(1) [Subject to the provisions of this Act] the Director shall within such period of time as may be prescribed, either approve the draft Scheme of Administration submitted under section 16-B, or suggest any alteration or modification therein. Whenever the Director shall so suggest any alteration or modification in the Scheme of Administration he shall send a copy of the same to the institution giving his reasons therefor and affording an opportunity to the institution to make a representation, within such period of time as may be prescribed:
Provided that if the Director does not suggest any alteration or modification in the Draft Scheme of Administration within the period of time prescribed by regulations, the Draft Scheme of Administration shall be deemed to have been approved.
(2) The Director shall consider any representation made in accordance with the provision of sub-section (1) and may approve the Scheme of Administration in its original form or subject to the alteration and modification suggested under the said sub-section or with any other changes as may appear to him to be just and proper :
Provided that where the Director propose to make a new alteration or modification in the Scheme of Administration he shall give an opportunity to the institution to make a representation to him within such period of time as may be prescribed.