Section 101(3) in Rajasthan Panchayati Raj Act, 1994
(3)Upon the exclusion of any local of a municipality and its declaration as or, as the case may be inclusion in, a Panchayat Circle under Sub-Section (1), -(a)such area shall cease to be a municipality;(b)the members of the board representing the area of the municipality so declared or included in a Panchayat Circle shall vacate their respective offices but without prejudice to their eligibility for election to the Panchayat to be constituted for such area or, as the case may be, the Panchayat, in the area whereof, such area is included;(c)the whole of the assets vesting in, and of the liabilities subsisting against, the municipality so declared to be a Panchayat or, in case where only a part of a municipality is included in, or declared to be a Panchayat, such portion of the said assets and liabilities as the State Government may direct, shall devolve upon the Panchayat declared for such area or upon the Panchayat in which such area of the municipality is included;(d)until new rules, notification order and bye-laws are made or issued under this Act and unless the State Government otherwise directs, all rules, notifications, orders and bye-laws applicable :-(i)to the Panchayat in which such area is included; and(ii)where the whole or a part of a municipality is declared to be a Panchayat to the area of the Panchayat Samiti which shall, by reason of the concerned area falling in the block of such Panchayat Samiti, have jurisdiction on the area so declared to be a Panchayat,shall continue to apply to the area so included or declared;(e)the Panchayat so established by inclusion of any area of a municipality thereon or by the declaration of a municipality as a Panchayat shall levy or continue to less such of the taxes as are lawfully imposed under this Act;(f)any such area shall cease to be subject to all rules, notifications, order and bye-laws made under the Rajasthan Municipality Act, 1959 (Rajasthan Act 38 of 1959); and(g)the Panchayat in which such area is included or the Panchayat which is declared for such area and the Panchayat Saimiti and Zila Parishad respectively of the Block and District, in which the area so included or declared falls, shall exercise jurisdiction over such area and the municipality in which such area was included or, as the case may be, the municipality which was established for such area shall cease to function therein.
