(5)Where any area within the territorial jurisdiction of any local authority, other than a Municipal Council, is constituted as, or included in, a smaller urban area, -(a)the provisions of this Act, and except as the Government may, by notification, otherwise direct, all rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such smaller urban area shall apply to, and shall be deemed to have been imposed in, the area so constituted or included;(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.
