Chapter XIX FINANCE AND TAXATION

1. (1) The Government shall having regard to the recommendation, if any, of the Finance Commission, in each year, after due appropriation made by the State Legislature by law in this behalf, make such grants and shares of various taxes, duties, cess and fees as are necessary to the panchayats for the proper discharge of their functions under this Act. (2)The shares of taxes collected by the Government shall be distributed among panchayats at all levels in an equitable manner according to the formula fixed by Government in this behalf.]

(1) The Government may make such further grants and loans to the Panchayats as they consider necessary for the execution of specific, schemes projects, programmes or plans relating to any of the matters administered by the Panchayats under such terms and conditions as may be fixed by the Government in this behalf. (2)Every Panchayat shall utilise such grants or loans under this section only for the specific purposes for which such grants or loans are given. (3)In respect of loans given by the Government under this section the provisions of the

Annual Report on Grants. - (1) The State Chief Secretary shall, immediately after each financial year submit an annual report to the Governor in respect of the amount of annual grants due to the Panchayats under any law or otherwise and the amount actually paid to the panchayats and the criterion adopted by the Government for such payment.

1. (2) The annual report under sub-section (1) Shall be laid before the Legislative Assembly within the first six months of the next financial year.]

(1) A Panchayat may borrow any sums of money which may be required for the purposes for which the funds of the Panchayat may be applied under the provisions of this Act or any other law in force: Provided that while raising such loan the assets of the Panchayat shall not be pledged for purposes other than for utilising in remunerative development schemes. I bid. Inserted by Act 13 of 1999. I bid (2)The District Panchayats may issue Revenue Bonds and the net proceeds received from facilities and services created utilising such bond may be offered as security for such bonds. (3)Government may give direction to make good any short fall in escrow accounts from the grants due to the District Panchayat by them.

(2)The District Panchayats may issue Revenue Bonds and the net proceeds received from facilities and services created utilising such bond may be offered as security for such bonds. (3)Government may give direction to make good any short fall in escrow accounts from the grants due to the District Panchayat by them.

(1) A Panchayat may collect such fees from the beneficiaries of the institutions which are run or financed wholly or partially by it at such rates [as fixed by it] subject to the rules made by the Government for the purpose. 143[(2) Service charges at the rate fixed by the panchayat may be collected from the beneficiaries utilising the toilet facilities, parking facilities or any other amenities or services provided by it. (3)The amount collected, as service charge shall be utilised for the up keep and maintenance of such facilities and services.]

143[(2) Service charges at the rate fixed by the panchayat may be collected from the beneficiaries utilising the toilet facilities, parking facilities or any other amenities or services provided by it. (3)The amount collected, as service charge shall be utilised for the up keep and maintenance of such facilities and services.]

(1) The Government may by order published in the Gazette, direct any village panchayat to levy from the whole panchayat area a surcharge not exceeding five per cent on the tax leviable under this Act by that panchayat at such rate and with effect from such date (not being earlier than first day of the half year immediately following that in which the order is published] as may be specified in the order, to cover any expenses to be incurred by the district panchayat and block panchayats in respect of any plan, project or work. (2) Any surcharge levied under this section shall be demanded and collected by the village panchayat in the same manner as if it were the tax levied under this Act and distributed to the block panchayat and district panchayat in the manner prescribed after deducting three per cent thereof towards collection charges. 144[(3) No surcharge under sub-section (1) shall be directed to be levied unless prior sanction of concerned panchayat is obtained for the implementation of such scheme, project or work.]

1. (2) Any surcharge levied under this section shall be demanded and collected by the village panchayat in the same manner as if it were the tax levied under this Act and distributed to the block panchayat and district panchayat in the manner prescribed after deducting three per cent thereof towards collection charges. 144[(3) No surcharge under sub-section (1) shall be directed to be levied unless prior sanction of concerned panchayat is obtained for the implementation of such scheme, project or work.]

(1) Every village panchayat may levy in its area a 142 143 144 145 [property tax] a profession tax, an advertisement tax and an entertainment tax. (2)Service tax shall be levied at the rate fixed by the village panchayat, subject to the minimum rate prescribed for sanitation, water supply, scavenging, street lighting and drainage wherever such services are provided by the Village Panchayat. Substituted by Act 7 of 1995. Added by Act 13 Added by Act 13 Substituted by Act 13 of 1999. (3) A duty shall also be levied in every village panchayat area on transfers of property in accordance with the provisions of section 206. 146[(3 A) A village panchayat may levy from land owner, a land conversion cess at such rates and in such manner as prescribed in respect of paddy fields, marshy lands, pond or wet land which he was holding and has been converted into garden land or land on which there is a building. Explanation. - Nothing in this section shall be deemed as affecting any of the provisions of Kerala Land Utilisation Order, 1967. (4)(i) A show tax shall be levied on all shows within the village panchayat area at the rates prescribed by Government in this behalf. Explanation. - the term ‘show’ includes any entertainment, exhibition performance, amusement, game, sport or race to which persons are admitted on payment of money. (ii)The tax leviable shall be payable by and recoverable from the owner of the premises if he receives rent for the show or if no rent is paid, the proprietor of the show including any person responsible for the management thereof.] (201)[

1. (3) A duty shall also be levied in every village panchayat area on transfers of property in accordance with the provisions of section 206. 146[(3 A) A village panchayat may levy from land owner, a land conversion cess at such rates and in such manner as prescribed in respect of paddy fields, marshy lands, pond or wet land which he was holding and has been converted into garden land or land on which there is a building. Explanation. - Nothing in this section shall be deemed as affecting any of the provisions of Kerala Land Utilisation Order, 1967. (4)(i) A show tax shall be levied on all shows within the village panchayat area at the rates prescribed by Government in this behalf.

Explanation. - the term ‘show’ includes any entertainment, exhibition performance,

amusement, game, sport or race to which persons are admitted on payment of money. (ii)The tax leviable shall be payable by and recoverable from the owner of the premises if he receives rent for the show or if no rent is paid, the proprietor of the show including any person responsible for the management thereof.] (201)[

Finance Commission, to each Panchayat at the village level in the State a grant, which shall be equal as nearly as may be three by eight, of the amount of basic tax collected by the Government in the last preceding year from that panchayat area.

1. (2) The Government may, after considering the area, population, available financial resources and the requirement for development, etc., of the village panchayats and the expense for administration of panchayats, also provide an amount 146 147 148 149 as nearly as may be three by eighth that may be prescribed by Government in proportion to the balance amount already collected by Government as basic tax from the entire land of the state for the preceding year, as grant for the village panchayats of the State. 149[(3) The Government shall, for every year provide, as nearly as may be equal to three by tenth of the amount of basic tax as collected from the district panchayat area in the just previous year, as grant for the Block Panchayats of the Districts; (4)The Government shall, for every year, provide to every district panchayat an amount as nearly as may be one by fifth of the basic tax collected from the concerned district panchayat area for the just previous year, as grant.]

(1) every village panchayat shall in accordance with the rules prescribed for the purpose levy a property tax on all buildings and land appurtenant Added by Act 13 of 1999. Omitted by Act 13 Substituted by Act I bid. thereto situated within the panchayat area and not exempted under this Act at such percentage as may be determined by the village panchayat on the net annual value determined on the basis of the plinth area and considering the site of the building, its use, type of construction and other determined factors: Provided that in the case of buildings given on rent, tax shall be levied by adding twenty-five percentage also for the net annual value calculated according to plinth area] 150 151 (2)The building tax shall be levied annually and be payable in two equal half yearly instalments. (3)The building tax, and the surcharge on building tax, if any levied under section 208, shall subject to the prior payment of the land revenue, if any, due to the Government in respect of the site of the building, be a first charge upon the building and up on the movable property, if any, found within or upon the same and belonging to the person liable to such tax. (4)The Government may make rules providing for, - (i)the manner of ascertaining the net annual rental value of building on the categories in to which they fall for the purposes of taxation: (ii)the person who shall be liable to pay tax and the giving of notices of transfer of buildings; (iii)the grant of exemption from tax on the ground of property. (iv)the grant of vacancy and other remissions; and (v)the circumstances in which and the conditions subject to which buildings constructed, reconstructed or demolished or situated in areas included in, or excluded from, the panchayat area during any half year, shall be liable or cease to be liable to the whole or any portion of the tax. 2[(vi) method of fixing the annual value of property based on the plinth area of the building; (vii)maximum tax to be paid by the assessee; (viii)returns to be filed by the owners of the buildings; (ix)rate of deduction to be allowed based on the age and use of the buildings.] Substituted by Act 13 of 1999. Added by Act 13 of 1999. (5)If the occupier of a building pays the building tax on behalf of, the owner thereof, such occupier shall be entitled to recover the same from, the owner and may deduct the same from the rent then or there after due by him to the owner.

thereto situated within the panchayat area and not exempted under this Act at such percentage as may be determined by the village panchayat on the net annual value determined on the basis of the plinth area and considering the site of the building, its use, type of construction and other determined factors: Provided that in the case of buildings given on rent, tax shall be levied by adding twenty-five percentage also for the net annual value calculated according to plinth area] 150 151 (2)The building tax shall be levied annually and be payable in two equal half yearly instalments. (3)The building tax, and the surcharge on building tax, if any levied under section 208, shall subject to the prior payment of the land revenue, if any, due to the Government in respect of the site of the building, be a first charge upon the building and up on the movable property, if any, found within or upon the same and belonging to the person liable to such tax. (4)The Government may make rules providing for, - (i)the manner of ascertaining the net annual rental value of building on the categories in to which they fall for the purposes of taxation: (ii)the person who shall be liable to pay tax and the giving of notices of transfer of buildings; (iii)the grant of exemption from tax on the ground of property. (iv)the grant of vacancy and other remissions; and (v)the circumstances in which and the conditions subject to which buildings constructed, reconstructed or demolished or situated in areas included in, or excluded from, the panchayat area during any half year, shall be liable or cease to be liable to the whole or any portion of the tax.

2[(vi) method of fixing the annual value of property based on the plinth area of the building; (vii)maximum tax to be paid by the assessee; (viii)returns to be filed by the owners of the buildings; (ix)rate of deduction to be allowed based on the age and use of the buildings.] Substituted by Act 13 of 1999. Added by Act 13 of 1999.

(5)If the occupier of a building pays the building tax on behalf of, the owner thereof, such occupier shall be entitled to recover the same from, the owner and may deduct the same from the rent then or there after due by him to the owner.

