(1)For every Class 'A', or Class 'B' or Class 'C' smaller urban area, there shall be constituted a Municipal Council :Provided that a Municipal Council may not be constituted for such area or part thereof as the Government may, having regard to the size of the area and the municipal services being provided by an industrial establishment in that area and such other factors as the Government may think fit and subject to such conditions as the Government may think fit to impose, by notification, specify to be an Industrial Township :Provided further that if the Government is of the opinion that the industrial establishment providing municipal services in an industrial township, has failed to provide satisfactory municipal services or has failed to fulfil the conditions, which the Government had imposed while specifying a smaller urban area to be that industrial township, the Government may, after giving the concerned industrial establishment, an opportunity to show cause, declare by notification that such area has ceased to be an industrial township and constitute a Municipal Council therefor.
