Section 26 in The Chennai Metropolitan Water Supply and Sewerage Act, 1978
26. Vesting of water-supply and sewerage services in the Board.
(1)Subject to the other provisions contained in this Act, all properties, assets and liabilities of an existing authority relating to water supply and sewerage services exclusively for the Chennai Metropolitan Area (including all works in progress and all water works and sewerage works situated in or outside that Area and connected with the services as aforesaid) shall stand transferred to, and vest in, the Board, with effect from such date as the Government may, by notification, appoint:Provided that different dates may be notified-(i)for different existing authorities;(ii)for the vesting of different properties, assets and liabilities of the existing authorities.(2)Where any water works situate outside the [Chennai] [Substituted for the word 'Madras' by the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] Metropolitan Area is utilised partly for water supply for that area and partly for other areas or purposes, the Board and the Government shall enter into an agreement not later than three months from the date of coming into force of this Act specifying the nature and extent of the Board's control over such works, the quality and quantity of water to be supplied for that area and other matters connected therewith:Provided that, in the absence of such agreement or until such time as such agreement is reached, the Government shall be responsible for the continuance and maintenance of the arrangements and works in existence on the date of coming into force of this Act.(3)The assets relating to water supply and sewerage service referred to in sub-section (1) shall be deemed to include all rights, powers, authorities and privileges, and all property, movable and immovable, including cash balances, deposits, funds and investments and all other interests and rights in, or arising out of, such property and all books, accounts and documents relating thereto as may be in the possession or control of a local authority immediately before the notified date, and the liabilities relating thereto shall be deemed to include all debts, liabilities and obligations pertaining to such services.(4)If the notified date in relation to the Municipal Corporation of Chennai is earlier than the notified date in relation to the Government, the Government shall until the latter date and in respect of the water works situated outside, but used exclusively for the [Chennai] [Substituted for the word 'Madras' by the City of Madras (Alteration of Name) Act, 1996 (Tamil Nadu Act 28 of 1996).] Metropolitan Area, be responsible for the continuance and maintenance of the arrangements and works in existence on the former date.
