Gujarat Panchayats Act, 1993
In transferring to a district panchayat any powers, functions and duties, relating to any matter, exercised by the State Government or any of its officers, it shall be lawful for the State Government to transfer to the district panchayat any property belonging to the State Government and connected with such matter together with the rights and liabilities (including rights and liabilities arising out of any contract) of the State Government in respect of the property and thereupon the rights and liabilities which accrued, before such transfer or which may accrue thereafter shall be the rights and liabilities of the district panchayat.