Section 264E in Gujarat Municipalities (Amendment) Act, 1968
264E. Vesting, recovery and application of property, rights and liabilities of person a or committees appointed for areas ceasing to be notified area.- (1) When by reason of the cancellation, under sub-section (2) of section 264D, of a notification issued under section 264A or 264B, any area ceases to be a notified area, the property (including arrears of taxes) and rights which, prior to such cancellation, vested in the persons or committee appointed for such area under clause (c) of sub-section (1) of section 264B shall, subject to all charges and liabilities affecting the same vest in the local authority, if any, constituted for such area or within the limits of which such area is included, or if there be no such local authority, in the State Government.
(2)Any arrears of taxes vesting in a local authority under sub-section (1) shall be recoverable under the provisions of the Act under which such local authority is constituted as if the taxes were imposed and recoverable under that Act:Provided that steps to recover such arrears of taxes shall be taken within a period of three years from the date on which they so vest in the local authority.(3)Where any property and rights vest in the State Government under sub-section (1) the proceeds thereof shall, after satisfying all charges and liabilities-affecting the same be applied for the benefit of the inhabitants of the said area in such manner as the State Government may think fit.".
