Chapter III CONDUCT OF BUSINESS

54. Meeting of the Council and Committee Meeting of the Council and Committee.- The Council shall meet at least once in every two months and every committee shall meet at least once in every month for the transaction of its business.

55. First meeting after General election First meeting after General election.-

1. (1) The Chief Municipal officer shall with the approval of the prescribed authority, within one month of every general election, call a meeting of the elected Councillors for the purpose of electing a Vice-President.
2. (2) The first meeting of the Council called under sub-section (1) shall be presided over by such officer not below the rank of Deputy Collector in the case of a Municipal and not below the rank of Tehasildar in the case of Nagar Panchayat, appointed by the Collector and all provisions contained in this Chapter regarding meetings of the Council, shall, as far as may be, apply in respect of such meeting: Provided that the presiding officer shall not have right to vote at such meeting and in case of equality of votes, the result shall be decided by lot. 56. Convening of meeting Convening of meeting.-
3. (1) A meeting of the Council shall be either ordinary or special.
4. (2) The date of every meeting except the meeting referred to in Section 43, 43A, 47, 55 or 71, shall be fixed by the President or in the event of his being incapable of acting by the Vice-President, and in the like event in his case, by the Chief Municipal Officer.
5. (3) Notice of every meeting specifying the time and place thereof and the business to be transacted thereat shall be dispatched to every Councillor and exhibited at the Municipal Office seven clear days before an ordinary meeting and three clear days before a special meeting.
6. (4) No business other than that specified in the notice relating thereto shall be transacted at a meeting. 57. Power of President and Vice-President to call special meeting Power of President and Vice-President to call special meeting.- The President or in the event of his being incapable of acting, the Vice President, may whenever he thinks fit, call a special meeting and shall be bound to do so within two weeks of the receipt of a written requisition signed by not less than one-third of the total number of elected Councillors. Provided that if on receipt of requisition the special meeting is not convened within the stipulated time by the President or the Vice President, as the case may be, the Chief Municipal Officer shall convene such meeting under intimation to the State Government. 58. Place of meeting Place of meeting.- Every meeting of the Council shall ordinarily be held in the premises used as Municipal office by such Council. 59. Chairman of Meeting At every meeting of a Council the President, if present, or in his absence or during the vacancy of his office, a Vice-President and if there be no President or Vice-President present, then such one of their member as the elected Councillors present may elect, shall preside as Chairman. 60. Public to be admitted to the meeting of Municipality
7. (1) Subject to rules framed under this Act, and regulation made by the Council every meeting of the Council shall ordinarily be open to the public: Provided that the Council may temporarily exclude the public from a meeting as often as it may deem necessary when in the opinion of a majority of the Councillors present at such meeting, expressed by resolution, in view of the special nature of the business then being dealt with or about to be dealt with, such exclusion is advisable.
8. (2) Such resolution shall be put by the presiding authority of its own or at the request of any Councillor, without previous notice or discussion.
9. (3) Noting in this section shall be construed to limit or abridge the power of the presiding authority at any time to cause any person who interrupts the proceedings to be removed. 61. Quorum
10. (1) No business shall be transacted at a meeting unless a quorum of one-third of the total number of Councillors be present throughout the meeting.
11. (2) If there be no quorum present at a meeting at any time from the beginning to the end thereof the presiding authority shall, after waiting for jot less than fifteen and not more than 30 minutes, adjourn the meeting to such hour on the following or some other future day as it may reasonably fix. A notice of such adjournment shall be fixed up in the municipal office, and the business which would have been brought before the original meeting had there been quorum there at shall be brought before the adjourned meeting and may be disposed of at such meeting or at any subsequent adjournment there of, whether there be a quorum present or not.
12. (3) No business other than business fixed for the original meeting shall be transacted at any such subsequent meeting except with the consent of two-third of the elected Councillors present.
