(1) All schemes taken over by beneficiaries under section 6 shall be subject to the general superintendence and control of the State Government and the working of the scheme shall be liable to periodical inspection by an agency of the State Government in the prescribed manner.
(2) Should a beneficiary be incompetent to perform, or persistently make default in the performance of the duties imposed on it by or under this Act, or exceed or abuse its powers, or fail or neglect to maintain the scheme in an efficient manner, the State Government may, by notification in which the reasons for so doing shall be stated, take back the development, management, or control of the scheme from the beneficiary:
Provided that before the notification mentioned in sub-section (2) is made, the beneficiary shall be given a reasonable opportunity in the prescribed manner of showing cause against the action proposed to be taken.
(3) When the development, management and control is so taken back, the following consequences shall ensue:-
(a) the development, management and control of the scheme shall, from the date of the notification, vest in the State Government;
(b) the water rate levied by the beneficiary shall continue to be operative until substituted by a fresh water rate fixed by the State Government.
(4) The State Government shall review the position, at such intervals as may be prescribed, but which shall not be less than one year, and may, if it shall think fit, at any time, re-entrust the scheme to the beneficiary.