Section 3MM(1) in Tamil Nadu District Municipalities Act, 1920
(1)Notwithstanding anything contained in this Act,-(a)the president and members of a village panchayat, who are elected or deemed to have been elected and holding office as such immediately before the date of constitution of such village panchayat as Third Grade municipality under this Act, shall be deemed to be the chairman and members of such Third Grade municipality elected under this Act and such chairman and members shall continue to hold office up to such date as the State Government may, by notification, fix in this behalf or, in case no such date is fixed, up to the date on which their term of office would expire under the Tamil Nadu Panchayats Act, 1994 (Tamil Nadu Act 21 of 1994) and such chairman and members shall exercise all powers and perform all duties conferred on the chairman and members by or under this Act.(b)all the employees, other than the provincialised employees, of the village panchayat, immediately before its constitution as Third Grade municipality, shall be the employees of such Third Grade municipality under this Act. The provincialised employees shall continue to serve under the Third Grade Municipality and they shall be transferred by the Director of Rural Development within three months from the date on which such Third Grade Municipality is constituted under this Act.