3. (1) Subject to the provisions of sub-section (2), the Government may, by notification in the official Gazette, declare any rural area to be an urban area: Provided that notwithstanding the declaration of a rural area to be an urban area, the Union Parishad which immediately before such declaration exercised any function in relation to that area shall, until the area is declared to be, or to be included in, a municipality, continue to exercise those functions. (2) The Government shall not declare any rural area to be an urban area unless it is satisfied that three-fourths of the adult male population of the area to which it refers are chiefly employed in pursuits other than agriculture, and such area contains not less than fifteen thousand population, and an average number of not less than two thousand inhabitants per square mile ¹[: Provided that the Government may, for the purpose of extension of the limits of a municipality under section 4(b), declare any rural area to be an urban area, if it is satisfied that three-fourths of the adult male population of such area are chiefly employed in pursuits other than agriculture.]