(1) The profession tax shall subject to such rules as may be prescribed be levied every half year in every village panchayat area on - (i)every company which transacts business in such panchayat area for not less than sixty days in the aggregate in that half year; and (ii)every person who, in that half year - (a)exercise a profession, art or calling, or transacts business or holds any appointment, public or private - (1)within such panchayat area for not less than sixty days in the aggregate, or

1. (ii) outside in such panchayat area but who resides in it for not less than sixty days in the aggregate, or (b)resides in such panchayat area for not less than sixty days in the aggregate and is in receipt of any income from investments. (2)The profession tax shall be levied at such rates as may be fixed by the village panchayat not exceeding the maximum rates prescribed. (3)A person shall be chargeable under the class appropriate to his aggregate income from all the sources specified in sub section (1) as being liable to the tax. (4)If a company or person proves that it or he has paid the sum due on account of the profession tax levied under this Act, or profession tax levied under any law for the time being in force governing Municipalities in the State or any tax of the nature of a profession tax imposed under the Cantonment Act, 1924, for the same half year to any Panchayat or Nagar Panchayat or Municipal Council or Municipal Corporation or Cantonment authority in the State, such company or person shall not be liable by reason merely of change of place of business, exercise of profession, art or calling appointment or residence, to pay to any other panchayat, Nagar Panchayat, Municipal Council or Municipal Corporation or Cantonment authority in the State more than the deference between such sum and the amount to which it or he is otherwise liable for the profession or companies tax for the half year under this Act or the law governing Municipalities or Cantonment. (5)Nothing contained in this section shall be deemed to render a person who resides within the local limits of one local authority and exercises this profession, art or calling or transacts business or holds any appointment within the limits of any other local authority or authorities liable to higher profession tax for more than the higher of the amounts of tax leviable by any of the local authorities. In such cases the tax shall be levied by the local authority which levied the higher rate of tax and shall be apportioned among local authorities in such proportion as may be prescribed: Provided that where one of the local authorities concerned is a Cantonment authority or the Port authority of a major port the decision of the local authorities shall be subject to the concurrence of the Central Government obtained in such manner as may be prescribed. (6)The profession tax leviable from a firm or association may be levied from the agent of the firm or association as the case may be. (7)(a) If a company or person employs a servant or agent to represent it or him for the purpose of transacting business in any local area of a Village Panchayat such company or person shall be deemed to transact business in that local area, and such servant or agent shall be liable for the profession tax in respect of the business of such company or person whether or not such servant or agent has power to make binding contracts on behalf of such company or person.

1. (b) Where one company or person is the agent of another company or person, the former company or person shall not be liable separately to the profession tax on the same income as that of the principal.

(1) Every head of office or employer in relation to an office or undertaking or institution where persons are employed for salaries or wages shall as soon as may be, on receipt of the bill or notice of demand of profession tax, serve such bill or notice on the employees and return the duplicate of such bill or notice to the secretary of the village panchayat concerned. (2)Subject to such rules as may be prescribed, upon service of bill or notice of demand, the Head of office or employer shall, after the expiry of the period specified in the bill or notice, recover or collect the amount of profession tax shown in the bill or notice, by deduction or otherwise from the salaries or wages of the employees and remit it to the village panchayat in such manner as may be prescribed. (3)Where the amount of profession tax covered by a bill or notice of demand is in after on account of default on the part of the Head of office or employer to collect and remit the same as required in this section such amount shall be recovered from such Head of Office or employer subject to such rules as may be prescribed as if it is an arrear due from him: Provided that in the case of self-drawing officers, the Head of office or employer shall take such steps as may be prescribed for ensuring remittance by such self-drawing officers of the profession tax covered by the bill or notice.

[205 A. Statements, Returns, etc, to be confidential. - All statements made,

returns furnished or accounts or documents produced in connection with the assessment of profession tax payable by any company or person shall be treated as confidential and copies thereof shall not be issued to the public. Inserted by Act 13 of 1999.

Secretary may, by notice, require the owner or the occupier of any building or land and every administrator or manager of a hotel, boarding or lodging house, club or residential chambers, to furnish within a specified time a list in writing containing the names of all persons occupying such building, land, hotel, boarding or lodging house, club or chambers and specifying the profession, art or employment of every such person and the rent, if any paid by them and the period of such occupation.

Secretary may by notice require any employer or head of office or the administrator or the manager of any public or Private office, hotel, boarding or lodging house, club, firm or a company. (a)to furnish, within specified time a list in writing containing the names of the employer and all persons who were employed or working in such office, hotel, boarding or lodging house, club, firm or company as officers, employees, interpreters, agents, suppliers or contractors along with a statement of the salary or income of such persons employed and (b)to furnish particulars in regard to any company of which such employer or head administrator or manager, as the case may be, is an agent.

205 D. Recovery of profession tax by employers. - Notwithstanding anything

contained in the foregoing provisions, every head of office, employer, manager, proprietor and any person in the administrative control of any office company, firm, undertaking, establishment or any institution, where persons are employed or engaged for salaries or wages, shall be bound to recover from any such person liable to profession tax, the profession tax due at the rate fixed by the village panchayat and pay over to the village panchayat as hereinafter provided. 205 E. Requisition to furnish name of Institutions etc. - (1) The Secretary shall during the month of April every year, by notice, require every head of office or person bound to recover profession tax under section 205D to furnish the names and addresses of the offices or institutions under his control within such time as may be specified in the notice. (2)Every head of office shall furnish to the Secretary the information required by him under sub-section (1) within such time as may be specified and he shall also furnish the name and designation of the head of office and shall intimate the secretary whenever there is a change to the head of office. (3)The Secretary shall immediately on receipt of the information furnished to him under sub section (1) register the name of offices or institutions in a register maintained for the purpose.

(1) The Secretary shall, during the month of May and November in every half year, by notice require every head of office or employer to assess all employees in his institution, who are liable to pay profession tax and every self drawing officer to remit the Profession tax due in accordance with the schedule to the said notice. (2) Before the end of August and February every year each head of office and employer shall assess the tax payable by all employees liable to pay tax and recover the amount from them and pay over to the village panchayat together with a list of all employees whose tax has been assessed giving the details such as name, designation, half yearly income and amount of tax recovered and shall also furnish a certificate to the effect that all employees liable to tax have been included in the statement furnished.

1. (2) Before the end of August and February every year each head of office and employer shall assess the tax payable by all employees liable to pay tax and recover the amount from them and pay over to the village panchayat together with a list of all employees whose tax has been assessed giving the details such as name, designation, half yearly income and amount of tax recovered and shall also furnish a certificate to the effect that all employees liable to tax have been included in the statement furnished.

(1) The Secretary shall, on receipt of the payment, issue an official receipt in the name of the head of office for the amount remitted. (2) Every head of office shall, in turn, grant to each taxpayer a certificate in respect of the recovery and payment of tax to the village panchayat of the relevant half-year. 205 H. Payment of tax by self-drawing officers. - (1) Every self-drawing officer shall, before the end of August and February every year, remit or cause to be remitted the profession tax due from him in respect of such half-year in accordance with the schedule of tax in force along with a statement showing the details etc. of half yearly income. (2) Soon after the receipt of payment under sub section (1) the Secretary shall issue official receipt thereof. 205 I. Maintenance of Demand Register. - The Secretary shall maintain a ward-wise Demand Register by providing independent pages for every institution specified in subsection (2) of section 205E and in such case the head of office and the self-drawing officers if any, shall be the assesses and the remittance shall be entered against their names. One demand register for this purpose may be used for one or more years. 205 J. Certificate of drawing and disbursing officers and self drawing officers, - A certificate shall be furnished along with the salary bill of the drawing and disbursing officer and the self-drawing officers relating to the month of February and August every year, to the effect that profession tax due in respect of all employees and himself, as the case may be has been paid and the details thereof have been furnished to the secretary and in the absence of such certificate the passing official shall not honour the bill.

1. (2) Every head of office shall, in turn, grant to each taxpayer a certificate in respect of the recovery and payment of tax to the village panchayat of the relevant half-year. 205 H. Payment of tax by self-drawing officers. - (1) Every self-drawing officer shall, before the end of August and February every year, remit or cause to be remitted the profession tax due from him in respect of such half-year in accordance with the schedule of tax in force along with a statement showing the details etc. of half yearly income.
2. (2) Soon after the receipt of payment under sub section (1) the Secretary shall issue official receipt thereof. 205 I. Maintenance of Demand Register. - The Secretary shall maintain a ward-wise Demand Register by providing independent pages for every institution specified in subsection
3. (2) of section 205E and in such case the head of office and the self-drawing officers if any, shall be the assesses and the remittance shall be entered against their names. One demand register for this purpose may be used for one or more years. 205 J. Certificate of drawing and disbursing officers and self drawing officers, - A certificate shall be furnished along with the salary bill of the drawing and disbursing officer and the self-drawing officers relating to the month of February and August every year, to the effect that profession tax due in respect of all employees and himself, as the case may be has been paid and the details thereof have been furnished to the secretary and in the absence of such certificate the passing official shall not honour the bill.

Where, at any time, it appears to the Secretary that any head of office or employer or self-drawing officer who are bound to furnish the details and remit the tax due as specified under sections 205 E, 205F and 205H has failed to furnish such details or to remit the tax due within the specified time, the secretary shall immediately thereafter take penal action against such defaulter or defaulters. Explanation. - For the purpose of this section and sections 205D to 205J (both inclusive) the expression Head of office or employer in relation to an office, institution, undertaking, establishment etc. means the person authorised to draw and disburse the salary or wages of the employees in such office, institution, undertaking or establishment.

Description of instrument Amount on which duty should be levied ( )( )

1. (i) Sale of immovable property The amount or value of the consideration for the sale as set forth in the instrument.
2. (ii) Exchange of immovable property The value of the property of the greatest value as set forth in the instrument.
3. (iii) Gift of immovable property The value of the property as set forth in the instrument
4. (iv) Mortgage with possession of immovable property The amount secured by the mortgage as set forth in the instrument 153[(v) (a) assignment on lease of immovable property for more than one year The same stamp duty on a bottomry bond (item 14 of the Schedule to the Kerala Stamp Act, 1959) which may be remitted or payable as per the lease deed.

1. (b) assignment on lease of immovable property for not less than one year but not more than five years. The same stamp duty on a bottomry bond (item 14 of the Schedule to the Kerala Stamp Act 1959) on one year’s average lease amount or price fixed.
2. (c) assignment on lease of immovable property for more than five years but not exceeding ten years. The same stamp duty on a sale deed (items 21 or 22, as the case may be, of the Schedule to the Kerala Stamp Act, 1959) for a consideration equal to the average of lease amount fixed for an year.
3. (d) assignment on lease of immovable property exceeding ten years but not being a perpetual lease If the lease is subsisting for a very long period the same stamp duty as on a sale deed (item 21 or 22, as the case may be, of the Kerala Stamp Act, 1959) for a consideration equal to three times the average yearly lease amount or price remitted or paid for the first ten years. Inserted by Act 7 of 1995
4. (e) Perpetual lease of immovable property Total amount of lease remitted or paid during the first fifty years, as shown in the instrument]
   • (vi) Release, that is to say, any instrument whereby a person renounces a claim upon another person or against any specified property when such release does not operate in favour of his or her spouse or children. The amount or value as set forth in the released deed. (2)On the introduction of the duty as aforesaid, - (a)Section 28 of the Kerala Stamp Act, 1959 shall be read as if it specifically required the particulars to be set forth separately in respect of property situated in the area under the jurisdiction of a village panchayat and in respect of property situated outside such area; and (b)Section 62 of the Kerala Stamp Act, 1959 shall be read as if it referred to the village panchayat as well as Government. (3)The Government may make rules not inconsistent with this Act for regulating the collection of the duty, the payment thereof to the Village Panchayat and the deduction of any expenses incurred by the Government in the collection thereof. (4)The amounts collected in all the village panchayats in the State as duty on transfer of property under this section shall be pooled every year for the entire State and distributed among the village panchayats after deducting three per cent thereof towards collection charges. (5)Seventy-five per cent of the amounts payable to the village panchayats under subsection

1. (4) shall be distributed among all the village panchayats in the State in proportion to the population of the village panchayat areas as ascertained at the latest census of which the relevant figures have been published. The balance of twenty-five per cent of the amounts shall be distributed to the village panchayats in such proportion as may be fixed by the Government or such other officer as they may authorise by special or general order having regard to the area, available resources, needs of development and cost of Panchayat administration.

