(1) The State Government may, by notification in the Gazette and upon such terms and conditions as may be agreed upon between that Government and the Authority, place at the disposal of the Authority all or any developed and undeveloped lands in the development area vested in the State (known and hereinafter referred to as "nazul lands"), for the purpose of development in accordance with the provisions of this Act.
(2) After any nazul land has been placed at the disposal of the Authority under sub-section (1), no development of any such land shall be undertaken or carried out except by or under the control and supervision of the Authority.
(3) After any such nazul land has been developed by or under the control and supervision of the Authority it shall be dealt with by the Authority in accordance with directions given by the State Government in that behalf.
(4) If any nazul land placed at the disposal of the Authority under sub-section (1) is required at any time thereafter by the State Government, the Authority shall, by notification in the Gazette, replace it at the disposal of that Government upon such terms and conditions as may be agreed upon between that Government and the Authority.