Chapter IX CHAPTER IX

(1) Where improvement works have been executed in any slum improvement area, any expenses incurred by a Board on behalf of the Authority or, by any other authority at the instance of the Board, in connection with the maintenance of such improvement works or the enjoyment of amenities and conveniences rendered possible by such works, shall be recoverable by the Board as service charges from the occupiers of the slum improvement area. (2) The amount of expenses incurred on the maintenance of works or amenities shall be determined by the Board in respect of each slum improvement area separately and shall be recovered as service charges from the occupier of each building in the area.

(1) Where any person is in arrears of service charges, as determined by a Board in pursuance of section 114, the Board may, by notice served, (i) by post, or (ii) by affixing a copy of it on the outer-door or some other conspicuous part of the premises, or (iii) in any other manner that the Board may deem proper, order that person to pay the same within such time not less than fifteen days as may be specified in the notice. (2) Where any person causes any damage to the property of the Authority or the improvement works provided by the Authority, the Board shall assess the amount of such damages and shall, after serving notice on the person in the manner provided in sub-section (1), order that person to pay the amount of such damages within such time as may be specified in the notice. (3) If any person fails to comply with an order made under sub-section (1) or (2), the amount due from him to the Authority shall be recoverable as arrears of land revenue.

Any person aggrieved by an order of a Board under sub-section (1) or (2) of section 115 may, within thirty days of the date of the order, prefer an appeal to the Tribunal, and the decision of the Tribunal on appeal shall be final.

(1) Where improvement works have been executed in any slum improvement area, the service charges recovered from the occupiers under section 114 shall be credited to the fund of the Authority. There shall, however, be created a separate fund called the Maharashtra Slum Improvement Fund (in this Chapter referred to as the ‘Fund’) and the amount so credited to the Fund of the Authority shall be transferred to the Fund so created. (2) The amount in the Fund shall be expanded for the purposes of this Chapter. The State Government may make rules regulating all matters connected with the Fund, including the manner in which the Fund shall be maintained, operated and expanded.

(1) The State Government may pay an annual contribution to the Authority of such amount as may be determined by the State Government. (2) The State Government may, after consultation with the local authority concerned, direct such local authority to make an annual contribution to the Authority for the purposes of this Chapter. (3) The moneys placed at the disposal of the Authority under the provisions of this Chapter shall form part of the Fund and shall be applied for the purposes of this Chapter.

Any action taken by the Maharashtra Slum Improvement Board under the Maharashtra Slum Improvement Board Act, 1973 (Mah. XXIII of 1973), shall be deemed to be action taken by the Board constituted under this Act.

Establishment of Panchayat. The Board may, with the approval of the Authority establish, by notification in the Official Gazette, a Panchayat for any slum improvement area.

Incorporation of Panchayat. Every such Panchayat shall be a body corporate by the name of “The (Slum Improvement Area) Panchayat,” as may be given by the Board, having perpetual succession and common seal, with power to acquire, hold and dispose of property, both moveable and immoveable, and to contract, and may by the said name sue or be sued.

Constitution of Panchayat. (1) Every Panchayat shall have a Sarpanch, a Upa-Sarpanch and other members, not being less than 3 and more than 13, as the Board may with the approval of the Authority determine. (2) The members of a Panchayat including the Sarpanch and Upa-Sarpanch shall be nominated by the Board from amongst the residents of the slum improvement area. The names of the members so nominated shall be published by the Board in the Official Gazette; and on the publication of the named of members in the Official gazette, the Panchayat shall be deemed to be duly constituted.

A person shall be disqualified for being nominated or for continuing as a member of the Panchayat, if he has become subject to any of the disqualifications specified in section 11.

Term of office of members and their conditions of service. (1) The members of a Panchayat shall, save as otherwise provided in this Chapter, hold office for a term of three years. (2) The Board may by order in writing and for reasons recorded therein extend the said term for a period not exceeding five years in the aggregate.

The term of office of the members of a Panchayat shall be deemed to commence from the date of the Gazette in which their names are published under section 122.

Any member of the Panchayat may resign his office by writing under his hand addressed to the Sarpanch. The Upa-Sarpanch may resign his office of Upa-Sarpanch or of member also by like writing addressed to the Sarpanch. The Sarpanch may resign his office of Sarpanch or of member also by like writing addressed to the Chairman. The notice of every such resignation shall be delivered in the prescribed manner, and the office concerned shall thereupon become vacant.

