(1)- Where any Jal Sansthan or local body which is under a liability to the Nigam under any agreement makes any default in repayment of any loan or advance or any instalment thereof or otherwise to comply with the terms of the agreement with the Nigam, the Nigam may request the State Government for action under this section.
(2)- The State Government on receiving a request from the Nigam under sub-section (1) may, after giving an opportunity of explanation to the Jal Sansthan or local body concerned, direct that the Nigam shall take over the management of the water supply or sewerage services or both, as the case may be, of the Jal Sansthan or local body and realise its dues through such management, and such order shall have effect for such period not exceeding three years as may be specified by the State Government:
Provided that the State Government may by order extend the period of operation of its original order from time to time so however that such extension shall not exceed two years in the aggregate.
[(2A) If at any time the State Government is satisfied that a Jal Sansthan or local body has mismanaged the water supply or sewerage services or both, as the case may be, or has occasioned loss to its property, it may, after giving an opportunity of explanation to the Jal Sansthan or local body, by order, transfer the management of water supply or sewerage services of that Jal Sansthan or local body direct to the Nigam, and such order shall have effect for such period not exceeding three years as may be specified by the State Government:
Provided that the State Government may, by order, extend the period of operation of its original order from time to time, so however that such extension shall not exceed two years in the aggregate.]
(3)- Where the management of water supply or sewerage services of any Jal Sansthan or local body is taken over by the Nigam or any dues are realised by it under the [provisions of sub-section (2) or sub-section (2-A)] all costs, charges and expenses properly incurred by it as incidental to such management and realisation shall be recoverable from the Jal Sansthan or local body and the money which is received by it from such management and realisation shall, in absence of any contract to the contrary, be held by it in trust to be applied, firstly, in payment of such costs, charges and expenses and secondly, in discharge of the debt due to the Nigam and residue of the money so secured shall be paid to the Jal Sansthan or local body entitled thereto.
(4)- Where an order is passed 3 under sub-section (2), or (2-A) the Jal Sansthan or local body concerned and its employees engaged in the water supply or sewerage services or both, as the case may be, shall forthwith comply with such order, and at the request of the Nigam the Collector of the district may take all necessary steps for securing to the Nigam the possession of any property or asset, book of account, register or document relating to such services and, in particular, may use or cause to be used such force as may be necessary.
(2)- The State Government on receiving a request from the Nigam under sub-section (1) may, after giving an opportunity of explanation to the Jal Sansthan or local body concerned, direct that the Nigam shall take over the management of the water supply or sewerage services or both, as the case may be, of the Jal Sansthan or local body and realise its dues through such management, and such order shall have effect for such period not exceeding three years as may be specified by the State Government:
Provided that the State Government may by order extend the period of operation of its original order from time to time so however that such extension shall not exceed two years in the aggregate.
[(2A) If at any time the State Government is satisfied that a Jal Sansthan or local body has mismanaged the water supply or sewerage services or both, as the case may be, or has occasioned loss to its property, it may, after giving an opportunity of explanation to the Jal Sansthan or local body, by order, transfer the management of water supply or sewerage services of that Jal Sansthan or local body direct to the Nigam, and such order shall have effect for such period not exceeding three years as may be specified by the State Government:
Provided that the State Government may, by order, extend the period of operation of its original order from time to time, so however that such extension shall not exceed two years in the aggregate.]
(3)- Where the management of water supply or sewerage services of any Jal Sansthan or local body is taken over by the Nigam or any dues are realised by it under the [provisions of sub-section (2) or sub-section (2-A)] all costs, charges and expenses properly incurred by it as incidental to such management and realisation shall be recoverable from the Jal Sansthan or local body and the money which is received by it from such management and realisation shall, in absence of any contract to the contrary, be held by it in trust to be applied, firstly, in payment of such costs, charges and expenses and secondly, in discharge of the debt due to the Nigam and residue of the money so secured shall be paid to the Jal Sansthan or local body entitled thereto.
(4)- Where an order is passed 3 under sub-section (2), or (2-A) the Jal Sansthan or local body concerned and its employees engaged in the water supply or sewerage services or both, as the case may be, shall forthwith comply with such order, and at the request of the Nigam the Collector of the district may take all necessary steps for securing to the Nigam the possession of any property or asset, book of account, register or document relating to such services and, in particular, may use or cause to be used such force as may be necessary.