(1) Where a ferry plies between two points on a watercourse and either one Declaration of ferries

or both the points are situated within a municipal area, the State Government as municipal ferries. may, after considering the views of the concerned Municipality, declare such ferry to be a municipal ferry, and, thereupon, the profits derivable from the plying of such shall be credited to the Municipal Fund.

1. (2) Due compensation shall be given by the concerned Municipality to any person for the loss which he may have sustained as a result of a ferry being declared to be a municipal ferry.