When a local area is excluded from a municipal area under section 7––
(a) this Act and all notifications, rules, bye-laws, orders, directions and powers issued, made or conferred under this Act shall cease to apply thereto ; and
(b) the Government shall after consulting the municipality, frame a scheme determining what portion of the balance of the municipal fund and other property vesting in the municipality shall vest in the Government and in what manner the liabilities of the municipality shall be apportioned between the municipality and the Government, and, on the scheme being notified, the property and liabilities shall vest and be apportioned accordingly.
(a) this Act and all notifications, rules, bye-laws, orders, directions and powers issued, made or conferred under this Act shall cease to apply thereto ; and
(b) the Government shall after consulting the municipality, frame a scheme determining what portion of the balance of the municipal fund and other property vesting in the municipality shall vest in the Government and in what manner the liabilities of the municipality shall be apportioned between the municipality and the Government, and, on the scheme being notified, the property and liabilities shall vest and be apportioned accordingly.
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 2A · Substitution of expression.Section 3 · Classification of municipalities.Section 4 · Procedure for declaring muni-cipal area.Section 5 · Notification of intention to include a local area in a municipal area.Section 6 · Notification of intention to exclude local area from a municipal area.Section 7 · Exclusion of local area from a municipal area.India Code, Government of India. Text fetched 13 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.