POWER OF MUNICIPALITY TO ACQUIRE AND DISPOSE OF PROPERTY

POWER OF MUNICIPALITY TO ACQUIRE AND DISPOSE OF PROPERTY.—

1. (1) A Municipality may in the manner prescribed, acquire any property such as land or building within or outside its Municipal area or dispose of any of its properties with the prior approval of the Government for providing any arrangement or facility for a public purpose, (2)
   • (a) A Municipality may construct commercial or other buildings and let them out to the public who need them on licence and may charge such fees as it may fix for the use and occupation of the same, in the manner prescribed;
   • (b) [XXX] Provided that after the said period, a licence may be renewed subject to such terms and conditions as may be fixed at that time;
   • (c) In all cases except renewal of licence or rehabilitation of a licensee, licence shall be granted only by public auction or tender.
2. (3) Every licence under sub-section (2) shall contain terms and conditions governing the use and occupation of the building or room or space therein and the rate and time of payment of fees and such terms and conditions shall be reduced in writing in the form of an agreement in stamp paper of the appropriate value.
3. (4) No building or room or space let out under sub-section
4. (2) shall be sub-let by the licensee to any person nor the nature of use changed without the prior approval of the Municipality: Provided that the Municipality may at the instance of a licensee transfer the licence to any other person subject to such terms and conditions as it may deem fit to impose and upon such transfer, it shall be deemed to be a fresh licence for all purposes.
5. (5) Where at any time it appears to the Secretary that any building, room or space let out to any person under sub-section
6. (2) has been sub-let, he shall by order, immediately cancel the licence issued to such person and direct the person or persons in use and occupation of the building, room or space, as the case may be, to vacate within such time as may be specified in the order; Provided that the Secretary shall, before issuing an order cancelling the licence and evicting the user or occupier give notice to such person requiring him to show cause within a reasonable time to be specified in the notice, why such an order should not be made.
7. (6) Where an order issued under sub-section (5) is not complied with within the time specified therein, the Secretary shall cause such person or persons to be removed from the building, room or space with the assistance of police and close down the building, room or space as the case may be, and thereupon all properties found in such premises shall, belong to the Municipality and shall be disposed of and the proceeds credited to the municipal fund.
8. (7) Every person to whom a licence has been issued under sub-section (2) shall pay without demand the licence fee and other charges at the rate specified in the agreement within such time as may be specified therein.
9. (8) Where any licensee defaults payment of licence fee for a period exceeding the period covered by the deposit made in terms of the licence, the Secretary shall, by notice, in writing, require the defaulter to remit the dues together with such penalty or interest as provided in the agreement within seven days of service of such notice and in case of failure, he shall immediately cause the premises to be closed down temporarily and the person or persons in occupation shall be got removed with the assistance of police or otherwise.
10. (9) Notwithstanding the closure of the premises under sub-section (8) the licensee shall continue to be the user and occupier of the premises and shall be responsible for the safe custody of the belongings therein, but he shall not break open the premises and re-enter therein and if he does so, he shall be deemed to have committed an offence under section 380 of the Indian Penal Code (Central Act 45 of 1860).
11. (10) Where the Secretary closed down a premises under sub-section (8), he shall, by notice, direct the licensee to clear off the dues within such time as may be specified in the notice.
12. (11) Where the licensee remits the dues as required in the notice under sub-section(10), the Secretary shall immediately put him in physical possession of the premises and if he fails to clear of the dues the Secretary shall cancel the licence forthwith and the order cancelling the licence shall be communicated to him and if, for any reason, the order cannot be communicated to him in person it shall be published in the premises closed down under sub-section (8) which shall be deemed to be a sufficient notice.
13. (12) Where the Secretary has cancelled a licence under sub-section (11) he shall, with previous notice to the licensee and after public notice, dispose of by auction or otherwise the belongings found in the premises closed down on the day notified, and the proceeds thereof shall be adjusted towards the amount due from the licensee together with other charges and expenses in connection with the sale and the balance, if any, shall be returned to him. If the sale proceeds are not sufficient to defray the dues together with other charges or expenses in connection with the sale, the balance shall be recoverable from the licensee as if it were an arrear of property tax.