Amendment status not verified — confirm the current text below against the official source.
Constitution of Municipal Councils and Nagar Panchayats.- (1) There shall be constituted- (a) a Municipal Council for a smaller urban area; and (b) a Nagar Panchayat for a transitional area , that is to say an area in transition from a rural area to an urban area. Provided that a Municipal Council or a Nagar Panchayat, as the case may be , may not be constituted in such urban area or part thereof as the Governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment or a group of such establishments inn that area and such other factors as he may deem fit, by public notification specify to be an industrial township: Provided further than when an area is notified to be a transitional area, the Gram Panchayat having jurisdiction over such area shall continue to function until a duly elected Nagar Panchayat is constituted under this Act. (2) In this Section a smaller urban area, or ‘a transitional area, means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors, as he may deem fit specify, by public notification for the purpose of this Act. (3) Omitted. 5-A. Power of State Governor to include or exclude certain area.- (1) The Governor may, by notification in the Gazette, declare the intention to include within or exclude from the limits of a municipal area , any specified area. (2) If the local authority having jurisdiction in the said area or any person resident therein, objects to such declaration, such authority or person may submit an objection in writing to the Collector within a prescribed period and the Governor shall take such objection into consideration. (3) When the said period has expired and the Governor has considered the objection under sub-section (2), the Governor may, b y notification, include within or exclude from the limits of the municipal area, any specified area; Provided that when an area is excluded from the limits of any municipal area, such area notwithstanding such exclusion shall continue to be within the limits of the municipal area until the area so excluded is included in a duly constituted Panchayat area.