(1) Notwithstanding anything contained in any other law for the time being in force, the unauthorised development on being regularised, shall be deemed to have been exempted under section 20 of the Urban Land (Ceiling and Regulation) Act, 1976 (33 of 1976) from the provisions of Chapter III of the said Act, the Government land under encroachment shall be deemed to have been transferred in favour of encroachers, subject to the payment of price of land, as may be determined by the Collector of District of Thane, and stand converted to non-agricultural use for all purposes of the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966), subject to the payment of non-agricultural assessment and the other statutory terms and conditions, if any, of such conversion and the provisions of the Development Plan or the Regional Plan, as the case may be, shall so far as such development is concerned, stand modified or relaxed, to the extent of regularisation.
(2) On such regularisation of unauthorised development under section 3, all court cases or other proceedings, filed by the Municipal Corporation of the City of Ulhasnagar and pending in any court in so far as they relate to such unauthorised development, shall abate.