(4)Every panchayat mentioned in sub-section (1), (2) or (3) shall have perpetual succession and a common seal and may sue and be sued in its corporate name, and subject to the provisions of this Act, shall be competent to acquire and hold property, both movable and immoveable, whether within or without the limits of the area over which it has authority, to lease, sell or otherwise transfer any movable or immoveable property which may have become vested in it, or have been acquired or constructed by it, to raise loans upon the security of its fund in the manner and subject to the limits and other requirements including guarantees prescribed by rules, and to contract and do all other things necessary for the purpose of this Act.Explanation. - Where a panchayat, with the previous sanction of the competent authority, creates a remunerative asset, such creation of an asset shall be deemed to be for the purposes of this Act.
