Section 227(8) in The Gujarat Panchayats Act, 1993
(8)The promotion of a servant in a cadre in the panchayat service to a cadre in the State service in accordance with rules made under clause (a) of sub-section (6) shall not affect-(a)any obligation or liability incurred or default committed by such servant during the period of his service in a cadre in the panchayat service while acting or purporting to act in the discharge of his duties as such servant or(b)any investigation, disciplinary action or remedy in respect of such obligation, liability or default, and any such investigation, disciplinary action or remedy may be instituted, continued or enforced in accordance with the law applicable thereto during the said period or service by such authority as the State Government may by general or special order specify in this behalf.