13. (4) A notice of adjournment exhibited in the Municipal office on the day on which the meeting is adjourned shall be sufficient notice of the subsequent meeting. 62. Minutes of proceedings
14. (1) Minutes of the proceedings at each meeting of a Council or any of its Committees shall be drawn up in Hindi written in Devnagri Script and recorded in a book to be kept for the purpose separately for the Council and each of its Committees and shall be signed by the Chairmena of the meeting or of the next ensuing meeting.
15. (2) The minutes of the Council shall be published in the manner prescribed and shall at all reasonable times and without charge be open to the inspection by any inhabitant of the Municipality.
16. (3) The minutes of the proceedings recorded under sub-section (1) dhall include-
    • (i) the names of the Councillors present;
    • (ii) the decision is not unanimous, the number of votes and the names of Councillors voting for and against such question and the names of those who have remained natural , whether votes have been taken by division or otherwise: Provided that in case of a meeting under Section 43-A, or 47, the provision relating to recording the names of Councillors voting for an against the question shall not be applicable.
17. (4) A copy of every resolution passed by a Council at a meeting shall within ten days from the date of the meeting be forwarded to the prescribed authority. 63. Decision of Questions by Majority of votes Except as otherwise provided by or under this Act, all questions brought before any meeting held under this Act, shall be decided by majority of the votes of the President and elected Councillors present and in the case of an equality of votes the presiding authority of the meeting shall have a second or casting vote: Provided that in the case of equality of votes in the election of Vice-President or the Chairman of any committee, the presiding authority shall not exercise his casting vote and the result shall be decided by lot. 63A. Removal of member of a Committee The Council may remove any member of a Committee by majority of at least two-thirds of the elected Councillors, on the recommendation of such Committee and may elected a new member in its place, in accordance with the provisions of the Act. 64. Adjournments
18. (1) Any meeting of the Council may, with the consent of majority of the elected Councillors present, be adjourned , from time to time, to later hour of the same day or to any other date; but except as provided in sub-section
19. (3) of section 61 no business other than that left over at the adjourned meeting shall be transacted at the next meeting.
20. (2) Notwithstanding anything contained in sub-section
21. (1) if the presiding authority finds it impossible to continue the proceeding do to unruly behavior of the elected Councillors it may, after making an announcement to that effect in the meeting, adjourn the meeting and business transacted in a meeting, if any, held by a majority of elected Councillors immediately after such adjournment shall be null and void.
22. (3) A notice of adjournment of a meeting under sub-section
23. (1) or sub-section
24. (2) shall contain the time, date and place of the next ensuing meeting and –
    • (a) shall be pasted in the municipal office on the day on which the meeting is adjourned and such pasting shall be deemed sufficient notice of the next ensuing meeting to the Councillors who were present in the meeting,
    • (b) shall be served on the Councillors who were not present in the meeting but where such adjournment is not for a period exceeding twenty four hours it shall not be necessary to serve such notice and the pasting of the notice in the municipal office as aforesaid, shall be deemed as sufficient notice of the next ensuing, meeting. 65. Modification and Cancellation of resolutions Modification and Cancellation of resolutions.- No resolution of a Council shall be modified or cancelled within three months after the passing thereof except by a resolution supported by not less than two-third of the total number of elected Councillors and passed at an ordinary meeting, where of notice shall have been given setting forth fully the resolution which it is proposed to modify or cancel at such meeting and the motion or proposition for the modification or cancellation of such resolution. 66. Notice to Government Executive Engineer Notice to Government Executive Engineer.-- Except for reasons which the presiding authority deems emergent no business relating to any work which is being executed for the Council by the Government Executing Engineer shall be transacted at any meeting of a Council unless at least fifteen days previous to such meeting, a letter has been addressed to the said Executive Engineer informing him of the intention to transact such business thereat, and of the motions or propositions to be brought forward concerning such business 67. Right of Government officers to attend, address and take part in meeting of Council Right of Government officers to attend, address and take part in meeting of Council.- The Collector and such other officers as the State Government may by general or special order, appoint in this behalf shall be entitled to attend any meeting of a Council within their jurisdiction, address it on any matter affecting the work of their departments and take part in the proceedings relating thereto but shall not be entitled to vote. 68. Power to call upon officers to tender advice, etc Power to call upon officers to tender advice, etc.- Subject to any directions that may be issued by the State Government in this behalf, a Council may require any officer of the Public Works, Education, Medical, Public Health or of such other department as the State Government may specify serving in the district in which the area of the Municipality concerned is included, to attend any meeting of such Council and to tender advice in respect of any matter which concerns the department to which such officer belongs and every such officer shall comply with such requisition. Provided that such officer may, if he is unable to present himself at the meeting on account of sickness or any other reasonable cause, depute any one of his subordinate officers to attend the meeting. 69. Presence of Chief Municipal Officer Presence of Chief Municipal Officer.-The Chief Municipal officer shall be present at every meeting of the Council and may explain or make a statement in regard to any subject under discussion at such meeting, but shall not be entitled to vote. 70. Constitution of President-in-Council Constitution of President-in-Council.--
25. (1) There shall be a President-in-Council for every Council which shall be constituted by the President from amongst the elected Councillors within seven days from the date of election of Vice-President under Section 43.
