(1) If in respect of any building the Board has issued a certificate under sub-section (3) of section 88, or the Municipal Commissioner has under section 354 of the Corporation Act, issued a written notice requiring the owner or occupier thereof to pull down the building, with a view to preventing all cause of danger therefrom, and the Board is of the opinion that such building is not capable of being repaired or rendered fit for habitation at reasonable expense and is dangerous or injurious to the health or safety of the inhabitants thereof or, where [the Mumbai Corporation] has under section 354R of the Corporation Act passed a resolution declaring the area in which any such building is situated as the clearance area, the Board may submit to the State Government a proposal to acquire the land, including a proposal for issue of a clearance and compulsory acquisition order to clear and acquire the land with the existing building in whatever condition thereon and for constructing a new building on the same site, and simultaneously prepare plans and estimates for these purposes.
(2) In preparing the plans and estimates of the building to be reconstructed, it shall be the duty of the Board to see that all the occupiers in the building proposed to be demolished shall, as far as practicable, be provided in the reconstructed building accommodation with a floor area equivalent to their floor area in the old building :
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[Provided that, in the case of an occupier of a residential tenement the floor area of the accommodation in the reconstructed building, shall not be less than the 20.90 square metres and more than the 70 square metres.]
(3) Those dishoused occupiers who cannot be so accommodated in the reconstructed building shall be provided with alternative accommodation in any building maintained by the Authority for such purpose or in any new building constructed by the Authority wherein surplus accommodation is available.
(4) After making provision for the matters aforesaid, if there is any surplus area in the new building, it may be utilised by the Board for such other purposes as it deems fit, with a view to reducing the incidence of [instalments towards the price of the tenements] on the occupiers of residential tenements by maximum exploitation of such surplus area for other purposes.
(5) If in respect of any building,-
(a) the Municipal Commissioner has under section 354 of the Corporation Act already issued a written notice before the date on which the provisions of this Chapter are brought into force in the area in which such building is situate requiring the owner or occupier thereof to pull down the building with a view to preventing all cause of danger therefrom, and such notice has not been complied with (except for purposes beyond his control) before the date aforesaid, or
(b) the Municipal Commissioner issues under the said section 354 of the Corporation Act a written notice within nine months from the date on which the provisions of this Chapter are brought into force in the area in which such building is situated requiring the owner or occupier thereof to pull down the building, with a view to preventing all cause of danger therefrom, and such notice is not complied with (except for reasons beyond his control) before the date specified in such notice,
the Board may, notwithstanding anything contained in sub-section (1), move the State Government to acquire the property under this Chapter immediately and take necessary further steps for demolishing the building, clearing the site and constructing a new building on the same site. The provisions of this Chapter shall apply mutatis mutandis to the acquisition, reconstruction and rehabilitation of occupiers of such building as they apply to any other building except that the occupiers of such building shall as far as practicable, be accommodated in the reconstructed building or any other building maintained by the Authority, subject to such terms and conditions as the Board may, with the previous sanction of the Authority, specify.