(1) Where on account of the reorganisation of States under any law providing reorganisation of States, the whole or any part of a State in respect of which a Board was, immediately before the day of such reorganisation, functioning has been transferred on that day to another State and by reason of such transfer, it appears to the Government of a State in any part of which the Board is functioning that the Board should be dissolved or that it should be reconstituted as an Intra-State Board for the whole or any part of that State, the State Government may frame a scheme or such dissolution or such reconstitution, including proposals regarding the transfer of the assets, rights and liabilities of the Board to any other Board or State Government and the transfer or re-employment of employees of the Board and forward the scheme to the Central Government.
(2) On receipt of a scheme forwarded to it under sub-section (1), the Central Government may, [after consulting the Council and the State Governments] concerned, approve the scheme with or without modifications and give effect to the scheme so approved by making such order as it thinks fit.
(3) An order under sub-section (2) may provide for all or any of the following matters, namely:---
(a) the dissolution of the Board;
(b) the reconstitution in any manner whatsoever of the Board including the establishment, where necessary, of a new Board;
(c) the area in respect of which the reconstituted Board or new Board shall function and operate;
(d) the transfer, in whole or in part, of the assets, rights and liabilities of the Board (including the rights and liabilities under any contract made by it) to any other Board or State Government and the terms and conditions of such transfer;
(e) the substitution of any such transferee, for the Board, or the addition of any such transferee, as a party to any legal proceeding to which the Board is a party; and the transfer of any proceeding pending before the Board to any such transferee;
(f) the transfer or re-employment of any employee of the Board to or by, any such transferee and subject to the provisions of law providing for the reorganisation of the concerned State, the terms and conditions of service applicable to such employees after such transfer or re-employment; and
(g) such incidental, consequential and supplemental matters as may be necessary to give effect to the approved scheme.
(4) Where an order is made under this section transferring the assets, rights and liabilities of the Board, then, by virtue of that order, such assets, rights and liabilities of the Board shall vest in, and be the assets, rights and liabilities of, the transferee.
(5) Every order made under this section shall be published in the Official Gazette.
(6) Every order made under this section shall be laid before each House of Parliament, as soon as may be, after it is made.