(1) For the purpose of
creating and constituting the service, the State Government may,
by notification, from time to time, in the Official Gazette, -
(a) divide Municipalities in the State into classes according
to their income or other factors like population or
importance of the local area and other circumstances,
and
(b) transfer a Municipality from one class to another class.
(2) For the purpose aforesaid, the State Government may
also, by a like notification, prescribe uniform scales of pay for
different posts in the service with different designations for all
Municipalities included in each class under clause (a) of subsection (1).