VESTING OF PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS AND TRANSFER OF EMPLOYEES

Vesting of existing water supply and sewerage services in the Authority.

§20

Summary

20. Vesting of existing water supply and sewerage services in 1[the Authority].- (1) Notwithstanding anything contained in any law for the time being in force, 2[the Authority] may, at any time, with the previous approval of the State Government take over any water supply and sewerage services for maintenance or augmentation or improvement from any local body, and in such cases- (a) all the existing water supply and sewerage services, sewerage works and sewage farms, including, as the case may be, all plants, machineries, water works, pumping stations, filter beds, water mains and public sewers in, along, over or under any public street and all buildings, lands and other works, materials, stores and things appertaining thereto, belonging to or vested in that local body; (b) so much of the sub-soil appertaining to the said water mains and sewers as may be necessary for the purpose of enlarging, deepening or otherwise repairing or maintaining, any such water mains and sewers or any pipes and other appliances and fittings connected with such water supply and sewerage services and sewage works and sewage farms; and (c) all rights, liabilities and obligations of such local body relating to the things mentioned in clauses (a) and (b) including the right to recover arrears of water tax and sewerage tax, by whatever name called, and of any cost or fees or charges relating to water supply and sewerage services and also including liabilities arising from any loans advanced by Government or any other persons to the said local body for the things aforesaid, other than loans diverted to or utilised for purposes other than those referred to in clauses (a) and (b), shall, on such date as may be specified by 3[the Authority], stand transferred to and vested in 4[the Authority] and be subject to its control. (2) Such properties, assets, rights, liabilities and obligations shall be valued in such manner as the State Government may determine. (3) Where any doubt or dispute arises as to whether any property or assets has vested in 5[the Authority] under sub-section (1) or any rights, liabilities or obligations have become the rights, liabilities or obligations of 6[the Authority] under this section, such doubt and dispute shall be referred to the State Government, whose decision shall be final and binding on 7[the Authority] and the local body concerned. (4) For taking over any properties or assests of the local body, 8[the Authority] shall pay to that body such amount as may be mutually agreed upon. In the absence of any such agreement, the State Government shall determine the amount to be paid to the local body on the basis of the valuation made under sub-section (2) and after taking into consideration the statutory duty of the local body to provide water supply and sewerage services, the grants received by the local body, from time to time, the outstanding loan liabilities of the local body, and such other relevant factors. The decision of the State Government shall be final and binding on both parties.

20. Vesting of existing water supply and sewerage services in 1[the Authority].- (1) Notwithstanding anything contained in any law for the time being in force, 2[the Authority] may, at any time, with the previous approval of the State Government take over any water supply and sewerage services for maintenance or augmentation or improvement from any local body, and in such cases- (a) all the existing water supply and sewerage services, sewerage works and sewage farms, including, as the case may be, all plants, machineries, water works, pumping stations, filter beds, water mains and public sewers in, along, over or under any public street and all buildings, lands and other works, materials, stores and things appertaining thereto, belonging to or vested in that local body; (b) so much of the sub-soil appertaining to the said water mains and sewers as may be necessary for the purpose of enlarging, deepening or otherwise repairing or maintaining, any such water mains and sewers or any pipes and other appliances and fittings connected with such water supply and sewerage services and sewage works and sewage farms; and (c) all rights, liabilities and obligations of such local body relating to the things mentioned in clauses (a) and (b) including the right to recover arrears of water tax and sewerage tax, by whatever name called, and of any cost or fees or charges relating to water supply and sewerage services and also including liabilities arising from any loans advanced by Government or any other persons to the said local body for the things aforesaid, other than loans diverted to or utilised for purposes other than those referred to in clauses (a) and (b), shall, on such date as may be specified by 3[the Authority], stand transferred to and vested in 4[the Authority] and be subject to its control. (2) Such properties, assets, rights, liabilities and obligations shall be valued in such manner as the State Government may determine. (3) Where any doubt or dispute arises as to whether any property or assets has vested in 5[the Authority] under sub-section (1) or any rights, liabilities or obligations have become the rights, liabilities or obligations of 6[the Authority] under this section, such doubt and dispute shall be referred to the State Government, whose decision shall be final and binding on 7[the Authority] and the local body concerned. (4) For taking over any properties or assests of the local body, 8[the Authority] shall pay to that body such amount as may be mutually agreed upon. In the absence of any such agreement, the State Government shall determine the amount to be paid to the local body on the basis of the valuation made under sub-section (2) and after taking into consideration the statutory duty of the local body to provide water supply and sewerage services, the grants received by the local body, from time to time, the outstanding loan liabilities of the local body, and such other relevant factors. The decision of the State Government shall be final and binding on both parties.

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