Chapter XV Chapter XV

[Content provided in document header: Specifying transitional area.] (1) the Governor may, having regard to the factors mentioned in clauses (a), (b), (c), (d), (e) and (f) of sub-section (1) of section 3, and subject to the provisions of section 9 specify, by notification, any area to be a transitional area: Provided that no such area shall be so specified as a transitional area unless,— (a) such area contains a population of not less than ten thousand but less than twenty thousand; (b) the density of population in such area is not less than four hundred inhabitants to one square kilometer of area; (c) the percentage of employment in non-agricultural activities is not less than fifty percent of the total employment: Provided further that if a Taluka Head quarters is situated in such area, the Governor may, specify such area to be a transitional area even though it contains population of less than ten thousand.

[Content provided in document header: Municipal Area.] Where any area is specified to be a transitional area under section 349, such area shall be deemed to be a municipal area.

[Content provided in document header: Constitution of Town Panchayat for a transitional area.] (1) There shall be constituted for such transitional area which is deemed to be a municipal area under section 350 a town panchayat. (2) Every town panchayat shall be a body corporate by the name of “the Town Panchayat of” and shall have perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract and may by the said name sue and be sued.

[Content provided in document header: Election to Town Panchayat.] (1) A Town Panchayat shall consist of,- (a) not less than eleven and not more than twenty Councillors as may be determined by the Government, by notification. (b) not more than three persons nominated by the Government from amongst the residents of the transitional area and who are,- (i) persons having special knowledge and experience in municipal administration or matters relating to health, town planning or education; or (ii) social workers (c) the members of House of the people and the members of the State Legislative Assembly, representing a part or whole of the transitional area whose constituencies lie within the transitional area; and (d) the members of the Council of States and the members of the State Legislative Council registered as electors within the transitional area: Provided that the persons referred to in clause (b) shall not have the right to vote in the meetings of the Town Panchayat. (2) For the purpose of elections, the Government shall, by notification, divide a transitional area into such number of territorial constituencies, to be known as wards, as there are councillors determined under sub-section (1) and each ward shall constitute a constituency. (3) Each ward shall elect one councillor. (4) Seats shall be reserved in a Town Panchayat,— (a) for the Scheduled Castes; and (b) for the Scheduled Tribes; and the number of seats reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in the Town Panchayat as the population of the Scheduled Castes in the transitional area or of the Scheduled Tribes in the transitional area bears to the total population of the transitional area. Provided that atleast one seat each shall be reserved in a Town Panchayat for the persons belonging to the Scheduled Castes and the Scheduled Tribes: Provided further that, if no person belonging to the Scheduled Castes is available the seat reserved for that category shall also be filled by the persons belonging to the Scheduled Tribes and vice versa. (5) Such number of seats which shall as nearly as may be one third of the total number of seats to be filled by direct election in a Town Panchayat shall be reserved for persons belonging to the Backward Classes; Provided that out of the seats reserved undeer this sub-section eighty per cent of the total number of such seats shall be reserved for the persons falling under category "A" and the remaining twenty per cent of the seats shall be reserved for the