3. [ Specification of smaller urban area. [Sub-Section 3 upto sub-section (5) Substituted by Act 36 of 1994 w.e.f. 1-6-1994.]
(1)The Governor may subject to the provisions of section 9 and having regard to,-(a)the population of any area;(b)the density of population of such area;(c)the revenue generated for the local administration of such area;(d)the percentage of employment in non-agricultural activities in such area;(e)the economic importance of such area; and(f)such other factors as may be prescribed,specify, by notification, such area to be a smaller urban area and such smaller urban area shall be deemed to be a municipal area:Provided that no such area shall be so specified as a smaller urban area unless,-(i)the population of such area is not less than twenty thousand and not more than three lakhs;(ii)the density of population in such area is not less than one thousand five hundred inhabitants to one square kilometer of area;(iii)the revenue generated for local administration from such area from tax and non-tax sources in the year of the last preceding census is not less than rupees nine lakhs per annum or a sum calculated at the rate of rupees forty-five per capita per annum, whichever is higher;(iv)the percentage of employment in non-agricultural activities is not less than fifty per cent of the total employment:[***](2)The Governor may while specifying any area to be a smaller urban area in sub-section (1) may also specify such area to be a city municipal area, in case the population of such area is not less than fifty thousand or a town municipal area, in case the population is not less than twenty thousand but less than fifty thousand.[Provided that if a District Head Quarters is situated in such smaller urban area the Governor may; specify such area to be a city municipal area even though it contains population of less than fifty thousand.] [Inserted by Act 31 of 2003 w.e.f. 20-8-2003.][Provided further that notwithstanding anything contrary contained in this Act where after specifying any area to be a city municipal area or town municipal area, its population is reduced on account of specifying Industrial Township areas, its status shall continue as such city municipal area or town municipal area, as the case may be till the area is specified afresh under this section.] [Inserted by Act 24 of 2003 w.e.f. 21.8.2003.](3)[ ***] [Sub-section (3) Omitted by Act 24 of 2003 w.e.f. 21.8.2003.](4)Notwithstanding anything contained in sub-section (1), no cantonment or part thereof shall be comprised in any such municipal area;(5)Every notification issued under sub-section (1), shall define the limits of the smaller urban area, or as the case may be, the industrial township to which it relates;]