(1) The following buildings and lands shall be exempt from the tax, cess or duty leviable under section 200, namely: - (a)Places set apart for public worship, and either actually so used or used for no other purposes. (b)choultries for the occupation of which no rent is charged and choultries where the rent charged for the occupation is used exclusively for charitable purpose; 154[(c) Buildings including hostels under the ownership and use of educational institutions recognised by Government, public buildings used for charitable purposes of providing shelter to destitutes and animals and libraries and playground open to public.] (d)such ancient monuments protected under the law relating to the protection of ancient monuments for the time being in force, or parts thereof as are not used as residential quarters or as public offices; (e)burial and burning grounds; (f)building or land belonging to the Panchayats; and (g)such property of the Government not being buildings as may from time to time, be notified by the Government in the Gazette. 155[(h) building with mud walls or roofs thatched with leaves or lightweight sheets and having a plinth area of less than 20 sq.metres; (1)Residential building constructed by a person, who belongs to an economically weaker section, using Government subsidy and having a plinth area of less than twenty sq.metres. Explanation. - The exemption under this section shall not be given to buildings and lands for which the owners realise rent and to residential houses appertaining to schools and colleges but not hostels and residential buildings attached to libraries.] (2)The Government and with sanction of Government, a village panchayat may exempt any person or class of persons wholly or in part from the payment of any tax, cess or duty to which he or they may otherwise be liable under the provisions of this Act. But nothing in this section shall be deemed to authorise the exemption of any, person solely on the ground that he is a member of the Panchayat. Explanation. - In this section, ‘person’ includes an institution, firm, company or corporation.

154[(c) Buildings including hostels under the ownership and use of educational institutions recognised by Government, public buildings used for charitable purposes of providing shelter to destitutes and animals and libraries and playground open to public.] (d)such ancient monuments protected under the law relating to the protection of ancient monuments for the time being in force, or parts thereof as are not used as residential quarters or as public offices; (e)burial and burning grounds; (f)building or land belonging to the Panchayats; and (g)such property of the Government not being buildings as may from time to time, be notified by the Government in the Gazette.

155[(h) building with mud walls or roofs thatched with leaves or lightweight sheets and having a plinth area of less than 20 sq.metres; (1)Residential building constructed by a person, who belongs to an economically weaker section, using Government subsidy and having a plinth area of less than twenty sq.metres. Explanation. - The exemption under this section shall not be given to buildings and lands for which the owners realise rent and to residential houses appertaining to schools and colleges but not hostels and residential buildings attached to libraries.] (2)The Government and with sanction of Government, a village panchayat may exempt any person or class of persons wholly or in part from the payment of any tax, cess or duty to which he or they may otherwise be liable under the provisions of this Act. But nothing in this section shall be deemed to authorise the exemption of any, person solely on the ground that he is a member of the Panchayat. Explanation. - In this section, ‘person’ includes an institution, firm, company or corporation.

manner prescribed, levy either from the whole panchayat area or any specified portion thereof and for a specified time a surcharge not exceeding five per cent on the [property tax] levied under section 203 to cover any unusual expenses incurred by it in respect of any plan, project or work: Provided that not more than two surcharges shall be imposed on such

158[property tax] levied at a time. Inserted by Act 13 of 1999. Substituted by Act 13 of 1999. Substituted by Ibid. Ibid.

(2)any surcharge levied under this section shall be demanded and collected in the same manner as if it where the 159 160 [property tax] levied under section 203.

Every person who erects, exhibits, fixes or retains upon or over any land, building, wall boarding or structure, in a village panchayat area any advertisement or who displays any advertisement to public view in any manner whatsoever in any place in such area whether public or private shall pay to the village panchayat on every such advertisement a tax calculated at such rates and to such manner and subject to such exemptions as the village panchayat may with the approval of the Government and by resolution determine : Provided that the rates shall not be less than the rates prescribed by the Government for the purpose: Provided further that the tax under this section on any advertisement displayed in a public service vehicle as defined in the Motor Vehicles Act, 1988 (Central Act 59 of 1988) passing through the local limits of more than one Local Self Government Institution shall be levied by a village panchayat only if such vehicle; (a)commences its operation from the area of that village panchayat; or (b)commences its operation from a place not within the said village panchayat and passes through the said village panchayat before passing through the local limits of any other Local Self Government Institution: Provided further that no tax under this section, shall be levied on any advertisement or a notice - (a)of a public meeting; or (b)of an election to any legislative body or a Municipality or a panchayat; or (c)of a candidature in respect of such an election: Provided also that no such tax shall be levied on any advertisement which is not a skysign and which - (a)is exhibited inside the window of any building which is not a public place; or (b)relates to the trade or business carried on within the land or building upon or over which such advertisement is exhibited, or to any sale or letting of such land or building or to any sale, entertainment or meeting to be held upon or inside the same; or (c)relates to the name of the land or building upon or over which the advertisement is exhibited or to the name of the owner or occupier of such land or building; Ibid Inserted by Act 13 of 1999. (d)relates to the business of any railway administration or airport authority; (e)is exhibited within any railway station or airport or upon any such wall or other property facing the street excluding any portion of the surface of the wall or property belonging to the railway administration or airport authority. Explanation 1. - The word “structure” in this section shall include any movable board on wheels used as an advertisement or as an advertisement medium. Explanation 2. - The expression “sky-signs”, in this section, means any advertisement supported on or attached to any post, pole, pillar, frame work or other support wholly or partly upon or over any land, building, wall structure which, or any part of which, sky- sign shall be visible against, the sky from some point in any public place and includes all and every part of any such post, pole, pillar frame work or other support. The expression ’sky- sign’ shall also include any balloon, parachute or other similar device employed wholly or partly for the purposes of any advertisement upon or over any land buildings or, structure or upon or over any public place but shall not include- (a)any flag-stiff, pole, vane, or weather, cock, unless adapted or used wholly or in part for the purpose of any advertisement; or (b)any sign, or any board, frame or other contrivance securely fixed to or on the top of the wall or parapet of any building, or on the cornice or blocking course of any wall, or to the ridge of a roof: Provided that such board, frame or other contrivance be of one contiguous face land not open work and do not extend in the height more than one metre above any part of the wall or parapet or ridge to, against or on which it is fixed or supported; or (c)any advertisement relating to the name of the land or building upon or over which the advertisement is exhibited, or to the name of the owner or occupier of such land or building; or (d)any advertisement relating exclusively to the business of a railway administration and placed wholly upon or over any railway station, yard, platform or station approach belonging to a railway administration and so placed that it shall not fall into any street or public place; or (e)any notice of land or buildings to be sold or let, placed upon such land or is building. Explanation 3. - For the purpose of this section ‘Public Place’ means any place which is open to the use and enjoyment of the public whether it is actually used or enjoyed by the public or not.] 161[209 A. Prohibition of advertisement without written permission of the Secretary. - (1)No advertisement shall after taking a decision by the Village Panchayat on the levy of tax under section 209, be erected Inserted by Act 13 of 1999. building, wall, hoarding or structure within the village panchayat area or shall be displayed in any manner whatsoever in any place in that village panchayat area without the written permission of the Secretary. (2)The Secretary shall not grant such permission if. - (i)the advertisement contravenes any bye-law made by the Village Panchayat under section 256; or (ii)the tax, if any, due in respect of the advertisement has not been paid. (3)Subject to the provisions of subsection (2), in the case of an advertisement liable to advertisement tax, the Secretary shall grant permission for the period to which the payment of tax relates and no fee shall be charged in respect of such permission: Provided that the provisions of this section shall not apply to any advertisement erected, exhibited, fixed or retained on the premises of a railway administration relating to the business of the railway administration. 209 B. Owner or person in possession be deemed responsible. - Where any advertisement is erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding or structure in contravention of the provisions of section 209 or 209A or after the written permission for the erection, exhibition, fixation or retention thereof for any period has been expired or become void, the owner or occupier of such land, building, wall, hoarding or structure shall be deemed to be the person who has erected, exhibited, fixed or retained, such advertisement in contravention unless he proves that such contravention has been committed by a person not in his employment or control or has been committed without his contrivance. 209 C. Removal of unauthorised advertisement. - (1) Where any advertisement is erected, exhibited, fixed or retained contrary to the provisions of section 209 or section 209 A or after the written permission for the erection, exhibition, fixation or retention thereof for any period shall have expired or become void, the Secretary may, by notice in writing, require the owner or occupier of the land, building, wall hoarding or structure upon or over which the same is erected, exhibited, fixed or retained to take down or remove such advertisement, or may enter any building, land or property and have the advertisement removed. (2)Any person exhibiting or responsible for exhibiting any advertisement otherwise than, in accordance with the provisions of this Act shall be liable to pay, in addition to the penalty prescribed in VI and VII Schedule, the charges for the removal of the unauthorised advertisement, to the Village Panchayat. 209 D. Collection of tax on advertisement. - The Secretary may farm out the collection of any tax on advertisement leviable under section 209 for any period not exceeding one year at a time on such terms and conditions as may be provided for by bye- laws made under section 256. 209 E. Recovery of tax payable. - Notwithstanding [anything contained in this Act any, amount payable under the provisions of this Act, rules or bye-laws, is not paid on the due date, shall be recovered together with penal interest at the rate of two per cent per month from the due date: Provided that no penalty shall be recovered on any amount that has become payable or payable in a half year, if it is paid in the same half year.]