(1) A motion of no-confidence may be moved by any member of a Panchayat against the Sarpanch or the Upa-Sarpanch, after giving such notice thereof as may be prescribed. (2) If the motion is carried by a majority of not less than two-third of the total number of the then members of the Panchayat, the Sarpanch or the Upa-Sarpanch, as the case may be, shall cease to hold office, after a period of three days from the date on which the motion was carried, unless he has resigned earlier, and thereupon the office held, by such Sarpanch or Upa-Sarpanch, shall be deemed to be vacant. (3) Notwithstanding anything contained in this Chapter or the rules and regulations made thereunder, a Sarpanch or an Upa-Sarpanch shall not preside over a meeting in which a motion of no-confidence is discussed against him; but he shall have right to speak or otherwise to take part in the proceedings of such a meeting (including the right to vote.) (4) In cases where the offices of both the Sarpanch and Upa-Sarpanch become vacant simultaneously, the Board may oppoint an officer, pending the nomination of another Sarpanch and Upa-Sarpanch to exercise all the powers and perform all the functions and duties of the Sarpanch, but such officer shall not have the right to vote in any meetings of the Panchayat.

Meeting of Panchayat and procedure to be followed. The Panchayat shall meet at such intervals and follow such procedure for its meetings as may be prescribed.

The Sarpanch and the Upa-Sarpanch shall exercise such powers and perform such functions as may be prescribed.

(1) The Board may with the approval of the Authority remove from office any member including the Sarpanch or Upa-Sarpanch, who has been guilty of misconduct or neglect of, or incapacity to perform, his duty, or is persistently remiss in the discharge thereof : Provided that, no such person shall be removed from office, unless the Chairman or any other officer of the Board authorised by him in this behalf holds an enquiry after giving due notice to the Panchayat and the person concerned; and the person concerned has been given a reasonable opportunity of being heard and thereafter, the Chairman or the said officer, as the case may be, submits his report to the Board. (2) Where a person is removed from office of the Sarpanch, Upa-Sarpanch or member, he shall not be eligible for renomination as Sarpanch, Upa-Sarpanch or member, during the remainder of the term of the office of members of the Panchayat.

Filling up of vacancies. If any vacancy occurs due to the disablement, death, resignation, disqualification, absence without leave or removal or otherwise of Sarpanch or Upa-Sarpanch or other member, it shall be filled by nomination of another Sarpanch or Upa-Sarpanch or member, who shall hold office so long only as the Sarpanch, Upa-Sarpanch or member in whose place he has been nominated, would have held office if the vacancy had not occurred.

(1) During any vacancy in the Panchayat, the continuing members may act as if no vacancy had occurred. (2) The Panchayat shall have power to act notwithstanding any vacancy in the membership or any defect in the constitution thereof; and such proceedings of the Panchayat shall be valid notwithstanding that it is discovered subsequently that some person who was not entitled to do so sat or voted or otherwise took part in the proceedings. (3) No act or proceedings of a Panchayat shall be deemed to be invalid on account of any defect or irregularity in any such act or proceedings not affecting the merits of the case or on account of any irregularity in the service of notice upon any member or for mere informality.

Dissolution or supersession of Panchayat for default. (1) If, in the opinion of the Board, a Panchayat exceeds or abuses it powers or is incompetent to perform, or makes persistent default in the performance of, the duties imposed on it or functions entrusted to it, by or under this Chapter or fails to obey an order made by the Board, the Board may, with the approval of the Authority, after giving the Panchayat an opportunity of rendering an explanation, by order in the Official Gazette— (i) dissolve such Panchayat, or (ii) supersede such Panchayat for the period specified in the order. (2) When a Panchayat is so dissolved or superseded, the following consequences shall ensue, that is to say,— (a) all members of the Panchayat shall, in the case of dissolution, as from the date specified in the order of dissolution, and in the case of supersession, as from the date of the order of supersession, vacate their office as such member ; (b) all powers and duties of the Panchayat shall, during the period of dissolution or supersession, be exercised and performed by such person or persons as the Board may, from time to time, appoint in that behalf ; (c) all property vested in the Panchayat shall, during the period of dissolution or supersession, vest in the Board.

