The Visakhapatnam Municipal Corporation Act, 1986

Short title, extent and commencement.-

1. (1) This Act may be called the Visakhapatnam Municipal Corporation Act, 1986.
2. (2) It extends to the limits of the Visakhapatnam Municipal Corporation.
3. (3) It shall be deemed to have come into force on the 14th day of August, 1979.

Definitions.- In this Act, unless the context otherwise requires,-

1. (1) "appointment" includes appointment on promotion or transfer;
2. (2) "budget" means the financial statement of the estimated receipts and expenditure of the Municipal Corporation for any financial year;
3. (3) "building" includes a house, out-house, stable, latrine, shed, hut, wall or any other structure, whether of masonry, bricks, wood, mud, metal or other material and a wall, fence, platform and any veranda, fixed platform, plinth, doorstep or the like;
4. (4) "casual vacancy" means a vacancy occurring otherwise than by the efflux of time in the office of a Mayor or a member of the Corporation;
5. (5) "Commissioner" means the Commissioner of the Municipal Corporation of Visakhapatnam appointed under this Act;
6. (6) "Corporation" means the Visakhapatnam Municipal Corporation;
7. (7) "Council" means the Municipal Council of the Visakhapatnam Municipal Corporation;
8. (8) "Councillor" means a person who is duly elected as a member of the Corporation;
9. (9) "Finance Commission" means the Finance Commission constituted by the Governor under article 243-Y of the Constitution of India;
10. (10) "Government" means the State Government;
11. (11) "land" includes land which is being built upon or is built upon or covered with water, benefits to arise out of land, things attached to the earth or permanently fastened to anything attached to the earth and rights created by law over any street;
12. (12) "Mayor" means the Mayor of the Corporation;
13. (13) "Municipal area" means the territorial area of the Visakhapatnam Municipal Corporation;
14. (14) "municipal drain" means a drain vested in the Corporation;
15. (15) "municipal water-works" means a water-work vested in the Corporation;
16. (16) "notification" means a notification published in the Andhra Pradesh Gazette;
17. (17) "occupier" includes any person for the time being paying or liable to pay to the owner the rent or any portion of the rent of the land or building in respect of which the word is used;
18. (18) "official year" means the year commencing on the first day of April;
19. (19) "owner" includes,-
    • (a) the person who for the time being is receiving or is entitled to receive the rent of any land or building whether on his own account or on account of himself and others or as an agent, trustee, guardian or receiver for any other person or who would so receive the rent or be entitled to receive the rent if the land or building were let to a tenant; and
    • (b) the person for the time being in charge of the animal or vehicle in connection with which the word is used;
20. (20) "population" means the population as ascertained at the last preceding census of which the relevant figures have been published;
21. (21) "prescribed" means prescribed by rules made under this Act;
22. (22) "public street" means any street, road, square, court, alley, passage or riding path, whether a thoroughfare or not, over which the public have a right of way;
23. (23) "rules" means the rules made under this Act;
24. (24) "scheduled caste and scheduled tribe" shall have the same meaning as in the Constitution of India;
25. (25) "State Election Commission" means the State Election Commission constituted under article 243-K of the Constitution of India;
26. (26) "street" includes any way, road, lane, square, court, alley, passage or open space, whether a thoroughfare or not, over which the public have a right of way and also the roadway over any public bridge or causeway;
27. (27) "ward" means a municipal ward;
28. (28) words and expressions used in this Act but not defined shall have the meanings respectively assigned to them in the Andhra Pradesh Municipalities Act, 1965.

Constitution of the Corporation.—

1. (1) The municipal authorities charged with carrying out the provisions of this Act shall be—
   • (a) a Corporation;
   • (b) a Standing Committee;
   • (c) a Commissioner.
2. (2) The Corporation shall consist of—
   • (i) the elected councillors;
   • (ii) the members of the House of the People representing the constituencies which comprise wholly or partly the area of the Corporation;
   • (iii) the members of the Legislative Assembly of the State representing the constituencies which comprise wholly or partly the area of the Corporation;
   • (iv) the members of the Council of States registered as electors within the area of the Corporation:

Incorporation of the Corporation Incorporation of the Corporation.— The Corporation shall be a body corporate by the name of "the Visakhapatnam Municipal Corporation", having perpetual succession and a common seal, and may sue and be sued in its corporate name, subject to the provisions of this Act and the rules, regulations and bye-laws made thereunder, it shall be competent to acquire, hold and dispose of property and to enter into contracts for the purposes of this Act.

Constitution of the Corporation and election of councillors.-

1. (1) The Corporation shall consist of the councillors elected from the wards as determined under section 7 and the ex-officio councillors referred to in sub-section (2).
2. (2) Every member of the Legislative Assembly of the State representing the constituencies which comprise the area of the Corporation or any part thereof, shall be an ex-officio councillor of the Corporation.
3. (3) The councillors shall be elected by the public, by secret ballot, from among such of the persons as are included in the electoral roll for the ward.
4. (4) The election of the councillors shall be held in accordance with the provisions of this Act and the rules made thereunder.

