(1) If any national highway, state highway, or a street is vested in the Central Government or the State Government, as the case may be,-
(a) the Municipality shall not, in respect of such national highway, state highway, or street, grant permission to do any act, the doing of which without its permission, in writing, would contravene the provisions of this Act, except with the sanction of the Central Government or the State Government, as the case may be; and
(b) if so required by Central Government or the State Government, the Municipality shall exercise the powers conferred upon it by this Act or any bye-laws relating to such street.
(2) In the case of roads vested in the State Government, and passing through the municipal area, the Municipality shall have control over such roads in so far as permission for temporary occupation thereof and removal of encroachments therefrom are concerned, but the maintenance of such roads shall remain with the State Government.