(1) Whenever any building or land or any street or any part thereof, vested in a local authority lies within the area comprised in any housing or improvement scheme, the Board may give notice to that local authority that the same is required for the purposes of the scheme, and thereupon such building, land or street, or part thereof, shall vest in the Board.
(2) Where the Board makes a declaration while giving notice under sub-section(1) that such land, street, or part, as the case may be, will be retained by the Board only until it re-vests in the local authority as a street or an open space, or part thereof, under Section 41, no compensation shall be payable by the Board to the local authority except in respect of buildings, if any, situated on that land.
(3) Except as provided in sub-section(2), where any land or building vest in the Board under sub-section(1) the Board shall pay to the local authority as compensation, a sum equal to the market value of such land or building or both, as the case may be, as on the date on which the scheme comes into force.
(4) Where after a declaration has been made under sub-section(2), the land does not fe-vest in the local authority compensation in respect of such land in accordance with the provisions of sub-section(3).
(5) If any question arises as to whether any building, land or street, or any part thereof, is required for the purposes of the scheme or as to whether compensation is payable under this section, or as to the amount of such compensation, the matter hall be referred to the State Government whose decision thereon shall be final.