persons falling under category "B": Provided further that if no person falling under category "A" is available, the seats reserved for that category shall also be filled by th persons falling under category "B" and vice versa. Provided also that the number of seats reserved for the backward classes under this sub-section shall be so determined, that the total number of seats reserved for the scheduled casts and the scheduled tribes under sub-section (4) and the backward classes under this sub-section shall not exceed fifty per cent of the total number of seats in the Town Panchayat. (6) Not more than fifty percent of the seats reserved for each category of persons belonging to the Scheduled Castes, Scheduled Tribes and Backward Classes and those of the non-reserved seats to be filled by direct election in a Town Panchayat shall be reserved for women: Provided that the seats reserved in sub-sections (4), (5) and (6) shall be allotted by rotation to different wards in a transitional area. (7) The councillors shall be elected in the manner provided in this Act. (8) Nothing contained in sub-sections (4), (5) and (6) shall be deemed to prevent the members of the Scheduled Castes, Scheduled Tribes, Backward Classes or Women from standing for election to the non-reserved seats. (9) Notwithstanding anything contained in this section where two-third of the total number of councillors of any Town Panchayat have been elected, the Town Panchayat shall be deemed to be have been duly constituted under this Act. (4) [Part of section preceding sub-section (4)] population of the Scheduled Castes in the transitional area or of the Scheduled Tribes in the transitional area bears to the total population of the transitional area. Provided that atleast one seat each shall be reserved in a Town Panchayat for the persons belonging to the Scheduled Castes and the Scheduled Tribes: Provided further that, if no person belonging to the Scheduled Castes is available the seat reserved for that category shall also be filled by the persons belonging to the Scheduled Tribes and vice versa. (5) Such number of seats which shall as nearly as may be one third of the total number of seats to be filled by direct election in a Town Panchayat shall be reserved for persons belonging to the Backward Classes; Provided that out of the seats reserved undeer this sub-section eighty per cent of the total number of such seats shall be reserved for the persons falling under category "A" and the remaining twenty per cent of the seats shall be reserved for the persons falling under category "B": Provided further that if no person falling under category "A" is available, the seats reserved for that category shall also be filled by th persons falling under category "B" and vice versa. Provided also that the number of seats reserved for the backward classes under this sub-section shall be so determined, that the total number of seats reserved for the scheduled casts and the scheduled tribes under sub-section (4) and the backward classes under this sub-section shall not exceed fifty per cent of the total number of seats in the Town Panchayat. (6) Not more than fifty percent of the seats reserved for each category of persons belonging to the Scheduled Castes, Scheduled Tribes and Backward Classes and those of the non-reserved seats to be filled by direct election in a Town Panchayat shall be reserved for women: Provided that the seats reserved in sub-sections (4), (5) and (6) shall be allotted by rotation to different wards in a transitional area. (7) The councillors shall be elected in the manner provided in this Act. (8) Nothing contained in sub-sections (4), (5) and (6) shall be deemed to prevent the members of the Scheduled Castes, Scheduled Tribes, Backward Classes or Women from standing for election to the non-reserved seats. (9) Notwithstanding anything contained in this section where two-third of the total number of councillors of any Town Panchayat have been elected, the Town Panchayat shall be deemed to be have been duly constituted under this Act.

