(1)Every smaller urban area shall be classified by the Government, by notification, as a "Class 'A' smaller urban area" or a "Class 'B' smaller than area" or a "Class 'C' smaller urban area" :Provided that no such classification shall be made unless, -(a)in the case of a Class 'A' smaller urban area, the population of such area is one lakh or more, but is less than three lakhs;(b)in the case of Class 'B' smaller urban area, the population of such area is fifty thousand or more, but is less than one lakh; and(c)in the case of a Class 'C' smaller urban area, the population of such area is fifteen thousand or more, but is less than fifty thousand.(2)Notwithstanding anything contained in sub-section (1) but subject to the provisions of clause (i) and clause (ii) of the proviso to sub-section (1) of section 8, the Government may, if it thinks it necessary so to do, having regard to the financial viability, and the level of services required to be provided in a Class 'A' smaller urban area or a Class 'B' smaller urban area or a Class 'C' smaller urban area, specify, by notification, from time to time, the minimum per capita per annum revenue required to be generated from taxes and other sources in such smaller urban area.(3)The Government may, having regard to the factors mentioned in clause (a), clause (b) or Clause (c) of the proviso to sub-section (1), or in sub- section (2) after consultation with the Municipal Council concerned, by notification at any time, change the classification.
