Power to withdraw planning area from operation of the Act.— (1) The

Government may, if it is of opinion that it is necessary so to do in the public interest by

17 notification, withdraw from the operation of this Act the whole or part of any planning area.

1. (2) When a notification is issued under sub-section (1) in respect of any planning area or part thereof —
   • (i) this Act and all rules, regulations, bye-laws, notifications, orders, directions and powers made, issued or conferred under this Act, shall cease to apply to the said area or part and the Planning and Development Authority, if any constituted, under this Act shall cease to have jurisdiction in respect of the said area or part, as the case may be; but where any Planning and Development Authority has

been constituted exclusively for such area or part, such Authority shall, on the date of the notification stand dissolved;

1. (ii) the Government shall, after consulting the Board, the Planning and

Development Authority and the local authority or authorities concerned, frame a scheme determining the portion or portions of the balance of the fund of the Planning and Development Authority concerned which shall vest in the Government and in the local authority or authorities concerned, and the manner in which the properties and liabilities of the Planning and Development Authority shall be apportioned between the Government and such local authority or authorities, and on the scheme being notified in the Official Gazette, the fund, property and liabilities of the Planning and Development Authority shall vest and be apportioned accordingly.