Constitution of Municipality

(1) The Governor may, by notification, having regard to the population of the area, the density of the population therein the percentage of employment in non-agricultural activities, the revenue generated for local administration, the economic importance or such other factors as he deems fit, constitute any local area as,- (a) a " town panchayat " where the population is estimated at not less than twenty thousand and the annual income of such area is not less than thirty lakhs of rupees ; (b) a " municipality " where the population is estimated at not less than thirty thousand and the annual income of such area is not less than fifty lakhs of rupees ; Explanation. I-For the purpose of this section and sections 7, 37, 38 and 39, " population " means the population as ascertained at the last preceding census of which the relevant figures have been published by the Central or the State Government. Explanation II.-For the purpose of this section " annual income " means the average income of a panchayat constituted under the Tamil Nadu Panchayats Act, 1994 or of a municipality for the last three consecutive years. (2) (a) The Governor may, by notification, declare his intention- (i) to include within the municipality any local area contiguous thereto and defined in such notification ; or (ii) to exclude from the municipality any local area comprised therein and defined in such notification: Provided that no cantonment shall be included within the municipality. (b) On the publication of the notification under sub-section (1), any person residing within the local area concerned in relation to which any such notification has been published or any municipal council affected by any such notification may submit objections, in writing, to any officer authorised in this behalf within forty-five days from the date of publication of such notification. (c) The Governor may, after considering the objections and recommendations received under clause (c) declare, by notification, the inclusion within, or exclusion from, the municipality, any local area. (e) On publication of the notification under clause (d), this Act shall come into force in, or cease to apply to, any such local area or any portion thereof, as the case may be, on such date as may be specified in the notification under clause (d). (f) The inclusion of any village panchayat in any municipality shall not affect the previous operation of the Tamil Nadu Panchayats Act, 1994, in respect of that area and any penalty, forfeiture or punishment incurred, in respect of any offence committed against the said Act, or any investigation, legal proceedings or remedy in respect of the said penalty, forfeiture or punishment and any such penalty, forfeiture or punishment may be imposed as if this Act had not been passed. (g) Any person aggrieved against the notification published by the Governor under clause (d) may prefer an appeal to the High Court within thirty days from the date of publication of such notification. (h) If any local area in which the Tamil Nadu Panchayats Act, 1994 is in force, is constituted as or included in a municipality, the Government may pass such orders as they may deem fit as to the transfer to the municipality or disposal otherwise of the assets, or institutions of any panchayat in the local area and as to the discharge of the liabilities if any, of such panchayat relating to such assets or institutions, and as to the transfer or retention of the officers and servants working in the local area as the case may be. (3) Every municipality constituted or deemed to have been constituted under this Act shall be a body corporate and shall have perpetual succession and a common seal and subject to any restrictions or qualifications imposed by or under this Act or any other law shall be vested with the capacity of suing or being sued in its corporate name, of acquiring, holding and transferring property, movable or immovable, or entering into contracts and of doing all things necessary, proper or expedient for the purposes for which it is constituted. (4) The Government may, by notification, classify municipalities into various grades for the purpose of effective administration of the said municipalities in accordance with such norms as may be prescribed.