Central Authority may declare an unhealthy area to be a slum clearance area

(1) Where the Central Authority, as a result of an inspection or upon consideration of an official representation or other information in its possession, is satisfied as respects any area that the housing conditions in that area are dangerous or injurious or likely to be injurious to the health and welfare of the inhabitants by reason of the disrepair or sanitary defects of dwelling-houses or barracks therein or of overcrowding in the area or of the bad arrangement of the houses or of the narrowness or bad arrangement of the roads, and that those conditions can be effectually remedied, (a) by ordering the demolition, reconstruction or repair, as the circumstances may require, of those dwelling-houses or barracks which are unfit for human habitation; or (b) by the acquisition of the land and buildings thereon comprised in the area and itself undertaking or otherwise securing the demolition, reconstruction or repair, as the circumstances may of those dwelling-houses or barracks which are unfit for human habitation; and (i) if it is so desired, by the acquisition by the Central Authority of any land or buildings in the area which it is expedient for it to acquire for the reconstruction and development of the area; and (ii) if it is so desired, by the acquisition of any land which is surrounded by the area, the acquisition of which is reasonably necessary for the purpose of securing a cleared area of convenient shape and dimensions, and of any adjoining land, the acquisition of which is reasonably necessary for the satisfactory development or use of the cleared area, the Central Authority shall cause that area to be defined on a plan in such a manner as to exclude from that area any land or buildings in respect of which in its opinion sanitary defects do not exist or which it does not find it expedient to acquire for the remedying of overcrowding or badly arranged conditions, but including in such area buildings which in its opinion are in a state of disrepair and any surrounding or adjoining land which it is desired by the Central Authority to acquire. (2) The Central Authority shall pass a resolution declaring the area so defined to be a slum clearance area and shall, within the period hereinafter prescribed, prepare and submit to the Minister a scheme, hereinafter referred to as a “slum clearance scheme”, for the exercise of its powers under this Part. secure re-