4. [ Constitution of Municipalities. [Substituted vide Orissa Act 11 of 1994 w.e.f. 31.5.1994.]
(1)There shall be constituted by the State Government -(a)a Notified Area Council for every transitional area;(b)a Municipal Council for every smaller urban area; and(c)a Municipal Corporation for every larger urban area, in accordance with the provisions of this Act :Provided that no such Council or Corporation shall be constituted in any urban area or part thereof which the Governor may, having regard to the size of the area and the Municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit, by notification, specify to be an industrial township.(2)in this section, "a transitional area" "a smaller urban area" or "a larger urban area" means such area as the Governor may, having regard to the population of the area, the density of the population therein, the revenue generated for local administration, the percentage of employment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by notification under Clause (2) of Article 243 (Q) of the Constitution.[Provided that before publication of the notification under this subsection, the State Government shall publish in the prescribed manner a draft of such notification inviting objections and suggestions from all persons likely to be affected thereby with such period as may be prescribed, and shall consider the objections and suggestions, if any, as may be received on the said draft.]Explanation. - For the purposes of this section -(a)save as may otherwise be deemed fit by the Governor, a population of not less than ten thousand, twenty five thousand and three lakhs, respectively, may be taken as sufficient population for the purpose of specifying respectively "a transitional area" "a smaller urban area" and "a larger urban area".(b)the factors relating to density of population, percentage of employment in non-agricultural activities, generation of revenue for local administration, economic importance and such other factors for the purpose specifying, "a transitional area" "a smaller urban area" and "a larger urban area" shall be such as the Governor may, from time to time, determine.(3)Notwithstanding anything contained in this section -(a)the territorial area of every Notified Area Council and that of every Municipal Council constituted prior to, and existing at, the commencement of the Orissa Municipal (Amendment) Act, 1994 shall respectively be deemed to be a transitional area and a smaller urban area within the meaning of Sub-section (2) of Section 4; and(b)every Notified Area Council (including its Chairperson and Vice-Chairperson) and every Municipal Council (including its Chairman, Vice-Chairman and Additional Vice-Chairman), continuing in office at the commencement of the Orissa Municipal (Amendment) Act, 1994 shall continue till the expiration of the term as provided in Sub-section (1) of Section 41 as it stood prior to such commencement, unless sooner dissolved by resolution passed to that effect by the Legislative Assembly.(4)When any transitional area or smaller urban area within the meaning of Sub-section (2) is subsequently specified to be -(a)a smaller urban area in the case of a transitional area, or(b)a larger urban area in the case of a smaller urban area, then, notwithstanding anything contained in this Act -(i)the Notified Area Council for the existing transitional area shall be deemed to be the Municipal Council for the smaller urban area so subsequently specified;(ii)the Municipal Council for the existing smaller urban area shall be deemed to be the Municipal Corporation for the larger urban area so subsequently specified;(iii)the Chairperson, Vice-Chairperson and other members of the existing Notified Area Council or Municipal Council shall be deemed to be Chairperson, Vice-Chairperson and other members of the deemed Municipal Council or, as the case may be, of the deemed Municipal Corporation;(iv)all the assets and liabilities of the existing Notified Area Council shall devolve upon the deemed Municipal Council or, as the case may be, that of the existing Municipal Council shall devolve upon the deemed Municipal Corporation;(v)the provisions of this Act and of the rules, bye-laws, notifications or orders made thereunder which were in force throughout such transitional area or, as the case may be, the Municipal area shall apply to the territorial of such deemed Municipal Council or, as the case may be, deemed Municipal Corporation;(vi)the proceedings commenced, if any, for reconstitution of the existing Notified Area Council or, as the case may be, existing Municipal Council shall continue as if Such proceedings were commenced in relation to the deemed Municipal Council or, as the case may be, deemed Municipal Corporation.](5)[ The State Government may, after consultation with any Municipality constituted under Sub-section (1), by notification, alter the limits of the local area of the Municipality so as to exclude therefrom, or include therein, any area as may be specified in the notification;Provided that before publication of the notification under this Subsection, the State Government shall publish in the prescribed manner a draft of such notification inviting objections and suggestions from all persons likely to be affected thereby within a period of thirty days, and shall consider the objections and suggestions, if any, as may be received on the said draft.] [Inserted vide Orissa Act 1 of 2007, O.G.E. No. 149 dated 5.2.2007.]
