(1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy, other than those relating to technical and administrative matters, as the State Government may give in writing to it from time to time.
(2) Where a dispute arises as to whether a question is one of policy or not under subsection (1) the decision of the State Government thereon shall be final.
(3) Where any dispute arises between the Authority and other authorities, local bodies, body corporate, Department or other agencies of the Government, the matter shall be resolved at the level of the State Government and the decision of the State Government thereon shall be final and the parties involved in such dispute are bound to comply with such decision:
Provided that the State Government shall not pass an order in relation to any dispute under this section without affording the parties concerned, an opportunity of being heard.