Section 3(4) in The Punjab Panchayati Raj Act, 1994
(4)If whole of the Gram Sabha area is included in an urban estate to which the provisions of the Punjab Municipal Act, 1911 or the Punjab, Municipal Corporation Act, 1976, are applicable or in a city, municipality cantonment, or Notified Area under any law for the time being in force, the Gram Sabha and the Gram Panchayat for that area shall cease to exist and the assets and liabilities of the Gram Panchayat shall be disposed of in the prescribed manner.
