(1) For every village having twenty or more tax-paying houses there shall be a village Authority consisting of
(a) five members, where the number of tax-paying houses in the village is not less than twenty but is not more than sixty;
(b) seven members, where the number of tax-paying houses in the village is more than sixty but is not more than one hundred;
(c) ten members, where the number of tax-paying houses in the village is more than one hundred but is not more than one hundred and fifty;
(d) twelve members, where the number of tax-paying houses in the village is more than one hundred and fifty.
(2) The Chief Commissioner may, having regard to the general interests of the people of any village as also to the demand, if any, from the people of that village for an elected Village Authority, declare, by notification in the Official Gazette, that the village shall have an elected Village Authority, and thereupon the members of the Village Authority of that village shall be elected in accordance with the provisions of this Act and the rules made thereunder.
(3) Where no declaration under sub-section (2) has been made in relation to any village the members of the Village Authority of that village shall be nominated by the Chief Commissioner.
(4) Where there is a Chief Khulakpa in a village, he shall be the ex officio chairman of the Village Authority of that village; and where there is no such Chief or Khulakpa in the village, the chairman of the village Authority of that village shall be elected by the members of the Village Authority from among themselves.