(1) If, in the opinion of the Board, a Panchayat exceeds or abuses it powers or is incompetent to perform, or makes persistent default in the performance of, the duties imposed on it or functions entrusted to it, by or under this Chapter or fails to obey an order made by the Board, the Board may, with the approval of the Authority, after giving the Panchayat an opportunity of rendering an explanation, by order in the Official Gazette-
(i) dissolve such Panchayat, or
(ii) supersede such Panchayat for the period specified in the order.
(2) When a Panchayat is so dissolved or superseded, the following consequences shall ensue, that is to say,-
(a) all members of the Panchayat shall, in the case of dissolution , as from the date specified in the order of dissolution, and in the case of supersession, as from the date of the order of supersession, vacate their office as such member ;
(b) all powers and duties of the Panchayat shall, during the period of dissolution or supersession, be exercised and performed by such person or persons as the Board may, from time to time, appoint in that behalf ;
(c) all property vested in the Panchayat shall, during the period of dissolution or supersession, vest in the Board.