। ॥ ३३ ॥
In plain words
When a word drops its literal meaning entirely and works instead on something standing right beside it — the way "a village on the Ganges" gives you a village on the bank — that function is jahatī lakṣaṇā, the indication that lets go.
Close to the Sanskrit
Having abandoned the whole denoted meaning, whichever function would operate on what is connected with that — as in 'a hamlet on the Ganges' — that indeed is jahatī lakṣaṇā, the abandoning indication.