(1) A housing or improvement scheme may be framed by the Board of its own motion or at the instance of a local authority and shall be framed when so directed by the State Government.
(2) The Board may refuse to frame and execute a housing or improvement scheme at the instance of a local authority if the Board is satisfied that such scheme is unnecessary or not feasible or that the funds at its disposal do not permit the framing or execution of such scheme, and intimate its refusal to the authority. The Board shall intimate its decision within one year from the date of receipt of the request from the local authority that a scheme be framed.
(3) Any local authority aggrieved by the refusal of the Board under sub-section (2) may, within two months from the date of receipt of the intimation, appeal to the State Government who nay pass such orders thereon as it thinks fit and the Board shall give effect to such orders.