। ॥
In plain words
A word lets go of its literal meaning entirely and goes to work in a second meaning attached to it — that is the kind of lakṣaṇā called jahatī, the abandoning one. 'The hamlet on the Ganges' runs that way. Here, it is not the reading to take.
Close to the Sanskrit
The functioning (of a word) in another meaning connected with that, having abandoned the entire expressible meaning — that would be lakṣaṇā called jahatī, as in 'the hamlet on the Ganges'; here it is not to be adopted.