Section 88 in The Jammu and Kashmir Panchayati Raj Rules, 1996
88. Disposal of assets and liabilities of a Panchayat on inclusion of its area into a Municipality, Town Area etc.
- When whole of the area of the Panchayat is included in a Municipality or Cantonment or Notified Area or Town Area, all the assets and the liabilities of the Panchayat including arrears of taxes, rents and fees shall vest in the Municipality, Cantonment, Notified Area or Town Area, as the case may be, from the date of such declaration by the Government :Provided that where only a part of the area of a Panchayat is included in a Municipality, Cantonment or Notified Area or Town Area, the assets and the liabilities etc. of Panchayat shall be shared in proportion with the population of the area so declared and as may be directed by the Head of the Panchayat Department.
