(3)Subject to the provisions of sub-section (1) the committee [or the Executive Officer, as the case may be] [Inserted by Punjab Act No. 2 of 1931, item 13 Schedule II, as amended by Punjab Act No. 2 of 1934, in case of those municipalities to which Punjab Act No. 2 of 1931 applies.] may sanction the erection or re- erection of any building either absolutely or subject to such modifications in accordance with the bye-laws and rules as it [or he as the case may be] may deem fit.