26. (2) The President-in-Council shall consist of the President and seven members in case of Municipal Council and five members in case of Nagar Panchayat.
27. (3) The members of the President-in-Council shall hold office during the pleasure of the President.
28. (4) Each Council shall have such departments as may be prescribed and member of the President-in-Council shall be made incharge of such departments by the President.
29. (5) The President shall be the Ex-Officio Chairman of the President-in-Council and shall over the meeting of the President-in-Council, if present. In the absence of the President, the members present in the meeting shall choose one of them to preside over the meeting.
30. (6) Notwithstanding anything contained in this Act, the President-in-Council, Chairman and the members shall exercise such powers and perform such function, as may be prescribed.
31. (7) The conduct of business of the President-in-Council shall be such as may be prescribed. In case the office of the President is declared vacant under the Act, the Councillors nominated by the Government under sub-section (2) of Section 37 to perform the duties of the President or a person who is elected for the office of the President, as the case may be, either allow the existing members of the President-in-Council to continue or appoint new members in place of them from amongst the elected Councillors. 71. Advisory Committees Advisory Committees.- After the first meeting of the Council under section 43 the President shall constitute the Advisory Committees for every department of the Council from amongst the elected Councillors other than the Councillors included as member in the President-in-Council to advise in the affairs of the department concerned.
32. (2) Each Advisory Committee shall consist of five members in case of a Municipal Council and three members in case of a Nagar Paqnchayat.
33. (3) The member of the President in-Council incharge of the Department shall convene and preside over the meeting of the Advisory Committee relating to the department concerned at least once in every two months. The member of the President-in-Council incharge of the department may take into consideration the suggestions made in the meeting of the Advisory Committee. 72. Consultative Committee Consultative Committee.-A Council may also elect from time to time and for such period as it may think fit, Consultative Committees consisting of such number of Councillors as it may think fit and the Council or the President may refer to any such Committees for inquiry and report, or for opinion, any matter relating to the purposes of this Act. 72A. Constitution of Ward Committees A Constitution of Ward Committees.-
34. (1) If the Council decides to constitute the Wards Committee, the same may be constituted in the area of a Municipal Council or Nagar Panchayat.
35. (2) The Council shall be competent to determine the number of Wards Committees to be constituted within the area of a Municipal Council or Nagar Panchayat, as the case may be and the territorial area of each such wards committees Provided that the wards included in the territorial area of a ward committee shall be contiguous.
36. (3) Every elected councillor representing a ward within the territorial area of a ward committee and two persons residing within the territorial area of such ward committee as may be nominated by the President shall be the members of that Committee: Provided that only a person who is otherwise not in-eligible for election as a councilor shall be so nominated: Provided further that only persons having special knowledge or experience in the municipal administration shall be nominated on the recommendation of the chairman of the ward committee and the persons so nominated shall not have voting rights in the meetings of the ward committee.