Where the Board entrusts all or any of its powers or duties under clauses (b), (c), (d) and (e) of section 104 to a Panchayat, the Panchayat shall, subject to the superintendence, direction and control of the Board,— (a) undertake the works of maintenance and repairs in respect of any improvement works executed by the Board and handed over to the Panchayat for maintenance ; (b) collect service charges in connection with the maintenance of improvement works handed over by the Board to the Panchayat; (c) recover compensation from the occupiers of Government lands falling within the jurisdiction of the Panchayat; (d) report to the Board forthwith any damage done to the improvement works; and (e) do all other things which the Board may from time to time require it to do. The rate of service charges to be recovered under clause (b) of this section shall be determined by the Board, and the rate of compensation to be recovered under clause (c) of this section shall be determined by the State Government.

Certain services to be provided by local authority and Panchayat to be responsible for collection and payment of taxes, fees and charges. (1) Notwithstanding anything contained in any (1) Notwithstanding anything contained in any law governing the local authority concerned, a Municipal Corporation, a Municipal Council or any other local authority having jurisdiction in any slum improvement area, shall provide water supply and drainage and scavenging, cleansing, lighting and other services, in the said area, as it provides in other areas within its jurisdiction, and also such additional services, as the Board may in respect of any slum improvement area specify in this behalf. (2) Where there is a Panchayat, the Panchayat shall be responsible to the local authority to collect from the occupiers and other persons liable therefor the taxes, fees and charges due for the services so provided, and to arrange to pay the amount due from time to time to the local authority concerned.

(1) The Board may assign or entrust to the Panchayat any property, whether moveable or immoveable, for use by the Panchayat for the purposes of this Chapter on such terms and conditions as may be specified by the Board on behalf of the Authority. It shall be the duty of the Panchayat to use such property for the purpose for which it is assigned or entrusted. (2) With the approval of the Board, a Panchayat, may utilise any open space in the slum improvement area for common purposes such as those specified in clause (f) of section 109.

The Panchayat shall ensure that no new building is erected within its jurisdiction in contravention of any direction issued by the Board under sub-section (1) of section 112. If any new building is so erected, the Panchayat shall immediately make a report to the Board.

The Panchayat shall assist the Board in carrying out demolition of any building under section 113.

Contracts. (1) For the purposes of this Chapter, the Sarpanch shall be competent to make and execute on behalf of the Panchayat, any contract with any person : Provided that, no contract shall be made unless specifically authorised by the Panchayat by passing resolution to that effect, and no contract involving an expenditure exceeding Rs. 1,000 shall be made without the previous sanction of the Chairman. (2) Every contract shall be entered into in such manner and form as may be prescribed.

Recovery of compensation, service charges, etc. (1) When any compensation, service charges, tax, fee or other sum has become due, which a Panchayat is authorised to collect under this Chapter, the Panchayat shall, with the least practicable delay, cause to be presented to the person liable for the payment thereof a bill for the amount due from him, specifying the details of the claims and the date on or before which the amount shall be paid. (2) If any person fails to pay the amount due on or before the specified date, the Panchayat shall cause a writ of demand in the prescribed form to be served on the defaulter. (3) The presentation of every bill under sub-section (1) and the service of every writ of demand under sub-section (2) shall be effected by an officer or servant of a Panchayat in this behalf— (a) by giving or tendering the bill or writ to the person to whom it is addressed ; (b) If such person is not found, by leaving the bill or writ at his last known place of abode, if within the limits of the Panchayat by giving or tendering the bill or writ to some adult male member or servant of his family ; or (c) if such person does not reside within the limits of the Panchayat, and his address elsewhere is known to the Sarpanch or other person directing the issue of the bill or writ, then by forwarding the bill or writ to such person by registered post, under cover bearing the said address; or (d) if none of the means aforesaid be available, then by causing the bill or writ to be affixed on some conspicuous part of the building or land, if any, to which the bill or writ relates in the presence of at least two Panchas. (4) If the amount for which a writ of demand has been served is not paid within thirty days from the date of such service, the Panchayat may recover such sum by distraint and sale of the moveable property of the defaulter in the prescribed manner. (5) If a Panchayat is unable to recover the amount due as aforesaid, it may furnish to the Board a statement of the arrears due with a request for the recovery of the same, and the Board shall proceed against the person to recover the same as if they are arrears of land revenue. (6) For any amount recovered by the Panchayat under this section, a written receipt shall be given to the person concerned in such form and in such manner as may be prescribed.

