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(1) There shall be formed for each Nagar
Panchayat and for each Council a municipal fund to be called the "Municipal Fund" and it shall be held
by the Nagar Panchayat or by the Council, as the case may be, for the purposes of this Act and subject to
the provisions thereof.
(2) The Municipal Fund shall vest in the Nagar Panchayat or the Council, as the case may be.
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