[Content provided in document header: Power to extend provisions of this Act to a transitional area.] The Government may, by notification, apply to a transitional area subject to such restriction or modifications as the Government may consider necessary for giving effect to the provisions of this Chapter,— (a) any provisions of any section of this Act or part of any section which applies to the area within the limits of a municipal council. (b) any rule or bye-law in force in such area within the limits of a municipal council.

[Content provided in document header: Consequence of the applications of the Act to a transitional area.] (1) When any provision of this Act or any rule or bye-law is applied with or without modification to a transitional area, such provisions of the Act or the rules or bye-law made thereunder shall, unless a different intention appears, operate as if the transitional area were a municipal area within the jurisdiction of a municipal council and the powers and duties of the municipal council were vested in the Town Panchayat. (2) When any tax is imposed by a Town Panchayat in a transitional area under any of the provisions of this Act as applied under section 353, the proceeds of such tax shall be expended in the same manner in which and for the purposes for which the municipal fund may be expended by a municipal council.

[Content provided in document header: Effect of absorption of Panchayat area into transitional area.] Any local area consisting of one or more revenue villages in respect of which a Grama Panchayat has been constituted under the Karnataka Panchayat Raj Act, 1993 may be included in a transitional area by a notification issued in accordance with the provisions of section 4 and notwithstanding anything contained in this Act or in the Karnataka Panchayat Raj Act, 1993 but subject to the provisions of section 4 of this Act, with effect from the date on which such area is included in a transitional area, the following consequences shall ensue, namely:— (a) the Grama Panchayat shall cease to exist and the Zilla Panchayat or Taluk Panchayat within the jurisdiction of which such area is situated shall cease to have jurisdiction over such area; (b) the un-expended balance of the Grama Panchayat fund and the property (including arrears of rates, taxes and fees) belonging to the Grama Panchayat; and all rights and powers which, prior to such notification vested in the Grama Panchayat shall subject to all charges and liabilities affecting the same, vest in the Town Panchayat of the transitional area; (c) any appointment, notification, notice, tax, order, scheme, license, permission, rule, bye-law or form made, issued, imposed or granted under the Karnataka Panchayat Raj Act, 1993 immediately before the said date in respect of the said local area shall continue in force and be deemed to have been made, issued, imposed or granted under this Act until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, license, permission, rule, bye-law, or form made, issued, imposed or granted under this Act; (d) all budget estimates, assessments, assessment lists, valuation or measurements, made or authenticated under the Karnataka Panchayat Raj Act, 1993, immediately before the said date in respect of the said local area shall be deemed to have been made or authenticated under this Act; (e) all debts and obligations incurred and all contracts made by or on behalf of the Grama Panchayat immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the Town Panchayat in exercise of the powers conferred on it by this Act; (f) all officers and servants in the employment of the Grama Panchayat immediately before the said date shall become officers and servants of the Town Panchayat under this Act and shall, until other provision is made in accordance with the provision of this Act receive salaries and allowances and be subject to the conditions of service to which they were entitled or subject immediately before such date: Provided that it shall be competent to the Town Panchayat subject to the previous sanction of the Government to discontinue the services of any officer or servant, who, in its opinion, is not necessary or suitable for the requirements of the service under the Town Panchayat, after giving such officer or servant such notice as is required to be given by the terms of his employment and every officer or servant whose services are dispensed with shall be entitled to such leave, pension, provident fund and gratuity as he would have been entitled to take or receive on being invalidated out of service, as if the Grama Panchayat in the employment of which he was, had not ceased to exist; (g) all proceedings pending on the said date before the Grama Panchayat shall be deemed to be transferred to and shall be continued before the Town Panchayat; (h) all appeals pending before any authority shall, so far as may be practicable, be disposed of as if the said local area had been included in the transitional area when they were filed; (i) all prosecutions instituted by or on behalf of the Grama Panchayat and all suits or other legal proceedings instituted by or against the Grama Panchayat or any officer of the Grama Panchayat pending on the said date shall be continued by or against the Town Panchayat as if the said local area had been included in the transitional area when such prosecutions, suits or proceedings were instituted; (j) all arrears of rates, taxes and fees vesting in the Town Panchayat shall, notwithstanding that such rates and fees cannot be levied under this Act, be recoverable in the same manner as a tax recoverable under this Act; (k) until the reconstitution of the Town Panchayat in accordance with the provisions of this Act, notwithstanding anything to the contrary contained in this Act, such number of persons ordinarily resident in the local area included in the transitional area who are nominated by the Government shall be additional councillors of the Town Panchayat.

[Content provided in document header: Effect of absorption of part of the Panchayat area into a transitional area.] Any part of a local area within the limits of a Panchayat area may be included in a transitional area and when it is so included then notwithstanding anything contained in this Act or in the Karnataka Panchayat Raj Act, 1993 but subject to the provisions of section 4 of this Act, with effect from the date on which such area is included in the transitional area the following consequences shall ensue, namely:— (a) so much of the Grama Panchayat Fund and other property vesting in the Grama Panchayat shall be transferred to the Town Panchayat Fund as the Government may, by order in writing, direct; (b) the rights and liabilities of the Grama Panchayat in respect of civil and criminal proceedings, contracts and other matters or things (including arrears of taxes, fees and cess) arising in or relating to the part of the area included in the transitional area shall vest in the Town Panchayat and such rights and liabilities may be enforced by or against the Town Panchayat under this Act or the rules, bye-laws and orders made thereunder; (c) such officers and servants of the Grama Panchayat shall be transferred to the Town Panchayat as the Government may, by order, direct.

