State Act
Section 340. Power of State Government to make suitable provisions by order when a municipal area is created or altered.
The Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965.
340. Power of State Government to make suitable provisions by order when a municipal area is created or altered.— (1) In this section, unless the context otherwise requires— (a) “specified day” means the day from which any local area is declared to be a 1[smaller urban area under sub-section (2)] of section 3 or the day from which a change referred to in any of the clauses (a) to (d) of sub-section (1) of section 6 takes effect; (b) “existing local authority”, in relation to any local area, means the Municipal Council or the panchayat or where there is no Municipal Council or panchayat, the Zilla Parishad having jurisdiction over such area immediately before the specified day; (c) “successor local authority”, in relation to any local area, means the Municipal Council or the panchayat or where there is no Municipal Council or panchayat, the Zilla Parishad having jurisdiction over such area from the specified day; (d) “Zilla Parishad”, in relation to any local area, means a Zilla Parishad constituted under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961 (Mah. V of 1962) and having jurisdiction over such area; (e) “panchayat” means a village panchayat established or deemed to be established for any village or group of villages under the 2Bombay Village Panchayats Act, 1958 (III of 1959). (2) When— (a) any local area is declared to be a 3[smaller urban area;] (b) any local area is added to be a 4[smaller urban area;] (c) any local area is excluded from a 5[smaller urban area;] (d) two or more municipal areas are amalgamated into one 6[smaller urban area]; or (e) a 7[smaller urban area] is split up into two more municipal areas ; the State Government may, notwithstanding anything contained in this Act or any other law for the time being in force, by an order published in the Official Gazette, provide for all or any of the following matters, namely :— 8[(i) in a case falling under clause (a), (d) or (e), the appointment of a Government Officer, or Officers to exercise all the powers and duties of a Council under the Act, until a new Council is or, as the case may be, Councils are duly constituted in accordance with the provisions of the Act: Provided that,— (i) the terms and conditions (including the remuneration) of such Officer or Officers shall be as determined by the State Government; (ii) such Officer or Officers shall hold office until the first meeting of the Council;] 1[(ii) in a case falling under clause (b), interim increase in the number of councillors by election of Councillors from the local area added;] (iii) in a case falling under clause (c), the removal of the Councillors, who in the opinion of the State Government, represent the area excluded from the 2[smaller urban area;] 3[* * * *] (vi) the transfer, in whole or in part, of the assets, rights and liabilities of an existing local authority (including the rights and liabilities under any agreement or contract made by it) to any successor local authorities or the State Government and the terms and conditions for such transfer; (vii) the substitution of any such transferee for an existing local authority or the addition of any such transferee as a party to any legal proceeding to which an existing local authority is a party; and the transfer of any proceedings pending before the existing local authority or any authority or office subordinate to it to any such transferee or any authority or officer subordinate to it; (xi) the continuance within the area of an existing local authority of all or any budget estimates, assessments, assessment lists, valuations, measurements or divisions made or authenticated by, or in respect of such existing local authority a(viii) the transfer or re-employment of any employees of an existing local authority to, or by, any such transferee or the termination of services of any employees of an existing local authority and the terms and conditions applicable to such employees after such transfer or re-employment or termination; (ix) the continuance within the area of an existing local authority of all or any appointments, notifications, notices, taxes, orders, schemes, licences, permissions, rules, by-laws, regulations or forms made, issued, imposed or granted by, or in respect of, such existing local authority and in force within its area immediately before the specified day, until superseded or modified under this Act; (x) the extension and commencement of all or any appointments, notifications, notices, taxes, orders, schemes, licences, permissions, rules, by-laws, regulations or forms made, issued, imposed or granted under this Act by, or in respect of, any existing Council and in force within its area immediately before the specified day, to and in all or any of the other areas of the successor Council, in supersession of corresponding appointments, notifications, notices, taxes, orders, schemes, licences, permissions, rules, by-laws, regulations or forms (if any) in force in such other areas immediately before the specified day, until the matters so extended and brought into force are further superseded or modified under this Act; (xi) the continuance within the area of an existing local authority of all or any budget, estimates, assessments, assessments lists, valuations, measurements or divisions made or authenticated by, or in respect of such existing local authority and in force within its area immediately before the specified day, until superseded or modified under the relevant law; (xii) the removal of any difficulty which may arise on account of any change referred to in clauses (a) to (e). (3) Where an order is made under this section transferring the assets, rights and liabilities of any existing local authority, then, by virtue of that order, such assets, rights and liabilities of the existing local authority shall vest in and be the assets, rights and liabilities of, the transferee. (4) (a) Where an order is made under this section, the Director shall, 1[* *] take steps in accordance with 2[sections 9 and 10] of this Act for the purpose of determining the number of Councillors of, and for holding election for, the new Council or Councils, as the case may be; (b) 3[* *] (c) save as otherwise provided by or under this section, the provisions of this Act shall mutatis mutandis apply to any such Council, its Councillors 4[(including the President and the Vice-President)] or administrator.