Reservation of seats.-

1. (1) Seats shall be reserved for the Scheduled Castes and the Scheduled Tribes in every Municipal Corporation and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be filled by direct election in the Municipal Corporation as the population of the Scheduled Castes in the Municipal Corporation area or of the Scheduled Tribes in the Municipal Corporation area bears to the total population of the Municipal Corporation area and such seats may be allotted by rotation to different wards in the Municipal Corporation.
2. (2) Not less than one-third of the total number of seats reserved under sub-section
3. (1) shall be reserved for women belonging to the Scheduled Castes or, as the case may be, the Scheduled Tribes.
4. (3) Not less than one-third (including the number of seats reserved for women belonging to the Scheduled Castes and the Scheduled Tribes) of the total number of seats to be filled by direct election in every Municipal Corporation shall be reserved for women and such seats may be allotted by rotation to different wards in the Municipal Corporation: Provided that the offices of the Chairperson of the Municipal Corporation shall be reserved for the Scheduled Castes, the Scheduled Tribes and women in such manner as the State Government may by law provide: Provided further that the reservation of seats under sub-sections
5. (1) and
6. (2) and the reservation of office of Chairperson (other than reservation for women) under the first proviso shall cease to have effect on the expiration of the period specified in Article 334 of the Constitution of India: Provided also that nothing in this Part shall prevent the Legislature of the State from making any provision for reservation of seats in any Municipal Corporation or offices of Chairpersons in the Municipal Corporations in favour of backward class of citizens.

Reservation of offices of Chairpersons.

1. (1) The offices of Chairpersons of the Municipal Corporations shall be reserved for the Scheduled Castes, the Scheduled Tribes and the women in such manner as may be prescribed: Provided that the number of offices of Chairpersons reserved for the Scheduled Castes and the Scheduled Tribes in the Municipal Corporations in the State shall bear, as nearly as may be, the same proportion to the total number of such offices in the Municipal Corporations as the population of the Scheduled Castes in the State or of the Scheduled Tribes in the State bears to the total population of the State: Provided further that not less than one-third of the total number of offices of Chairpersons in the Municipal Corporations in the State shall be reserved for women: Provided also that the number of offices of Chairpersons reserved under this sub-section shall be allotted by rotation to different Municipal Corporations in the State in such manner as may be prescribed.
2. (2) Save as otherwise provided in sub-section (1), the offices of Chairpersons of the Municipal Corporations shall be filled in such manner as may be provided for by law.

Duration of Corporations.

1. (1) Every Corporation, unless sooner dissolved under any law for the time being in force, shall continue for five years from the date appointed for its first meeting and no longer.
2. (2) No amendment of any law for the time being in force shall have the effect of causing dissolution of a Corporation at any level, which is functioning immediately before such amendment, till the expiration of its duration specified in sub-section (1).
3. (3) An election to constitute a Corporation shall be completed—
   • (a) before the expiry of its duration specified in sub-section (1);
   • (b) before the expiration of a period of six months from the date of its dissolution: Provided that where the remainder of the period for which the dissolved Corporation would have continued is less than six months, it shall not be necessary to hold any election under this sub-section for constituting the Corporation for such period.
4. (4) A Corporation constituted upon the dissolution of a Corporation before the expiration of its duration shall continue only for the remainder of the period for which the dissolved Corporation would have continued under sub-section
5. (1) had it not been so dissolved.

Disqualifications for being a councillor:

1. (1) Subject to the provisions of this Act, a person shall be disqualified for being chosen as or for being a councillor of the Corporation, if such person—
   • (a) is of unsound mind and stands so declared by a competent court;
   • (b) is an applicant to be adjudicated as an insolvent or is an undischarged insolvent;
   • (c) has been sentenced by a criminal court to imprisonment for a period of more than six months for any offence, other than an offence of a political nature, or has been ordered to furnish security for good behaviour under section 109 or section 110 of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), such sentence or order not having been subsequently reversed or remitted or the offender pardoned;
   • (d) holds any salaried office or place of profit in the disposal of the Corporation;
   • (e) is interested in a subsisting contract made with, or any work being done for, the Corporation except as a shareholder (other than a director) in an incorporated company or as a member of a co-operative society which is registered or deemed to be registered under the Andhra Pradesh Co-operative Societies Act, 1964 (Act 7 of 1964) and which has a contract with or is executing any work for the Corporation;
   • (f) is employed as a legal practitioner on behalf of the Corporation or accepts employment as legal practitioner against the Corporation;
   • (g) is an officer or servant of the Government or of any local authority.
2. (2) A person shall be disqualified for being a councillor if he is disqualified by or under any law for the time being in force for the purposes of elections to the Legislature of the State: Provided that no person shall be disqualified on the ground that he is less than twenty-five years of age, if he has attained the age of twenty-one years.
3. (3) If any question arises as to whether a councillor has become disqualified under sub-section
4. (1) or sub-section
5. (2) the question shall be referred for the decision of the District Judge having local jurisdiction over the area in which the office of the Corporation is situated, and his decision shall be final.
6. (4) Pending the decision of the District Judge, the councillor shall be entitled to act as if he were not disqualified.

Disqualification on ground of defection:

1. (1) Subject to the provisions of sections 11 and 12, a person shall be disqualified for being a councillor—
   • (a) if he has been elected as such otherwise than as a candidate set up by any political party, and is not a member of any political party;
   • (b) if he has been elected as such as a candidate set up by a political party and is—
     • (i) a member of that political party; or
     • (ii) any other person who has officially been identified as a member of that political party; by the State Election Commission.
2. (2) A nominated councillor shall—
   • (a) where he is a member of any political party on the date of his nomination, be deemed to belong to such political party;
   • (b) in any other case, be deemed to be an independent councillor.
3. (3) A councillor shall be disqualified under sub-section (1),—
   • (a) if he has voluntarily given up his membership of such political party; or
   • (b) if he votes or abstains from voting in the Corporation contrary to any direction issued by the political party to which he belongs or by any person or authority authorised by it in this behalf, without obtaining, in either case, prior permission of such political party, person or authority and such voting or abstention has not been condoned by such political party, person or authority within fifteen days from the date of such voting or abstention.
4. (4) An independent councillor shall be disqualified if he joins any political party after such election.
5. (5) A nominated councillor shall be disqualified if he joins any political party after the expiry of six months from the date on which he is nominated as such.
6. (6) Notwithstanding anything contained in the foregoing sub-sections, a person who has been a councillor shall not be disqualified where his original political party merges with another political party and he claims that he and any other members of his original political party have become members of such other political party or, as the case may be, of a new political party formed by such merger.

