Section 5(1) in The Punjab Village Common Lands (Regulation) Act, 1961
(1)All lands vested or deemed to have been vested in a Panchayat under this Act shall be utilised or disposed of by the Panchayat for the benefit of the inhabitants of the village concerned in the manner prescribed:Provided that where two or more villages have a common Panchayat the shamilat deh of each village shall be utilised and disposed of by the Panchayat for the benefit of the inhabitants, of that village:Provided further that where there are two or more shamilat tikkas in a village the shamilat tikka shall be utilised and disposed of by the Panchayat for the benefit of the inhabitants of that tikka:Provided further that where the area of land in shamilat deh of any village so vested or deemed to have been vested in a Panchayat is in excess of twenty-five per cent of the total area of that village (excluding abadi deh) then twenty-five percent of such total area shall be left to the Panchayat end out of the remaining area of shamilat deh an area up to the extent of twenty-five per cent of such total area shall be utilised for the settlement of landless tenants and other tenants ejected or to be ejected of that village and the remaining area of shamilat deh, if any, shall be utilised for distribution to the small landowners of that village subject to the provisions relating to permissible area and permissible limit of the Punjab Security of Land Tenures Act, 1953 and the Pepsu Tenancy and Agricultural Lands Act, 1955, as the case may be, by the Collector in consultation with the Panchayat in such manner as may be prescribed.
