(1)On receipt of application in the prescribed form and complete in all respects under rule 10 of the competent authority shall enquire into the following matters and such other matters, as it may consider necessary, namely:-
(a) the title of the applicant to the land which is proposed to be converted into a colony;
(b) extent and situation of the land;
(c) financial and managerial capacity of the promoter to develop the colony;
(d) layout plan of the colony;
(e) plan regarding the development works to be executed in the colony;
and
(2) conformity of development of the colony with neighbouring areas.
(3) The competent authority may, after making enquiry as specified in sub-rule (1) and after giving the applicant a reasonable opportunity of being heard, and also taking into consideration the opinion of 5 [-] the prescribed authority for the purpose of sub-section (2) of section 5, by an order in writing, reject the application to grant licence if,-
(a) it does not conform to the requirements of these rules;
(b) the plans and designs of the development works submitted with the application are not technically sound and workable; or
(c) the estimated expenditure on water supply main or extra mural and outfall sewerage is not commensurate with the size of the colony.
(3) If after scrutiny of the plans and other necessary enquiries, which the competent authority may deem fit, the competent authority is satisfied that the applicant is fit for the grant of licence, it shall, before granting licence, call upon the applicant to fulfil the conditions laid down in rule 12 within a period of thirty days from the date of the service of notice in Form APR II:
Provided that on application within the aforesaid period of thirty days, for the extension of time limit, the competent authority, if satisfied, may extend such time limit further upto thirty days.
(4) If the applicant fails to fulfill the conditions referred to in sub-rule (3) within the specified period or extended period, if any, the grant of licene shall be refused and intimation of such refusal shall be communicated to the applicant in Form APR III.