- If the municipality, based upon information in its possession in respect of any built-up area within the municipal area, is satisfied that -(a)the buildings in that area are, by reason of disrepair or sanitary defects, unfit for human habitation or are, by reason of their bad arrangement or narrowness or bad arrangement of the streets or want of light, air, ventilation or proper conveniences, dangerous or injurious to the health of the inhabitants of that area, or(b)because of bad layout or obsolete or undesirable dwellings, renewal of such area is necessary, or(c)there is need to create new or improved means of communication and facilities for traffic, and that the most satisfactory method of remedying these defects is to prepare an area improvement scheme in respect of such area, it may pass a resolution so to do.Explanation. - For the purposes of this section and section 394, the expression "built-up area" shall mean an area which, in the opinion of the Standing Committee, is densely built-up.
