5. Effect of inclusion of a Gram Panchayat or part thereof in Nagar Panchayat, etc.
(1)If, at any time, the whole of a Gram is included within the Nagar Panchayat under the provisions of the law made in this behalf, the Gram Panchayat concerned shall cease to exist,and the properties,funds and other assets vested I n such Gram Panchayat and all the rights and liabilities of such Gram Panchayat shall vest in, and devolve on, the Nagar Panchayat.(2)If, at any time, a part of the area of Gram is included in a Nagar Panchayat under the provisions of the law made in thisbehalf, the area of the Gram shall be deemed to have reduced to the extent of the part so included with the Nagar Panchayat and the properties, funds, rights, liabilities of the Gram Panchayat concerned in respect of the part so included shall vest in,and devolve on the Nagar Panchayat in such manner as may be determined by the Prescribed Authority and such determination shall be final, unless the State Government otherwise directs, rules, orders, directions and notifications in force in the area comprised in the Nagar Panchayat shall apply to the part of the area of the Gram so included.
