Power to exempt municipal area from operation of any provision of the Act unsuited thereto.

(1) The State Government may, by notification, and for reasons to be recorded in writing, exempt any smaller urban area or any area of a Nagar Panchayat or any area referred to in sub-section (3) of Section 3 from the operation of any of the provisions of this Act considered unsuited thereto, and, thereupon, the said provisions shall not apply to such smaller urban area or area of a Nagar Panchayat or any area referred to in sub-section (3) of Section 3, as the case may be, until such provisions are applied thereto by notification. (2) While a notification exempting any smaller urban area or any area of a Nagar Panchayat or any area referred to in sub-section (3) of Section 3 from the provisions of this Act under sub-section (1) remains in force, the State Government may make rules consistent with the provisions of this Act in respect of any matter within the purview of such provisions from the operation of which the smaller urban area or the area of a Nagar Panchayat or any area referred to in sub-section (3) of Section 3 as aforesaid is exempted. (3) Notwithstanding any provisions in this act, the provisions of the land laws of the state shall prevail.