(1) Wherever a Jal Sansthan is constituted by the State Government under Section 18 -
(a)- all the existing water supply services, and where the Jal Sansthan undertakes the functions specified in clause (ii) of Section 24 all the existing sewerage services, sewage works and sewage farms, including, as the case may be, all plants, machineries, waterworks, 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 every local body within the area of the Jal Sansthan;
(b)- so much of the sub-soil appertaining to the said water mains and sewers as may be necessary for the purpose of enlarging, deepening 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 services, sewerage and sewage works and 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 relating to water supply and sewerage services and also including liabilities arising from any loans advanced by the Government or any other person to the said local body for the things aforesaid other than loans diverted to or utilised for purposes other than those referred to in clauses (a) and (b),
shall with effect from the date of the constitution of the Jal Sansthan (hereinafter in this Chapter referred to as "the said date"), vest in and stand transferred to the Jal Sansthan and be subject to its control.
(2)- Such properties, assets, rights, liabilities and obligations shall be valued in such manner as the State Government may determine.
(3)- Where any doubt or dispute arises as to whether any property, or asset has vested in the Jal Sansthan under sub-section (1) or any rights, liabilities or obligations have become the rights, liabilities or obligations of the Jal Sansthan under this section, such doubt or dispute shall be referred to the State Government whose decision shall be final and binding on the Jal Sansthan and the local body concerned.