12. Declaration of intention to include in, or exclude from, a smaller urban area, any area or to specify a smaller urban area as a transitional area or withdraw a smaller urban area from the operation of the Act and consequences thereof.
(1)The Government may, after consultation with the Municipal Council and subject to the provisions of section 8 and section 10 by notification declare its intention, -(a)to include within a smaller urban area, any area adjacent thereto; or(b)to exclude from a smaller urban area, any area comprised therein; or(c)to specify a small urban area to be a transitional area; or(d)to withdraw a smaller urban area altogether from the operation of this Act.(2)Every such notification shall define the limits of the area to which it relates.(3)When a notification is issued under sub-section (1), the provisions of sub-section (2) of section 3 relating to the publication of a copy of the notification, and of section 4 relating to the submission of objections, shall apply.(4)On the expiry of a period of thirty days from the date of publication of the notification referred to in sub-section (1) and after consideration of the objections, if any submitted, the Government may, by notification, -(a)include within a smaller urban area, any area adjacent thereto; or(b)exclude from a smaller urban area, any area comprised therein; or(c)specify a smaller urban area to be a transitional area; or(d)withdraw a smaller urban area altogether from the operation of this Act.(5)Where any area within the territorial jurisdiction of any local authority, other than a Municipal Council, is constituted as, or included in, a smaller urban area, -(a)the provisions of this Act, and except as the Government may, by notification, otherwise direct, all rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such smaller urban area shall apply to, and shall be deemed to have been imposed in, the area so constituted or included;(b)the Government may, by notification, issue such orders as it may deem fit,-(i)as to the transfer to the Municipal Council, or disposal otherwise of, the assets or institutions of such local authority in the area so constituted or included, and(ii)as to the discharge of the liabilities, if any, of such local authority relating to such assets or institutions.(6)Where any area is excluded from a smaller urban area and included in the area within the territorial jurisdiction of any other local authority, -(a)the provisions of this Act or any rules, regulations, notifications, orders, directions and powers made, issued or conferred and all taxes, duties, tolls and fees imposed under this Act and in force in such smaller urban area shall cease to apply and shall cease to be imposed in the area so excluded;(b)the Government may, by notification, issue such orders, as it may deem fit,-(i)as to the transfer to such local authority, or disposal otherwise of, the assets or institutions of the Municipal Council of the smaller urban area; and(ii)as to the discharge of the liabilities, if any, of such Municipal Council relating to such assets or institutions.(7)Upon the issue of a notification under sub-section (4) specifying any smaller urban area to be transitional area, -(a)the notification referred to in section 9, in so far as it specifies such smaller urban area shall stand rescinded and such smaller urban area shall cease to exist; and(b)the provisions of this Act relating to transitional area shall apply in the area so specified :Provided that the members of the Municipal Council of such smaller urban area shall, subject to the provisions of section 55, be deemed to be the members of the Nagar Panchayat of the transitional area and continue to function as such until the expiry of the duration of the Municipal Council or until a Nagar Panchayat is constituted therefor, whichever is earlier.(8)Upon the issue of a notification under sub-section (4), withdrawing any smaller urban area altogether from the operation of this Act, -(a)the provisions of this Act and all notifications, rules, regulations, orders, directions and powers issued, made or conferred thereunder, shall cease to apply to such area;(b)the Municipal Fund and all other property vested in the Municipal Council shall vest in the Government and the liabilities of the Municipal Council shall stand transferred to the Government;(c)any right, privilege, obligation or liability acquired, accrued to or incurred by the Municipal Council immediately before such withdrawal, shall vest in or be enforceable against the Government :Provided that any tax, fee or other amount due from any person to the Municipal Council, shall be recoverable by the Government as an arrear of land revenue.(d)all suits, prosecutions, and other legal proceedings instituted or which might have been instituted by or against the Municipal Council, may be continued or instituted by or against the Government;(e)the posts of officers and employees of the Municipal Council shall be deemed to have been abolished and consequently the cadre of the Municipal Services constituted under section 108 comprising any such posts, shall be deemed to have been correspondingly reduced :Provided that the Government shall provide alternative employment in other municipalities to the persons becoming surplus consequent to such abolition or reduction and for that purpose the Government can direct any municipality to appoint a person on a post to which he may be found suitable by the Government.Transitional Areas
