(1) Whenever any street, square or other land or part thereof which is situated in any area within the jurisdiction of a panchayat and is vested in that panchayat is within the area included in the programme sanctioned by the State Government and is required for the purposes of such housing scheme, the Board shall give notice accordingly to that panchayat.
(2) Where the panchayat concurs, such street, square or other land or part thereof shall vest in the Board.
(3) Where there is any dispute the matter shall be referred to the State Government. The State Government shall, after hearing the panchayat concerned, decide the matter. The decision of the State Government shall be final. If the State Government decides that such street, square or land shall vest in the Board, it shall vest accordingly.
(4) Nothing in this section shall affect the rights or powers of the panchayat in or over any drain or water-works in such street, square or land.