Preparation of the Development Scheme

(1) On or after the commencement of this Act, the Authority may, by notification in the official Gazette, declare any area to be a Scheme area and shall thereafter prepare a Scheme. Where no Authority has been constituted, the State Government may, by notification in the official Gazette, declare any area to be a Scheme area and the Chief Town Planner shall thereafter prepare a Scheme. (2) Notwithstanding anything contained in sub-section (1) the State Government may, after making such enquiry as it may deem necessary by notification in the Official Gazette, direct any local authority to prepare, and submit a Scheme under this section for an area specified in such notification for sanction before an appointed date. (3) While preparing the scheme, the Authority or, the Chief Town Planner or the local authority, as the case may be, shall issue a notice inviting the names of all the claimants of any interest on any land or building within the area under the scheme to be submitted within a period of not more than one month. (4) Save as provided in this Act, the Authority, the Chief Town Planner or the local authority shall not undertake or carry out any development of land in any area which is not within the area under the scheme. (5) After the commencement of this Act, no development of land shall be undertaken or carried out in the area under the scheme by any person or body of persons except in the manner prescribed under section 1(26).