(1)If in the opinion of the State Government, a Gram Panchayat abuses its powers or is not competent to perform or makes persistent defaults in the performance of its duties under this Act or wilfully disregards any instructions given or directions issued by the Panchayat Samiti or Zila Parishad or any instructions issued by the State Government arising out of the audit of accounts of the Gram Panchayat or inspection of work, the State Government may, after giving the Gram Panchayat an opportunity to render explanation, by an order published, alongwith the reasons thereof, in the Official Gazette, dissolve such Gram Panchayat.(2)When a Gram Panchayat is dissolved under sub-section (1) -(i)Sarpanch, and all Panches shall vacate their offices forthwith;(ii)all powers and duties of the Gram Panchayats during its dissolution, shall be exercised and performed by such person or persons as the State Government may appoint in this behalf; and(iii)all property in the possession of the Gram Panchayat shall be held by the State Government.(3)Upon dissolution of Gram Panchayat under sub-section (1), the State Government shall reconstitute a Gram Panchayat as specified under section 10 and election to reconstitute such Gram Panchayat shall be completed before the expiration of a period of six months from the date of dissolution:Provided that where the remainder of the period for which the dissolved Gram Panchayat would have continued is less than six months, it shall not be necessary to hold any election under this sub-section for reconstituting the Gram Panchayat for such period.(4)Gram Panchayat reconstituted upon the dissolution of the existing Gram Panchayat before the expiration or its duration, shall continue only for the remainder of the period for which the dissolved Gram Panchayat would have continued under section 15 had it not been so dissolved.
