(1) Whore the appropriate authority has published a declaration under section 4, the State Government may, on an application of the appropriate authority, by order published in the Official Gazette, suspend to such extent as may be necessary for the proper carrying out of the scheme, any rule, bye-law, regulation, notification or order made or issued under any law which the State Legislature is competent to make or amend.
(2) Any order issued under sub-section (1) shall cease to operate in the event of the State Government refusing to sanction the scheme or in the event of the withdrawal of the scheme under section 28 or in the event of coming into force of the final scheme or in the event of the declaration lapsing under sub-section (3) of section 7.