The amount so credited shall be expended for the purposes for which it has been earmarked.

Application of Municipal property and fund.- (1) All property vested in Council under this Act, all funds received by it in accordance with the provisions of this Act, and all sums accruing to it under the provisions of any law for the time being in force, shall, subject to the provisions of this Act, be applied for the purposes of this Act, within the limits of the Municipality.

1. (2) Notwithstanding anything contained to sub-section (1), it shall be lawful; for a Council , subject to rules framed under this act:-
   • (a) to incur expenditure beyond the Municipal limits on the acquisition of land, or on the contraction , maintenance or repair of works, for the purpose of obtaining a supply of water required for the inhabitants of the Municipality or on providing the supply of electrical energy for the use of the inhabitant of the said Municipality or on establishing slaughter houses or places for the disposal of night soil or sewage or carcasses of animals or for drainage works , or for the purpose of providing mechanically propelled transport facilities for the convenience of the public or for to the purpose of setting up of diaries or parks for the supply, distribution and procuring of milk or milk product for the benefit of the inhabitants of the Municipality or for any other purpose calculated to promote the health, safety or convenience of the inhabitants of then said Municipality; or
   • (b) to make a contribution towards expenditure incurred by any other local authority or out of an public Fund for measures affecting to the health, instruction, safety or convenience of the public calculated to benefit the residents within the limits of the contributing Municipality or
   • (c) to create scholarship tenable outside the limits of the Municipality, or
   • (d) to utilize the Municipal fire brigade and other mechanical appliance beyond the Municipal limits ; or
   • (e) to make with the previous sanction of the State Government, any other kind of contribution as may be deemed necessary by the Council: Provided that nothing in this section or in any other provision of this act, shall be deemed to make it unlawful for a Council when it has constructed works beyond the limits of the Municipality for the supply of water or electrical energy or for drainage as aforesaid.-
   • (a) to supply or extend to or for the benefit of any person or building or lands in any place,

whether such place is or is not within the limits of the said Municipality, any quantity of water

of electrical energy not required for the purpose of this Act within the said Municipality or the advantages afforded by the system of drainage-works on such terms and conditions with regard to payment and to the continuance of such supply or advantages as shall be settled by agreement between the Council and such persons or the occupier or owner of such buildings or land, or

1. (b) to incur any expenditure on such terms with regard to payment as may be settled as aforesaid for the construction, maintenances, repair or change of any connection pipe or any electric supply lines or other works necessary for the purpose of such supply or for the extension of such advantages.

The Madhya Pradesh* Municipalities Act, 1961

*छ-ग- राजपत्र दिनााँक 24-08-2001 के अदिसूचना क्रमाांक 2458/2001 दिनााँक 30-06--2001 के अनुसार "म-प्र." के स्थान पर "छ.ग."।