Section 262(1) in The Gujarat Panchayats Act, 1993
(1)When two or more villages cease to be villages and the local areas constituting such villages are amalgamated and declared to be one village (hereinafter in this section referred to as "as amalagamated village"). By virtue of a notification under clause (g) of Article 243 of the Constitution, with effect from the date on which such notification is issued (hereinafter in this section referred to as `the said date) the following consequences shall ensue, that is to say-(a)the panchayats of such local areas shall cease to exist and all the members of such panchayats shall vacate office;(b)all powers and duties of such panchayats shall be exercised and performed by such person or persons (hereinafter referred to as the administrator or administrators) as the State Government appoints in this behalf;(c)the unexpended balance of the village funds and all the properties including areas of rates, taxes and fees belonging to such panchayats and all rights and powers which prior to the said date, vested in such panchayats shall, subject to all charges and liabilities affecting the same, vest as the village fund-(i)in the administrator or administrators until the panchayat for the amalgamated village is constituted and holds its first meeting under sub-section (1) of section 51, and(ii)thereafter, the amalgamated panchayat:(d)the unexpended balance of the village funds and all the properties (including areas of rates, taxes and fees) shall until amalgamated panchayat is constituted and holds its first meeting, or be utilised for the benefit of the inhabitants of such local areas as in such manner as the administrator or administrators may think fit;(e)any appointment, notification, notice tax, fee, cess, order, scheme, licence, permission, rule, bye-law or form made, issued, imposed or granted in respect of such local areas and in force on the said date shall continue in force and be deemed to have been made, issued, imposed or granted in respect of the amalgamated village until it is superseded or, modified by any appointment, notification, notice, tax, fee, cess, order, scheme, licence, permission, rule, bye-law or form made imposed or granted under this Act:(f)all budget estimates, assessments, assessment lists, valuations or measurements made or authenticated by such panchayats immediately before the said date shall be deemed to have been made or authenticated in respect of the amalgamated village under this Act:(g)all debts and obligations incurred and all contracts made by or on behalf of such panchayats immediately before the said date and subsisting on the said date shall be deemed to have been incurred and made by the amalgamated panchayat in exercise of the powers conferred on it by this Act;(h)all officers and servants in the employ of such panchayats immediately before the said date shall be officers and servants of the amalgamated panchayat and shall until other provision is made in accordance with this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled or subject on such date:Provided that it shall be competent to the administrator or administrators or the amalgamated panchayat, subject however, to the previous sanction of the State Government, to discontinue the services of any officer or servant who, in his opinion, is not necessary or suitable to the requirements of the service of the amalgamated panchayats, after giving such officer or servant such notice as is required to be given by the terms of his employement and every officer or servant whose services are discontinued, shall be entitled to such leave, pension, provident fund and gratuity, as he would have been entitled to take or receive on being invalided out of service, as if the panchayat in the employee of which he was, had not ceased to exist.(i)all proceedings pending at the said date before such panchayats shall be deemed to be transferred to, and continued by, the administrator or administrators or the amalgamated panchayat, as the case may be;(j)all appeals pending before such panchayats at the said date shall so far as may be practicable, be disposed of by the administrator, or administrators of the amalgamated panchayat, as the case may be;(k)all prosecutions instituted by or on behalf of such panchayats and all suits or other legal proceedings instituted by or against such panchayats, or any officer of such panchayats pending at the said date shall be continued by or against the amalgamated panchayat.
