Government and it shall be so laid within forty five days from the first day of that session.

Dissolution of Panchayats. - (1) If a panchayat fails to pass the budget of the panchayat for the succeeding financial year before the end of a financial year, which causes financial crisis or majority of its members resign from office or is disqualified, the Government shall, by notification in the Gazette, dissolve the panchayat from the date specified therein and a copy of the same forwarded to the State Election Commission by the Government. Provided that, the panchayat shall be given a reasonable opportunity of being heard before such dissolution. (2)If the Government is of opinion that panchayat persistently makes default in performing the duties imposed on it by law or in carrying out the orders or directions lawfully issued by the Government or exceeds or abuses its powers, the Government may by notification in the Gazette, dissolve the said panchayat and shall forward a copy of the same to the State Election Commission: Provided that, before such dissolution, the Government shall communicate to the panchayat the proposal to dissolve the panchayat along with the reasons for the same and give the panchayat a reasonable opportunity to show cause against it and shall consider the objections or explanation, if any: Provided further that, if it is proposed to dissolve the panchayat after considering the objections or explanation of the panchayat, it shall seek the advice of the Ombudsman constituted under section 271G and take a final decision on the basis of such advice.] (3)Upon the publication of a notification under sub-section (1) [or sub-section (2)] all the members of the Panchayat including the President and Vice-President shall forthwith be deemed to have vacated their offices as such, and fresh election, shall be held in accordance with the provisions of this Act. (4)The members of a reconstituted Panchayat shall enter upon their offices on the date fixed for the reconstitution of the Panchayat and shall continue only for the remainder of the period for which the dissolved panchayat would have continued under the provisions of this Act had it not been so dissolved. 134 135 Substituted by Act 13 of 1999. Inserted by Act 13 of 1999.

136[(5) The administration of the panchayat during the interval between the dissolution and reconstitution of panchayat shall be exercised by the special officer or administrative committee appointed under sub-section (2) of section 151.] (6)when a Panchayat is dissolved under sub-section (1) [or sub-section (2)] the administrative committee or the special officer appointed by the Government until the date of reconstitution thereof, and the reconstituted Panchayat thereafter shall be entitled to all the assets and be subject to all the liabilities of the Panchayat as on the date of dissolution and on the date of reconstitution respectively. (7)Every notification issued under sub-section (1) [or sub-section (2)] shall be laid, as soon as may be after it is issued, before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions; and if before the expiry of session in which it is so laid or the session immediately following the Legislative Assembly makes any modification in the notification or decides that the notification should not be issued, the notification shall thereafter have effect only in such modified form or have no effect, as the case may be ; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification.