Section 157. Power to make agreements.

(1) Unless otherwise provided in this Act, a Planning Authority or Development Authority shall be competent to make any agreement with any person or party in respect any matter which is provided for under this Act subject to the right of the State Government to modify or disallow such agreement. (2) Such agreement shall not in any way affect the rights of the State Government or third parties, but it shall be binding on the parties to the agreement notwithstanding any decision that may be passed by the State Government: Provided that, if the agreement is modified by the State Government, either party shall have the option of avoiding it if it so elects.