Section 40. Restrictions on use and development of land after declaration of a Scheme

(1) On or after the date on which a draft scheme is published under section 39, no person shall, within the area included in the project or scheme, institute or change the use of any land or building or carry out any development, unless such person has applied for and obtained the necessary permission for doing so from the Authority in accordance with the regulations made in this behalf: Provided that it shall be lawful for any person to undertake such development within the village abadi limits in accordance with the permission granted by the local panchayat so far as such permission is consistent with such draft scheme or schemes. (2) The provisions of Chapter VI shall be applicable mutatis mutandis for the project or scheme approved under sub-section (4) of section 39.