Power of Government to supersede Corporation in case of incompetency or default or excess or abuse of powers

(1) If at any time upon representations made, or on its own motion, or pursuant to a report received or otherwise, it appears to the State Government that the Corporation is not competent to perform, or persistently makes default in the performance of the duties imposed on it by or under this Act or any other law for the time being in force, or exceeds or abuses its powers, or that the Corporation and its activities are being run in a manner prejudicial to the provisions of this Act, or in cases of non-compliance with any directions issued under this Act by the State Government, the State Government may, after having given an opportunity to the Corporation to show cause why the Corporation should not be dissolved and after considering representation, if any, submitted by the Corporation within the time specified by the State Government, by an order published, with reasons therefor, in the Official Gazette, dissolve the Corporation.

1. (2) Notwithstanding anything contained in sections 17 and 22, all Councillors shall vacate their office from the date mentioned in any order under sub-section (1).