Section 3(5) in Jammu and Kashmir Municipal Corporation Act, 2000
(5)When a local area is excluded from the Corporation under sub-section(3):-(a)this Act and all notification, rules, bye-laws, orders, directions and powers issued, made or conferred under this Act, shall cease to apply thereto; and(b)the Government shall after consulting the Corporation, frame a scheme determining what portion of the balance of the Corporation fund and other property vesting in the Municipal Corporation shall vest in the Government and in what manner the liabilities of the Corporation and shall be appointed between the Corporation and vest the Government, and on the scheme being notified, the property and liabilities shall best and be apportioned accordingly;
