(1) Where any land vests in the Board under the provisions of section 34 and the Board makes a declaration that such land shall be retained by the Board only until it revests in the panchayat as part of a street or an open space under section 38 no compensation shall be payable by the Board to the panchayat in respect of the land.
(2) Where any land vests in the Board under section 34 and no declaration is made under sub-section (1) in respect of the land the Board shall pay to the panchayat as compensation a sum equal to the value of such land.
(3) If, in any case where the Board has made a declaration in respect of any land under sub-section (1), the Board retains or disposes of the land contrary to the terms of the declaration so that the land does not revest in the panchayat, the Board shall pay to the panchayat compensation in respect of such land in accordance with the provisions of subsection (2).