(1)The [Governor] [Substituted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.] may by notification abolish any Municipal area to which this Act applies :Provided that -(a)the [Governor] [Substituted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.] shall, before they issue such notification communicate to the Municipality the grounds on which they purpose to do so, fix a reasonable period for the Municipality to show cause against the proposal and consider its explanations and objections, if any;(b)the notification shall contain a Statement of the [Governor] [Substituted vide Orissa Act No. 11 of 1994 w.e.f. 31.5.1994.] reason.(2)From such date as may be specified in such notification this Act and all notification, rules, bye-laws, regulations, orders, directions and powers issued, made or conferred under this Act, shall cease to apply to the area previously comprised in the Municipal area the balance of the Municipal fund and all other property vested in the Municipality shall vest in the State Government and the liabilities, of the Municipality shall be transferred to the State Government.(3)All property vested in the State Government under Sub-section (2) shall be applied, under the orders of the State Government to discharge the liabilities imposed on the State Government by that sub-section or for the promotion of the safety, health, welfare and convenience of the inhabitants of the area previously comprised in the Municipal area.