(d)relates to the business of any railway administration or airport authority; (e)is exhibited within any railway station or airport or upon any such wall or other property facing the street excluding any portion of the surface of the wall or property belonging to the railway administration or airport authority. Explanation 1. - The word “structure” in this section shall include any movable board on wheels used as an advertisement or as an advertisement medium. Explanation 2. - The expression “sky-signs”, in this section, means any advertisement supported on or attached to any post, pole, pillar, frame work or other support wholly or partly upon or over any land, building, wall structure which, or any part of which, sky- sign shall be visible against, the sky from some point in any public place and includes all and every part of any such post, pole, pillar frame work or other support. The expression ’sky- sign’ shall also include any balloon, parachute or other similar device employed wholly or partly for the purposes of any advertisement upon or over any land buildings or, structure or upon or over any public place but shall not include- (a)any flag-stiff, pole, vane, or weather, cock, unless adapted or used wholly or in part for the purpose of any advertisement; or (b)any sign, or any board, frame or other contrivance securely fixed to or on the top of the wall or parapet of any building, or on the cornice or blocking course of any wall, or to the ridge of a roof: Provided that such board, frame or other contrivance be of one contiguous face land not open work and do not extend in the height more than one metre above any part of the wall or parapet or ridge to, against or on which it is fixed or supported; or (c)any advertisement relating to the name of the land or building upon or over which the advertisement is exhibited, or to the name of the owner or occupier of such land or building; or (d)any advertisement relating exclusively to the business of a railway administration and placed wholly upon or over any railway station, yard, platform or station approach belonging to a railway administration and so placed that it shall not fall into any street or public place; or (e)any notice of land or buildings to be sold or let, placed upon such land or is building. Explanation 3. - For the purpose of this section ‘Public Place’ means any place which is open to the use and enjoyment of the public whether it is actually used or enjoyed by the public or not.]

161[209 A. Prohibition of advertisement without written permission of the Secretary. - (1)No advertisement shall after taking a decision by the Village Panchayat on the levy of tax under section 209, be erected Inserted by Act 13 of 1999.

building, wall, hoarding or structure within the village panchayat area or shall be displayed in any manner whatsoever in any place in that village panchayat area without the written permission of the Secretary. (2)The Secretary shall not grant such permission if. - (i)the advertisement contravenes any bye-law made by the Village Panchayat under section 256; or (ii)the tax, if any, due in respect of the advertisement has not been paid. (3)Subject to the provisions of subsection (2), in the case of an advertisement liable to advertisement tax, the Secretary shall grant permission for the period to which the payment of tax relates and no fee shall be charged in respect of such permission: Provided that the provisions of this section shall not apply to any advertisement erected, exhibited, fixed or retained on the premises of a railway administration relating to the business of the railway administration. 209 B. Owner or person in possession be deemed responsible. - Where any advertisement is erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding or structure in contravention of the provisions of section 209 or 209A or after the written permission for the erection, exhibition, fixation or retention thereof for any period has been expired or become void, the owner or occupier of such land, building, wall, hoarding or structure shall be deemed to be the person who has erected, exhibited, fixed or retained, such advertisement in contravention unless he proves that such contravention has been committed by a person not in his employment or control or has been committed without his contrivance. 209 C. Removal of unauthorised advertisement. - (1) Where any advertisement is erected, exhibited, fixed or retained contrary to the provisions of section 209 or section 209 A or after the written permission for the erection, exhibition, fixation or retention thereof for any period shall have expired or become void, the Secretary may, by notice in writing, require the owner or occupier of the land, building, wall hoarding or structure upon or over which the same is erected, exhibited, fixed or retained to take down or remove such advertisement, or may enter any building, land or property and have the advertisement removed. (2)Any person exhibiting or responsible for exhibiting any advertisement otherwise than, in accordance with the provisions of this Act shall be liable to pay, in addition to the penalty prescribed in VI and VII Schedule, the charges for the removal of the unauthorised advertisement, to the Village Panchayat.

209 D. Collection of tax on advertisement. - The Secretary may farm out the

collection of any tax on advertisement leviable under section 209 for any period not exceeding one year at a time on such terms and conditions as may be provided for by bye- laws made under section 256.

209 E. Recovery of tax payable. - Notwithstanding [anything contained in this Act any, amount payable under the provisions of this Act, rules or bye-laws, is not paid on the due date, shall be recovered together with penal interest at the rate of two per cent per month from the due date: Provided that no penalty shall be recovered on any amount that has become payable or payable in a half year, if it is paid in the same half year.]

Any arrear of cess, rate, surcharge or tax imposed or fees levied under this Act shall be recoverable as an arrear of public revenue under the law relating to the recovery of arrears of public revenue for the time being in force: Provided that the Secretary of a Village Panchayat may directly recover by distraint, under his warrant, and sale of movable properties of the defaulter subject to such rules as may be prescribed:

Power to require village officer to collect taxes and fees due to panchayats. - Subject to such rules as may be prescribed, the Secretary shall have power to require the village officer having jurisdictions over Village Panchayat area or any part thereof to collect any tax, cess, surcharge or fee due to the Panchayat on such conditions as the Government may by general or special order determine.

(2)(a) All moneys received by the Village Panchayat except the 162 163 [money accepted for the Block Panchayat or District Panchayat or the Government] and those received on behalf of the Block Panchayat the District Panchayat or the Government shall constitute a fund called the Village Panchayat fund and shall be applied and disposed of in accordance with the provisions of this Act and the rules made there under: Provided that the Village Panchayat shall have power, subject to such rules as may be prescribed, to direct that the proceeds of any tax or surcharge levied under this Act shall be earmarked for the purpose of financing any specific public benefit. A separate account shall be kept of the receipts from every such tax or additional tax and the expenditure thereof.

163[(b) The Village Panchayat fund shall consist of the following components, namely: - (i)Own income of the Village Panchayat which shall consist of taxes, duties, cesses and surcharge levied under this Act or any other law, lease rents and other receipts from Substituted by Act 13 of 1999. Inserted by Act 13 of 1999.

properties and enterprises, fees for licences and permissions, fines and penalties, income from endowments and trusts managed by the Village Panchayat, unclaimed deposits and other forfeitures and miscellaneous income from sources such as porampokes, fishing lands and shall include the share of the taxes collected by Government and transferred to the credit of the Village Panchayat and the grants released by Government. (ii)Grants released by the Government for implementation of schemes, projects and plans formulated by the Village Panchayat; (iii)Grants released by the Government for the implementation of schemes projects or plans assigned, delegated or entrusted to the Village Panchayat under this Act; and (iv)Money raised through donations, contributions and grants from the public and non- Governmental agencies.

(v)The amount borrowed

under section 197]

164[

• • * * ] (3)All moneys received by the Block Panchayat except those received on behalf of the Government or the District Panchayat shall constitute a fund which shall be called ‘the Block Panchayat Fund’ and shall be applied and disposed of subject to the provisions of this Act and the rules made there under. (4)All moneys received by the District Panchayat except those received on behalf of the Government shall constitute a fund which shall be called the ‘District Panchayat Fund’ and shall be applied and disposed of subject to the provisions of this Act and rules made there under. (5)Notwithstanding anything contained in sub-section (2) to (4) the Government may direct any panchayat to constitute separate funds to which shall be credited such receipt as may be specified by the Government and such funds shall be applied and disposed of in the manner prescribed. (6)The amounts at the credit of the Village Panchayat fund, the Block Panchayat fund or the District Panchayat fund referred to in sub-sections (2) to (4) and the other fund referred to in sub-section (5) shall be kept in the Public Deposit Account in the Government treasury as may be specified by the Government. (7)All fees for licences and permissions received by the Village Panchayat under this Act or any other law 164 165 166 [ * * ] shall be utilised for the purpose for which the said fees are levied.

1. (8) All grants released by the Government for the implementation of schemes, projects and plans shall be utilised only for the purposes for which such grants are released. Omitted by Act 13 of 1999. Omitted by Act 13 of 1999. Inserted by Act 13 of 1999. (9)No contribution, grant or expense for a purpose not directly concerned with a function of the panchayat specified in this Act or any other law shall be made by a panchayat from the panchayat fund in excess of an annual limit that may be specified by the Government. (10)The panchayat shall constitute a special fund on the discretion of the panchayat from the donations and contributions which are collected locally for meeting the expenses to be incurred by the President as per the powers delegated to the President by the panchayat and its constitution and utilisation are to be according to the bye-laws made by the panchayat for this.]

1. (1) The purposes to which a panchayat fund may be applied include all objects authorised by this Act, the rules made there under and by other laws and in general everything necessary for or conducive to the safety, health, education, convenience, comfort and welfare of the inhabitants of the panchayat area concerned and everything incidental to the administration of the panchayat; and the funds shall be applicable thereto within the panchayat area subject to this Act, the rules framed there under 167[ * * * ]and shall be applicable thereto outside the panchayat area if the expenditure is specifically sanctioned by the Government. (2)(a) It shall be the duty of every panchayat to provide for the payment of - (i)any amount falling due on any loans contracted by it; (ii)the election expenses including the cost of preparation of the electoral rolls and conduct of elections; (iii)the salaries and allowances and the pensions, pensionary contributions, gratuity and provident fund contributions of its officers and employees and the allowances to the President, Vice-President and members which may be due; (iv)sum due under any decree or order of a court; (v)any other expenses rendered obligatory by or under this Act or any other law; and (vi)amount of fees for audit. (a)The Government shall determine the amount of the election expenses referred to in sub- clause (ii) of clause (a) and their determination shall be final and binding on the panchayat. Such amount shall have priority over all other charges except for the service of authorised loans including the loans and advances referred to in section 217. (3)A panchayat may contribute any fund for the defence of India. (4)A panchayat may by resolution supported by not less than one half of its strength, sanction the payment of - (i)a contribution towards the expenses of any Panchayat conference or association of Panchayats, or (ii)any contribution towards the expenses or reception of important personages or the expenses of any public exhibition, ceremony or entertainments - Omitted by Act 13 of 1999. 168[or meet the expenses in connection with any matter not specified in the Act or the Rules made there under: Provided that the total annual expenses under this sub-section shall not exceed the limit prescribed by the Government.] 5 169 [ * * * * * *]

(1) Subject to such directions as may be issued by Government from time to time and rules as may be prescribed, the budget proposals containing detailed estimate of income and expenditure expected for the next year including the expenditure on the development plans prepared and sanctioned under section 175 shall be prepared by the respective standing committee considering the estimates and proposals submitted by Secretary and the officers dealing with the respective subjects, before the 15 th January every year and the same shall be submitted to the standing committee for finance. (IA)The standing committee for finance, after considering the proposals submitted under sub-section (1) and all the requirements under this Act shall prepare a budget showing the income and expenditure of the panchayat for the ensuing year and the Chairman of the said standing committee shall, not later than the first week of March, in a special meeting of the panchayat regarding the development and declaration therein by the president regarding the development and welfare works that are proposed to be taken up by the panchayat, present the same before the panchayat for its approval. (IB)The panchayat shall consider the budget proposals and finally pass the budget estimate with alterations if any, before the beginning of the year to which it relates.] (2)The working balance shown in the budget shall not be less than five per cent of the current year’s estimated receipts, excluding receipts from endowments, government grants contributions and debt account. (3)Receipts anticipated shall be accurate and elaborate and shall be accompanied by detailed notes and explanations of any specific difference from the preceding years actual receipts. (4)It shall contain necessary provisions to meet all the prescribed charges and repayment of debts. (5)If in the course of a year a Panchayat finds it necessary to modify the estimates shown in the budget with regard to its receipts or expenditure on the different services undertaken by it, the Standing Committee shall frame a supplemental or revised budget and forward it to the Panchayat for sanction. (6)Save in the case of a pressing emergency no sum shall be expended by or on behalf of a Panchayat unless such sum is included in the budget estimates in force at the time of incurring the expenditure. 168 169 170 Inserted by Act 13 of 1999. Omitted by Act 13 of 1999. Inserted by Act 13 of 1999. 171[(7) As soon as the budget is passed, copies thereof shall be furnished to the Government and to the officers authorised by the Government in this behalf and also to the auditors and such authorised officers shall prepare a consolidated statement of the budget estimate of the panchayats in each district: Provided that, the village panchayats and the Block Panchayats in a district shall furnish copies of the budget passed by them to the district panchayat and the District Planning Committee concerned. (8)A panchayat shall not either incur any expenditure in excess of the provision in the budget or where the budget of the year has not been passed before the first day of April, make any expenditure from that date.]

