(1) Where the State Government is satisfied that it is expedient in the Public interest so to do, it may, by notification, designate any local authority functioning in a planning area to be the Special Urban Planning and Development Authority for that area or any part thereof and thereupon all the powers and functions of the Punjab Urban Planning and Development Authority relating to that area or part thereof, as the case may be, shall be exercised by such local authority.
(2) On the issue of a notification under sub-section (1), the powers to be exercised and functions to be performed by the Chairman of the Authority under this Act shall be exercised and performed in the case of a Municipal Corporation by its Mayor, in the case of a Municipal Council by its President, and, in the case of an Improvement Trust by its President and those of the Chief Administrator of the Authority by the Chief Executive Head, by whatever name he is called, of the Municipal Corporation or the Municipal Council, or the Improvement Trust, as the case may be.