Section 264E in The Gujarat Municipalities Act, 1963
264E.
[(1) When any area ceases to be a notified area, the property (including arrears of taxes) and rights which, prior to such cessation, vested in the persons or committee appointed for such area under clause (c) of sub-section (1) of section 264B shall, subject to all charges and liabilities effecting the same, vest in the municipality, if any, constituted for such area of within the limits of which such area is included or if there be no such municipality, inn the State Government.] [Sub-section (1) was substituted for the original by Gujarat 17 of 1993, section 24 (i).](2)[ Any arrears of taxes vesting in a municipality under sub-section (1) shall be recoverable under the provisions of this Act as if the taxes were imposed and recovered under this Act:Provided that steps to recover such arrears of taxes shall be initiated within a period of three years from the date on which they so vest in the municipality.] [Sub-section (2) was substituted for the original by Gujarat 17 of 1993, section 24 (ii).](3)Where any property and rights vest in the State Government under sub-section (1) the proceeds thereof shall, after satisfying all charges and liabilities affecting the same be applied for the benefit of the inhabitants of the said area in such manner as the State Government may think fit.
