(1) If, at any time, the State Government is of opinion that any land included in a Town Planning scheme is needed for a public purpose other than that for which it is included in the scheme, it may make a declaration to that effect in the Official Gazette in the manner provided in section 6 of the Land Acquisition Act, 1894. The declaration so published shall, notwithstanding anything contained in the said Act, be deemed to be a declaration duly made under the said section.
(2) On the publication of a declaration under sub-section (1) the Deputy Commissioner shall proceed to take order for the acquisition of the land and the provisions of the Land Acquisition Act, 1894, as amended by section 72 of this Act, shall, so far as may be, apply to the acquisition of the said land.
(3) In the proceedings under the Land Acquisition Act, 1894, the Planning Authority concerned shall be deemed to be a person interested in the land acquired and in determining the amount of compensation to be awarded to the Planning Authority, the Deputy Commissioner or the Court, as the case may be, may take into consideration the value, if any, paid by the Planning Authority for the acquisition of the said land under section 70 or otherwise and the proportionate cost of the scheme, if any, incurred by the Planning Authority and rendered abortive by reason of the variation of the scheme on account of such acquisition.
(4) On the land vesting in the State Government under section 16 or section 17 of the Land Acquisition Act, 1894, as the case may be, the scheme shall be deemed to have been suitably varied by reason of acquisition of the land.