(1) Notwithstanding anything contained in any law for the time being in force, the Corporation may, at any time, with the previous approval of the State Government, take over any water supply and sewerage services for maintenance or augmentation or improvement; from any local body, and in such cases:-
(a) all the existing water supply and sewerage services, sewage works and sewage farms including as the case may be, all plants, machineries, water works, pumping stations, filter beds, water mains and public sewers in, along over or under any public street, and all buildings, lands and other works, materials, stores and things appertaining thereto, belonging to or vested in that local body;
(b) so much of the sub-soil appertaining to the said water mains and sewers as may be necessary for the purpose of enlarging, depending or otherwise repairing or maintaining any such water mains and sewers or any pipes and other appliances and fittings connected with such water supply and sewerage services and sewage works and sewage farms; and
(c) all rights, liabilities and obligations of such local body relating to the things mentioned in clauses (a) and (b) including the right to recover arrears of water tax and sewerage tax, by whatever name called, and of any cost or fees or charges relating to water supply and sewerage services and also including liabilities arising from any loans advanced by Government or any other person to said local body for the thinks aforesaid, other than loans diverted to or utilised for purposes other than those referred to in clauses (a) and (b);
shall on such date as may be specified by the Corporation, stand transferred to and vested in the Corporation and be subject to its control.
(2) Such properties, assets, rights, liabilities and obligations shall be valued in such manner as State Government may determine.
(3) Where any doubt or dispute arises as to whether any property or asset has vested in the Corporation under sub-section (1) or any rights, liabilities or obligations have become the rights, liabilities or obligations of the Corporation under this section, such doubt and dispute shall be referred to the State Government whose decision shall be final and binding on the Corporation and the local body concerned.
(4) For taking over any properties or assets of the local body, the Corporation shall pay to that body such amount as may be mutually agreed upon. In the absence of any such agreement, the State Government shall determine the amount to be paid to the local body on the basis of the valuation made under sub- section (2) and after taking into consideration the statutory duty of the local body to provide water supply and sewerage services, the grants received by the local body, from time to time, the outstanding loan liabilities of the local body, and such other relevant factors. The decision of the State Government shall be final and binding on both parties.