Decision on questions as to disqualification on ground of defection.—

1. (1) If any question arises as to whether a member of the Corporation has become subject to disqualification under the Tenth Schedule to the Constitution of India, the question shall be referred for the decision of the Chairman who shall decide the question and his decision shall be final.
2. (2) The Chairman may make rules for giving effect to the provisions of this Section.

Right of individual Minister or officer to attend meetings.—

1. (1) Detailed provisions regarding the right of any Minister or any officer of the State Government to attend and take part in the proceedings of any meeting of the Corporation, or of any committee thereof, shall be as specified in the rules made under this Act:

Oath or affirmation by councillors Oath or affirmation by councillors. -

1. (1) Every person who is elected to be a councillor shall, before taking his seat, make and subscribe before the Commissioner or some other person appointed by him in that behalf, an oath or affirmation according to the following form, namely: - "I, A.B., having been elected a councillor of the Municipal Corporation of Visakhapatnam, do swear in the name of God/solemnly affirm that I will bear true faith and allegiance to the Constitution of India as by law established and that I will faithfully discharge the duty upon which I am about to enter."
2. (2) Any person who having been elected a councillor fails to make and subscribe the oath or affirmation as required by sub-section
3. (1) within three months of the date on which his term of office commences, shall cease to hold his office as such.

Resignation of councillor Resignation of councillor. -

1. (1) A councillor may resign his office by giving notice in writing under his hand to the Mayor and his office shall become vacant on the expiry of fifteen days from the date of receipt of such notice by the Mayor unless within the said period he withdraws such notice by notice in writing under his hand to the Mayor.
2. (2) A copy of the notice of resignation shall also be forwarded to the Commissioner by the councillor.

Removal of councillor

1. (1) The Government may, by notification, remove any councillor who, in their opinion,—
   • (a) refuses to act or becomes incapable of acting or is declared an insolvent; or
   • (b) is convicted of any such offence or is subjected to any such order as is referred to in clauses (a),
   • (b) and
   • (c) of sub-section
2. (1) of section 12; or
   • (c) is absent, without the permission of the corporation, from the meetings of the corporation for a period of three consecutive months reckoned from the date of the commencement of his term of office, or of the last meeting which he attended, or of his restoration to office as councillor under sub-section (3), as the case may be; or
   • (d) acts in his capacity as a councillor in such a manner as to render his further continuance as such councillor detrimental to the interests of the corporation: Provided that no councillor shall be removed under this clause unless he has been given an opportunity to show cause against his removal.
3. (2) A person who has been removed from his office under sub-section
4. (1) shall not be eligible for re-election as a councillor for a period of three years from the date of his removal.

Councillors to be public servants Every councillor shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860.

Mayor and Deputy Mayor.—

1. (1) The Corporation shall, at its first meeting after the general election of councillors, elect two of its councillors to be respectively the Mayor and the Deputy Mayor.
2. (2) The Mayor or the Deputy Mayor shall hold office during the term of office of the councillors and shall be eligible for re-election.
3. (3) In the event of a casual vacancy in the office of the Mayor or the Deputy Mayor, the Corporation shall, as soon as may be, after the occurrence of the vacancy, elect one of its councillors to fill the vacancy for the residue of the term of his predecessor.

Term of office of Mayor and Deputy Mayor.—

1. (1) The Mayor or the Deputy Mayor shall hold office from the time of his election until the election of his successor, unless he sooner resigns his office or ceases to be a councillor or becomes disqualified for such office under the provisions of this Act.
2. (2) The Mayor or the Deputy Mayor may resign his office by notice in writing under his hand addressed to the Corporation and the resignation shall take effect from the date of its acceptance by the Corporation.

Resignation of Mayor or Deputy Mayor.

1. (1) The Mayor or the Deputy Mayor may resign his office by writing under his hand addressed to the Municipal Commissioner.
2. (2) The resignation shall take effect from the date on which it is accepted by the Municipal Commissioner.

Removal of Mayor or Deputy Mayor.

1. (1) The Mayor or the Deputy Mayor shall be liable to be removed from his office by the Council by a resolution carried by a majority of the elected members of the Council present and voting at a meeting specially convened for the purpose: Provided that the Mayor or the Deputy Mayor against whom the resolution is proposed to be moved, shall be given a reasonable opportunity of being heard.
2. (2) A copy of the notice of the resolution shall be signed by not less than one-third of the total number of the elected members of the Council and shall be served upon the Municipal Commissioner.
3. (3) The Municipal Commissioner shall convene a meeting for the consideration of the resolution within fifteen days of the receipt of the notice under sub-section (2).
4. (4) A copy of the notice of the meeting shall be sent to the Mayor or the Deputy Mayor concerned at least seven days before the date of the meeting.
5. (5) The proceedings of a meeting under this section shall not be questioned in any court of law.

Functions of the Mayor. —

1. (1) The Mayor shall preside over the meetings of the Corporation.
2. (2) The Mayor shall have full access to all the records of the Corporation and may obtain reports, plan, estimates, statements, accounts or statistics connected with the administration of the Corporation from the Commissioner.
3. (3) The Mayor shall exercise such other powers and perform such other functions as are conferred or imposed upon or delegated to him by or under this Act or any other law for the time being in force.

