(1) Where the promoter of an aerial ropeway for public traffic is a local authority or where a local authority has purchased any such ropeway under section 24, such local authority may with the previous sanction of the State Government and subject to such conditions as the State Government may think fit to impose, let to any person, by a lease, the right of user of the aerial ropeway and of demanding and taking the rates for the carriage of passengers, animals or goods, as the case may be, on such ropeway subject to such maximum and minimum rates as may be prescribed.
(2) On the determination of such lease, the local authority may from time to time renew the lease for such further term and on such conditions as the State Government may approve.
(3) Every lease may under this section shall imply a condition of re-entry if at any time after the making or renewal thereof, it is proved to the satisfaction of the State Government that the lessee has practically discontinued the working of the aerial ropeway so leased or of any part thereof for a period of one month without a reason sufficient in the opinion of the State Government to warrant the discontinuance.
(4) Any person to whom any right of the promoter is let by a lease under sub-section (1) or (2) shall furnish the local authority with security for such amount as the local authority may determine for the due fulfilment of the conditions of the lease.
(5) Any person to whom any right of the promoter is let under sub-section (1) or (2) shall not exercise such right except in accordance with the conditions of the lease and the provisions of this Act and the rules and in the case of a contravention of any of the provisions of this Act or the rules he shall be subject to the same liability as a promoter.