(1) If a Gram Panchayat wants to introduce prohibition in its area, it shall pass a resolution to that effect by vote of at least two-third majority of members as required under section-18 and send a copy of the same to the Commissioner, Excise and Taxation under intimation to the Deputy Commissioner.
(2) The Excise and Taxation Commissioner shall submit the case to the Government for orders.
(3) Approval of the Government shall be conveyed by the Commissioner, Excise and Taxation to the Panchayat concerned and to the Director, Panchayati Raj.
40. Power to manage fairs and markets. Except for State level and District level fairs organised by the Government, the Gram Panchayat may organise, manage and regulate fairs and markets within the Sabha area in accordance with the resolution passed by the Gram Panchayat concerned subject to the condition that the expenditure on organising, managing or regulating of such fairs or markets does not exceed 75% of the total income received from different sources by organising the melas/market.