(1) Without prejudice to the power of a Development Authority under this Act to dispose of any of their property, a Development Authority may by an agreement made with any local authority, or Planning Authority and approved by the State Government, transfer to that local authority or Planning Authority any part of the property of the Development Authority upon such terms as may be prescribed by the agreement :
Provided that, before approving such agreement, the State Government shall publish in the Official Gazette and in one or more local newspapers a notice stating that the agreement has been submitted for approval, and describing the general effect of the agreement.
(2) If the State Government is satisfied that it is expedient, having regard to any agreement made or proposed to be made under sub-section (1) that the liability of the Development Authority in respect of advances made to it under this Act, should be reduced, the State Government may, by an order reduce that liability to such extent as may be specified in the order.
(3) The payment of any sums payable by a local authority or Planning Authority for the purposes of an agreement under this section shall be a purpose for which that authority may, notwithstanding anything contained in any law constituting such authority, borrow money.