Section 4(4) in Karnataka Municipalities Act, 1964
(4)Save as otherwise provided in this Act or any other law for the time being in force when a local area is excluded form any [smaller urban area] [Substituted by Act 36 of 1994 w.e.f. 1 -6-1994.],-(i)the rights and liabilities of the municipal council in such area shall vest in the Government; and(ii)the Government shall after consulting the municipal council determine what portion of the municipal fund and all other property vested in the municipal council shall vest in the Government for the benefit of the inhabitants of the local area, and how the liabilities of the municipal council shall be apportioned between the municipal council and the Government.
