(1) The Government may, from time to time, publish a notification of their intention,-
(a) to declare any local area forming a development block for the purpose of the National Extension Service Scheme or Community Development, to be a Panchayat Development Block; and
(b) to constitute for every such Panchayat Development Block a Panchayat Union.
(2) Any inhabitant of a local area in respect of which any such notification has been published may submit his objection in writing to anything contained in the notification to the Government within six weeks from the publication of the notification and the Government shall take all such objections into consideration.
(3) After the expiry of six weeks from the publication of the notification and after considering the objections, if any, which have been submitted, the Government may, by notification-
(a) declare the local area to be a Panchayat Development Block;
and
(b) declare the said Panchayat Development Block to be a Panchayat Union;
(c) specify the name of the Panchayat Union.
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(4) The Government may, by notification,
(i) exclude from a Panchayat Development Block any area or village comprised therein, or
(ii) include in a Panchayat Development Block any area contiguous to it, or
(iii) cancel or modify a notification issued under sub-section (3), or
(iv) alter the name of a Panchayat Union.
(5) Before issuing a notification under sub-section (4), the Government shall consult the District Panchayat concerned and give the Panchayat Union Council or Panchayat Union Councils and the Village Panchayat or Village Panchayats which will be affected by the issue of such notification, a reasonable opportunity for showing cause against the proposal and shall consider their explanations and objections, if any.
(6) The Government may pass such orders as they may deem fit –
(a) for the disposal of any part of the assets of, or institutions belonging to, the Panchayat Union Council which has ceased to exist and for the discharge of the liabilities, if any of such Panchayat Union Council relating to such assets or institutions, or
(b) for the disposal of the assets of, or institutions belonging to, a Panchayat Union Council which has ceased to exercise jurisdiction over any Panchayat Development Block and for the discharge of the liabilities, if any, of the Panchayat Union Council relating to such assets or institutions.
(7) An order made under sub-section (6) may contain such supplemental, incidental and consequential provisions as the Government may deem necessary, and in particular may direct –
(i) that any tax, fee or other sum due to the Panchayat Union Council or where a Panchayat Union Council has ceased to exercise jurisdiction over any Panchayat Development Block, such tax, fee or other sum due to the Panchayat Union Council as relates to that block shall be payable to such authorities as may be specified in the order;
(ii) that appeals, petitions or other applications with reference to any such tax, fee or sum which are pending on the date on which the Panchayat Union Council ceasedto exist, or as the case may be, on the date on which the Panchayat Union Council ceased to exercise jurisdiction over the Panchayat Development Block, shall be disposed of by such authorities as may be specified in the order.