(1)The State Government may allocate to a Gram Panchayat any public property situated within its jurisdiction, and thereupon such property shall vest in and come under the control of the Gram Panchayat.(2)No property vested in or belonging to a Gram Panchayat shall be gift, mortgage, exchange or lease except with the previous sanction of the State Government.(3)Where the State Government is of opinion that any property vested in or belonging to a Gram Panchayat is required for the purpose of any national or State development plan or for any other public purpose, the State Government may resume such property, and upon such resumption, the property shall cease to vest in the Gram Panchayat and shall re-vest in the State Government.(4)No compensation other, than the amount paid by the Gram Panchayat for such transfer and the market value of any building or works erected or executed on such property by the Gram Panchayat at the time of resumption shall be payable. Any sum so received shall be credited to the Gram Panchayat Fund.
