Is it legal for the village head to draw lots for demolition?

Illegal, it has no power to start land acquisition and approve land acquisition. If you don't want to tear down the village chief, just refuse.

The village head is actually the director of the village Committee in law. Village committees are not the first-level administrative organs in China (the lowest level is the township administrative organs), but belong to villagers' self-governing organizations. Therefore, the village Committee does not have administrative power.