(1) Subject to the provisions of section 349 the Governor may declare, by notification that any Panchayat area constituted under the Karnataka Panchayat Raj Act, 1993 (Karnataka Act 14 of 1993) shall with effect from the date to be specified in such notification be transitional area constituted under section 349 of this Act. (2) The provisions of the Karnataka Panchayat Raj Act, 1993 applicable to such Panchayat area shall not apply to any local area declared as a transitional area under sub-section (1), with effect from the date specified in the declaration: Provided that any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under the said Act in respect of such Panchayat area which were in force as applicable immediately before the date specified under sub-section (1) shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under this Act. (3) With effect from the date of declaration of any area as a transitional area under sub-section (1) the following consequences shall, ensue, namely:— (a) the body functioning as a Grama Panchayat under Karnataka Panchayat Raj Act, 1993, immediately before the date of the said declaration in respect of the said area shall become a body competent to exercise the powers and perform the duties conferred by the provisions of the Act on a Town Panchayat in respect of the said area until Town Panchayat is duly constituted for the area within the jurisdiction of such body under the provisions of this Act; (b) the members of the Grama Panchayat holding office as such immediately before the said date shall become councillors of the Town Panchayat; (c) the Adhyaksha of the said Grama Panchayat shall become the president of the Town Panchayat and discharge duties and perform functions of the President under this Act and Upadhyaksha of the said Grama Panchayat shall become the Vice-President of the said Town Panchayat under this Act; (d) where, under the provisions of section 8 or section 268 of the Karnataka Panchayat Raj Act, 1993 either an administrator or an officer has been appointed, to exercise the powers and perform the duties of the Grama Panchayat then, such administrator or officer shall be deemed to be an administrator appointed under section 315; (e) the unexpended balance of the Grama Panchayat fund and property (including arrears of rates, taxes and fees) belonging to the said Grama Panchayat and all rights and powers which prior to the said declaration vested in the Grama Panchayat shall, subject to all charges and liabilities affecting the same, vest in the Town Panchayat; (f) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued or imposed under any other law in respect of such Grama Panchayat shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act, unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under this Act; (g) all budget estimates, assessment lists, valuation or measurements made or authenticated under the Karnataka Panchayat Raj Act, 1993 immediately before the said date shall be deemed to have been made or authenticated under this Act; (h) all debts and obligations incurred and all contracts made by or on behalf of the Grama Panchayat immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the Town Panchayat in exercise of the powers conferred on it by or under the Act; (i) all proceedings pending prior to the said declaration before the Grama Panchayat shall be continued by the Town Panchayat; (j) all appeals pending before any authority shall so far as may be practicable, be disposed of as if the said area had been included in the Town Panchayat when they were filed; (k) all prosecutions instituted by or on behalf of the Grama Panchayat and all suits or other legal proceedings instituted by or against Grama Panchayat or any officer of the Grama Panchayat pending on the said date shall be continued by or against the Town Panchayat as if such area had been included in the transitional area of the Town Panchayat when such prosecutions, suits or proceedings were instituted. (l) all officers and servants in the employment of the Grama Panchayat immediately before the said date shall become officers and servants of the Town Panchayat under this Act and shall, until other provision is made in accordance with the provisions of this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled immediately before such date: Provided that it shall be competent to the Town Panchayat subject to the previous sanction of the Government, to discontinue the services of any officer or servant who, in its opinion, is not necessary or suitable for the requirements of the service under the Town Panchayat after giving such officer or servant such notice as is required to be given by the terms of his employment and every officer or servant whose services are dispensed with shall be entitled to such leave, pension, provident fund and gratuity as he would have been entitled to take or receive on being invalidated out of services as if the Town Panchayat in the employment of which he was, had not ceased to exist. (4) A Town Panchayat shall be duly constituted for the transitional area under this Act, within a period of six months from the date of declaration referred to in sub-section (1) and from the date of first meeting of the Town Panchayat as so constituted the body exercising the powers and performing the duties of the Town Panchayat shall stand dissolved. (5) The properties, rights and liabilities of the Grama Panchayat of a Panchayat area declared as a transitional area under sub-section (1) shall vest in the Town Panchayat of the said transitional area with effect from the date specified in the notification.

[Content provided in document header: Effect of absorption of part of a transitional area into a smaller urban area.] Any part of a local area comprised in a transitional area may be included in a smaller urban area and when it is so included with effect from the date on which such area is included in the smaller urban area, the following consequences shall ensue, namely:— (a) so much of the funds and other property vesting the Town Panchayat shall be transferred to the Municipal funds as the Government may, by order, in writing, direct; (b) the rights and liabilities of the Town Panchayat in respect of civil and criminal proceedings, contracts and other matters or things (including arrears of tax, fees and cess) arising in, or relating to, the part of the area included in the smaller urban area shall vest in the Municipal Council and such rights and liabilities may be enforced by or against the Municipal Council under this Act or the rules, bye-laws and orders made thereunder; (c) such officers and servants of the Town Panchayat as the Government may, by order, direct shall be transferred to the Municipal Council and the officers and servants so transferred shall, until other provision is made in accordance with the provisions of this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled or subject immediately before such transfer.

