Chapter IX Chapter IX

Properties and Funds of Panchayats

The power of a Panchayat to acquire, hold and dispose of property both movable and immovable whether within or without the limits of the area over which it has authority, to lease, sell or otherwise transfer any movable or immovable property which may have become vested in or been acquired by it, and to contract and to do all other things necessary for the purpose of this Act, shall be subject to the rules made by the Government in this behalf: Provided that no lease of immovable property for a term exceeding five years and no sale or other transfer of such property shall be valid unless such lease, sale or other transfer shall have been made with the previous sanction of the Zilla Panchayat.

1. (1) It shall be competent for the Government, or Zilla Panchayat with the concurrence of the Panchayat from time to time, to direct that any property vesting in the Government or Zilla Panchayat as the case may be, shall vest in the Panchayat either conditionally or otherwise: Provided that no lease, sale or other transfer of any such immovable property by the Panchayat shall be valid without the previous sanction of the Government or the Zilla Panchayat, as the case may be.
2. (2) Every work constructed by a Panchayat out of the Panchayat fund shall vest in such Panchayat: Provided that the Government may, if it deems fit, declare by order that such road, building or other works vested in the Panchayat, shall stand transferred to and vest in, the Zilla Panchayat or the Government, as the case may be.
3. (3) All rubbish, sewage, filth and other matter collected by a Panchayat under this Act shall belong to it.

1. (1) The Government may, subject to such conditions as it deems fit, make grants to a Panchayat or a Zilla Panchayat for general purposes or for improvement of the area within its jurisdiction and welfare of the residents therein: 121[Provided that no grants shall be made to a Panchayat which fails to cause its accounts to be so audited for more than three consecutive years].
2. (2) The Government may sanction such loans as may be prescribed to the Panchayat or a Zilla Panchayat for taking up such Scheme, as may be prescribed within its jurisdiction.

1. (1) There shall be for each Panchayat, a fund called Panchayat Fund.
2. (2) The following shall form part of, or be paid into the Panchayat Fund, namely:—
   • (a) the amount which may be granted or passed on to the Panchayat by the Government or the Zilla Panchayat under the provisions of this Act or any other Act, or on any other account;
   • (b) the proceeds of any tax, rate and fee imposed by the Panchayat;
   • (c) all sums received by the Panchayat by way of loans or contributions from the Government or any other authority or person or by way of gift;
   • (d) the rent or other income from, or sale proceeds of any immovable or movable property owned by or vesting in the Panchayat; and
   • (e) all other sums received from any source whatsoever.
3. (3) The amounts at the credit of the Panchayat Fund shall be kept in any Scheduled Bank or a Co-operative Bank situated in the Panchayat area or the neighbouring Panchayat area.

1. (1) Subject to the provisions of this Act and rules made thereunder and such general or special orders of the Government, all property owned by, or vested in the Panchayat under this Act and all funds received by it and all sums accruing to it under the provisions of this Act or any other law for the time being in force, shall be applied for the purposes for which by or under this Act, or any other law for the time being in force, powers are conferred or duties are imposed upon the Panchayat: Provided that no expenditure shall be incurred out of the Panchayat fund unless provisions therefore has been made in the budget of the Panchayat or funds are obtained by reappropriation duly approved except in such cases as may be prescribed.
2. (2) The Panchayat Fund shall also be utilized for the following purposes:— 122[(i) payment of salaries and allowances to the Sarpanch, Deputy Sarpanch, elected and co-opted members of the Panchayat, or members of any committee thereof and the staff of the Panchayat, subject to such rules as may be prescribed].
   • (ii) any amount falling due on any loan raised by the Panchayat;
   • (iii) with the previous sanction of the Chief Executive Officer, for any other purpose for which the application of such property or fund is necessary in public interest: Provided that any amount granted to the Panchayat by the Government or any person or local authority for any specific work or purpose shall be applied exclusively for such work or purpose and in accordance with such instructions as the Government may specify, either generally or specially in this behalf.

A Panchayat may, with the previous sanction of the Government and subject to the conditions imposed by it from time to time and subject to the execution of any work or for the purpose of carrying out any of the provisions of this Act and form a sinking fund in the prescribed manner for the repayment of such loans.

The power of every Zilla Panchayat to acquire, hold and dispose of property both movable and immovable whether within or without the limits of the area over which it has authority, to lease, sell or otherwise transfer any movable or immovable property which may have become vested in or been acquired by it, and to contract and to do all other things necessary for the purposes of this Act, which shall be subject to the rules made by the Government in this behalf: Provided that no lease of immovable property for a term exceeding five years and no sale or other transfer of any such property shall be valid unless such lease, sale or other transfer shall have been made with the previous sanction of the Government.

1. (1) It shall be competent for the Government with the concurrence of the Zilla Panchayat from time to time, to direct that any property vesting in the Government shall vest in the Zilla Panchayat: Provided that no lease, sale or transfer of such immovable property by the Zilla Panchayat shall be valid without the previous sanction of the Government.
2. (2) Every work constructed by the Zilla Panchayat out of Zilla Panchayat Fund shall vest in such Zilla Panchayat: Provided that the Government may, if it deems fit, declare by order that such road, buildings or other works vested in the Zilla Panchayat, shall stand transferred to, and vest in the Government.

