Penalty on member or employee being interested in any contract with a municipality.

(1) If any member or employee of a municipality or of a joint committee, without the previous permission in writing of the Deputy Commissioner voluntarily renders himself interested in any contract made with that municipality or joint committee, under section 38 or if within one month of his becoming interested in any such contract he neither resigns nor obtains the permission in writing of the Deputy Commissioner for his remaining a member or employee of the municipality or joint committee inspite of his interest in such contract, he shall be punishable for an offence under section 168 of the Indian Penal Code, 1860 (45 of 1860). (2) No member or employee of a municipality or a joint committee shall by reason only of his being a shareholder in or a member of any corporate or registered company, be held to be interested in any contract entered into between the said company and the municipality or joint committee but no such person as aforesaid shall take part in any proceedings of the municipality or joint committee relating to any such contracts.