Penalty of Councillors, officers and servants for improper interest in contracts, etc.

Penalty of Councillors, officers and servants for improper interest in contracts, etc. (1) if any Councillor, or any officer or servant of a Council, without the written permission of the Director, is directly or indirectly interested in any contract made with such Council, he shall be deemed to have committed an offence under section 168 of the Indian Penal Code.

(2) A Councillor or an officer or servant of a Council shall not, by reason only of being a shareholder in, or a member of any company, or co-operative society, be deemed to be interested in any contract entered into between the company or the society and the Council.