171[(7) As soon as the budget is passed, copies thereof shall be furnished to the Government and to the officers authorised by the Government in this behalf and also to the auditors and such authorised officers shall prepare a consolidated statement of the budget estimate of the panchayats in each district: Provided that, the village panchayats and the Block Panchayats in a district shall furnish copies of the budget passed by them to the district panchayat and the District Planning Committee concerned. (8)A panchayat shall not either incur any expenditure in excess of the provision in the budget or where the budget of the year has not been passed before the first day of April, make any expenditure from that date.]

(1) The Panchayat shall maintain such books of accounts and other books in relation to its accounts and prepare an annual statement of accounts in such form as may be prescribed. (2)Accounts of receipts and expenditure of every Panchayat shall be maintained for every financial year in such form as may be prescribed. (3)the Examiner of Local Fund Accounts and his nominees shall be the auditors of the Panchayat. (4)The auditors shall conduct a continuous audit of the accounts of the Panchayat and shall after completing the audit for a year or for any shorter period or for any transaction or series of transactions, send a report to the Panchayat concerned and duplicate copies thereof to the officer authorised by the Government in this behalf. (5)The auditors shall specify in the report under sub-section (4), all cases of irregular, illegal or improper expenditure or of failure to recover moneys or other property due to the Panchayat, or any loss or waste of money or other property thereof caused by neglect or misconduct of the officer and authorities of the Panchayat. (6)The auditors shall also report on any other matter relating to the accounts of the Panchayats as may be required by the Government, to the officer authorised by the Government in this behalf. (7)The Panchayat shall forthwith remedy any defect or irregularity pointed out by the auditors and report the action taken to the officer authorised by the Government in this behalf. (8)The auditors shall in the performance of their functions under this Act have all the powers of the civil court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908) while trying a suit in respect of the following matters, namely: - (a)summoning and enforcing the attendance of any persona and examining him on oath; Inserted by Act 13 of 1999. (b)requiring the discovery and production of any document; (c)receiving evidence on affidavits; (d)requisitioning any public record or copy thereof, from any court of office; and (e)such other matters as may be prescribed. (9)The auditors shall, after giving a reasonable opportunity to the person concerned to explain his case, disallow every item of expenditure incurred contrary to law and surcharge the same on the person incurring, or authorising the incurring of, such expenditure and may charge against any person responsible therefore the amount of any deficiency, loss or unprofitable outlay occasioned by the negligence or misconduct of that person or of any sum which ought to have been but is not brought into account by that person and shall, in every such case certify the amount due from such person : Provident that no surcharge under this sub-section shall be made after a period of four years from the date on which the expenditure in question was incurred. Explanation. - It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that notwithstanding his negligence or misconduct the deficiency or loss would not have occurred, but for the negligence or misconduct of some other person. (10)The auditors shall state in writing, the reasons for their decision in respect of every disallowance, surcharge or charge and a copy of such decision shall be served on the person against whom it is made in the manner laid down for the service of summons in the Code of Civil Procedure, 1908 (Central Act 5 of 1908). (11)Any person aggrieved by any disallowance, surcharge or charge may, within fourteen days after the date of service on him of the decision of the auditor, make an application to the district court to set aside such disallowance, surcharge or charge and the court, after taking such evidence as is necessary may confirm, modify or remit such disallowance, surcharge or charge with such orders as to costs as it may think proper in the circumstances. (12)Where an application is made to the court under sub-section (11) the auditors shall be the sole respondents thereto and the applicant shall not make either the Government or any other person a party to the proceedings. (13)From the decision of the district court under sub-section (11) an appeal shall lie to the High Court. (14)Every sum certified by the auditors to be due from a person under this Act shall be paid by such person to the Secretary of the Panchayat concerned within thirty days after the date of service on him of the decision of the auditors unless within that time such person has made an application to the court against the decision; and such sum, if not so paid, or such sum as the court declares to be due shall be recoverable as if it were an arrear of land revenue. (15)An abstract of every annual report of a panchayat as certified by the auditor showing its income under each head of receipt, the charges for the establishment, works undertaken, the sum expended on each work the balance, if any, remaining unexpended together with the audit report thereon shall be submitted to the officer authorised by the government in this behalf not later than fifteenth day of the second month of the next financial year. (16)On receipt of the report referred to in sub-section (15), the Officer shall forthwith consolidate the report and submit it to the Government. (17)The government shall - (a)cause the accounts of the Panchayat together with the audit report thereon received by it under sub-section (16) to be laid before the Legislative Assembly; and (b)cause the accounts of the Panchayat to be published in such manner as may be prescribed.

(b)requiring the discovery and production of any document; (c)receiving evidence on affidavits; (d)requisitioning any public record or copy thereof, from any court of office; and (e)such other matters as may be prescribed. (9)The auditors shall, after giving a reasonable opportunity to the person concerned to explain his case, disallow every item of expenditure incurred contrary to law and surcharge the same on the person incurring, or authorising the incurring of, such expenditure and may charge against any person responsible therefore the amount of any deficiency, loss or unprofitable outlay occasioned by the negligence or misconduct of that person or of any sum which ought to have been but is not brought into account by that person and shall, in every such case certify the amount due from such person : Provident that no surcharge under this sub-section shall be made after a period of four years from the date on which the expenditure in question was incurred. Explanation. - It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that notwithstanding his negligence or misconduct the deficiency or loss would not have occurred, but for the negligence or misconduct of some other person. (10)The auditors shall state in writing, the reasons for their decision in respect of every disallowance, surcharge or charge and a copy of such decision shall be served on the person against whom it is made in the manner laid down for the service of summons in the Code of Civil Procedure, 1908 (Central Act 5 of 1908). (11)Any person aggrieved by any disallowance, surcharge or charge may, within fourteen days after the date of service on him of the decision of the auditor, make an application to the district court to set aside such disallowance, surcharge or charge and the court, after taking such evidence as is necessary may confirm, modify or remit such disallowance, surcharge or charge with such orders as to costs as it may think proper in the circumstances. (12)Where an application is made to the court under sub-section (11) the auditors shall be the sole respondents thereto and the applicant shall not make either the Government or any other person a party to the proceedings. (13)From the decision of the district court under sub-section (11) an appeal shall lie to the High Court. (14)Every sum certified by the auditors to be due from a person under this Act shall be paid by such person to the Secretary of the Panchayat concerned within thirty days after the date of service on him of the decision of the auditors unless within that time such person has made an application to the court against the decision; and such sum, if not so paid, or such sum as the court declares to be due shall be recoverable as if it were an arrear of land revenue. (15)An abstract of every annual report of a panchayat as certified by the auditor showing its income under each head of receipt, the charges for the establishment, works

undertaken, the sum expended on each work the balance, if any, remaining unexpended together with the audit report thereon shall be submitted to the officer authorised by the government in this behalf not later than fifteenth day of the second month of the next financial year. (16)On receipt of the report referred to in sub-section (15), the Officer shall forthwith consolidate the report and submit it to the Government. (17)The government shall - (a)cause the accounts of the Panchayat together with the audit report thereon received by it under sub-section (16) to be laid before the Legislative Assembly; and (b)cause the accounts of the Panchayat to be published in such manner as may be prescribed.

If the expenditure incurred by the Government or by any other Panchayat or by any other Local Self Government Institutions in the State for any purpose authorised by or under this Act, is such as to benefit the inhabitants of the Panchayat area, the Panchayat may, [make a contribution towards such expenditure.]

(1) Notwithstanding anything contained in the Kerala Local Authorities Loans Act 1963, the Government may, by order, direct any person having custody of the funds of the Panchayat to pay to them in priority to any other charges against such fund, except charges for the service of authorised loans any loan or advance made by them to the Panchayat for any purpose to which its funds may be applied under this Act. (2) The person to whom the order referred to in sub-section (1) is addressed shall be bound to comply with such order. substituted by Act 13 of 1999. CHAPER XX PUBLIC SAFETY, CONVENIENCE AND HEALTH

1. (2) The person to whom the order referred to in sub-section (1) is addressed shall be bound to comply with such order. substituted by Act 13 of 1999. CHAPER XX PUBLIC SAFETY, CONVENIENCE AND HEALTH

Notwithstanding anything contained in the Kerala Land Conservancy Act 1957 (8 of 1958) or in any other law for the time being in force, all public water courses (other than river passing through more areas, than the panchayat area which the Government may, by notification in the gazette, specify), the beds and Banks of river streams, irrigation and drainage channels, canals, lakes, back waters and water courses and all standing and flowing water, springs, reservoirs, tanks, cisterns, fountains, wells, kappus, chals, stand pipes and other water works including those used by the public to such an extent as to give a prescriptive right to their use whether existing at the commencement of this Act or afterwards made, laid or erected and whether made, laid or erected at the cost of the panchayat or otherwise, and also any adjacent land, not being private property appertaining thereto shall stand transferred to and vest absolutely in the village panchayat: Provided that nothing contained in this sub-section shall apply to any work which is or is connected with a work or irrigation or to any adjacent land appertaining of any such work. (2)Subject to the provisions of this Act, all rights and liabilities of the Government in relation to the water courses, springs, reservoirs, tanks, cisterns, fountains, wells, kappus, chals, stand pipes and other water works vested in the village panchayat under subsection (1) shall from the date of such vesting be the rights and liabilities of the village panchayat. (3)Notwithstanding anything contained in sub-section (1) or sub-section (2), the government may, by notifications in the Gazette, assume the administration of any public source of water supply and public land adjacent and appertaining thereto after consulting the village panchayat and giving due regard to its objection, if any. (4)It shall not be lawful for any person to remove or appropriate for himself any tree, earth, sand, metal, laterite, limeshell or such other articles of value as may be notified by the village panchayat from any land which is transferred to or vested in the village panchayat, under this Act whether a poramboke or not except under and in accordance with the terms and conditions of a permit issued by the village panchayat in this behalf and on payment of such fees and compensation at the rate determined by the village panchayat.