37. (4) The Ward Committee shall at its first meeting in the prescribed manner elect one of the elected Councillors to be its Chairman who shall hold office until the duration of the Municipal Council or Nagar Panchayat as the case may be,
38. (5) The State Government shall prescribe, the functions and powers of Ward Committes and the procedure for the conduct of their business. 73. Absence from meeting of Committee Absence from meeting of Committee.- Any member of a Committee, who absents himself from all meetings of any Committee of which heis a member during three consecutive months without the permission of the President shall cease to be a member thereof, and his office as such member shall become vacant, and he shall not be eligible for re-election to such Committee during the unexpired term thereof. 74. Casual vacancies in any committee Casual vacancies in any committee.- If any casual vacancy occurs in the office of a member of any Committee, the Council shall, as soon as may be after the occurrence of such vacancy, elect one of its members to fill the vacancy and every Councillor so elected shall continue in office for the unexpired term of his predecessor. 75. Chairman of Committee Chairman of Committee.- The President or in his absence the Vice-President shall be the Chairman of every Committee, if they are members of any such committee. In case the President or the Vice-President are not members of such committee, the committee shall elect one from amongst its elected councilors to be the Chairman thereof. If the Chairman is absent, the members of the Committee shall choose one from amongst its elected Councillors to preside. 76. Procedure of committee meetings Procedure of committee meetings.-
39. (1) A Committee may meet and adjourn as often as it thinks proper, but the Chairman of the Committee may whenever he thinks fit and shall upon the written request of the President of the Councillor or of at least two members of the Committee call a special meeting of such committee.
40. (2) If the Chairman of any Committee remains absent from the Municipal area for a period exceeding fifteen days or if he fails to call a meeting of the Committee within the prescribed period upon the written request of the President or at least two members of the Committee the President or in the absence of the President, the Vice-President may call a meeting thereof.
41. (3) Every meeting of a Committee shall, except for special reasons to be mentioned in the notice convening the meeting, be held in the buildings used as Municipal office.
42. (4) No business shall be transacted at any Committee meeting unless not less than one-half of the members of the Committee be present thereat. 77. Subordination of Committees to instructions of Council and compliance with requisitions Subordination of Committees to instructions of Council and compliance with requisitions.-
43. (1) Every committee shall conform to any instructions that may, from time to time, be given to it by the Council.
44. (2) The Council may, at any time, call for any extract from any proceedings of any committee, and for return, statement, account or report concerning of connected with any matter with which the Committee is empowered by this Act to deal and every such requisition shall be complied with by such Committee without unreasonable delay. 78. Deligation of Council's powers, duties and executive functions Deligation of Council’s powers, duties and executive functions.- Any powers or duties or executive functions which may be exercised or performed by or on behalf of the council may, in accordance with the rules made under this Act, be delegated by the Council to the President or Vice-President or to the Chairman of the Committees, or to one or more stipendiary or honorary officers, but without prejudice to any powers that may have been conferred on the Chief Municipal Officer by or under Section 92. 79. Joint Committee Joint Committee.-
45. (1) A Council may , from time to time :--
    • (a) join with any other Municipality or with any local authority or with more than one such local authorities,-
      • (i) in appointing out of their respective bodies, a Joint Committee for any purpose in which they are jointly interested, and in appointing Chairman of the Joint Committee;
      • (ii) in delegation to any such joint Committee power to frame terms binding on each such body as to the construction and future maintenance of any joint work and in delegating any power which might be exercised by either or any of such bodies; and
      • (iii) in framing and modifying bye-laws for regulating the proceedings of any such Joint Committee relating to the purpose for which the joint Committee is appointed; and
    • (b) enter, subject to the sanction of the State Government, into any agreement with any other local authority, regarding levy of octroi duty, terminal tax and tax on vehicles entering the limits of such bodies, whereby such duties and taxes leviable by the bodies so contracting may be levied together instead of separately, within the limits of the area comprising the areas subject to the authority of such bodies, and regarding the apportionment of the proceeds of such duties or taxes.