Functions of the Deputy Mayor. —

1. (1) The Deputy Mayor shall exercise such of the powers and perform such of the functions of the Mayor as the Mayor may, from time to time, delegate to him in writing.
2. (2) The Deputy Mayor shall exercise the powers and perform the functions of the Mayor —
   • (a) in the absence of the Mayor;
   • (b) in the event of a vacancy in the office of the Mayor; or
   • (c) pending the election of a Mayor under section 20.

Filling of casual vacancies.—(1) In the event of a vacancy in the office of a Councillor by death, resignation or otherwise, the vacancy shall be filled within such time as may be prescribed, by election of a person, who shall hold office for the remainder of the term of his predecessor: Provided that no election shall be held to fill a vacancy occurring within four months prior to the date on which the term of office of the Councillor expires.

1. (2) If the vacancy is not filled within the time prescribed, the Government may appoint any person as Councillor to fill such vacancy.

Allowances to Mayor and Councillors.—The Mayor, the Deputy Mayor and the Councillors shall be paid such honorarium and allowances out of the Municipal Fund as may be prescribed.

Appointment of Commissioner.

1. (1) The Government shall appoint a Commissioner for the Municipal Corporation.
2. (2) The Commissioner shall be the chief executive officer of the Municipal Corporation.

Salary of Commissioner.

Contribution by Commissioner to pension and leave salary Contribution by Commissioner to pension and leave salary. — The Corporation shall make such contribution towards the pension and leave salary of the Commissioner as may be required to be made by him under the conditions of his service under the Government.

Power of Government to remove Commissioner from office. —

1. (1) The Government may at any time remove the Commissioner from office—
   • (a) if he has been guilty of misconduct which renders him unsuitable for the office;
   • (b) if he has become incapable of performing his duties or has been declared as an insolvent;
   • (c) if he has been convicted of any offence which implies a defect of character;
   • (d) if he has been absent from his duties otherwise than on leave duly granted for a period exceeding thirty consecutive days or for a total period exceeding three months in any year; or
   • (e) if he is negligent in the performance of his duties.
2. (2) The Government may also remove the Commissioner from office if the Corporation by a resolution passed at a meeting and supported by the votes of not less than two-thirds of the total strength of the members of the Corporation, recommends the removal of the Commissioner on the ground of his inefficiency or misconduct.

Style of Commissioner The Commissioner shall be designated as the Commissioner of the Municipal Corporation of Visakhapatnam.

Functions of the Commissioner

1. (1) Subject to the provisions of this Act and the rules, regulations and bye-laws made thereunder, the functions of the Commissioner shall be to—
   • (a) carry into effect the resolutions of the Corporation;
   • (b) carry out all the executive functions of the Corporation and to exercise all the powers and perform all the functions vested in the Corporation under this Act except such function as are specifically vested in the Corporation, the Standing Committee or the Ward Committee, or the Mayor;
   • (c) furnish to the Corporation such information, reports and returns as may be required by the Corporation;
   • (d) perform such other functions and exercise such other powers as may be assigned to him under this Act or any other law for the time being in force.
2. (2) The Commissioner shall be responsible for the custody of all records and documents of the Corporation and the common seal of the Corporation.

Appointment of other officers and employees

1. (1) Subject to the provisions of section 30, the Corporation may appoint such other officers and employees as it considers necessary for the efficient performance of the duties and functions of the Corporation under this Act.
2. (2) The method of recruitment, conditions of service, pay and allowances, and discipline of the officers and employees appointed under sub-section
3. (1) shall be such as may be prescribed by regulations made by the Corporation.

Power of Corporation to make appointments

1. (1) Subject to the provisions of this Act and the rules made thereunder, the Corporation shall have power to appoint such officers and servants as may be necessary for the purposes of this Act: Provided that the power of appointment shall be exercised in accordance with the rules prescribed by the Government in this behalf.
2. (2) The Corporation may, by order, delegate the power of appointment under sub-section
3. (1) to the Commissioner or any other officer of the Corporation, subject to such conditions and restrictions as may be specified in the order.

Appointment of Special Officers

1. (1) The Government may, by notification, appoint a Special Officer to exercise the powers, perform the functions and discharge the duties of the Corporation, the Standing Committee or the Commissioner until the elected councillors of the Corporation assume office after the first ordinary election held after the commencement of this Act.
2. (2) The Special Officer may, if the Government so direct, delegate any of the powers, functions and duties exercisable or to be performed or discharged by him to such officer of the Government or of the Corporation as may be specified in such direction.

Powers and functions of the Special Officer The Special Officer shall exercise the powers, perform the functions and discharge the duties of the Corporation, the Standing Committee or the Commissioner under this Act or any other law for the time being in force and shall be deemed to be the Corporation, the Standing Committee or the Commissioner for the purpose of such exercise, performance and discharge.

Powers of the Corporation to make regulations.-

1. (1) The Corporation may make regulations not inconsistent with the provisions of this Act and the rules made thereunder, for the purposes of the exercise and performance of its powers and duties under this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—
   • (a) the time and place of its meetings;
   • (b) the manner in which notice of such meetings shall be given;
   • (c) the preservation of order and the conduct of proceedings at such meetings and the adjournment of meetings and other matters connected therewith;
   • (d) the manner in which all documents relating to the Corporation may be executed;
   • (e) the maintenance of the accounts of the Corporation and the publication of such accounts;
   • (f) all matters which are required to be, or may be, prescribed by regulations.