(1) For every Panchayat there shall be a fund, which shall be called the Panchayat fund. (2) The following shall be paid or deposited into the Panchayat fund, namely :— (a) the proceeds of service charges collected under clause (b) of section 134 ; (b) the proceeds of compensation collected under clause (c) of section 134 ; (c) the proceeds of any taxes, fees or charges due to a local authority collected under section 135 ; (d) all sums received from the Board on behalf of the Authority ; (e) all sums received by the Panchayat from other sources by way of grant, gift and contribution or otherwise.

Appointment of servants. (1) A Panchayat may, with the approval of the Board, appoint such servants as may be necessary for the proper discharge of its duties under this Chapter and pay their salaries and allowances from the Panchayat fund. The Panchayat may, from time to time, by written order, fine, suspend, remove or dismiss any servant appointed by it : Provided that, no such order shall be passed by the Panchayat unless the servant is given a reasonable opportunity of being heard. (2) An appeal shall lie against any such order passed by the Panchayat to the Chairman or any officer of the Board authorised by him in this behalf, within one month from the date of communication of the order to the servant, and the decision of the Chairman or the said officer, as the case may be, shall be final : Provided that, no such appeal shall be decided unless the servant is given a reasonable opportunity of being heard.

Budget and accounts. (1) A Panchayat shall submit annually to the Board on or before such date and in such form as may be prescribed a statement of— (a) the opening balance in the Panchayat fund and the estimated receipts by the Panchayat for the following year ; (b) the expenditure proposed on establishment and discharge of its duties. (2) The Board shall within two months from the date of receipt of such statement either approve the same or direct that the proposed expenditure on any of the duties be increased or decreased : Provided that, if the Board fails either to approve such statement or to direct that the expenditure on any of the duties be increased or decreased, within two months from the date of receipt of such statement, the statement shall be deemed to have been duly approved by the Board. (3) The Sarpanch shall keep or cause to be kept the accounts of the Panchayat in such form as may be prescribed. He shall prepare an annual report of the administration of the Panchayat and shall place the accounts and the report for approval before the Panchayat. The annual statement of such accounts together with the annual report as approved shall be sent to the Board on or before such date and in such form as may be prescribed.

The Board shall have power— (a) to call for any proceedings of a panchayat or an extract there from, any book or document in the possession or under the control of a Panchayat, and any return, statement, account or report which the Board thinks fit to require such Panchayat to furnish ; and (b) to require a Panchayat take into consideration— (i) any objection which appears to the Board to exist to the doing of anything which is about to be done, or is being done, by such Panchayat; or (ii) any information which the Board is able to furnish and which appears to the Board to necessitate the doing of a certain thing by the Panchayat, and to submit a written reply to the Board within a reasonable time stating its reasons for not desisting from doing or for not doing such things.

The Chairman or any other officer authorised by him in writing in this behalf may at all reasonable times enter the office of any Panchayat and inspect any records, register or other document kept therein; and the Panchayat shall comply with the inspection notes, if any, made by the Chairman or, as the case may be, such officer.

If for the purpose of efficient and economical maintenance of any works undertaken by a Panchayat, an officer or person authorised by general or special order of the Board considers it necessary for that purpose to give technical guidance or assistance to the Panchayat, then the officer or person so authorised may periodically inspect such works and may give such guidance, assistance or advice as he thinks necessary in relation to such works; and shall forward to the Sarpanch through the Chairman, a report on the inspection made, pointing out therein any irregularities noticed, and his suggestions for improvement.

