Section 12(5)(b) in The Punjab Municipal Act, 1999
(b)the Government may, by notification, issue such orders as it may deem fit,-(i)as to the transfer to the Municipal Council, or disposal otherwise of, the assets or institutions of such local authority in the area so constituted or included, and(ii)as to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.