Certain officers not to be interested in contract.-

1. (1) No person who has, directly or indirectly, by himself or by his partner or agent, any share or interest in any contract, by or on behalf of the Corporation or in any employment under, by or on behalf of the Corporation, otherwise than as an officer or servant thereof, shall be qualified to be an officer or servant of the Corporation.
2. (2) Any officer or servant of the Corporation who shall acquire, directly or indirectly, by himself or by his partner or agent, any share or interest in any such contract or employment as is referred to in sub-section
3. (1) shall cease to be an officer or servant of the Corporation and his office shall become vacant.

Officers and employees to be public servants. — Every officer or employee of the Corporation and every officer or employee of the Government whose services are lent to the Corporation shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.

Municipal Fund. —

1. (1) All moneys received by or on behalf of the Corporation by virtue of this Act, all proceeds of all taxes, tolls, cesses, fees and other charges levied under this Act, all rents and profits accruing from any property vested in or managed by the Corporation and all sums received by or on behalf of the Corporation by way of gift or otherwise shall be credited to a fund which shall be called the "Municipal Fund" of the Visakhapatnam Municipal Corporation.
2. (2) All moneys at the credit of the Municipal Fund shall be kept in the State Bank of India or such other scheduled bank or banks as may be approved by the Government and shall be applied for the purposes, and in the manner, specified in this Act.
3. (3) The Corporation may maintain its accounts in such form as may be prescribed.

Application of Municipal Fund

1. (1) The moneys credited to the Municipal Fund shall be applied in payment of the following charges and expenses, namely:—
   • (a) the salaries and allowances of the Commissioner and other officers and servants of the Corporation and any contributions to provident funds, pension or gratuity which may become due under the rules for the time being in force;
   • (b) such expenses as may be incurred by the Corporation in the carrying out of the provisions of this Act;
   • (c) the interest and sinking fund charges on any loans raised by the Corporation;
   • (d) the payment of any sums falling due on any loan legally contracted by the Corporation;
   • (e) the payment of costs of audit of the Municipal Fund;
   • (f) the payment of any sum the payment of which is required by this Act or by any other law for the time being in force or which may have been passed by the Corporation and approved by the Government;
   • (g) such contributions to public institutions as may be approved by the Corporation.
2. (2) No payment of any sum out of the Municipal Fund shall be made unless the expenditure of the same is covered by a current budget grant and a sufficient balance of such budget grant is still available notwithstanding any reduction or transfer thereof which may have been made under the provisions of this Act: Provided that this sub-section shall not apply to payments in the following cases, namely:—
   • (i) refund of taxes and other moneys which the Corporation is authorised to make under this Act;
   • (ii) repayment of moneys belonging to contractors or other persons held in deposit and of moneys collected or credited to the Municipal Fund by mistake;
   • (iii) sums payable in any of the following circumstances:—
   • (a) under orders of the Government on failure of the Corporation to take any action required by this Act;
   • (b) under any other enactment for the time being in force;
   • (c) under a decree or order of a civil court;
   • (d) under any compromise of any claim, suit or other legal proceeding;
   • (e) on account of costs incurred in taking immediate action by the Commissioner or any other officer empowered in this behalf to avert a sudden emergency.

Procedure when money not deposited in Municipal Fund In every case in which any money is paid in circumstances described in the proviso to sub-section

1. (2) of section 39, the Commissioner shall forthwith communicate the circumstances of the payment to the Corporation and if at the time of such payment there is no budget grant which admits of it, the Corporation shall take such steps as may be required to provide for the payment thereof.

Power of Corporation to borrow money.—

1. (1) The Corporation may, with the previous sanction of the Government and subject to such conditions as may be prescribed, borrow at interest, by the mortgage or otherwise of all or any of the property vested in the Corporation or of all or any of the taxes, duties, tolls, fees and other sums due to the Corporation, any money necessary for carrying out the purposes of this Act.
2. (2) Nothing in this section shall be deemed to authorise the Corporation to borrow money in contravention of the provisions of the Local Authorities Loans Act, 1914 (Central Act 9 of 1914) or the rules made thereunder.

Accounts.—

1. (1) The Corporation shall cause to be maintained such books of account and other books in relation to the accounts of all the financial transactions of the Corporation as the Government may, by rule, prescribe.
2. (2) The financial year of the Corporation shall be the year commencing from the 1st April of each calendar year and ending with the 31st March of the succeeding calendar year.
3. (3) The Corporation shall, as soon as may be after the close of each financial year, cause to be prepared a financial statement (hereinafter referred to as "the annual accounts") including the receipts and expenditure and the profit and loss account for that year.

Audit of accounts.—

1. (1) The accounts of the Corporation shall be examined and audited annually by such auditor as may be appointed by the Government in this behalf.
2. (2) The auditor so appointed shall, for the purpose of the audit, have access to all the books, accounts, vouchers, securities and other documents of the Corporation and shall have power to require the production of any book, account, voucher, security or other document or the furnishing of such information as may be necessary for the purpose of the audit.

Taxes which may be imposed.—

1. (1) The Corporation may, for the purposes of this Act, impose within the city the following taxes, namely:—
   • (a) a property tax;
   • (b) a tax on carriages and animals;
   • (c) a tax on carts;
   • (d) a tax on advertisements;
   • (e) a toll on animals and vehicles entering the city;
   • (f) a duty on transfers of property;
   • (g) a tax on timber brought into the city.
2. (2) The taxes mentioned in sub-section
3. (1) shall be levied at such rates and subject to such exemptions and conditions as may be prescribed by rules made in this behalf. Provided that the rules made for the purpose of this section shall not take effect unless they have been approved by the Government and published in the Andhra Pradesh Gazette.

Property tax.

