(1) Subject to the general or special orders of the Government, the Deputy Commissioner, if, in his opinion, it is expedient to declare any area comprising a village or group of villages having a population of¹[not less than five thousand and not more than seven thousand] to be a panchayat area, may, after pervious publication, declare such area as a panchayat area for the purposes of this Act and also specify its headquarter:

Provided that the Government may order that an area with a population of¹[not less than two thousand five hundred] may be so declared as a panchayat area in such areas of the districts of Belgum, Chickmagalur, Dakshina Kannada, Dharwar, Hassan, Kodagu, Shimoga ,²[Udupi , Haveri] and Uttara Kannada as may be specified by the Government:

Provided further that irrespective of population, wherever it is found necessary, the Government, as a special case, may, order that an area within¹[a radius of five kilometers (diameter of ten kilometers)] from the centre of a village may be so declared as a panchayat area in such areas of the districts of Belgaum, Chickmagalur, Dakshina Kannada, Dharwar, Hassan, Kodagu, Shimoga¹[Udupi , Haveri] and Uttara Kannada as may be specified by the Government:

Provided also that the Deputy Commissioner may, with, the previous permission of the Government declare any area comprising a village or group of villages having a population of¹[either less than five thousand or more than seven thousand] to be a panchayat area.

(2) Subject to the general or special orders of the Government and the provisions of this Act, the Deputy Commissioner may, at the request of the Grama Panchayat concerned, or otherwise, and after previous publication of the proposal by notification, at any time,-

(a) increase the area of any panchayat area by including within such panchayat area any village or group of villages;

(b) diminish the area of any panchayat area by excluding from such panchayat area any village or group of villages;

(c) alter the head quarters of any panchayat area;

(d) alter the name of any panchayat area; or

(e) declare that any area shall cease to be a panchayat area.

(3) The Commissioner may either on an application made within thirty days from the date of the notification by any person aggrieved by such notification, or suo moto, and after giving a reasonable opportunity of being heard to the applicant or the Grama Panchayat concerned revise the orders of the Deputy Commissioner under sub-section (1) or sub-section (2) and may also if he considers necessary, modify it as provided in the third proviso to sub-section (1). Every order so passed revising or modifying the order of the Deputy Commissioner shall be published in the Official Gazette.

(4) In every panchayat area declared as such under this section, there shall be established a Grama Panchayat.

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1. Substituted by Act 11 of 2000 w.e.f. 25.4.2000.

2. Inserted by Act 29 of 1997 w.e.f. 20.10.1997.