Abolition of Municipalities— (1) The '[Governor] may by notification abolish

any municipality to which this Act applies :

Provided that—

1. (2) The '[Governor] shall, before they issue such notification communicate to the municipality the grounds on which they propose to do so, fix a reasonable period for the municipality to show cause against the proposal and consider it explanations and objections, if any;
   • (b) the notification shall contain a statement of the 1[Governor's] reasons.
2. (2) From such date, as may be specified in such notification this Act and all notifications, rules, bye-laws, regulations, orders, directions and powers issued, made or conferred under this Act, shall cease to apply to the area previously comprised in the municipality; the balance of the municipal fund and all other property vested in the municipality shall vest in the State Government and the liabilities of the municipality shall be transferred to the State Government.
3. (3) All property vested in the State Government under sub-section (2) shall be applied under the orders of the State Government, to discharge the liabilities imposed on the State Government by that sub-section or for the promotion of the safety, health, welfare, and convenience of the inhabitants of the area previously comprised in the municipality.