Section 9(1) in The Chhattisgarh Municipalities Act, 1961
(1)When a local area is excluded from a Municipality by a notification published under [Section 5-A] [Inserted by M.P. Act No. 18 of 1997.],-(a)all notifications, rules, bye-laws, orders, directions, notices and powers made, issued or conferred under this Act shall cease to apply thereto; and(b)the State Government shall frame a scheme determining what portion of the balance of the Municipal fund and all other property vested in the Council shall, on such exclusion, vest-(i)where such area is included within the limits of any other local authority, in such local authority; and(ii)in any other case, in the State Government;and in what manner the liability of the Council shall be apportioned between the Council and any such local authority or the State Government, as the case may be, and on the publication of such a scheme in the Gazette, such property and liability shall vest and be apportioned accordingly:Provided that before framing any such scheme the State Government shall consult the Council and where the area is included within the limits of any other local authority, also such authority.
