Section 261(1)(c) in The Gujarat Panchayats Act, 1993
(c)the unexpended balance of the nagar fund and property including arrears of rates, taxes and fees belonging to the nagar panchayat, and all rights and powers, which prior to such notification, vested in the nagar panchayat shall, subject to all charges and liabilities affecting the same vest in the interim village panchayat as the village fund until the new panchayat is constituted under the provisions of this Act: