Declaration of municipal area as Corporation.

(1) For the purposes of this Act, the area comprised within the limits of the Shimla Municipal Corporation constituted under the Himachal Pradesh Municipal Corporation Act, 1979 (9 of 1980) shall be the Municipal Corporation of Shimla. (2) The Government may, from time to time, by a notification in the Official Gazette, declare any municipality to be a Corporation Known as "the Municipal Corporation of ............................... (Name of Corporation) ”: Provided that no municipality or group of municipalities shall be so declared to be a Corporation unless:- (i) the population thereof exceeds fifty thousand; and (ii) the total income of the municipality or group of municipalities immediately preceding the date of issue of the notification, exceeds two corers rupees per annum. (3) The Government may, from time to time, after consultation with the Corporation, by notification in the Official Gazette, alter the limits of the municipal area of the Corporation declared under sub-sections (1) and (2) so as to include therein or exclude therefrom such areas as may be specified in the notification. (4) When the limits of the municipal area are altered, so as to include therein any area, except as the Government may otherwise by notification direct, all rules, regulations, notifications, bye-laws, orders, directions and powers issued or conferred and all taxes imposed under this Act and in force in the municipal area, shall apply to such area. (5) When a local area is excluded from the Corporation under sub-section (3),- (a) this Act, and all notifications, rules, bye-laws, orders directions and powers issued, made or conferred under this Act, shall cease to apply thereto; and