Purchase by State Government or local authority

(6) Where a purchase has been effected under sub-section (1) or sub-section (5), - (a) The undertaking shall vest in the purchaser free from any debts, mortgages or similar obligations of the promoter or attaching to the undertaking: Provided that any such debts, mortgages or similar obligations shall attach to the purchase money in substitution of the undertaking; and (b) save as aforesaid, the licence published under section 10 shall remain in full force and the purchaser shall deemed to be the promoter: Provided that where the State Government elects to purchase, the order under section 10 shall, after purchase, in so far as the State Government is concerned, cease to have any further operation. (7) Not less than two years' notice in writing of any election to purchase under clause (a) or clause (b) of sub-section (2) of this section shall be served upon the promoter by the State Government or the local authority, as the case may be. (8) Notwithstanding anything hereinbefore contained, a local authority may, with the prior sanction of the State Government, waive its option to purchase and enter into an agreement with the promoter for the working by him of the undertaking until the expiration of the next subsequent period mentioned in the order or referred to in clause (b) of sub-section (2), upon such terms and conditions as may be stated in the agreement.