There shall be for each Zilla Panchayat, a fund called Zilla Panchayat Fund and the following shall form part of or be paid into the Zilla Panchayat Fund, namely:—

1. (i) the amounts transferred to the Zilla Panchayat Fund by appropriation from and out of the Consolidated Fund of the State;
2. (ii) all grants, assignments, loans and contributions made by the Government;
3. (iii) all fees and penalties paid to or levied by or on behalf of the Zilla Panchayat under this Act and all fines imposed under this Act
4. (iv) all rents from lands or other properties of the Zilla Panchayat;
5. (v) all interests, profits and other moneys accruing by gifts, grants, assignments or transfers from private individuals or institutions;
6. (vi) all proceeds of land, securities and other properties sold by the Zilla Panchayat;
7. (vii) all sums received by or on behalf of the Zilla Panchayat by virtue of this Act: Provided that sums received by way of endowments for any specific purpose shall not form part of or be paid into the Zilla Panchayat Fund.

1. (1) The amounts at the credit of the Zilla Panchayat Fund shall be kept in the Government Treasury.
2. (2) It shall be lawful for the Zilla Panchayat to deposit with the sanction of the Government, in any Scheduled Bank or Co-operative Bank in the State, any surplus funds in its hands which may not be required for current charges and with like sanction, to invest such funds in securities of the Government of India or the State Government or in

such other securities as the Government may, from time to time, approve in this behalf and to vary such investment or dispose of such securities with like sanction.

1. (1) Subject to the provisions of this Act and the rules made thereunder and such general or special orders as the Government may make, all property owned by or vested in the Zilla Panchayat under this Act and all funds received by it and all sums accruing to it under the provisions of this Act or any other law for the time being in force shall be applied for the purposes for which by or under this Act or any other law for the time being in force, powers are conferred or duties are imposed upon the Zilla Panchayat: Provided that no expenditure shall be incurred out of the Zilla Panchayat Fund unless provision therefore has been made in the budget of the Zilla Panchayat or funds are obtained by re-appropriation duly approved except in such cases as may be prescribed.
2. (2) The Zilla Panchayat Fund and all property held or vested in the Zilla Panchayat under this Act shall be applied, subject to the provisions of this Act, for the payment of,— 123[(a) salaries and allowances to the Adhyaksha, Upadhyaksha 124[elected and co- opted] members of the Zilla Panchayat or members of any committee thereof and travelling and daily allowances to the Adhyaksha and Upadhyaksha or tours outside the district, subject to such rules as may be made in this behalf by the Government].
   • (b) the salaries, allowances, pensions and gratuities of its officers and employees other than those whose salaries and allowances are paid from the Consolidated Fund of the State;
   • (c) any amounts falling due on any loans contracted by the Zilla Panchayat;
   • (d) for the purposes specified in this Act;
   • (e) all other purposes for which by or under this Act or the rules or regulations made thereunder or by or under any other law for the time being in force, powers are conferred or duties are imposed upon the Zilla Panchayat;
   • (f) with the previous sanction of the Government, for any other purpose for which the application of such property or fund is necessary in public interest: Provided that any fund granted to the Zilla Panchayat by the Government or any person or local authority for any specific work or purpose, shall be applied exclusively for such work or purpose and in accordance with such instruction as the Government may specify, either generally or specially in this behalf.

Save as otherwise provided in this Act and subject to the regulations made in this behalf, a Zilla Panchayat may charge fee for any licence or permission issued by it under this Act, and the rules made thereunder and levy rent and fee for the occupation or use of land or other property placed under its control or vested in it or maintained out of the Zilla Panchayat Fund.

A Zilla Panchayat may, with the previous sanction of the Government and subject to the conditions imposed by it from time to time, raise loans for the execution of any work or for the purpose of carrying out any of the provisions of this Act and form a sinking fund for the repayment of such loans.

Except as hereinafter provided no payment of any sum shall be made out of the Zilla Panchayat fund, unless the expenditure of the same is covered by a budget grant except in the following cases, namely:—

1. (a) refund of money which the Zilla Panchayat is authorised to make under this Act or the rules or regulations made thereunder;
2. (b) repayment of moneys belonging to the contractors or other persons held in deposit and of moneys credited to the Zilla Panchayat fund by mistake;
3. (c) sums which the Zilla Panchayat is required or empowered by this Act to pay by way of compensation.
4. (d) every sum; payable,—
   • (i) under this Act by order of the Director or the Government;
   • (ii) under a decree or order of a Civil Court; and
   • (iii) under a compromise of any suit or other legal proceedings or claim.

1. (1) It shall be lawful for the Government from time to time to direct, by notification, that any road, bridge, channel, building or other property, movable or immovable, which is

vested in the Government and which is situated in the district, shall with the consent of the Zilla Panchayat and subject to such exceptions and conditions as the Government may make and impose, be placed under the control and administration of the Zilla Panchayat for the purposes of this Act and thereupon such road, bridge, channel, buildings or other property shall be under the control and administration of the Zilla Panchayat, subject to all exceptions and conditions so made and imposed and to all charges and liabilities affecting the same.

1. (2) It shall be competent for the Government by notification, to resume any property placed under the control of a Zilla Panchayat under sub-section (1), on such terms as the Government may determine.