46. (2) Any dispute which arises between local authorities acting under sub-section (1) shall be referred to the State Government whose decision thereon shall be final: Provided that, where one of the local authorities is a cantonment authority, the decision of the State Government shall be subject to the concurrence of the Central Government. 80. Vacancy, etc. not to invalidate proceedings Vacancy, etc. not to invalidate proceedings.- No act or proceeding of the Council or any of its committees shall be invalid by reason merely of the existence of any vacancy in, or defeat in the constitution of the Council of the Committee, as the case may be. 81. Proceedings of meeting to be deemed to be good and valid Proceedings of meeting to be deemed to be good and valid.- Until the contrary is proved-
    • (i) every meeting of the Council or any of its Committees shall be deemed to have been duly convened and held, and all the members of the meeting shall be deemed to have been duly qualified, when the minutes of the meeting have been signed in accordance with the provisions of this Act; and
    • (ii) where the meeting is a meeting of the Standing Committee such Committee shall be deemed to have been duly constituted and to have had power to deal with the matters referred to in the minutes. 82. Preservation of Order Preservation of Order.-
47. (1) The presiding authority shall preserve order and may, direct any Councillor whose conduct in its opinion is disorderly to withdraw immediately from the meting of the Council, and any Councillor so ordered to withdraw shall do so forthwith and shall absent himself during the remainder of the day’s meeting, and if he is ordered a second time within fifteen days to withdraw, the Council may suspend him for any period not exceeding fifteen days and he shall absent himself form meetings accordingly: Provided that the Council may remit the suspension on receiving apology ton its satisfaction from the Councillor under suspension: Provided further that the suspension shall not prevent any Councillor from serving on any Committee.
48. (2) The presiding authority may, in case if grave disorder arising in the meeting, suspended the meeting for a period not exceeding three days.
49. (3) If any person who has been ordered to withdraw, unlawfully remains in the meeting , the presiding authority may take such steps as he may deem fit to cause him to be removed. 83. Responsibility of Councillors for misapplication of Municipal funds Responsibility of Councillors for misapplication of Municipal funds.- Every Councillor shall be personally liable for the misapplication of any fund or property of the Council to which shall have been a party or which shall have happened througfh or been facilitated by gross neglect of his duty as a Councillor and may be sued for recovery of the money or property so misappropriated or loss suffered thereby either by the Council or the State Government: Provided that no Councillor shall be personally liable in respect of any contract or agreement made, or for any expense incurred by or on behalf of a Council and the Municipal fund shall be liable for and be charged with all costs in respect of any such contract or agreement and all such expenses. 84. Penalty for interest in contract or employment Penalty for interest in contract or employment.- Any Councillor who knowingly acquires directly or indirectly any share or interest in any contract or employment with, under, by or on behalf of the Council of which he is a member, not being a share or interest which it is permissible under section 35 to have without being thereby disqualified from being a Councillor, shall be liable to be punished with fine which may extend to five hundred rupees. 85. Councillors not to take part in discussion in certain cases Councillors not to take part in discussion in certain cases.-- No Councillors shall vote on, or take any part in the discussion of any matter in which he has directly or indirectly any pecuniary interest. 86. Constitution of State Municipal Service Constitution of State Municipal Service.-
50. (1) The State Government may, for the purpose of providing officer to the Council under Section 87 or 88, constitute in the prescribed manner, the following Municipal Services for the State to be called-
    • (a) State Municipal Service (Executive)
    • (b) State Municipal Service (Health) and
    • (c) State Municipal Service (Engineering)
51. (2) The State Government may make rules in respect of recruitment, qualification, appointment, promotion, leave, scale of pay all allowances by whatever name called , loans pension, gratuity, annuity, compassionate fund, provident fund, dismissal, removal conduct, departmental punishment, appeals and other service conditions of the members of the State Municipal Service.
52. (3) The salary allowances, gratuity, annuity, pension and other payments required to be made to the members of the State Municipal Service in accordance with the conditions of their service shall be a charge on the Municipal fun: Provided that in the event of transfer of a member of the State Government may, by rules, prescribe.
53. (4) The State Government may transfer any member of the State Municipal Service from one Council to another Council.
