Section 3(3) in Rajasthan Municipalities Act, 2009
(3)When any local area ceases to be a Municipality, the Municipality established therein shall cease to exist, and the balance of the municipal fund and other property and rights vesting in such Municipality shall, subject to all charges and liabilities affecting the same, vest in the State Government and the proceeds thereof, if any, shall be expended under the orders of the State Government for the benefit of the local area in which such Municipality had jurisdiction.
