(1) Where any land in a slum area has been acquired under this Act, the Government may either hold the land under their own control and management and undertake the clearance or improvement of the slum area or transfer the land to the [municipal corporation or municipal council] concerned for the purpose of undertaking the clearance or improvement of the slum area; and in the latter case, the land shall vest in such municipal council.
(2) Where land is transferred under sub-section (1) to a [municipal corporation or municipal council], it shall be liable to pay the cost of acquisition of the land or of such portion thereof as the Government may fix in each case.
(3) Where the Government hold the land under their own control and management and undertake the clearance or improvement of the slum area, the cost of acquisition shall be borne by the persons to whom the land is allotted in parcels for residence and such cost shall be recoverable from them in such proportion and in such manner as may be prescribed.