(1) If, in the opinion of the Government, the Municipality is not competent to perform, or persistently makes default in performing the duties imposed on it by or under this Act, or any other law for the time being in force, or exceeds or abuses its position or powers, or a situation exists in which the municipal administration cannot be carried on in accordance with the provisions of this Act, or the financial stability or credit of the Municipality is threatened, the Government may, by notification, direct that the Municipality be dissolved, with effect from a specified date, and reconstituted either immediately or with effect from another specified date, not later than six months from the date of dissolution; and the notification shall be laid before both Houses of the State Legislature.
(2) For purposes of reconstitution of dissolved Municipality under this section, the seats of all the elected members shall be deemed to be vacant. Before publishing a notification under sub-section (1), the Government shall communicate to the Municipality concerned, the grounds on [Act No. 11 of 2019] 65 which they propose to do so, fix a reasonable period for the Municipality to show cause against the proposal and consider its explanations or objections, if any, and the Chairperson, of the municipality concerned, shall also be given a reasonable opportunity of being heard.
(3) On the date fixed for the dissolution of the Municipality under sub-section (1), all its members, exofficio members and co-opted members along with Chairperson, and Vice-Chairperson, shall forthwith be deemed to have vacated their offices as such.
(4) During the interval between the dissolution and the reconstitution of the Municipality, all or any of the powers and functions of the Municipality, its Chairperson, and of the Committees referred in this Act, may be exercised and performed, as far as may be, and to such extent as the Government may determine, by such person as the Government may appoint in that behalf as special officer, to exercise and perform any powers and duties under this Act.
(5) The members, ex-officio members and co-opted members of the reconstituted Municipality, shall enter upon their office on the date fixed for its reconstitution and the term of office of the elected members, ex-officio members and co-opted members shall continue only for the remainder of the period for which the dissolved municipality would have continued, had it not been dissolved.
(6) The Government may reconstitute the Municipality before expiry of the period notified under sub-section (1) or sub-section (2):
Provided that where the remainder of the period, for which the dissolved municipality would have continued, is less than six months, it shall not be necessary to hold any 66 [Act No. 11 of 2019] Government’s or the District Collector's power to give directions.
Appointment of Special Officer.
elections under this clause for constituting the municipality for such period.
(7) When the Municipality is dissolved under this section, the Government, until the date of the reconstitution thereof, and the reconstituted Municipality, thereafter, shall be entitled to all the assets and be subject to all the liabilities of the Municipality, as on the date of the dissolution and on the date of the reconstitution respectively.