(3)a transitional area, namely, Nagar Panchayat if the local body area is having population of twelve thousand and above and less than forty thousand.:Provided that for the purpose of classification of municipal areas in any hill area, pilgrim centre, tourist centre or mandi town, the Government may, by notification, determine separate size of population for each class of such municipal areas.Provided further that the Government may, having regard to the economic importance and such other factors in such local area, as it deem fit, and at its discretion, determine any local area irrespective of population specified in sub-section (3 ) constitute, by notification, a Nagar Panchayat.
