(1) The State Government may, by notification, withdraw from the application of this Act any Planning Area or part thereof.
(2) When a notification is issued under sub-section (1) in respect of any Planning Area or part thereof—
(i) this Act and all notifications, rules, regulations, orders, directions and powers issued, made or conferred under this Act shall cease to apply to the said area or part thereof;
(ii) the State Government shall, after consulting the local authority or authorities concerned, frame a scheme determining what portion of the fund of the Planning Authority or the Development Authority concerned shall vest in the State Government, and the local authority or authorities concerned and in what manner the properties and liabilities of the Planning Authority or the Development Authority concerned shall be apportioned between the State Government and the local authorities and on the scheme being published by notification, the fund, property and liabilities of the Authority concerned shall vest and be apportioned accordingly.