Section 12 of Gujarat Panchayat Services Rules, 1964

Panchayat servants shall not enter into any pecuniary

arrangements for the resignation by one of them of any office
under a panchayat for the benefit of the others. Should this rule be
infrigned, any nomination or appointment consequent upon such
resignation shall be cancelled and such parties to the arrangement
as are still in the service, will be, suspended pending the orders of
the Government