etc. - Where a mosque, temple, church, mutt or any place of religious worship or instruction or any place which is used for holding fairs or festivals or for other like purposes is situated within a village panchayat area or in the neighbourhood, thereof and attracts either throughout the year or on particular occasions a large number of persons, any special arrangements necessary for public health, safety or convenience, whether permanent or temporary, shall be made by the village panchayat, and the village panchayat shall after consulting the trustee or any other person having control over such place, require him to make such recurring or non- recurring contribution to the funds of the village panchayat

as may be reasonable in the circumstances of the case and it shall be incumbent on such person to make such contribution. If such person fails to pay the contribution within such time as may be prescribed the amount shall be recoverable as an arrear of public revenue due on land. [219 A. Village Panchayat to arrange for the removal of rubbish, solid, wastes and filth. - (1) Every village panchayat shall make adequate arrangements for - (a)the regular sweeping and cleaning of the roads and removal of sweeping there from; (b)the daily removal of the fifth and the carcasses of animals from private premises; (c)removal and burial of unclaimed dead bodies under intimation to the police; (d)the removal of solid wastes; (e)the daily removal of rubbish from dustbins and private premises and with this object, it shall provide - (i)depots, receptacles and places for the deposit of filth, rubbish and the carcasses of animals; (ii)Covered vehicles and vessels for the removal of filth; (iii)vehicles or other suitable means for the removal of the carcasses of large animals and rubbish; and (iv)dust bins, receptacles and places for the temporary deposit of domestic waste, dust, ashes, refuse, offensive matter, trade refuse, institutional refuse, carcasses of animals. (2)The Secretary shall make adequate provision for preventing the depots, place, receptacles, dust bins, vehicles and vessels referred to in sub section (1) from becoming sources of nuisance. (3)A village panchayat may contract out any part or the whole process of collection and disposal of solid waste from the public or private premises. 219 B. Duty of owners and occupiers for collection and deposit of rubbish and solid waste. - (1) It shall be the duty of the owners of all premises to provide receptacle of the size specified by the secretary for the purpose of collection of domestic waste, trade waste, institutional waste, dust, ashes, refuse and decayed matters generated from such premises. (2)Such receptacles shall, at all times, be kept in good condition and shall be provided in such number and at such places at the secretary may, from time to time by written notice direct. (3)The Secretary may, by public notice direct the owners or occupiers or all premises to segregate the waste generated from such premises for easy management and disposal of such waste by the employees or contractors engaged by the village panchayat. (4)It shall be incumbent on the owners and occupiers of all premises to cause all domestic waste, trade waste, Institutional waste, dusts, ashes, refuse, rubbish etc., to be Inserted by Act 13 of 1999.

collected from their respective premises and to be deposited in the public receptacle depot or place provided for the temporary deposit of wastes at such time as the secretary may, by public notice from time to time, specify or hand over the waste to the persons engaged or identified by the village panchayat for the purpose.

The secretary may enter into contract with the owner or occupier of any premises to remove rubbish or filth from such premises on such terms and conditions as is deemed expedient to the secretary and on payment of fees at such rates as the village panchayat determines from time to time.

(1) The secretary may, with the sanction of the village panchayat introduce in the village panchayat area or part there of house to house collection of rubbish and other offensive matter for which he may publish from time to time an order specifying the hours within which the occupier of any house or premises or land may place, rubbish or offensive matter adjacent to his house, premises or land as may be specified by the secretary, in a proper receptacle provided by the village panchayat or in a receptacle of the size and type as may be specified by the secretary in the order that such rubbish or offensive matter may be removed by the employees of the village panchayat or by the contractors who may be engaged by the village panchayat for this purpose. (2)No persons shall place rubbish or offensive matter on a public street at the time other than the time specified by the secretary and except in the receptacle provided or specified under sub-section (1). 219 E. Rubbish and other solid waste shall be the property of the village panchayat. - Rubbish and other solid waste collected by the employees or contractors of the village panchayat and the carcasses deposited in any public receptacles, depots or place shall be the property of the village panchayat and the village panchayat may dispose of the same by auction or otherwise. 219 F. Provision for the final disposal of solid waste - (1) Every village panchayat shall identify and notify suitable places within or outside the village panchayat area for the purpose of final disposal of waste. (2)While notifying the land under sub-section (1) health and environmental aspects shall be taken into consideration by the village panchayats. (3)Every village panchayat may make adequate arrangements for the utilisation of solid wastes for the preparation of compost and the disposal of it by sale. (4)Where composting of waste is not found possible or practicable sanitary landfill methods shall be adopted for the disposal of waste at the landfill sites in the manner specified by the village panchayat. (5)Incineration of waste may be resorted to by the village panchayat for the disposal of infectious waste rejected from the hospitals, nursing homes or health care centres and non- industrial hazardous waste as specified by the village panchayat from time to time.

The village panchayat may for the purpose of recycling, treating, processing and disposing of solid wastes or converting such solid wastes into compost or any other matter, construct, acquire, operate maintain and manage any establishment within or outside the village panchayat area and run it on a commercial basis or may contract out such activity.

(1)The Secretary may if he thinks fit by notice in writing of any premises used as (a)a factory, workshop or a place for carrying or any manufacturing process, or (b)a market or trade premises, or (c)a slaughter houses, or (d)a hotel, eating house, or restaurant, or (e)a hospital or a nursing home, or (f)a warehouse or godown, or (g)a place to public resorts, where rubbish offensive matter, filth, trade refuse, special wastes, hazardous wastes or excrementitious and polluted matters are accumulated in large quantities, to collect such matters accumulated thereon and to remove the same to a depot or place provided or directed by the secretary at such time and in such manner and by such routes as may be specified in the notice. Provided that, where such solid wastes cannot be removed to such place or depot as required by the secretary on health reasons, the secretary may direct the owner a occupier of such, premises to make his own arrangements for disposal of such wastes and for noncompliance of such direction, he may on conviction, be punished with a fine which may extend to rupees ten thousand and a further fine at the rate of rupees one hundred for each day during which the offence is continued. (2)Where the owner or occupier fails to dispose of the waste in pursuance of the notice under sub-section (1), the cost for such removal shall be fixed and realised by the village panchayat from the said owner or occupier. 219 I. Prohibition of improper disposal of carcasses rubbish and filth. - (1) No person shall after due provision has been made under section 219A by the village panchayat for the deposit and removal of rubbish, solid waste, carcasses or filth, deposit the same, - (a)in any street or on a verandah of any building or any unoccupied ground along the side of any road or an any public quay, jetty or landing place or on the bank of a water course or pond; or (b)in any dust bin or vehicle not intended for the removal of the same; or (c)in any vehicle or vessel intended for such removal except to ameliorate or to prevent the spreading of bad smell.

1. (2) Without prejudice to the generality of the provisions in sub section (1) no person shall deposit or cause to be deposited any building rubbish on any streets or on any public or private land without the previous permission of village panchayat: Provided that, no permission shall be granted without paying the fee as determined by the village panchayat: Provided further that, the secretary may, for reasons to be recorded in writing refuse to give such permission.

219 J. Prohibition of keeping filth on premises. - No owner or occupier of any

premises shall keep or allow to be kept for more than twenty four hours any filth on such premises or in any building or on the roof thereof or in any outhouse or any place appurtenant thereto, or fail to comply with any requisition of the secretary as to the construction, repair paving or clearing of any latrine belonging to premises. 219 K. Prohibition against allowing outflow of filth: - No owner or occupier of any premises shall allow the water from any sink, drain, latrine or stable, or any other filth to flow out of such premises to any portion of a street except a drain or a cess-pool or to flow out of such premises so as to cause an avoidable nuisance by the soakage of the said water or filth into the walls or ground at the side of drain forming a portion of a street. 219 L. Prohibition of disposal of skin. -No person shall deposit the skin of a carcass or dispose of the carcass at a place other than that provided for the purpose. 219 M. Prohibition of using any cart without cover for the removal of filth etc. - No person shall, for the removal of filth use any cart or receptacle not having a proper covering for preventing the escape of the contents thereof or of the stench there from, or intentionally or negligently spill any filth while removing or fail to sweep and clean carefully the place any such filth has spilled or place or deposit in any public place any filth whether in a closed or open vessel or otherwise. 219 N. Prohibition of deposit of rubbish or filth in public places. - No person shall deposit or cause to be deposited any rubbish or filth or other debris into any public place not intended for deposit of rubbish or filth or debris. 219 O. Prohibition against causing nuisance in public streets etc.- No person shall cause any nuisance by relieving himself in any street, public place or public path or permit any person under his control to do so. 219 P. Presumption as to offender. - Where any rubbish, offensive matter trade refuse, special waste, hazardous waste or excrementatitious and polluted matter accumulated on any premises is deposited in any place in contravention of the provisions of this Act it shall be presumed unless the contrary is proved, that such contravention has been committed by occupier of such premises. 219 Q. The employees of village panchayat engaged in rubbish and solid waste management service prohibited from depositing waste at a place other than specified etc.- No employee of the village panchayat engaged in rubbish and solid waste management service shall throw or place any domestic waste, dust ashes, refuse, rubbish or trade refuse on any street or in any place not provided for the purpose or place or keep in any road any vehicle or carriage for the removal of solid waste excrementitious or

polluted matter or suffer the same to remain in any road or any greater length of time than it reasonably necessary. 219 R. Power to inspect premises for sanitary purposes. - The secretary or any officer authorised by him may at any time inspect any premises for the purpose of ascertaining the compliance of the provisions of this Act. 219 S. Punishment for depositing or throwing any rubbish or solid waste in contraction of the provisions of this Act. - Whosoever deposits or throws any rubbish, solid waste or carcasses in contravention of the provisions of this Act shall, on conviction, be punishable with fine which shall not be less than rupees fifty but may extend upto rupees two hundred and fifty.

Not- withstanding anything contained in this Act no person shall, (a)build any wall or erect any fence or other obstruction or projection or make any encroachment whatsoever, whether permanent or temporary, in or over any public road; (b) 175 176 [Construct any building or structure other than a compound wall in any land abutting any National Highway, State High way, District roads or any other roads notified by the village panchayat within a distance of three metres from the boundary of his land abutting the road: 176[Provided that, the said limit of three metres shall not be applicable for the construction of 1 st floor or 2 nd floor or both upon a building, existing on the date of coming into force of this Act: Provided further that, any path, bridge or similar constructions used solely for entering into any building or weather shade or sun-shade forming part of the building may, subject to the rules regarding construction of building, be constructed within the said three metres limit: Provided also that, when an existing portion of a building is to be demolished for the implementation of a Town Planning Scheme it shall not be in such a manner that it would adversely affect the remaining building or the additions to be made, and the full responsibility of the safety and stability thereof shall vest with the owner of the building, and when he has to undertake such a demolition it shall be done at his own expense and responsibility, and he shall not be eligible for any damages for the said construction and for this purpose a consent certificate shall be produced along with the application]. (c)make any hole or deposit any material in or upon any public road; (d)work a quarry to remove stone, earth, rubble or other material from any place within twenty metres of a public road or of other immovable property vesting in or belonging to a Panchayat: Provided that nothing in this clause shall be deemed to apply to any work which in the opinion of the village panchayat, is done in connection with a bonafide agricultural operation; (e)erect any building over any sewer or drains or part thereof; (f)plant any tree on any public road or other property vesting in or belonging to a village panchayat; or substituted by Act 13 of 1999. Substituted by Act 13 of 2000. (g)fell, remove, destroy, lop or strip, bark, leaves or fruits from, or otherwise damage, any tree which is growing on any such public road, other property, poramboke or land, the use of which is regulated by a village panchayat and the right of which has not been established by such person or vesting in or belonging to him.

