Indian Polity · Polity

With reference to the administration of Scheduled Areas under the Fifth Schedule of the Constitution of India, consider the following statements: I. Declaration of an area as a Scheduled Area results in the transfer of executive authority from the State Government to local self-governing institutions. II. Upon the recommendation of the Governor, the Union Government may assume direct administrative control over a Scheduled Area under special circumstances. Which of the statements given above is/are correct?