(1)If, in the opinion of the Government, a Panchayat exceeds or abuses its powers or is not competent to perform or makes persistent default in the performance of the duties imposed on it under this Act or any other law for the time being in force, the Government may, after [conducting an enquiry] [Substituted by the Amendment Act 1 of 1997.] by an order published in the Official Gazette dissolve such Panchayat.(2)If in the opinion of the Government, a Zilla Panchayat exceeds or abuses its power or is not competent to perform or makes persistent default in the performance of the duties imposed on it under this Act or any other law for the time being in force, the Government may after conducting an inquiry under section 177, by an order published in the Official Gazette, dissolve such Zilla Panchayat.(3)Before publishing an order under sub-section (1) or sub-section (2), the Government, shall communicate to the Panchayat or Zilla Panchayat, as the case may be, the grounds on which he or it proposes to do so, fix a reasonable period for the Panchayat or Zilla Panchayat to show-cause against the proposal and consider its explanation and objections, if any.(4)When a Zilla Panchayat or Panchayat is dissolved, all the members of such Zilla Panchayat or Panchayat, as the case may be, shall, from the date specified in the order, vacate their office as such members.(5)When a Panchayat or Zilla Panchayat is dissolved it shall be reconstituted in the manner provided in this Act before the end of six months from the date of such dissolution:Provided that where the remainder of the period which the dissolved Zilla Panchayat or Panchayat would have continued is less than six months, it shall not be necessary to hold an election under this section for constituting a Zilla Panchayat or Panchayat for such period.(6)A Zilla Panchayat or Panchayat constituted upon dissolution before the expiration of its duration, shall continue only for the remainder of the period of which the dissolved Zilla Panchayat or Panchayat would have continued had it not been so dissolved.(7)If a Panchayat or Zilla Panchayat is dissolved,-(a)all the powers and duties of the Zilla Panchayat or Panchayat shall, during the period of its dissolution be exercised and performed by such person or persons as the [Government] [Substituted by the Amendment Act 1 of 1997.] may from time to time appoint in this behalf;(b)all property vested in the Panchayat or Zilla Panchayat dissolved shall during the period of dissolution vest in the Government;(c)the persons vacating office on dissolution shall be eligible for re-election.
