Gujarat Municipalities Act, 1963
(1) If in respect of any area within the limits of a municipal borough the State Government is of opinion that the area predominantly consists of unoccupied land or land used for agricultural purposes and is mostly unoccupied by houses other than farm buildings, it may, after consulting the municipality, by notification in the Official Gazette declare the area to be an agricultural area. The Publication of drafts of proposed bye-laws. Objections and suggestions to be submitted to Central or State Government. Rules and bye-laws to be printed and sold. Power of State Government to make rules. declaration shall state the boundaries of the area and the place where the plan of the area may be available for inspection. (2) On the publication of the declaration, notwithstanding anything contained in this Act, the following consequences shall ensue that is to say- [ ] (b) in the said area, the municipality shall not be required to make provision for the matters specified in section 87, and none of the taxes mentioned in section 99 shall be leviable by the municipality; (c) section 155 shall not apply to the construction of a farm building. (3) If at any time after the making of a declaration under sub-section (1), the State Government, after such inquiry as it may deem fit, is satisfied that the whole or a part of the agricultural area- (a) has ceased to be predominantly used for agricultural purposes and is occupied by houses, (b) or is likely to cease to be used for agricultural purposes and to develop as an urban area, it may by notification direct that the declaration made under sub-section (1) shall cease to apply to the whole of the area or such part thereof as may be specified in the notification. On the publication of the notification the provisions of sub-section (2) shall cease to apply to the area specified in the notification. Explanation.-In this section " farm building " shall have the meaning assigned to it in section 65 of the Land Revenue Code.