(1) Where on report from the competent authority it appears to the State Government that, in order to enable the authority to execute any work of improvement in relation to any. building in a slum area or to re-develop any clearance area, it is necessary that the land within, adjoining or surrounded by any such area should be acquired, the State Government may acquire the land by publishing in the Official Gazette a notice to the effect that the State Government has decided to acquire the land in pursuance of this section:
Provided that, before; publishing, such notice, the StateGovernment may call upon the owner of, or any other person, who, in the opinion of the State Government, may be interested in, such land to show cause why it should not be acquired, and after considering the cause, if any, shown by the owner or any other person interested in the land, the State Government may pass such order as it deems fit.
(2) When a notice as aforesaid is published in the Official Gazette, theland shall on and from the date on which the notice is so published, vest absolutely in the State Government free from all encumbrances.