(1) The State Government may, by notification, and for reasons to be Power to Exempt

recorded in writing, except Class 'C' municipal areas or Nagar Panchayats from Municipal area from the operation of any of the provisions of this Act considers unsuited thereto, and, operation of any thereupon, the said provisions shall not apply to such class 'C' municipal areas provisions of the Act or Nagar Panchayats, as the case may be until such provisions are applied unsuited thereto. thereto by notification.

1. (2) While a notification under sub- section (1) remains in force, the State Government may make rules consistent with the provisions of this Act in respect of any matter within the purview of such provisions from the operation of which the municipal areas or Nagar Panchayats as aforesaid are exempted. Chapter-lll Municipality and Municipal Councillors