State Act

The Maharashtra Village Panchayats Act.

128. Power of 2[Panchayat Samiti] to increase taxation on panchayat.— (1) If in the opinion of the 3[Panchayat Samiti] the income of the panchayat falls below what is necessary for the proper discharge of the duties specified in sub-section (2) of section 45, the 4[Panchayat Samiti] may require the panchayat to take steps within six months, to increase its income to such extent as the 5[Panchayat Samiti] considers necessary. If the panchayat fails to take adequate steps to increase its income to the required extent, the 6[Panchayat Samiti] may require it to levy any of the taxes or fees specified in section 124 or increase the rate at which any of such taxes and fees is levied : Provided that, the 7[Panchayat Samiti] shall not compel the panchayat to levy any tax or fee or increase the rate thereof beyond the maximum rate prescribed in this behalf. (2) A panchayat may appeal to the 8[Standing Committee] against an order made under sub-section (1) and the 9[Standing Committee] may stay the execution of such order until 10[it] has decided the appeal.