Declaration of municipal areas

(1) Subject to the provisions contained in sub-section (2) the Administrator may, by notification, declare any area within the district to be a municipal area, and may, by like notification, extend contract or otherwise alter the limits of any municipal area, or may declare that any such area shall, form a date specified by him, cease to be a municipal area: Provided that no such notification shall be issued unless (i) the draft of the notification together with a notice specifying the date after which that draft and the objections, and suggestions of the persons likely to be affected thereby will be taken into consideration by the Administrator has been previously published and pasted at the office of the Deputy Commissioner and one or more conspicuous places within or adjacent to the area concerned; and (ii) the objections and suggestions of the persons likely to be affected by the proposed notification received in writing within the date so specified, have been taken into consideration by the Administrator and have been found by him to be insufficient or invalid. (2) No notification under sub-section (1) shall be issued in respect of - (a) any place which has been declared by the Central Government under section 3 of the Cantonments Act, 1924 to be a Cantonment for the purposes of that Act, or (b) any area not having an average population of five hundred inhabitants to a square mile calculated in accordance with the latest official census: Provided that the Administrator 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 notification, any such municipal area as an area for establishing a Nagar Panchayat or Municipal Council, as the case may be.