Notwithstanding anything to the contrary contained in this Chapter, the Council may consolidate all or any of its loans and for that purpose may invite tenders for a new loan (to be called "the New Delhi Municipal Consolidated Loan, 19- ") and invite holders of the municipal debentures to exchange their debentures for scrips of such loan.

The terms of any such consolidated loan and the form of its scrip and the rates at which exchange into such consolidated loan shall be permitted shall be subject to the prior approval of the Central Government..

The period for the exchanging of any such consolidated loan shall not, without the sanction of the Central Government, extend beyond the farthest date within which any of the loans to be consolidated would otherwise be repayable.

The Council shall provide for the repayment of any such consolidated loan by sinking fund in the manner laid down in section 131 having regard to the amount transferred to such sinking fund under section 132.