(1)If, in the opinion of the Government, a Panchayat exceeds or abuses its powers or is not competent to perform or makes persistent default in the performance of the duties imposed on it under this Act or any other law for the time being in force, the Government may, after [conducting an enquiry] [Substituted by the Amendment Act 1 of 1997.] by an order published in the Official Gazette dissolve such Panchayat.