Disposal of Property

(1) With respect to the disposal of the property belonging to or vested in or under the direction, management and control of the Grama Sasan the following provisions shall, subject to the rules made in that behalf, have effect, namely : (a) no movable property, other than the usufruct of tanks and lands, shall be disposed of by the Grama Panchayat in any manner whatsoever unless there exists a corresponding provisions in the budget of the Grama Panchayat for the year; (b) no immovable property shall be disposed of– (i) by sale, exchange, gift, mortgage or otherwise or by way of lease with permission for construction of permanent structures thereon without the prior sanction of the State Government; or (ii) by way of lease, not being a lease covered by Sub-clause (i) for a period exceeding three years without the prior sanction of the Collector. (2) The disposal of any property by the Grama Panchayat in contravention of Sub-Section (1) shall be invalid and of no effect.