Restrictions on withdrawal of powers and functions from the Panchayats.

Notwithstanding the transfer of any power, functions and duties in respect of any matter to a Panchayat under this Act the Government on a proposal from Panchayat in that behalf or where it is satisfied that by reason of a change in the nature of the matter such as the conversion of a primary health centre into a secondary health centre or hospital or the conversion of a seed multiplication farm into an agricultural research farm or a road becoming a part of a highway, the matter would cease to be a matter in relevant Panchayat functions list and it is necessary to withdraw from the Panchayat powers, functions or duties in respect of such matter, may, by notification in the Official Gazette, withdraw such powers, functions and duties with effect from the date specified in the notification and make such incidental and consequential orders as may be necessary to provide for matters including the taking over of the property, right and liabilities, if any vesting in the Panchayat and of the staff, if any, which may have been transferred to the Panchayat as the case may be.