Section 278(2) in The Maharashtra Municipal Councils, Nagar Panchayats And Industrial Townships Act, 1965
(2)The Council may after giving the applicant a reasonable opportunity of being heard and recording he reasons refuse to grant a licence if it is of the opinion that the establishment, alteration, enlargement or extension of such factory, workshop or place of business would be objectionable by reason of the density of the population in the neighbourhood thereof; or would be a nuisance or danger to the inhabitants of the neighbourhood.