Amendment status not verified — confirm the current text below against the official source.
(1) Where any local area is declared to be a village under clause (g) of article 243 of the Constitution and, immediately before such declaration, the local area was co- extensive with the limits of a municipal borough or included an area comprising a municipal borough as well as any other area, then with effect from the date on which such local area is so declared to be a village (in this section referred to as “the said date”), the following consequences shall, notwithstanding anything in the Municipal Act, ensue, that is to say— (a) the nagar panchayat functioning in such local area or part thereof shall cease to exist; (b) there shall, notwithstanding anything contained in any law for the time being in force be constituted for the village an interim village panchayat consisting of persons vacating office as members of the nagar panchayat or members of the committee thereof and the President and Vice-President of the nagar panchayat shall respectively, be deemed to be the Sarpanch and Upa-Sarpanch of the interim village panchayat: Provided that if immediately before the nagar panchayat so ceasing to exist, there be a person or persons appointed under section 263 of the Municipal Act to exercise the powers and perform the duties of the nagar panchayat, there shall be an interim village panchayat for the local area and the person or persons so appointed shall be deemed to be a person or persons appointed under clause (a) of sub-section (4) of section 253 to exercise all the powers and perform all the duties of such interim village panchayat; (c) the unexpended balance of the nagar fund and property including arrears of rates, taxes and fees belonging to the nagar panchayat, and all rights and powers, which prior to such notification, vested in the nagar panchayat shall, subject to all charges and liabilities affecting the same vest in the interim village panchayat as the village fund until the new panchayat is constituted under the provisions of this Act; (d) any appointment, notification, notice, tax, fee, cess, order, scheme, licence, permission, rule, bye-law, or form made, issued, imposed or granted under the Municipal Act immediately before the said date in respect of such local area shall continue to be in force and be deemed to have been made, issued, imposed or granted in respect of the village until it is superseded or modified by any other appointment, notification, notice, tax, fee, cess, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under this Act; (e) all budget estimates, assessments, assessment lists, valuations of measurements made of authenticated under the Municipal Act immediately before the said date in respect of such local area shall be deemed to have been made or authenticated under this Act; Guj. 34 of