Any local area, comprised in a transitional area may be included in a smaller urban area by virtue of sub-section (1) of section 4 and when it is so included notwithstanding anything contained in this Act or any other law but subject to the provisions of section 4, with effect from the date on which such area is included in the smaller urban area, the following consequences shall ensue, namely:— (a) the Town Panchayat of such local area shall cease to exist; (b) the unexpended balance of the fund of the Town Panchayat (including arrears of rates, taxes and fees) belonging to the Town Panchayat and all rights and powers which, prior to such notification vested in the Town Panchayat shall, subject to all charges, and liabilities affecting the same, vest in the Municipal Council of such smaller urban area (hereinafter referred to as the municipal council); (c) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under any law immediately before the said date in respect of the said Town Panchayat shall continue in force and be deemed to have been made, issued, imposed or granted under this Act until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted under this Act; (d) all budget estimates, assessment lists, valuations or measurements, made or authenticated under any law or rule immediately before the said date in respect of the said Town Panchayat shall be deemed to have been made or authenticated under this Act; (e) all debts and obligations incurred and all contracts made by or on behalf of the Town Panchayat immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the Municipal Council in exercise of the powers conferred on it by this Act. (f) all officers and servants in the employment of the Town Panchayat immediately before the said date shall become officers and servants of the municipal council under this Act and shall, until other provision is made in accordance with the provisions of this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled immediately before such date: Provided that it shall be competent to the Municipal Council subject to the previous sanction of the Government to discontinue the services of any officer or servant who in its opinion, is not necessary or suitable for the requirement of the service under the municipal council after giving such officer or servant such notice as is required to be given by the terms of his employment and every officer or servant whose services are dispensed with shall be entitled to such leave, pension, provident fund and gratuity as he would have been entitled to take or receive on being invalidated out of service, as if the Town Panchayat in the employment of which he was, had not ceased to exist; (g) all proceedings pending on the said date before the Town Panchayat shall be deemed to be transferred to and shall be continued before the Municipal Council; (h) all appeals pending before any authority shall, so far as may be practicable, be disposed of as if the said local area had been included in the smaller urban area when they were filed; (i) all prosecutions instituted by or on behalf of the Town Panchayat and all suits or other legal proceedings instituted by or against the Town Panchayat or any officer of the Town panchayat pending on the said date shall be continued by or against the Municipal Council as if the area of the said Town Panchayat had been included in the smaller urban area when such prosecution, suits or proceedings were instituted; (j) all arrears of rates, taxes and fees vesting in the Municipal Council shall, notwithstanding that such rates and fees cannot be levied under this Act, be recoverable in the same manner as a tax recoverable under this Act; (k) until the reconstitution of the Municipal Council in accordance with the provisions of this Act, notwithstanding anything to the contrary contained in this Act, such number of persons ordinarily resident in the local area of the said Town Panchayat included in the smaller urban area, who shall be nominated by the Government shall be additional councillors of the Municipal Council.

[Content provided in document header: Effect of conversion of transitional area into a smaller urban area.] (1) Subject to the provisions of section 3, the Governor may declare, by notification that any transitional area shall with effect from the date to be specified in such notification be a smaller urban area constituted under section 3 of this Act. (2) The provisions of this Act applicable to such transitional area shall not apply to any local area declared as smaller urban area in sub-section (1) with effect from the date specified in the declaration: Provided that any appointment, notification notice, tax order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under this Act in respect of such Town Panchayat which were in force as applicable immediately before the date specified under sub-section (1) shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act, in respect of a Municipal Council unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form made or issued or imposed under this Act. (3) With effect from the date of declaration of any area as a smaller urban area, under sub-section (1), the following consequences shall ensue, namely:— (a) the body functioning as a Town Panchayat under this Act, immediately before the date of the said declaration in respect of the said area shall become a body competent to exercise the powers and perform the duties conferred by the provisions of this Act on a Municipal Council in respect of the said area until a Municipal Council is duly constituted for the area within the jurisdiction of such body under the provisions of this Act; (b) the Councillors of the Town Panchayat holding office as such immediately before the said date shall become Councillors of the Municipal Council; (c) the President of the said Town Panchayat shall become the President of the Municipal Council and discharge duties and perform functions of the President under this Act and the Vice-President of the said Town Panchayat shall become the Vice-President of the said Municipal Council under this Act; (d) where, under the provisions of section 315 or section 316 either an administrator or an officer has been appointed, in respect of such Town Panchayat to exercise the powers and perform the duties of the Town Panchayat, then, such administrator or officer shall be deemed to be an Administrator appointed in respect of the Municipal Council; (e) the unexpended balance of the Town Panchayat fund and the property (including arrears of rates, taxes and fees) belonging to the said Town Panchayat and all rights and powers which prior to the said declaration vested in the Town Panchayat shall, subject to all charges and liabilities affecting the same, vest in the Municipal Council as the municipal fund; (f) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued or imposed under this Act in respect of such Town Panchayat shall continue in force and be deemed to have been made, issued or imposed under the provisions of this Act, in respect of a Municipal Council, unless and until it is superseded by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made or issued or imposed under this Act; (g) all budget estimates, assessment lists, valuation or measurements made or authenticated under this Act in respect of the Town Panchayat immediately before the said date shall be deemed to have been made or authenticated under this Act in respect of the said Municipal Council; (h) all debts and obligations incurred and all contracts made by or on behalf of the Town Panchayat immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the Municipal Council in exercise of the powers conferred on it by or under this Act;