Section 3(1) in Karnataka Municipalities Act, 1964
(1)The Governor may subject to the provisions of section 9 and having regard to,-(a)the population of any area;(b)the density of population of such area;(c)the revenue generated for the local administration of such area;(d)the percentage of employment in non-agricultural activities in such area;(e)the economic importance of such area; and(f)such other factors as may be prescribed,specify, by notification, such area to be a smaller urban area and such smaller urban area shall be deemed to be a municipal area:Provided that no such area shall be so specified as a smaller urban area unless,-(i)the population of such area is not less than twenty thousand and not more than three lakhs;(ii)the density of population in such area is not less than one thousand five hundred inhabitants to one square kilometer of area;(iii)the revenue generated for local administration from such area from tax and non-tax sources in the year of the last preceding census is not less than rupees nine lakhs per annum or a sum calculated at the rate of rupees forty-five per capita per annum, whichever is higher;(iv)the percentage of employment in non-agricultural activities is not less than fifty per cent of the total employment:[***]
