Section 264(3) in Andhra Pradesh Municipalities Act, 1965
(3)The council shall, within sixty days after obtaining approval under sub-section (4)--(a)grant the permission applied for, either absolutely or subject to such conditions as it thinks fit to impose; or(b)refuse permission, if it is of opinion that such construction, establishment or installation is objectionable by reason of the density of the population in the neighbourhood or that it is likely to cause a nuisance.