1. (1) Property tax shall be levied on all premises within the Corporation unless exempted under this Act or any other law.
2. (2) The tax shall be levied at such percentage of the annual rental value of premises as may be fixed by the Corporation.
3. (3) The Corporation may classify the premises into different categories for the purpose of fixing the rate of tax. (4) Provided that the rate of tax shall not exceed thirty-three per cent of the annual rental value of the premises.

Levy of tax on professions.

1. (1) Every person who exercises a profession, trade, calling or employment in the city shall pay a tax at such rates as may be determined by the Corporation.
2. (2) The tax shall be leviable in respect of every person who is engaged in such profession, trade, calling or employment for not less than sixty days in the aggregate in any half-year.
   • (a) The tax shall be assessed and collected in such manner as may be prescribed by the rules made in this behalf.
   • (b) The Corporation may exempt any class of persons from the payment of the tax if it considers it necessary or expedient in public interest to do so.

Levy of tax on carriages and animals

1. (1) If the Corporation by resolution determines that a tax shall be levied on carriages and animals, such tax shall be levied at such rates as may be fixed by the Corporation, on every carriage and animal specified in Schedule II, kept or used within the limits of the Municipal Corporation.
2. (2) The tax shall be leviable yearly at the rates specified in the resolution and shall be payable in advance.

Levy of tax on carts Levy of tax on carts

1. (1) If the Corporation by resolution determines that a tax shall be levied on carts, such tax shall be levied at such rates as may be fixed by the Corporation, on every cart kept or used within the limits of the Municipal Corporation.
2. (2) The tax shall be leviable yearly at the rates specified in the resolution and shall be payable in advance.

Levy of tax on advertisements Levy of tax on advertisements:

1. (1) Every person who erects, exhibits, fixes or retains upon or over any land, building, wall, hoarding, frame, post, structure or upon or in any moving vehicle any advertisement or who displays any advertisement to public view in any manner whatsoever visible from a public street or public place (including any advertisement placed in a verandah or occupied building) shall pay to the Commissioner a tax calculated at such rates and in such manner and subject to such exemptions as may be prescribed: Provided that the tax shall not be levied on any advertisement which—
   • (a) relates to a public meeting, or to an election to any legislative body or the Corporation or to a candidature in respect of such an election;
   • (b) is exhibited within the window of any building if the advertisement relates to the trade, profession or business carried on in that building;
   • (c) relates to the trade, profession or business carried on within

Other taxes.—(1) The Council may, with the previous sanction of the Government, levy—

1. (a) a tax on carriages and animals;
2. (b) a tax on carts;
3. (c) a toll on vehicles or animals or any class of vehicles or animals entering the city;
4. (d) a tax on timber brought into the city for sale;
5. (e) a tax on advertisement;
6. (f) a duty on certain transfers of property in the shape of an additional stamp duty;
7. (g) a tax on buildings;
8. (h) a tax on pilgrims;
   • (i) a tax on festivals;
9. (j) a tax on private markets;
10. (k) a tax on private cart-stands;
11. (l) a lighting tax;
12. (m) a tax on land used for non-agricultural purpose;
13. (n) a tax on the exercise of profession, trade or callings;
14. (o) any other tax which the State Legislature has power to impose under the Constitution of India.

1. (2) The levy of a tax referred to in sub-section
2. (1) shall be subject to such exemptions, conditions and restrictions and be provided for in the rules made by the Government in this behalf.

Levy of duty on transfer of property

1. (1) The duty on transfers of property shall be levied in the form of a surcharge on the duty imposed by the Indian Stamp Act, 1899, as in force for the time being in the State, on every instrument of the description specified below, which relates to immovable property situated within the limits of the Corporation, at such rate as may be fixed by the Government not exceeding five per centum on the amount or value of the consideration for the sale, or the value of the property in the case of exchange or gift, or the amount secured by the mortgage as the case may be, of the property as set forth in the instrument: Provided that the Government may specifically exempt any class of instruments from the levy of surcharge:
   • (a) Sale of immovable property;
   • (b) Exchange of immovable property;
   • (c) Gift of immovable property;
   • (d) Mortgage with possession of immovable property;
   • (e) Lease in perpetuity of immovable property.
2. (2) On the introduction of the surcharge under sub-section (1), the Indian Stamp Act, 1899 shall apply in relation to such surcharge as it applies in relation to the duty imposed by that Act subject to the modification that every reference in the said Act to the Government shall be deemed to be a reference to the Commissioner and the surcharge shall be collected by the Registration Department as a surcharge on the duty of the Stamp Act and paid to the Corporation.

Recovery of taxes

1. (1) Any tax or other sum due to the Corporation under this Act or any rule, bye-law, regulation or order made under it, may be recovered by the Commissioner
   • (a) by distraint and sale of the moveable property of the person liable to pay such tax or sum; or
   • (b) by attachment and sale of the immovable property of such person; or
   • (c) by the appointment of a receiver of the income of any immovable property of such person; or
   • (d) as arrears of land revenue under the law for the time being in force.
2. (2) Every person who is liable to pay any tax or other sum under this Act shall pay the same to the Commissioner at the Corporation office, or to such other person as the Commissioner may appoint in this behalf, within the time specified by or under this Act in that behalf.
3. (3) Where any tax or other sum due to the Corporation is not paid as provided in sub-section (2), the Commissioner shall serve upon the person liable to pay the same a notice of demand in the prescribed form before taking any of the measures referred to in sub-section
4. (1) for its recovery.

Appointment of election authority.

1. (1) The conduct of elections to the offices of corporators shall be vested in such election authority as may be prescribed.
2. (2) The election authority shall, in consultation with the Government, appoint a returning officer who shall be an officer of the Government or of the Corporation, for the purpose of such elections.

