2. (b) all rights in the original plots which have been reconstituted shall determine and the reconstituted plots shall become subject to the rights settled by Arbitrator; 2* * *