(1) From such date as may be specified, from time to time, by the State Government (hereinafter in this section referred to as "the appointed date"),-
(a) the properties and assets comprising movables and immovables including irrigation projects or soil conservation works, social forestry works, works under construction and management of completed schemes, specified in that behalf, situated in the area of operation of the Corporation, which immediately before the appointed date vested in the State Government or local bodies and were under the control of the Water Conservation Department or local bodies, shall vest in and stand transferred to the Corporation, and all income derived and expenses incurred in that behalf be brought on books of the Corporation; and
(b) the rights, liabilities and obligations of the State Government or local bodies, whether arising out of any contract or otherwise pertaining to the said projects of the State Government or local bodies, shall be deemed to be the rights, liabilities and obligations of the Corporation.
(2) Such properties, assets, rights, liabilities and obligations shall be valued in such manner as the State Government may determine.
(3) All suits and other legal proceedings with respect to any scheme for the development of irrigation projects, soil conservation works, social forestry works entrusted to the Corporation, instituted or defended by or against the State Government before the appointed date may be continued, or instituted, or defended by or against the Corporation.