(1) The Director/Chief Fire Officer or any Officer authorized by the Government shall as soon as may be after the publication of the notice under sub-section (1) of section 16 determine the amount of compensation payable in respect of the fire fighting property based on the market value of the property on the date of publication of the said notice, that is to say, the price which it would have fetched in the open market if it had been sold on that date, provided that – 7 – before determining the amount of compensation, the Director/Chief Fire Officer or the Officer, as the case may be shall give the local authority an opportunity to state what in its opinion is a fair compensation.
(2) The Director/Chief Fire Officer or the officer, as the case may be, shall after determining the amount of compensation payable, give notice to the local authority of the amount of compensation so determined.