Transfer to Board for the purposes or development scheme of building or land vested in local authority.

(1) Whenever any building or land or any street or any part thereof which is vested in a local authority, is within the area of any housing, development or improvement scheme, the Board shall give notice accordingly to that local authority and such building, land or street or any part thereof shall thereupon vest in the Board. (2) Where any land vested in a local authority vests in the Board under sub-section (1) and the Board makes a declaration that such land will be retained by the Board only until it revests in the local authority as part of a street or an open space under section 51 no compensation shall be payable by the Board to local authority in respect of that land. (3) Where any land or building vests in the Board under sub-section (1) and no declaration is made under sub-section (2) in respect of the land, the Board shall pay to the local authority as compensation, a sum equal to the market value of such land or building as on the date on which the scheme comes into force under section 45 and where any building situated on the land in respect of which declaration has been made by the Board under sub-section (2) is vested in the Board under sub-section (1) like compensation shall be payable in respect of such building, by the Board. (4) If, in any case, where the Board has made a declaration in respect of any land under sub-section (2), the Board retains or disposes of the land contrary to the terms of the declaration, so that the land does not revest in the local authority, the Board shall pay, to the local authority, compensation in respect of such land in accordance with the provisions of sub-section (3).

(5) If any question or dispute arises as to whether compensation is payable under sub-section (3) or sub-section (4) or as to the amount of such compensation or as to whether any building, land, street, or any part thereof; is required for the purposes of a scheme, the matter shall be referred to the State Government whose decision shall be final.