These are generally policy matters and the policy has to be decided by the Government, normally, on case to case basis. Therefore, it is not possible to comment in general, whether the Government will close a specific autonomous body after scrutinizing its performance.
Again, whether the staff of an autonomous body would be absorbed in Government on closure of the autonomous body, would depend on the policy of Government in individual cases. There does not appear to be a general set of police in this regard. At least I have not come across any such general policy.
However, in case of closure of a unit, usually arrangement is made for the permanent employees in the form of VRS or absorption in some other unit, or payment of lump-sum amount as compensation. Moreover, depending on the type of activity being carried out by the unit / autonomous body, the labour laws or other employee related laws may come into play which protect the right of employees in certain ways, when the unit is being closed.
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