7. Effect of excluding local area from Municipality or withdrawing the whole area of Municipality from Act.
(1)When a local area is excluded from a Municipality by a notification published under Section 5, sub-section(2),(a)this Act and all rules and bye-laws made, orders, directions and notices issued, and powers conferred there under shall cease to apply thereto;(b)the State Government shall, after consulting the Board, frame a schemes determining what portion of the balance of the Municipal fund and other property vested in the Board shall vest in the State Government and in what manner the liabilities of the Board shall be apportioned between the Board arid the State Government; and on the publication of such scheme in the Gazette, such property and liability shall vest arid be apportioned accordingly.(2)When the whole area comprised in any municipality is withdrawn from the operation of this Act by a notification published under Section 5. Sub-section (2), this Act and all rues and bye-laws made orders, directions and notice issued and powers conferred there under, shall cease to apply thereto; and the balance of the municipal fund and all other property at the time of the issued of the notification vested in the Board shall be transferred to the State Government.