(1) The audit of the accounts of a Panchayat shall be carried out by the State Government in such manner as it deems fit and copy of the audit note shall be forwarded to the Board and the Panchayat, within two months of the completion of the audit. (2) On receipt of the audit note referred to in sub-section (1), the Panchayat, shall either remedy any defects or irregularities, which may have been appointed out in the audit note and send to the Board within two months an intimation of its having done so, or shall, within the said period, supply to the Board any further explanation in regard to such defects or irregularities as it may wish to give. (3) On receipt of such intimation or explanation, the Board may, in respect of all or any of the matters discussed in the audit note,— (a) accept the intimation or explanation given by the Panchayat and recommend to the Authority to drop the objection ; (b) suggest that the matter be reinvestigated at the next audit or at any earlier date; or (c) hold that the defects or irregularities pointed out in the audit note or any of them, have not been removed or remedied. (4) The Board shall send a report of its decision to the Authority within one month of the date of receipt by it of the intimation or explanation referred to in sub-section (2), or in the event of the Panchayat failing to give such intimation or explanation on the expiry of the period of two months referred to in the said sub-section (2), and shall forward a copy of such report to the auditor, and the Panchayat. If the Board holds that any defects or irregularities have not been removed or remedied, the Board shall state in the report whether in its opinion the defects or irregularities can be regularised, and if so, by what method, and if they do not admit of being regularised, whether they can be condoned, and if so, by what authority. The Board shall also state whether the amounts to which the defects or irregularities relate should in its opinion be surcharged or charged as hereinafter provided. (5) The Authority may, after considering the report of the Board and after making such further enquiry as it considers necessary, disallow any time which appears to it to be contrary to law and surcharge the same on the person making or authorising the making of the illegal payment, and may charge against any person responsible therefor the amount of any deficiency or loss caused by the gross negligence or misconduct of that person, or, any sum received, which ought to have been, but is not, brought into accounts, by the person, and— (a) if the person on whom the surcharge or charge is made by a member, direct the Board to proceed against him in the manner provided in sub-section (2) and (3) of section 151; and (b) if the person on whom the surcharge or charge is made is not a member, then after taking his explanation direct by order in writing that such person shall pay to the Panchayat the amount surcharged or charged, and if the amount is not so paid within one month, the State Government may recover as arrears of land revenue and credit it to the Panchayat fund. (6) Any person aggrieved by an order of surcharge or charge made under this section may, within one month from the receipt by him of the decision of the State Government, apply in Greater Bombay to the City Civil Court, and elsewhere, to the District Court to modify or set aside such order; and the Court after taking such evidence as it thinks necessary, may confirm, modify or remit such surcharge or charge and make such order as to costs as it thinks proper in the circumstances. The order made by the Court shall be final.

Execution of works in case of emergency. (1) In cases of emergency, the Board may provide for the execution of any work or the doing of any act which a Panchayat is empowered to execute or do, and the immediate execution or doing whereof is, in its opinion, necessary for the health or safety of the public, and may direct that the expense of executing the work or doing the act shall be forthwith paid by the Panchayat: Provided that, the Board may direct the Panchayat to pay the amount of actual expenses or an amount not exceeding 10 per cent. of the annual income of the Panchayat for the year immediately preceding, whichever is less. (2) If the expenses are not so paid, the Board may, by order, direct the person in whose custody the Panchayat fund is kept to pay such expense or so much thereof as is possible, from the balance of such fund in his hands, and such person shall comply with such directions. Any payment made pursuant to such order shall be a sufficient discharge to such person from all liability to the Panchayat in respect of the sum so paid.

A Panchayat shall conform to any instructions that may, from time to time, be given by the Authority or Board, in the execution by the Panchayat of its duties and functions under this Chapter.

(1) Every member of a Panchayat shall be personally liable for the loss, waste or misapplication of any money or other property of the Panchayat to which he has been party or which has been caused or facilitated by his misconduct, gross neglect of his duty as a member. (2) If after giving the member concerned a reasonable opportunity for showing cause to the contrary, the Board is satisfied that the loss, waste or misapplication of any money or other property of the Panchayat is direct consequence of misconduct or gross neglect on his part, the Board shall by order in writing direct such member to pay to the Panchayat before fixed date, the amount required to reimburse it for such loss, waste or misapplication. (3) If the amount is not so paid, it shall be recoverable as arrears of land revenue on a certificate of an officer appointed by the State Government in this behalf and when recovered, the Board shall credit it to the Panchayat fund. (4) Any person aggrieved by the decision of the Board under this section may apply to the Court as provided in sub-section (6) of section 148, within the like time for redress of his grievance and that Court may pass any order thereon which it can pass under that section.

It shall be lawful for any person authorised by a Panchayat in this behalf to enter into or upon any building or land in a slum improvement area for the purposes of exercising any powers conferred or duties imposed on the Panchayat, and to execute necessary works authorised by or under this Chapter.

