Section 122(2) in The U.P. Municipalities Act, 1916
(2)When in like manner, any local area ceases to be included in a [transitional area or a smaller urban area, as the case may be,] [Substituted by U.P. Act No. 12 of 1994.] and is not immediately placed under the control of some other local authority, such portion of the municipal fund and other property vesting in the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall vest in the [State Government] [Substituted by ALO 1950.], and such portion of the liabilities of the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall be transferred to the [State Government] [Substituted by ALO 1950.], as the State Government after consulting the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] and considering any representation made by the inhabitants of the excluded area, declares by notification.