176[Provided that, the said limit of three metres shall not be applicable for the construction of 1 st floor or 2 nd floor or both upon a building, existing on the date of coming into force of this Act: Provided further that, any path, bridge or similar constructions used solely for entering into any building or weather shade or sun-shade forming part of the building may, subject to the rules regarding construction of building, be constructed within the said three metres limit: Provided also that, when an existing portion of a building is to be demolished for the implementation of a Town Planning Scheme it shall not be in such a manner that it would adversely affect the remaining building or the additions to be made, and the full responsibility of the safety and stability thereof shall vest with the owner of the building, and when he has to undertake such a demolition it shall be done at his own expense and responsibility, and he shall not be eligible for any damages for the said construction and for this purpose a consent certificate shall be produced along with the application]. (c)make any hole or deposit any material in or upon any public road; (d)work a quarry to remove stone, earth, rubble or other material from any place within twenty metres of a public road or of other immovable property vesting in or belonging to a Panchayat: Provided that nothing in this clause shall be deemed to apply to any work which in the opinion of the village panchayat, is done in connection with a bonafide agricultural operation; (e)erect any building over any sewer or drains or part thereof; (f)plant any tree on any public road or other property vesting in or belonging to a village panchayat; or substituted by Act 13 of 1999. Substituted by Act 13 of 2000.

(g)fell, remove, destroy, lop or strip, bark, leaves or fruits from, or otherwise damage, any tree which is growing on any such public road, other property, poramboke or land, the use of which is regulated by a village panchayat and the right of which has not been established by such person or vesting in or belonging to him.

All public markets within a village panchayat area shall be under the control and management of the village panchayat. (2)Subject to such rules as may be prescribed, the village panchayat may parcel out any portion of a public market and lease such parcel or parcels by auction or otherwise or levy any one or more of the following frees in any public market at rates not exceeding the maximum prescribed, namely: - (a)fees for the use of or for the right to expose, goods for sale in such market; (b)fees for the use of shops, stalls, pens or stands in such market; (c)fees on vehicles bringing any goods for sale in such market or on goods. (d)fees on animals brought for sale into or sold in such market and (e)licence fees on brokers, commission agents, weighmen and measurer practising their calling in such market.

175[(3) Places used as a public markets shall be properly maintained by the village panchayat and no part thereof shall be used for any purpose other than those related to the functioning of the market.]

(1) No person shall open a new private market or continue to keep open a private market unless he has obtained a licence from the Village Panchayat to do so. such, licence shall be got renewed by the licensee every year. (2)The village panchayat may, - (a)grant the licence applied for, subject to such conditions as it may think fit as to supervision and inspection, sanitation and water supply, weights and measures to be used, rents and fees to be charged and such other matters as may be prescribed. (b)refuse renewal of a licence if it is satisfied that such refusal is justified in public interest. (c)at any time suspend or cancel any licence granted under clause (a) for breach of any of the conditions thereof; (d)modify the conditions of the licence to take effect from a specified date; and (e)In a case where renewal of licence is refused under clause (b) the reasons therefor shall be intimated to the licensee and in case the licence cures such defects within the time prescribed such application shall be reconsidered. (3)No market fee shall be charged in evening markets (Anthichanthas) and the licence for the same shall be granted free of charge, but shall be subject to such conditions as to Inserted by Act 13 of 1999. supervision and inspections, sanitation and weights and measures to be used as may be prescribed. (4)when a licence granted under sub-section (2) permits the licensee to levy any fee from the private market, a licence fee not exceeding one third of the gross income of the owner from the market in the preceding year shall be charged by the village panchayat: Provided that in the case of a new market the licence fees shall be fixed by the Panchayat at rates which shall not be less than the amounts given hereunder, namely:- (i)if the area of the market is not more than 0.1 hectare, rupees two hundred; (ii)if the area is more than 0.1 hectare but less than 0.2 hectare, rupees four hundred; (iii)and if the area is more than 0.2 hectare, rupees five hundred. (5)The Village Panchayat or any officer duly authorised by it may close a private market which is unlicensed or the licence for which has been suspended or cancelled, or which is held or kept open contrary to the provisions of this Act after prior intimation.

supervision and inspections, sanitation and weights and measures to be used as may be prescribed. (4)when a licence granted under sub-section (2) permits the licensee to levy any fee from the private market, a licence fee not exceeding one third of the gross income of the owner from the market in the preceding year shall be charged by the village panchayat: Provided that in the case of a new market the licence fees shall be fixed by the Panchayat at rates which shall not be less than the amounts given hereunder, namely:- (i)if the area of the market is not more than 0.1 hectare, rupees two hundred; (ii)if the area is more than 0.1 hectare but less than 0.2 hectare, rupees four hundred; (iii)and if the area is more than 0.2 hectare, rupees five hundred. (5)The Village Panchayat or any officer duly authorised by it may close a private market which is unlicensed or the licence for which has been suspended or cancelled, or which is held or kept open contrary to the provisions of this Act after prior intimation.

The Licensee of a private market may, subject to such rules as may be prescribed, levy any one or more of the following fees in any private market at such rates not exceeding the maximum prescribed, namely: - (a)fees for the use of or for the right to expose, goods for sale in such market; (b)fees for the use of shops, stalls, pens or stands in such market; (c)fees on vehicles bringing any goods for sale in such markets or on goods; (d)fees on animals brought for sale into or sold in such market; and (e)licence fees on brokers, commission agents, weighmen and measurers practising their calling in such market.

No person shall sell or expose for sale any animal or article. - (a)in any public or licensed private market without the permission of a Village Panchayat or licensee, as the case may be, or of any person authorised by the village panchayat; or (b)in any unlicensed private market.

The village panchayat shall by public notice prohibit the sale or exposure for sale of any animals or articles in or upon any public road or place or part thereof.

markets. - The Village Panchayats in the case of public markets, and the licensee in the case of private markets, shall prevent the entry therein or expel there from any person suffering from any contagious or infectious disease and may expel there from any person who is creating a disturbance therein.

Public halting places

Subjects to such rules as may be prescribed, the village panchayat may - (a)provide public landing places, halting places and cart-stands (including stands for animals and vehicles of any description) and levy fees for their use; and (b)Where any such place or stand has been provided, prohibit the use for the same purpose by any person, within such distance, thereof, any public place or the side of any public road as the panchayat may, subject to the control of the Regional Transport Authority, specify:

Private cart-stands. - (1) No persons shall open a new private cart-stand or continue to keep open a private cart-stand unless he obtains from the village panchayat a licence to do so. Such licence shall be got renewed by the licensee every year. (2)The Village Panchayat shall, as regards private cart-stands already lawfully established, and may at its discretion, as regards new private cart-stands, grant the licence applied for, subject to the payment of the prescribed fee and to such conditions as the Village Panchayat may think fit as to supervision and inspection, sanitation and such other maters as may be prescribed, or the village panchayat may refuse to grant such licence for any new cart-stand. (3)The Village Panchayat may modify the conditions of the licence to take effect from a specified date. (4)The village panchayat may at any time suspend or cancel any licence granted under sub- section (2) for breach of the conditions thereof. (5)The Village Panchayat may levy on every grant or renewal of a licence under this section a fee not exceeding two hundred rupees. (6)The licensee of a private cart stand may levy fees at rates not exceeding the maximum prescribed. Slaughter houses

(1) A Village Panchayat may provide places for use as public slaughter houses and charge such rents and fees for their use not exceeding the maximum as may be prescribed: Provided that if any complaint with respect to the conduct of such slaughter houses has been received from the nearby residents, action for starting such slaughter houses shall be taken only after detailed examination of such complaint. (2) The Village Panchayat may farm out the collection of such rents and fees for any period not exceeding three years at a time and on such terms and conditions as it may think fit.

1. (2) The Village Panchayat may farm out the collection of such rents and fees for any period not exceeding three years at a time and on such terms and conditions as it may think fit.

(1) The owner of any place within the village panchayat area which is used as a slaughter house for the slaughtering of animals or for the skinning or cutting up of any carcasses shall in the first month of every year or in the case of a place to be newly opened one month before the opening of the same, apply to the 176 177 [Village Panchayat] for a licence. (2)The Village Panchayat may, by an order and subject to such restrictions and regulations as to supervision and inspection as he thinks fit, grant or refuse to grant such licence. (3)Nothing contained in this section shall apply to the slaughter of animals in any concealed place without causing hardship to the public in the Village Panchayat area on occasions of festivals, marriage ceremonies, etc. [230 A. Slaughter houses to be maintained properly. - Every public or licensed slaughter house, shall be maintained properly and waste materials there from shall be disposed of without causing nuisance to the public, where any violation of the conditions of agreement or licence leads to unhygienic condition of the slaughter house, the person concerned may on conviction, be punished with a penalty upto rupees five thousand and a further fine at the rate of rupees five hundred for each day on which the offence is continuing and in case such penalty is imposed continuously for ten days, action can be taken treating the licence as automatically cancelled.]

(1)No person shall slaughter within the Village Panchayat area except in a public or licensed slaughter house any cattle, horse, sheep, goat or pig for sale as food or skin or cut up any carcass without or otherwise than in conformity with a licence from the Village Panchayat or dry or permit to be dried any skin in such manner as to cause a nuisance. It shall be ensured that the said slaughter house is kept clean: Provided that the slaughtered meat kept ready for sale as food shall not be sold except after inspection by the prescribed officers. Explanation. - Nuisance for the purpose of this section includes any act, omission, place or thing which causes or is likely to cause injury, danger, annoyance or offence to the sense of sight, smell or hearing or disturbance to rest or sleep or which is or may be dangerous to life or injurious to the health or property of the public or the people in general who dwell or occupy property in the vicinity or persons who may have occasion to use any public right or any animal kept in such a place or manner as to be prejudicial to health. Substituted by Act 13 of 1999. Inserted by Act 13 of 1999.

