(1) Where the State Government is satisfied that the purposes for which an Authority is constituted or designated under this Act have been substantially achieved so as to render the continued existence of the Authority in the opinion of the State Government unnecessary, the State Government may, by notification, declare that the Authority shall be dissolved with effect from such date as may be specified in the notification and the Authority shall be deemed to be dissolved accordingly.
(2) From the date specified under sub-section (1), -
(a) all properties, funds and dues which are vested in, or realiseable by, the Authority shall vest in, or be realiseable by, the State Government;
(b) all liabilities which are enforceable against the Authority shall be enforceable against the State Government; and
(c) for the purpose of carrying out any development which has not been fully carried out by the Authority and for the purpose of realising properties, funds and dues referred to in clause (a), the functions of the Authority shall be discharged by the State Government.
CHAPTER IV Relations between the State Government, Authority and Local Authorities