Section 46(1) in The U.P. Water Supply and Sewerage Act, 1975
(1)Notwithstanding anything contained in any law for the time being in force under which any local body is constituted and except as otherwise provided in sub-section (5), the Nigam shall, with effect from the date of its establishment, be the only local authority authorised to borrow any sum of money for water supply and sewerage services :Provided that a local body having jurisdiction over a local area not included within the jurisdiction of a Jal Sansthan may with the approval of the State Government, which shall consult the Nigam before giving such approval, borrow any sum of money for such services.