Expenditure in connection with elections.

Power to make rules Power to make rules.—

1. (1) The Government may, by notification, make rules for carrying out all or any of the purposes of this Act.
2. (2) Every rule made under this Act shall, immediately after it is made, be laid before the Legislative Assembly of the State if it is in session and if it is not in session, in the session immediately following for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiration of the session in which it is so laid or the session immediately following the Legislative Assembly agrees in making any modification in the rule or in the annulment of the rule, the rule shall from the date of such notification of the modification or annulment in the Andhra Pradesh Gazette have effect only in such modified form or shall stand annulled as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Power to make bye-laws.—

1. (1) The Corporation may make bye-laws not inconsistent with the provisions of this Act and the rules made thereunder, for the purposes of carrying out the provisions of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such bye-laws may provide for all or any of the following matters, namely:—
   • (a) the regulation of the use of public parks, gardens and other public places;
   • (b) the regulation of the manner in which the conservancy and sanitation services are to be performed;
   • (c) the regulation of the construction, alteration or maintenance of private drains and the construction of private drains in or under public streets;
   • (d) the regulation of the keeping of animals or birds and the construction of stables, cow-sheds and piggeries;
   • (e) the prevention of dangerous diseases;
   • (f) the regulation of the use of public water and the protection of water supply;
   • (g) the regulation of the sale of food and meat and the inspection of markets and slaughter houses.
3. (3) The power to make bye-laws under this section shall be subject to the condition of previous publication.
4. (4) Every bye-law made under this section shall be published in the Andhra Pradesh Gazette and shall come into operation on the date of such publication.

Penalty for breach of bye-laws.—

1. (1) In making any bye-law under section 55 or section 56, the council may direct that a breach of it shall be punishable with fine which may extend to fifty rupees and in the case of a continuing breach with a further fine which may extend to fifteen rupees for every day during which the breach continues after conviction for the first breach.
2. (2) Every such bye-law may also provide that the person committing the breach shall be bound to remedy the mischief so far as lies in his power.

Previous publication of bye-laws.—

Power of Government to cancel or modify resolution Power of Government to cancel or modify resolution

1. (1) The Government may, either suo motu or on a reference made by the Commissioner, by order in writing, cancel any resolution passed by the Corporation or any committee thereof, or any decision taken by the Commissioner, if in their opinion such resolution or decision has been passed or taken in excess of the powers conferred by or under this Act, or any other law, or is likely to lead to a breach of the peace or to cause abuse of power or grave mismanagement of the affairs of the Corporation: Provided that the Government shall, before taking any action under this section, give the Corporation or the Commissioner, as the case may be, an opportunity for explanation.
2. (2) The Government may, by order, stay the execution of any such resolution or decision pending the exercise of the powers under sub-section
3. (1) in respect thereof.

Power of Government to take action in default of Corporation

1. (1) If at any time it appears to the Government that the Corporation or any committee thereof has made default in performing any of the duties imposed by or under this Act or any other law for the time being in force, the Government may, by order in writing, fix a period for the performance of such duty.
2. (2) If such duty is not performed within the period so fixed, the Government may appoint some person to perform it, and may direct that the expense of performing it shall be paid, within such time as they may fix, to such person by the Corporation from the Municipal Fund.

Power to suspend or cancel resolution or order:

1. (1) The Government may, either suo motu or on a reference made by the Commissioner, by order in writing, annul any resolution passed, order issued, or licence or permission granted by the Corporation or the Commissioner, if in their opinion such resolution, order, licence or permission—
   • (a) has not been passed, issued or granted in accordance with law; or
   • (b) is in excess of the powers conferred by this Act or any other enactment; or
   • (c) is likely to lead to a breach of the peace or to cause abuse of power or grave mismanagement in the affairs of the Corporation.
2. (2) The Government shall, before taking action under sub-section (1), give the Corporation or the Commissioner, as the case may be, an opportunity for explanation.
3. (3) The power of the Government under sub-section
4. (1) extends to the matters referred to in the said sub-section even if they relate to any contract or agreement pending or executed.

Power of Government to dissolve Corporation:

1. (1) If, in the opinion of the Government, the Corporation is not competent to perform or persistently makes default in performing the duties imposed on it by or under this Act or any other law for the time being in force, or exceeds or abuses its powers, the Government may, by notification, direct that the Corporation be dissolved with effect from a specified date and reconstituted either immediately or within such period not exceeding six months as the Government may think fit: Provided that before issuing a notification under this sub-section, the Government shall give the Corporation a reasonable opportunity of showing cause against the proposed dissolution and shall consider the explanation and objections, if any, of the Corporation.
2. (2) On the date specified in any notification under sub-section (1), the Councillors shall vacate their offices and the Corporation shall be dissolved.
3. (3) On the dissolution of the Corporation, all the powers and duties of the Corporation under this Act shall, during the period of dissolution, be exercised and performed by such person or persons as the Government may appoint in this behalf.

Power of Government to issue directions.

1. (1) The Government may, from time to time, issue to the Corporation such directions, not inconsistent with the provisions of this Act or the rules made thereunder, as they may think fit for the purpose of ensuring the proper administration of the Corporation or for carrying out the purposes of this Act, and the Corporation shall comply with such directions.
2. (2) Without prejudice to the generality of the foregoing power, such directions may include directions relating to the implementation of the schemes for the economic development and social justice, the pattern of income and expenditure of the Corporation and to the maintenance of accounts.

Delegation of powers. The Government may, by notification, delegate to the Commissioner or any other officer or authority, all or any of the powers vested in them by or under this Act, except the power to make rules under this Act, subject to such restrictions and conditions as may be specified in the notification.

