Amendment status not verified — confirm the current text below against the official source.
(1) When, by reason of a notification under section 3, any local area ceases to be included in a [Transitional area or a smaller urban area, as the case may be]2 and is immediately placed under the control of some other local authority such portion of the municipal fund and other property vesting in the [Municipality]3 shall vest in that other local authority and such portion of the liabilities of that [Municipality]3 shall be transferred to that other local authority, as the [State Government] after consulting the [Municipality]3 and that other local authority, declares by notification. (2) When, in like manner, any local area ceases to be included in a [transitional area or a smaller urban area, as the case may be]2 and is not immediately placed under the control of some other local authority, such portion of the municipal fund and other property vesting in the [Municipality]3 shall vest in the State Government and such portion of the liabilities of the [Municipality]3 shall be transferred to the State Government, as the State Government after consulting the [Municipality]3 and considering any representation made by the inhabitants of the excluded area, declares by notification. (3) Provided that where an excluded area is placed under the control of local a local authority not existing at a date previous to the exclusion, the State Government, before making a declaration under sub-section (1), shall take into consideration any 247 representation made by inhabitants of the excluded area. (4) Provided also that the foregoing provisions of this section shall not apply in any case where the circumstances, in the opinion of the State Government render undesirable, the transfer of any portion of the municipal fund or liabilities. 1- Subs. by section 19 (v) of U.P. Act No. 22 of 1972. 2- Subs. by section 72 of Chapter-III of U.P. Act No. 12 of 1994. 3- Subs. by section 134 ibid. 4- Subs. by section 32 of Chapter-III of U.P. Act No. 26 of 1995. [The [Uttar Pradesh]2 Municipalities Act, 1916] [Section 123-127] Application of funds and property accruing to Government under section 121 or 122