54. (5) If, at a special meeting convened for the purpose , the Council passes a resolution by a majority of more than one-half of the Elected Councillors constituting the Council for the time being requiring the transfer of a member of the State Municipal Service, the State Government may transfer such member. 87. The Chief Municipal Officer The Chief Municipal Officer.-
55. (1) There shall be a Chief Municipal Officer to every Council who shall be the principal executive officer of the Council and all other officers and servants of the Council shall be subordinate to him.
56. (2) The Chief Municipal Officer of a Council shall be a member of the State Municipal Service (Executive) and shall be appointed by the State Government. 88. Health Officer and Engineer Health Officer and Engineer.-
57. (1) Every Council having an annual income of five lacs of rupees or more shall have a Health Officer and an Engineer for the efficient discharge of its duties.
58. (2) The Health officer and the Engineer shall be members of the State Municipal Service (Health and Engineering respectively) and shall be appointed by the state Government. 89. Appointment to State Municipal Service pending constitution thereof, etc Appointment to State Municipal Service pending constitution thereof, etc.-
59. (1) Pending the constitution of the State Municipal Service under sub-section (10 of section 86 or when no member of such service is available for appointment as Chief Municipal Officer, Health Officer or Engineer, as the case may be, the State Government may depute an officer of Government or appoint any person qualified to be a member of such service to act as Chief Municipal Officer, Health Officer or Engineer, as the case may be. (1-A) The State Government shall have all powers of control over the persons appointed under sub-section (1) and may transfer any person appointed thereunder from one Council to another.
60. (2) The State Government may, on its own motion or if at a special meeting of the Council more than one-half of the Elected Councillors, vote in favour of a resolution to that effect withdraw the services of the Chief Municipal Officer, Health Officer, or Engineer, as the case may be, who is an officer of the State Government and has deputed to the Council under sub-section (1). 90. Arrangement during leave of absence of Chief Municipal Officer Arrangement during leave of absence of Chief Municipal Officer.-
61. (1) The State Government may grant leave of absence to the Chief Municipal Officer.
62. (2) During any absence on leave of the Chief Municipal Officer for a period exceeding thirtyn days at a time the State Government may appoint a person to act as the Chief Municipal Officer.
63. (3) During any absence on leave of the Chief Municipal Officer fior a period not exceeding thirty days at a time, the State Government may make such local arrangement for carrying on the duties and functions of the Chief Municipal Officer as may be necessary.
64. (4) Every person appoint under sub-section (2) or (3) shall exercise all powers conferred, and perform the duties imposed, on the Chief Municipal Officer by or under this Act or by or under any enactment for the time being in force and shall be subject to the same liabilities, restrictions and conditions to which the Chief Municipal Officer is liable. 91. Arrangement during leave absence of Health Officer or Engineer Arrangement during leave absence of Health Officer or Engineer.- The provisions of section 90 shall apply in case of a Health Officer and an Engineer, as they apply in the caase of a Chief Municipal Officer. 92. Special function of Chief Municipal Officer Special function of Chief Municipal Officer.--
65. (1) The Chief Municipal Officer shall-
    • (a) Subject to the general control of the President, watch over the financial and executive administration of the Council and perform all the duties and exercise all the powers specially imposed or conferred upon him, by or delegated to him, under this Act.
    • (b) give effect to the decisions taken, in accordance with the provisions of this Act and the rules or bye-laws made thereunder by the Council and submit periodical reports, if the Council so directs regarding the progress made in respect thereto.
66. (2) Any of the powers, duties or functions conferred or imposed upon or vested in the Chief Municipal Officer by this Act may be exercised, performed, or discharged under the Chief Municipal Officer's control and subject to his superintendence to such conditions and limitations. If any, as he may think fit to prescribe, by any Municipal Officer whom the Chief Municipal Officer may generally or specially empower in writing in this behalf. 93. Council may require Chief Municipal Officer to produce documents Council may require Chief Municipal Officer to produce documents.--
67. (1) The Council may, at any time, require the Chief Municipal Officer:--
    • (a) to produce, any record, correspondence, plan or other document which is in his possession or under his control as Chief Municipal Officer or which is recorded or filed in his office or in the office of any Municipal Officer or servant subordinate to him: Provided that if the Chief Municipal Officer is of the opinion that the production of any correspondence will not be in the public interest or in the interest of the municipal administration, he shall forward the requisition alongwith his opinion to the prescribed authority and the decision of the prescribed authority thereon shall be final.
