Power of State Government to dissolve Panchayats for default, abuse of power, etc

(1) If at any time it appears to the State Government or the prescribed authority that a Panchayat is persistently making default in the performance of the duties imposed on it by or under this Act or under any other law for the time being in force, or exceeds or abuses its powers or fails to carry out any order of the State Government or the competent authority, the State Government or the prescribed authority, may, after such enquiry as it may deem fit, by an order dissolve such Panchayat and may order a fresh constitution thereof. (2) No order under sub-section (1) shall be passed unless reasonable opportunity has been given to the Panchayat for furnishing its explanation. The notice calling explanation shall be addressed to the Pradhan of the Gram Panchayat, or Chairman of the Panchayat Samiti or Zila Parishad, as the case may be, and shall be served according to the provisions of section 194. The reply of the Panchayat to the notice shall be supported by the resolution of the Panchayat. (3) On dissolution of Panchayat under sub-section (1), the following consequences shall ensue, namely:- (a) all the office-bearers, shall vacate their offices with effect from the date of such order; (b) all powers and duties of the Panchayat shall, until the Panchayat is reconstituted, be exercised and performed by such person or committee of persons as the State Government or the prescribed authority may appoint in this behalf and where a committee of persons is so appointed, the State Government or the prescribed authority shall also appoint a head of such committee; and (c) where a committee is appointed under clause (b), any member of such committee duly authorised by it may issue or institute or defend any action at law on behalf of or against the Panchayat. (4) Any person appointed to exercise and perform the powers and duties of a Panchayat during the period of dissolution may receive from the Fund of the Panchayat concerned such payment for his service as the State Government may, by order, determine. (5) A Panchayat dissolved under sub-section (1) shall be reconstituted in accordance with the provisions of this Act within six months of its dissolution. Such reconstituted Panchayat shall function for the remaining term of the Panchayat. (6) Notwithstanding anything contained in this section, when on account of the reason that the whole of the Sabha area of the Gram Panchayat ceases to be the Sabha area either due to its declaration as Municipal area or its inclusion in the existing Municipal area for providing better facilities to the public of the said area and also in the public interest, the State Government shall, by an order published in the Official Gazette, dissolve the Gram Panchayat from a date specified in the order. (7) The office bearers of the Gram Panchayat which has been dissolved under sub-section (6) shall vacate their offices from the date specified in the order of the Government.