Section 355B(3)(e) in Karnataka Municipalities Act, 1964
(e)the unexpended balance of the Grama Panchayat fund and property (including arrears of rates, taxes and fees) belonging to the said Grama Panchayat and all rights and powers which prior to the said declaration vested in the Grama Panchayat shall, subject to all charges and liabilities affecting the same, vest in the Town Panchayat;