Public notice how to be made known.—

1. (1) Every public notice given by the Corporation under this Act or any rule, bye-law, regulation or order made thereunder, shall be in writing under the signature of the Commissioner or such other officer as may be authorised in this behalf and shall be widely made known in the locality to be affected thereby by affixing copies thereof in conspicuous public places within the said locality, or by advertisement in local newspapers, or by both, or by such other means as the Commissioner may think fit.
2. (2) No notice shall be deemed invalid by reason of any defect in publication.

Service of notices.—

1. (1) Each notice, bill, schedule, summons or other document required or authorised by this Act, or by any rule, bye-law, regulation or order made thereunder to be served by or on behalf of the Corporation, or by the Commissioner, on any person, shall be deemed to be duly served—
   • (a) where the person to be served is a company, if the document is addressed to the secretary of the company at its registered office or at its principal office or place of business and is either—
     • (i) sent by registered post; or
     • (ii) delivered at the office or place of business of the company;
   • (b) where the person to be served is a partnership, if the document is addressed to the partnership at its principal place of business, identifying it by the name or style under which it carries on business, and is either—
     • (i) sent by registered post; or
     • (ii) delivered at the said place of business;
   • (c) where the person to be served is a public body, or a corporation, or a society or other like body, if the document is addressed to the secretary, manager or other principal officer of that body at its principal, branch or other office, and is either—
     • (i) sent by registered post; or
     • (ii) delivered at that office;
   • (d) in any other case, if the document is addressed to the person to be served and—
     • (i) is given or tendered to him; or
     • (ii) if such person cannot be found, is affixed on some conspicuous part of his last known place of residence or business, if within the city, or is given or tendered to some adult member of his family or is affixed on some conspicuous part of the land or building, if any, to which it relates; or
     • (iii) is sent by registered post to such person.
2. (2) Any document which is required or authorised to be served on the owner or occupier of any land or building may be addressed "the owner" or "the occupier" as the case may be, of that land or building (naming or describing that land or building) without further name or description, and shall be deemed to be duly served—
   • (a) if the document so addressed is sent or delivered in accordance with clause
   • (d) of sub-section (1); or
   • (b) if the document so addressed or a copy thereof so addressed, is delivered to some person on the land or building or, where there is no person on the land or building to whom it can be delivered, is affixed to some conspicuous part of the land or building.
3. (3) Where a document is served on a partnership in accordance with this section, the document shall be deemed to be served on each partner.
4. (4) For the purpose of enabling any document to be served on the owner of any premises the Commissioner may, by notice in writing, require the occupier, if any, of the premises to state the name and address of the owner thereof.
5. (5) Where the person on whom a document is to be served is a minor, service upon his guardian or any adult member of his family shall be deemed to be service upon the minor.
6. (6) Nothing in this section shall apply to any summons issued under this Act by a Court.

Limitation of time for appeal.

1. (1) No appeal shall be heard by the Appellate Authority unless it is presented within thirty days next after the date of the receipt of the order or proceeding against which the appeal is made: Provided that the Appellate Authority may admit an appeal presented after the expiration of the said period if it is satisfied that the appellant had sufficient cause for not presenting it within the said period.
2. (2) Period of limitation for the purpose of this section shall be computed in accordance with the provisions of the Limitation Act, 1963 (Central Act 36 of 1963).

Protection of persons acting in good faith. No suit or other legal proceedings shall be maintained against the Corporation or the Commissioner or any officer or servant of the Corporation or any person acting under the direction of the Corporation or the Commissioner or of such officer or servant in respect of anything in good faith done or intended to be done under this Act or any rule, bye-law, regulation or order made thereunder.

Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order published in the Andhra Pradesh Gazette, make such provisions not inconsistent with the purposes of this Act as appear to them to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiration of two years from the commencement of this Act.

1. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature.

Repeal of Act 2 of 1966 and transitional provisions.—(1) The Visakhapatnam Municipal Corporation Act, 1966 is hereby repealed.

1. (2) Notwithstanding the repeal of the said Act,—
   • (a) all the members of the Municipal Corporation of Visakhapatnam holding office as such immediately before the commencement of this Act shall, subject to the provisions of Section 3, continue to hold their office for the remainder of the period for which they would have held office under the repealed Act;
   • (b) anything done or any action taken, including any appointment made, notification, order, scheme, rule, form, notice or bye-law made or issued or any licence or permission granted under the repealed Act shall be deemed to have been done or taken under the corresponding provisions of this Act and shall continue in force accordingly, unless and until superseded by anything done or any action taken or any notification, order, scheme, rule, form, notice or bye-law made or issued or any licence or permission granted under this Act;
   • (c) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Municipal Corporation of Visakhapatnam before the commencement of this Act shall be deemed to have been incurred, entered into or engaged to be done by, with or for the Municipal Corporation of Visakhapatnam constituted under this Act;
   • (d) all assessments, valuations, measurements or divisions made by the Municipal Corporation of Visakhapatnam under the repealed Act shall, in so far as they are not inconsistent with the provisions of this Act, continue in force and be deemed to have been made under the provisions of this Act;
   • (e) all properties, movable and immovable, and all interests of whatsoever nature and kind therein, vested in the Municipal Corporation of Visakhapatnam immediately before the commencement of this Act shall vest in the Municipal Corporation of Visakhapatnam constituted under this Act;
   • (f) all suits, prosecutions and other legal proceedings instituted or which might have been instituted by or against the Municipal Corporation of Visakhapatnam immediately before the commencement of this Act may be continued or instituted by or against the Municipal Corporation of Visakhapatnam constituted under this Act.