law: 126. Powers of Nagar Panchayat or the Council to sanction or refuse.
  (1) Within sixty days after the receipt of the notice, required by sub-section (2) of section 124, the Nagar Panchayat or as the case may be, the Council may refuse to sanction the building or may sanction it either absolutely or subject to such modification as it may deem fit in respect of all or any of the matters specified inbye-laws and the person erecting, materially altering or re-erecting any such building as aforesaid shall comply with the sanction of the Nagar Panchayat or as the case may be, the Council as granted in every particular.
  (2) When within a period of sixty days, the Nagar Panchayat or the Council fails, after the receipt of a valid notice, to make and deliver to the person who has given such notice, an order of sanction or refusal in respect thereof, it shall be deemed to have sanctioned the proposal of building absolutely:
  Provided that the time taken by the applicant in furnishing any information requisitioned by the Nagar Panchayat or by the Council, if any, after the receipt of the valid notice shall not be counted in the period of sixty days referred to in this sub-section.
  Explanation.
  The Nagar Panchayat or the Council may refuse to sanction the erection, material alteration or re-erection of any building either on the grounds affecting the particular building or in pursuance of general scheme adopted by the Nagar Panchayat or by the Council at a meeting restricting the erection or re-erection of building or any class of building within specified limits for the prevention of overcrowding or in the interest of the residents within such limits or for any other public purpose. Permission may also be refused in any case in which there is any dispute between the Nagar Panchayat or as the case may be, the Council and the applicant as to the title of the land on which it is proposed to erect the building until such dispute is decided.