(1) If, in the opinion of the State Government the number of persons who are employed by a Municipality as officers or servants or whom a Municipality proposes to employ, or the remuneration assigned by the Municipality to those persons or to any particular person, is excessive, the Municipality shall on the requirement of the State Government reduce the number of the said persons or the remuneration of the said person.
(2) It shall be lawful for the State Government
(i) to require that any person appointed to be a Chief Municipal Officer shall be invested by any Municipality with all or any of the powers which can under this Act or under any rules in force at the time being lawfully delegated to him, in addition to such powers as are conferred on him by this Act;
(ii) to require that all or any of the powers referred to in Section 273 shall be delegated by any such Municipality, whether there be a Chief Municipal Officer or not, to the Chairperson, Vice-Chairperson or any such member as the State Government may deem fit.
(3) Any requisition issued to the Municipality under clause (i) or clause (ii) of sub-Section (2) shall be complied with within such time as the State Government may, in each case, prescribe in that regard.
(4) The State Government shall have the power to assess the requirement of the employees in a Municipality and where it is satisfied that certain employees are in excess, notwithstanding anything contained in the rules for the time being governing the conditions of service of any class of employees of the Municipalities, it may declare them as surplus and may prescribe the manner in which such surplus employees shall be absorbed into other Municipalities.