Penalty for acquisition by officer or servant of interest in contract.

If any member, officer or servant of a Panchayat or Zilla Panchayat knowingly acquires for himself directly or indirectly, by himself or by a partner, employer or servant, any share or interest in any contract or employment with, by or on behalf of a Panchayat or Zilla Panchayat he shall, on conviction, be punished with fine which may extend to five hundred rupees: Provided that no person shall, by reason of being a shareholder, in or member of, any company, be held to be interested in any contract entered into between such company and the Panchayat or Zilla Panchayat unless he is a Director of such company: Provided further that nothing in this section shall apply to any person who, with the sanction of the Director enters into a contract with a Panchayat or Zilla Panchayat. [213. Penalty for acquisition by of icer or servant of interest in contract.— If any member, officer or servant of a Panchayat or Zilla Panchayat knowingly acquires for himself directly or indirectly, by himself or through a partner, employer or servant, any share or interest in any contract or employment with, by or on behalf of a Panchayat or Zilla Panchayat, he shall be liable to penalty which may extend to five thousand rupees: Provided that no person shall, by reason of being a shareholder, in or member of, any company, be held to be interested in any contract entered into between such company and the Panchayat or Zilla Panchayat unless he is a Director of such company: Provided further that nothing in this section shall apply to any person who, with the sanction of the Director enters into a contract with a Panchayat or Zilla Panchayat.”.]