(1) When, by a notification under section 3, any cantonment ceases to be a cantonment and the local area comprised therein is immediately placed under the control of a local authority, the balance of the cantonment fund or the cantonment development fund and other property vesting in the Board shall vest in such local authority, and the liabilities of the Board shall be transferred to such local authority.
(2) When, in like manner, any cantonment ceases to be a cantonment and the local area comprised therein is not immediately placed under the control of a local authority, the balance of the cantonment fund or the cantonment development fund and other property vesting in the Board shall vest in the Central Government, and the liabilities of the Board shall be transferred to that Government.
(2) When, in like manner, any cantonment ceases to be a cantonment and the local area comprised therein is not immediately placed under the control of a local authority, the balance of the cantonment fund or the cantonment development fund and other property vesting in the Board shall vest in the Central Government, and the liabilities of the Board shall be transferred to that Government.
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Next · Section 7Disposal of cantonment fund and cantonment development fund when area ceases to be included in a cantonment. →All sections / सभी धाराएँThe Cantonments Act, 2006 →
More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 3 · Definition of cantonments.Section 4 · Alteration of limits of cantonments.Section 5 · The effect of including area in cantonment.Section 7 · Disposal of cantonment fund and cantonment development fund when area ceases to be included in a cantonment.Section 8 · Application of funds and property transferred under sections 6 and 7.Section 9 · Limitation of operation of Act.India Code, Government of India. Text fetched 17 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.