Section 501B in Karnataka Municipal Corporations Act, 1976
501B. Effect of absorbtion of a part of [a smaller urban area or transitional area into a larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.].
- If any part of a local area comprised in [smaller urban area or a transitional area ] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] constituted under the Karnataka Municipalities Act, 1964, (Karnataka Act No. 22 of 1964), or any other law is included in a [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] then, with effect from the date on which such area is included in the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] , the following consequences shall ensue, namely:-(a)so much of the funds and other property vesting in the municipal council, [or a town panchayat] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] (hereinafter referred to as the local authority) shall be transferred to the corporation fund as the Government may, by order, in writing, direct;(b)the rights and liabilities of the local authority in respect of civil and criminal proceedings, contracts and other matters or things (including arrears of tax, fees and cess) arising in or relating to the part of the area included in the [larger urban area] [Substituted by Act 35 of 1994 w.e.f. 1.6.1994.] shall vest in the corporation and such rights and liabilities may be enforced by or against the corporation under this Act or the rules, bye-laws and orders made thereunder;(c)such officers and servants of the local authority, as the Government may, by order, direct shall be transferred to the corporation and the officers and servants so transferred shall, until other provision is made in accordance with the provisions of this Act, receive salaries and allowances and be subject to the conditions of service to which they were entitled or subject immediately before such transfer.
