(1) If the income of a village panchayat falls below what in the opinion of a taluka

panchayat is necessary for the proper discharge of the duties specified in Schedule I, the taluka panchayat may after having given such panchayat an opportunity of being heard, require it to take steps within six months, to increase its income to such extent as the taluka panchayat considers necessary. If the village panchayat fails to take adequate steps to increase it income to the required extent, the taluka panchayat may require it to levy any of the taxes or fees specified in section 200 or increase the rate at which any of the such taxes and fees is levied and it shall be the duty of the panchayat to comply with the requirement: Provided that the taluka panchayat shall not compel the panchayat to levy any tax or fee or increase the rate thereof beyond the maximum rate prescribed in this behalf.

1. (2) The Panchayat in respect of which an order under sub-section (1) is made by the taluka panchayat may within the prescribed period prefer an appeal to the district panchayat, which may pass such orders on the appeal as it may think just and proper. The district panchayat may stay the execution of the order until the appeal is decided.