Which of the following statements is/are correct about Municipalities?

1. "Metropolitan area" means an area having a population of ten lakhs or more, comprised in one or more districts and consisting of two or more Municipalities or Panchayats or other contiguous areas, specified by the State Legislature by public notification to be a Metropolitan area for the purposes.

2. A Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area;