(1) Not later than nine months from the date of declaration of intention, the appropriate authority shall, with the prior consent of the local authority in whose jurisdiction the land under the proposed scheme falls, make a draft scheme for the area in respect of which the declaration was made and publish the same in the Official Gazette along with the draft regulations in the manner as may be prescribed and shall also publish a public notice stating that the draft scheme in respect of such area has been made and at what place and time a copy thereof shall be available for inspection by public and shall also state that copies thereof or any extract there from certified to ho correct, shall be available for sale to the public at a reasonable price:
Provided that the State Government may, on application made by the appropriate authority from time to time, by notification in the Official Gazette, extend the period specified in this sub-section by such period not exceeding three months as may be specified in the notification.
(2) The local authority shall give its consent under sub-section (1) within the one month and if such consent is not given within this period, the appropriate authority shall presume that the local authority has no objection to the provisions of the draft scheme:
Provided that where the local authority conveys its refusal to give consent to the draft scheme within the prescribed period or where there is a difference of opinion between the appropriate authority and the local authority with regard to the draft scheme, the matter shall he referred by the appropriate authority to the State Government for decision and the decision of the State Government shall be final.
(3) If the appropriate authority fails to make a draft scheme and publish a notice regarding its making within the period specified in sub-section (1), the declaration shall lapse, but any such lapse of the declaration shall not debar the appropriate authority from making a fresh declaration at any time in respect of the same area.
(4) If the draft scheme is not made and published by the appropriate authority within the period specified in sub-section (1) or within the period extended under the proviso to that' sub-section, an official appointed by the State Government may make and publish in the Official Gazette, a draft scheme for the area in respect of which the declaration of intension to make a scheme has been made within a period of nine months from the date of the expiry of the aforesaid period, or the extended period, as the case may be.