Amendment status not verified — confirm the current text below against the official source.
Effect of absorption of part of the Panchayat area into a transitional area.— Any part of a local area within the limits of a Panchayat area may be included in a transitional area and when it is so included then notwithstanding anything contained in this Act or in the Karnataka Panchayat Raj Act, 1993 but subject to the provisions of section 4 of this Act, with effect from the date on which such area is included in the transitional area the following consequences shall ensue, namely:— (a) so much of the Grama Panchayat Fund and other property vesting in the Grama Panchayat shall be transferred to the Town Panchayat Fund as the Government may, by order in writing, direct; (b) the rights and liabilities of the Grama Panchayat in respect of civil and criminal proceedings, contracts and other matters or things (including arrears of taxes, fees and cess) arising in or relating to the part of the area included in the transitional area shall vest in the Town Panchayat and such rights and liabilities may be enforced by or against the Town Panchayat under this Act or the rules, bye-laws and orders made thereunder; (c) such officers and servants of the Grama Panchayat shall be transferred to the Town Panchayat as the Government may, by order, direct.