Section 407(1) in The Punjab Municipal Corporation Act, 1976
(1)If in the opinion of the Government, a Corporation is not competent to perform its duties or persistently makes default in the performance of duties imposed on it by or under this Act or any other law for the time being in force or exceeds or abuses any of its powers, the Government may, by an order published, alongwith the reasons therefor, in the Official Gazette, dissolve such Corporation :Provided that the Corporation shall be given a reasonable opportunity of being heard before its dissolution.