Gujarat Panchayats Act, 1993
On any area ceasing to be a village by virtue of any notification under clause (g) of article 243 of the Constitution, (a) the panchayat shall be dissolved and all members of the panchayat shall vacate office as from the date of the notifications; (b) the unexpended balance of the fund of the panchayat and the property (including arrears of rates, taxes and fees) vesting in the panchayat shall vest in the State Government to be utilised for the benefit of the inhabitants of the areas as the State Government thinks fit.