[(1) This section applies where—
(a) the local planning authority for a London borough refuse an application for planning permission [or permission in principle],
(b) that refusal is in compliance with a direction made by the Mayor of London in accordance with provision made in a development order by virtue of section 74(1B)(a), and
(c) an appeal against the refusal is made to the Secretary of State under section 78.
(2) If the Secretary of State causes a local inquiry to be held under section 320(1) to determine the appeal, in its application to the inquiry section 250 of the 1972 Act shall be treated as if—
(a) for subsection (4) there were substituted the subsection set out at sub
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