Section 389A in Andhra Pradesh Municipalities Act, 1965
389A. Notified Areas.
(1)(a)The Government may by notification in the Andhra Pradesh Gazette, declare any local area to be a notified area, for the purpose of application of all or any of the provisions of this Act in the said notified area.(b)Where any local area is declared as a notified area, the Government may pass such orders as they may deem fit, as to exclude the local area from the jurisdiction of the local authority concerned, as to the disposal of any part of the property vested in such local authority and as to the discharge of the liabilities of such local authority relating to the said property, or arising from such local area.(2)The Government may, by notification in the Andhra Pradesh Gazette,(a)apply or adopt to a notified area or any part thereof, any provision of this Act or of any rule or bye-law made thereunder.(b)impose in a notified area or any part thereof,(i)any tax, which might be imposed by the council under the provisions of this Act if the notified area were a municipality;(ii)where it is a mining area, a tax on mineral rights, subject to any limitations which may be imposed by Parliament by law relating to mineral development and the rules made thereunder, and subject to such rules as may be prescribed in this behalf:(c)appoint a committee for the purposes of-(i)the assessment and recovery of any tax imposed under clause (b);(ii)arranging the due expenditure of the proceeds of such taxes;(iii)the preparation and maintenance of proper accounts; and(iv)generally enforcing the provisions of this Act or any rule or bye-law applied or adopted under clause (a);(d)provided for(i)the total number of members of the committee, which shall not be less than seven but not more than fifteen, to be nominated by the Government of whom(A)not less than two but not more than four shall be officials;(B)not less than two but not more than four shall be persons representing the mining or industrial managements within the notified area;(C)not less than two but not more than four shall be persons representing the employees of such managements; and(D)not more than three shall be other persons residing within the notified area;(ii)the persons who shall be the Chairperson and Vice-Chairperson of the committee, or the manner in which they shall be chosen, from among the members of the committee;(iii)the term of office of the members of the committee; and(iv)the restrictions and conditions subject to which the committee may perform its functions.(3)The proceeds of any tax imposed in a notified area under this section shall be expended in the same manner in which the municipal fund might be expended under the provisions of this Act, if the notified area were a municipality.(4)For the purpose of any provisions of this Act, which may be applied or adopted to a notified area the committee appointed for such area shall be deemed to be a council under this Act and the area shall be deemed to be a municipality.(5)The Government may, at any time, modify or cancel any notification issued under this section.(6)Where by reason of the cancellation under sub-section (5) of any notification issued under this section, any area ceases to be a notified area, the Government may pass such orders as they may deem fit, as to the transfer of the assets of the committee of such area, as to the discharge of the liabilities, if any, of such committee and as to the manner in which the expended funds shall be applied.
