Constitution of municipality (1) There shall be constituted by the State

Government—

1. (a) aNotified Area Council for every transitional area;
2. (b) a Municipality for every smaller urban area; and
3. (c) aMunicipal Corporation for every larger urban area, in accordance with the provisions of this Act; Provided that no such Municipality or Corporation shall be constituted in any urban area or part thereof which the governor may, having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit, by notification, specify to be an industrial township.

1. (2) In this section, 'a transitional area’ a smaller urban area’ or 'a larger urban area’ means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by notification under clause (2) of Article 243
   • (Q) of the Constitution. 2[ Provided that before publication of the notification under this sub-section, the State Government shall publish in the prescribed manner a draft of such notification inviting objections and suggestions from all persons likely to be affected thereby within such period as may be prescribed, and shall consider the objections and suggestions, if any, as may be received on the said draft.] Explanation— For the purposes of this section,—
   • (a) Save as may otherwise be deemed fit by the Governor, a population of not less than ten thousand, twenty-five thousand and three lakhs respectively, may be taken as sufficient population for the purpose of specifying respectively a transitional area’, a smaller urban area’ and’ a larger urban area’,
   • (b) the factors relating to density of population, percentage of employment in non-agricultural activities, generation of revenue for local administration, economic importance and such other factors for the purpose of specifying ‘a transitional area’, 'a smaller urban area’ and 'a larger urban area’ shall be such as the Governor may from time to time, determine.
2. (3) Notwithstanding anything contained in this section.
   • (a) the territorial area of every Notified Area Council and that of every Municipality constituted prior to, and existing at, the commencement of (€@ THE ORISSA MUNICIPAL MANUAL the Orissa Municipal (Amendment) Act, 1994 shall respectively be deemed to be a transitional area and a smaller urban area within the meaning of sub-section (2) of Section 4;and
   • (b) every Notified Area Council (including it Chairperson and Vice- Chairperson) and every Municipality (including Chairperson, Vice- Chairperson and Additional Vice-Chairperson), continuing in office at the commencement of the Orissa Municipal (Amendment) Act, 1994 shall continue till the expiration of the term as provided in sub-section (1) of Section 41 as it stood prior to such commencement unless sooner dissolved by a resolution passed to that effect by the Legislative Assembly.
3. (4) When any transitional area or smaller urban area within the meaning of sub- section (2), is subsequently specified to be-
   • (a) a smaller urban area in the case of a transitional area; or
   • (b) alarger urban area in the case of a smaller urban area, then notwithstanding anything contained in this Act,-
     • (i) the Notified Area Council for the existing transitional area shall be deemed to be the Municipality for the smaller urban area so subsequently specified:
     • (ii) the Municipality for the existing smaller urban area shall be deemed to be the Municipal Corporation for the larger urban area so subsequently specified:
     • (iii) the Chairperson, Vice-Chairperson and other members of the existing Notified Area Council or Municipality shall be deemed to be Chairperson, Vice-Chairperson and other members of the deemed Municipality or as the case may be, of the deemed Municipal Corporation;
     • (iv) all the assets and liabilities of the existing Notified Area Council shall develope upon the deemed Municipality or, as the case may be, that of the existing Municipality shall develope upon the deemed Municipal Corporation;
     • (v) the provisions of this Act and of the rules, bye-laws, notification or orders made thereunder which were in force throughout such transitional area, or as the case may be, the municipality shall apply to the territorial of such deemed Municipality or, as the case may be, deemed Municipal Corporation;
     • (vi) the proceeding commenced, if any, for reconstitution of the exiting Notified Area Council or, as the case may be, existing Municipality shall continue as if such proceedings were commenced in relation to the deemed Municipality or, as the case may be deemed Municipal Corporation. ] THE ORISSA MUNICIPAL ACT, 1950 9 ))