(2)No person shall exhibit or expose to public view, for sale or otherwise the carcass of animal, bird or fish (whether dressed or not) in any licensed premises or any other place in such a manner as to cause annoyance or offence to the sense of sight of the public. (3)The President, Secretary or any officer authorised by the Government or by the village panchayat may without notice enter any place where meat or any other article of food is stored for sale and inspect such article. Dangerous and offensive trades and factories

(1) The village panchayat may notify that no place in the Panchayat area shall be used for any of the purposes specified in the rules made in this behalf being purposes which in the opinion of Government, are likely to be offensive or dangerous to human life or health or property, without a license issued by the (Secretary) and except in accordance with the conditions specified in such licence: Provided that no such notification shall take effect until the expiry of thirty days from the date of its publication. Substituted by Act 13 of 1999. 179rofl- [21 XXXX J XXXX XXXX

179rofl- [21 XXXX J XXXX XXXX

• (1) No person shall, without the permission of the village panchayat and except in accordance with the conditions specified in such permission, - (a)construct or establish any factory, workshop or workplace in which it is proposed to employ steam power, water power or other mechanical power, or electrical power; or (b)install in any premises any machinery or manufacturing plant driven by any power as aforesaid, not being machinery or manufacturing plan exempted by the (provisions of this Act or the rules made there under). 181[(2) An application for permission under sub-section (1) shall be submitted to the village panchayat addressed to the Secretary in such form and with such details as prescribed. (3) The secretary shall, as soon as may be after the receipt of the application, enquire and report to the village panchayat as to whether the establishment of the factory, workshop or workplace or other installation of machinery or manufacturing plant for which permission is applied for is objectionable by reason of density of population in the neighbourhood and the possibility to cause nuisance or pollution and the village panchayat after having considered the application and the reports of the secretary, and of such other authorities as specified in sub- section (4) may as expeditiously as possible, at any rate within sixty days, - (a)grant the permission either absolutely or subject to such conditions as it thinks fit to impose; or (b)refuse the permission for the reasons to be recorded. (4)Before granting or refusing permission under sub-section (3), the village panchayat, shall obtain and consider. (5)a report of the Inspector of Factories appointed under the Factories Act, 1948 (Central Act 63 of 1948) or of an officer of the Industries Department not below the rank of an Industries Extension Officer having jurisdiction over the area regarding the adequacy of ventilation, light etc. and sufficiency of the height and size of the rooms and doors and the suitability of exists to be used in case of fire in the plan of factories, workshop workplace or premises if they came within the purview of the Factories Act, 1948 (Central Act 63 of 1948) and such other matters as may be prescribed ; (6)a report of the District Medical Officer regarding the possibility of nuisance or pollution of the connected load of the machinery proposed to be installed exceeds 179 180 Omitted by Act 13 of 1999. Substituted by Act 13 of 1999. Added by Act 13 of 1999. 25 HP or if the nature of the machinery and installation are such that it may cause nuisance or pollution; and (a)a report of the Divisional Fire Officer or any other officer authorised by him regarding the adequacy of fire prevention and fire fighting measures planned if the proposed industry involves the use of high tension power or inflammable or explosive materials; Provided that, no report under clause (b) shall be called for in respect of any industry if the applicant produces a declaration recommended by an officer of the Industries Department authorised in this behalf or by the Kerala State Pollution Control Board to the effect that such industry would not cause pollution. (7)The grant of permission under this section, - (a)Shall be subject to the conditions to be observed in respect of the replacement of machinery the levy of fees and to such restrictions and conditions as may be prescribed; (b)Shall not be deemed as exempted from observing the provisions contained in section 235 (F) and 235 (H) or 235 (P) and 235 (Q).] [233A. Abatement of nuisance caused by factory, workshop etc. — (1)Where any factory, workshop, workplace or machinery causes, in the opinion of the village panchayat nuisance by reason of a particular kind of fuel being employed or by reason or the noise or vibration created, or effluent discharged or by reason of noxious odour, smoke or dust omitted, the secretary may direct the person in charge of such factory, workshop, workplace or machinery for the abatement of such nuisance within a reasonable time to be specified for that purpose. (2)The village panchayat may, if required, obtain expert opinion with regard to the determination of the nuisance or its abatement, at the cost of the owner or person in charge of the factory, workshop, workplace or machinery concerned. (3)Where there has been wilful default in carrying out a direction given under subsection (1) or where in the existing circumstances the abatement of nuisance is found impracticable, the secretary may prohibit the working of the factory workshop, workplace or machinery till such time the person concerned takes necessary steps to the satisfaction of the secretary for the abatement of the nuisance.

Notwithstanding anything contained in section 233, no permission of village panchayat shall be required for the installation of establishment of the following machinery or manufacturing plants or industrial units, as the case may be, namely: - (a)Electrical and non-electrical appliances and machinery intended to be used for domestic purposes or personal comfort; (b)Electrical and non-electrical installation installed for agricultural purposes ; Added by Act 13 of 1999. (c)Normally unattended static transformer stations, co-denser stations and rectifier stations; (d)Portable drilling machines and portable engines used for constructions purpose such as concrete mixers; (e)Machinery installed at a workshop or workplace attached to an educational institution or for scientific purposes; (f)Installations of the Kerala State Electricity Board for generation or transmission of electricity; (g)Installation of the Kerala Water Authority for supply of drinking water and sewerage; (h)Industrial units with machinery having capacity of less than 5 H.P., which is certified by the Industries Department of the Government or the Kerala State Pollution Control Board to be non-polluting industry; (i)Industrial units, industrial estate, industrial development area, industrial development plot, industrial growth centre, export processing zone, or industrial park declared as such by the Government controlled agency: Provided that the owner of any industrial unit specified under item (h) and (i) shall register the unit with the village panchayat concerned on remission of the fee prescribed.

(a)Electrical and non-electrical appliances and machinery intended to be used for

domestic purposes or personal comfort; (b)Electrical and non-electrical installation installed for agricultural purposes ; Added by Act 13 of 1999.

(c)Normally unattended static transformer stations, co-denser stations and rectifier stations; (d)Portable drilling machines and portable engines used for constructions purpose such as concrete mixers; (e)Machinery installed at a workshop or workplace attached to an educational institution or for scientific purposes; (f)Installations of the Kerala State Electricity Board for generation or transmission of electricity; (g)Installation of the Kerala Water Authority for supply of drinking water and sewerage; (h)Industrial units with machinery having capacity of less than 5 H.P., which is certified by the Industries Department of the Government or the Kerala State Pollution Control Board to be non-polluting industry; (i)Industrial units, industrial estate, industrial development area, industrial development plot, industrial growth centre, export processing zone, or industrial park declared as such by the Government controlled agency: Provided that the owner of any industrial unit specified under item (h) and (i) shall register the unit with the village panchayat concerned on remission of the fee prescribed.

estate, industrial development area etc. — (1) The village panchayat shall be consulted before opening an industrial estate industrial development area, industrial development plot, industrial growth centre, export processing zone or industrial park by the Government or an agency controlled by Government. (2)So far as the industrial units specified under item clause (h) of section 233B are concerned, the provisions of section 235 F and 235 H or sections 235 P and 235 Q, as the case may be, shall be complied with.]

licences and permissions. - (1) The Government may make rules, - (a)prohibiting or regulating the grant or renewal of licences under section 232 and the period for which such licences shall be valid; (b)as to the time within which application for such licences or renewals thereof shall be made; and (c)prohibiting or regulating the grant of permission under section 233.

1. (2) Rules made under clause (c) of sub-section (1) may empower the village panchayat to set apart specified places in the panchayat area for industrial purposes and provide for the refusal of permission under section 233 in respect of any factory, workshop, workplace or premises outside such places and also for the removal to such places of any factory, workshop or workplace which has been already established at any place, or any machinery which has already been installed in any premises situated outside the specified places : Provided that no such rule shall authorise the removal of any factory, workshop or workplace or machinery installed in any premises in the occupation or under the control of the Central or State Government or of a Market Committee established under the Madras Commercial Crops Markets Act, 1933 or any other law. 183[(3) x x x x] 184[234A. - Vesting of the existing water supply and sewerage services under the water authority with the panchayat. - (1) Notwithstanding anything contained in the Kerala Water Supply and Sewerage Act, 1986 (14 of 1986) or in any other law from such date, on the Government may by notification in the gazette appoint, in respect of the Water Authority before such date and intended for the benefit of the panchayat at any level and situated within its area, - (a)all plants, machinery, water works, pumping station and all buildings and land thereto and all works, implements, stores, goods, implementation of works, management of water supply, distribution, levy and collection of water charge in connection therewith and is situated upon any public street, or through it or over or under it, as the case may be, within the area of the panchayat at any level including all assets and other facilities shall vest in the panchayat specified in the notification and shall stand transferred to that panchayat ; and (b)the collection of arrears of sewage charge, water charge and meter charge and arrears of any expense or fees in connection with water supply and sewerage, and all rights, liabilities and obligations of the water authority even if arisen from any contract or otherwise related to the said authority shall be the rights, liabilities and obligations, as the case may be, of the panchayat specified in the notification. (2)The assets, rights liabilities and obligations in sub-section (1) shall be valued in the manner specified by the Government and shall be furnished to the Water Authority by the panchayat concerned. (3)If any doubt or dispute arises as to the vesting of any property or asset in the panchayat or any right, liability or obligation, has become that of the panchayat such doubt or dispute shall be referred to the Government and the decision of the Government thereon shall be final and the water authority and the panchayat concerned shall be bound to implement the decision. (4)In order to continue to get the services in connection with the properties, assets, water supply and sewerage to a panchayat to which such services have been transferred under sub- section (1) sufficient number of Employees of the Water authority as may be decided by the Government shall be deployed to the concerned panchayat. (5)If a notification is issued by the Government under sub-section (1), all powers and rights of the Water Authority under the Kerala Water supply and Sewerage Act, 1986 (14 183 184 Omitted by Act 13 of 1999. Added by Act 13 of 1999. of 1986) within the area of the said panchayat shall cease to exist from the date specified in the notification and all such powers and rights shall vest in the concerned panchayat.

supply and sewerage schemes. - (1) Notwithstanding anything contained in the Kerala Water Supply and Sewerage Act, 1986 (14 of 1986) or in any other law, the maintenance and administration of the water supply and sewerage schemes which cannot be vested in and transferred to the panchayat under section 234A and is beneficial to the residents within the area of more than one Local Self Government Institutions shall vest in the committee to be constituted by the Government for the purpose. (2)In the committee referred to in subsection (1), - (a)Chairpersons of the respective municipalities; (b)Presidents of the respective panchayats; (c)The Senior Engineer of the water authority of the related project who shall be its Secretary and Convenor; shall be its members and chairperson or President of that Local Self Government Institution to which the related scheme is more beneficial shall be the chairman of the committee. (3)The water authority shall provide the fund and services of the employees necessary for the exercise of powers and functions of the committee.

schemes related to water supply and sewerage works. - (1) Notwithstanding anything contained in the Kerala Water supply and Sewerage Act, 1986 (Act 14 of 1986), the respective panchayat shall have the right and power to prepare and implement water supply or sewerage scheme within the area of a panchayat. (2)When the Water supply schemes and sewerage schemes are prepared in accordance with sub-section (1) and if it is beneficial to the residents of more than one village panchayat area, it shall be prepared and implemented by the concerned Block Panchayat and if it is beneficial to the residents of more than one block panchayats such schemes shall be prepared and implemented by the district panchayat concerned; Provided that the provisions of this section shall not affect the preparation and implementation of such schemes by more than one panchayat among themselves. (3)The panchayats preparing and implementing the water supply and sewerage schemes in accordance with sub-section (1) may collect water charges and sewerage service charges from the beneficiaries in the manner prescribed.]