4. Power to include or exclude areas in or from [smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.] and the effect thereon.
(1)The [Governor] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.] may, after consulting the municipal council and subject to the provisions of section 9 [and having regard to the provisions of clauses (a) to (f) of sub-section (1) of section 3] [Inserted by Act 36 of 1994 w.e.f. 1-6-1994.], by notification,-(a)include within a [smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.] any local area adjacent thereto;(b)exclude from a [smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.] any local area comprised therein.(2)Every such notification shall define the limits of the local area to which it relates.(3)When a local area is included in any [smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.], this Act and all notifications, rules, bye-laws, orders, resolutions, directions and powers (including any tax levied) issued, made or conferred under this Act or any other law applicable to such [smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1-6-1994.] shall apply to the said area from the date of publication of the notification under sub-section (1).(4)Save as otherwise provided in this Act or any other law for the time being in force when a local area is excluded form any [smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1 -6-1994.],-(i)the rights and liabilities of the municipal council in such area shall vest in the Government; and(ii)the Government shall after consulting the municipal council determine what portion of the municipal fund and all other property vested in the municipal council shall vest in the Government for the benefit of the inhabitants of the local area, and how the liabilities of the municipal council shall be apportioned between the municipal council and the Government.
