Chapter III PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS

The Government may from time to time by notification, vest in or as the case may be, entrust to the Corporation, any water supply projects, Sewerages and Sewage projects, Sanitation projects, other Infrastructure Projects works under construction, management of completed schemes, or any other works or projects specified in that behalf which vested in the Government and are under the control of the Panchayat Raj and Rural Development Department or the Municipal Administration and Urban Development Department, or any other Department of the Government: Provided that any such vesting or entrustment in respect of any project or work or scheme situated within the jurisdiction of a Cantonment Board constituted under the Cantonments Act 1924 (Central Act II of 1924), shall be to the extent of any agreement with such Cantonment Board only.

(1) On and from the date of a notification under section 15,- (a) all the properties and assets comprising of movables and immovables of such projects, works and schemes vested in the Government and under the control of the Panchayat Raj and Rural Development Department or the Municipal Administration and Urban Development Department or any other Department of the Government, shall vest in and stand transferred to the Corporation; (b) all rights, obligations and liabilities, acquired or incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Government, immediately before such date for or in connection with the purposes of any project or work or scheme or any part thereof vested in, or entrusted to, the Corporation under section 15, shall be deemed to have been acquired, incurred, entered into and engaged to be done by, with or for the Corporation; (c) all non-recurring expenditure incurred by or for the Government, or in connection with the purposes of any project or work or scheme or any part thereof, so vested in, or entrusted to, the Corporation, upto such date and declared to be capital expenditure by the Government shall subject to such terms and conditions as may be prescribed, be treated as capital provided by the Government to the Corporation; (d) all sums of money due to the Government in relation to any project or work or scheme or any part thereof so vested in or entrusted to, the Corporation immediately before such date shall be deemed to be due to the Corporation; (e) all suits and other legal proceedings instituted or which could have been instituted by or against the Government, immediately before such date for any matter in relation to any project or work or scheme or any part thereof may be continued or instituted by or against the Corporation. (2) Such properties, assets, rights, obligations and liabilities shall be valued in such manner as the Government may determine. (3) If any doubt or dispute arises to as to which of the properties or assets or rights or liabilities of the Government have been transferred to the Corporation such doubt or dispute shall be referred to and decided by the Government, whose decision shall be final.