Municipality against such posts of officers and other employees referred to in sub-section (1) of section 37.

Subject to the other provisions of this Act, the appointing authority in respect Appointing of the posts of officers and other employees constituting the establishment of Authorities. the Municipality shall be,-

a) the Chief Municipal Executive Officer in Municipality of Capital Region

and Municipal Executive Officers in other Municipalities. Provided that-

1. Except Group - 'C' and 'D' Posts, no other posts shall be recruited directly

within first Five years of commencing of Municipality.

2. Except Group -'C' 'D' & 'B' Posts, no Group-'A' posts shall be recruited

directly within first ten years of commencing of Municipality.

Explanations: in the initial years of introduction of Municipality, recruitment of all the posts directly will create huge financial involvement to the state exchequer. Therefore, in order to minimize the financial involvement and to ensure experienced hand in the administration of Municipality, the officers and staff of relevant department such as Deptt. of UD & Housing, Town Planning, Health Department, Law Department

etc. shall be utilized, till such time the Municipalities generates enough resources to sustain its own establishment. 39. (1) All officers and other employees of a Municipality including the officers Salaries and referred to in section -36 shall receive salaries and allowances out of the Allowances of Municipal Fund: officers and other employees. Provided that the State Government may make such contribution toward the salaries and allowances as aforesaid as it may, from time to time, determine.

1. (2) The Municipality may also provide for pension gratuity, provident fund, incentive, bonus, reward or penalty for its officers and other employees in accordance with such rules, norms, scales and conditions as may be prescribed.