The Gram Panchayat may agree under section 29 of the Act to receive from any person any property vested in him or the execution and maintenance of any work or the performance of any duty, within its area on the following conditions :-
(i) Such property or work or duty may not entail the expenditure more than the income from such property, work or duty;
(ii) before taking over such activity an agreement between the person/ institution and Gram Panchayat shall have to be executed duly attested by an Executive Magistrate.
(iii) The Gram Panchayat shall take sufficient amount in advance from the person/institution concerned for the maintenance or execution or performance of the responsibility.
(iv) if the person/institution fails to meet the expenditure on maintenance, execution or performance of duty, the Gram Panchayat shall not be liable to continue with such activity and shall hand over such property or work to the concerned person/institution and the agreement shall automatically stand terminated :
Provided that the Gram Panchayat shall give due opportunity to the person/institution before terminating the agreement.
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CHAPTER-IV JUDICIAL FUNCTIONS AND POWERS OF GRAM PANCHAYAT