Powers of inspection. The Authority may, by general or special order, authorise any person,— (a) to inspect any drain, latrine, urinal, cesspool, pipe, sewer or channel in or on any building or land in a slum improvement area and in his discretion, to cause the ground to be opened for the purpose of preventing or removing any nuisance arising from the drain, latrine, urinal, cesspool, pipe, sewer or channel, as the case may be; (b) to examine works under construction in a slum improvement area, to take levels or to remove, test, examine, replace or read any meter. After such inspection and taking necessary action for preventing or removing the nuisance, if any, the ground and other works which are opened shall be filled in, reinstated or made good, as the case may be.

Power to enter land adjoining land where work is in progress. (1) Any person authorised by a Board in this behalf may, with or without assistants or workmen, enter on any land within one hundred metres of any work authorised by or under this Chapter for the purpose of depositing thereon any soil, gravel, stone or other materials, or for obtaining access to such work or for any other purposes connected with the carrying on of the same. (2) The person so authorised shall, before entering on any land under sub-section (1) state the purpose thereof, and shall, if so required by the occupier or owner, fence off so much of the land as may be required for such purpose. (3) The person so authorised shall, in exercising any power conferred by this section, do as little damage as may be and compensation shall be payable by the Board on behalf of the Authority to the owner or occupier of such land or to both for any such damage, whether permanent or temporary.

Power to enter any place. It shall be lawful for any person authorised in writing by a Board in this behalf to make an entry into any place, to open or cause to be opened any door, gate or other barrier— (a) if he considers the opening thereof necessary for the purpose of such entry; and (b) if the owner or occupier is absent, or being present, refuses to open such door, gate or barrier.

Occupier’s or owner’s consent ordinarily to be obtained. Save as provided in this Chapter, no building or land shall be entered without the consent of the occupier or, if there be no occupier, of the owner thereof, and no such entry shall be made without giving such occupier or owner, as the case may be, not less than twenty-four hours, written notice of the intention to make such an entry : Provided that, no such notice shall be necessary, if the place to be inspected is a shed for cattle or a latrine, urinal or a work under construction.

A Board may, by order in writing, direct any person carrying on any dangerous or offensive trade in a slum improvement area to remove the trade from that area within such time as may be specified in the order: Provided that, no order under this section shall be made unless the person carrying on such trade has been given a reasonable opportunity of showing cause as to why the order should not be made.

Penalties. (1) Whoever fails to comply with any notice, order or direction issued or given under this Chapter shall, on conviction, be punished with imprisonment for a term which may extend to three months, or with fine which may extend to Rs. 1,000, or with both. (2) Whoever commences or causes to be commenced any work in contravention of section 112, or of any terms or conditions imposed under sub-section (3) of that section, shall, on conviction, be punished with imprisonment for a term which may extend to six months, and with fine which may extend to Rs. 1,000. (3) Whoever obstructs the entry of any person authorised by or under this Chapter to enter into or upon any building or land or molests such person after such entry or incites or instigates or abets such obstruction or molestation shall, on conviction, be punished with imprisonment for a term which may extend to three months, and with fine which may extend to Rs. 1,000. (4) If a person committing an offence under this chapter is a company, every person who at the time the offence is committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly : Provided that, nothing contained in this sub-section shall render any such person liable to any punishment provided in this Chapter, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (5) Notwithstanding anything contained in sub-section (4) where an offence under this Chapter has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.— For the purposes of this section— (a) “company” means a body corporate and includes a firm or other association of individuals; and (b) “director” in relation to a firm means a partner in the firm.

Where any area is declared to be a slum improvement area, then as from the date of such declaration, the provisions of any law corresponding to the provisions of this Act, in relation to the slum improvement area shall, save as otherwise provided in this Chapter, cease to be in force in the slum improvement area. The provisions of this Chapter shall not be taken to effect any property rights in any of the areas to which this Chapter applies; nor shall the provisions by or under this Chapter of any amenities be deemed to legalise what is otherwise illegal by or under any other law for the time being in force.

All sums received by a Panchayat in accordance with the provisions of this Chapter shall be applied subject to the provisions and for the purpose of this Chapter and all such sums and the Panchayat fund shall be kept in such custody as may be prescribed.