Panchayat:Repo18/Law Manual Page0245

(6) When a Panchayat is dissolved under sub-section (1) 33[or sub-section (2)] the administrative committee or the special officer appointed by the Government until the date of reconstitution thereof, and the reconstituted Panchayat thereafter shall be entitled to all the assets and be subject to all the liabilities of the Panchayat as on the date of dissolution and on the date of reconstitution respectively.

(7) Every notification issued under sub-section (1) 33[or sub-section (2)] shall be laid, as soon as may be after it is issued, before the Legislative Assembly, while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions; and if before the expiry of session in which it is so laid or the sessions immediately following, the Legislative Assembly makes any modification in the notification or decides that the notification should not be issued, the notification shall thereafter have effect only in such modified form or have no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification.

194. Powers of Officers taking action on behalf of or in default of Panchayat and liability of Panchayat Fund.— The Government, or any other officer lawfully taking action on behalf, or in default, of a Panchayat under this Act shall have all such powers as are necessary for the purpose and shall be entitled to the same protection under this Act as the Panchayat or its employees whose powers are exercised; and compensation shall be recoverable from the Panchayat's fund by any person suffering damage from the exercise of such powers to the same extent, as if the action had been taken by the Panchayat or its employees.

CHAPTER XIX
FINANCE AND TAXATION

[195. Grants and shares of Taxes.- (1) The Government shall having regard to the recommendation, if any, of the Finance Commission, in each year, after due appropriation made by the State Legislature by law in this behalf, make such grants and shares of various taxes, duties, cess and fees as are necessary to the Panchayats for the proper discharge of their functions under this Act.

(2) The shares of taxes collected by the Government shall be distributed among Panchayats at all levels in an equitable manner according to the formula fixed by Government in this behalf.]

196. Grants and loans for Schemes and Projects.- (1) The Government may make such further grants and loans to the Panchayats as they consider necessary for the execution of specific schemes, projects, programmes or plans relating to any of the matters administered by the Panchayats under such terms and conditions as may be fixed by the Government in this behalf.

(2) Every Panchayat shall utilise such grants or loans under this section only for the specific purposes for which such grants or loans are given.