Section 38(10)(b) in The U.P. Water Supply and Sewerage Act, 1975
(b)if the services of an employee of a local body stand transferred under sub-section (1) to the Jal Sansthan, the Jal Sansthan shall be competent' after such transfer to take such disciplinary or other action as it thinks fit against or in respect or such employee having regard to any act or omission or conduct or record of such employee while he was in the service of the local body.