Section 146(2) in The Gujarat Municipalities Act, 1963
(2)Acquisition of adjacent land to form street. - In laying out, making, turning, diverting, extending, widening, opening, enlarging or otherwise improving any public street, in addition to the land required for the carriage-way and foot-ways and drains thereof, the municipality may acquire the land required for the construction of houses and buildings to form the said street; and, subject to the provisions contained in subsection (2) of section 65, may sell and dispose of such additional land in perpetuity or on lease for a term of years with such stipulations as to the class and description of houses or buildings to be erected thereon as it may think fit.