Effect of absorption of Panchayat area into a City Corporation area

If any local area consisting of one or more revenue villages in respect of which a Panchayat area has been constituted under the Karnataka Gram swaraj and Panchayat Raj Act,1993 is included in a City Corporation area by virtue of a notification under this Act then, notwithstanding anything contained in this Act or in the Karnataka Gram swaraj and Panchayat Raj Act, 1993, but subject to the provisions of this Act, with effect from the date on which such area is included in a City Corporation area, the following consequences shall ensue, namely:-

1. (a) the Grama Panchayat of such local area (here-in after referred to as the panchayat) shall cease to exist and the Taluk Panchayat and Zilla Panchayat within the jurisdiction of which such area is situated shall cease to have jurisdiction over such area;
2. (b) the unexpended balance of the Grama Panchayat Fund and the property (including arrears of rates, taxes and fees) belonging to the panchayat and all rights and powers which, prior to such notification, vested in the panchayat shall, subject to all charges and liabilities affecting the same, vest in the City Corporation of the City Corporation area (hereinafter referred to as the City Corporation);
3. (c) any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made, issued, imposed or granted under the Karnataka Gram Swaraj and 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area shall continue in force and be deemed to have been made, issued, imposed or granted under this Act until it is superseded or modified by any appointment, notification, notice, tax, order, scheme, licence, permission, rule, bye-law or form, made, issued, imposed or granted under this Act;
4. (d) all budget estimates, assessments, assessment lists, valuations 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.
5. (e) all debts and obligations incurred and all contracts made by or on behalf of the panchayat immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the City Corporation in exercise of the power conferred on it by this Act.
6. (f) all officers and servants in the employ of the panchayat immediately before the said date shall become officers and servants of the City Corporation 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 City Corporation, 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 City Corporation 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 panchayat in the employ of which he was, had not ceased to exit.
7. (g) all proceedings pending on the said date before the panchayat shall be deemed to be transferred to and shall be continued before the City Corporation;
8. (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 lager urban area when they were filed; all prosecutions instituted by or on behalf of the panchayat and all suits or other legal proceedings instituted by or against the panchayat or any officer of the panchayat pending on the said date shall be continued by or against the City Corporation as if the said local area had been included in the City Corporation area when such prosecutions, suits or proceedings were instituted;
   • (i) all arrears of rates, taxes and fees vesting in the City Corporation 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;
9. (j) until the reconstitution of the City Corporation 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 City Corporation area who are nominated by the Government shall be additional councillors of the City Corporation.