Amendment status not verified — confirm the current text below against the official source.
The validity of this Act was questioned before the High Court of Hyderabad and the High Court held that the abolition of cash grants without payment of compensation was illegal and that the applicants were entitled to "rusums" discontinued under section 3 of that Act. The Government of Hyderabad appealed to the Supreme Court against the orders of the High Court, but the appeal was subsequently withdrawn by the Government of Andhra Pradesh. In order to provide for the abolition of the cash grants, and payment of compensation for such abolition, the Andhra Pradesh (Abolition of Cash Grants) Act, 1959 was passed by the Andhra Pradesh Legislature. The Government of Maharastra is also undertaking legislation for the abolition of the cash grants and payment of compensation .It is considered necessary to undertake legislation in order to abolish the system of cash grants in the Hyderabad, Karnataka Area. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV- 2A, dated 26-7-1967, No. 155, at page 7. ) * * * * 1[KARNATAKA]1 ACT No. 15 OF 1967 (First Published in the 1[Karnataka Gazette] 1 on the Twenty-first day of December, 1967) THE 1[KARNATAKA]1 (ABOLITION OF CASH GRANTS) ACT, 1967 (Received the assent of the President on the Eleventh day of December, 1967) (As on ………..) An act to discontinue certain classes of cash grants in the 1[Gulburga Area]1 of the 1[State of Karnataka]1. WHEREAS it is expedient to discontinue certain classes of cash grants in the 1[Gulburga Area]1 of the 1[State of Karnataka]1 ; BE it enacted by the 1[Karnataka]1 State Legislature in the Eighteenth Year of the Republic of India as follows :-