    • (b) to furnish any return, plan, estimate, statement, account or statistics, concerning or connected with any matter appertaining to the administration of this Act or the Municipal Government.
    • (c) to furnish a report by himself, or to obtain from the head of a department subordinate to him and furnish, with his own remarks thereon. a report upon any subject concerning or connected with the administration of this Act or the Municipal Government.
68. (2) Every such requisition shall be complied with by the Chief Municipal Officer without unreasonable delay and it shall be incumbent on every Municipal Officer and servant to obey any order made by the Chief Municipal Officer in pursuance of any such requisition. 94. Appointment of staff Appointment of staff.-
69. (1) Every Council having an annual income of five lacs of rupees or more shall subject to rules framed under Section 95, appoint a Revenue Officer and an Accounts Officer and may appoint such other officers and servants as may be necessary and proper for the efficient discharge of its duties.
70. (2) Every Council not falling under sub-section (1) shall, subject to rules framed under section 95, appoints a Sanitary Inspector, a Sub-Engineer, a Revenue Inspector and an Accountand may appopint such other officers and servants as may be necessary and proper for the efficient discharge of its duties: Provided that such Council may appoint a part time Health Officer or an Engineer on such terms and conditions as the State Government may approve in this behalf.
71. (3) The State Government may-
    • (i) in case of any Council, relax the provisions of such-section (1) or sub-section (2), as the case may be, subject to such conditions as it may think fit to impose; or
    • (ii) grant permission to any Council to appoint whether termporaily orn otherwise one person to discharge the duties of any two or all such officers.
72. (4) The appointment of Revenue Officer, Accounts Officer, Sanitary Inspector, Sub-Engineer, Revenue Inspector and Accountant shall be subject to conformation by the State Government and no such post or the post of any other officer or servant as may be specified by the State Government in this behalf shall be created or abolished and no alteration in the emoluments thereof shall be made without the previous approval of the State Government, and every appointment to, and dismissal from, such post, shall be subject to a like approval.
73. (5) No order of suspension for a period exceeding one month shall be passed against any officer mentioned inj or specified under sub-section (1) and no resignation tendered by any such officer shall be accepted without previous approval of the State Government.
74. (6) Unless the State Government otherwise directs the power of appointing Municipal officers and servants other than those mentioned in or specified under sub –section (4) shall vest in the President-in-Council.
75. (7) The State Government may transfer any officer or servant of a Council mentioned in sub-sections (1) and (2) and in receipt of total emoluments exceeding one hundred rupees to any other Council.
76. (8) The State Government may prescribe the classes or grades of officers and servants who shall have the right to appeal from any decision of the Chief Municipal Officer the President-in-Council, the prescribed authority or any other authority empowered in this behalf, inflicting any departmental punishment other than censure.
77. (9) The authority hearing an appeal made under sub-section (8) shall have power to set aside or reduce the punishment against which the appeal is preferred. 95. State Government to make rules State Government to make rules.- The State Government may make rules in respect of qualification recruitment , leave, scale of pay, all allowances by whatever name called, loans, pension, gratuity, compassionate fund, provident fund, annuity. Dismissal, removal conduct and other departmental punishment and appeal and service conditions for municipal employees other than a member of the State Municipal service. 96. Abstention of officers or servants from political movement, etc Abstention of officers or servants from political movement, etc.-
78. (1) No officer or servant employed under this Act shall-
    • (a) except in accordance with a special or general order of the Council, communicate directly or indirectly the contents of any official documents or information to any member of the Council or to any member of the general public;
    • (b) own, wholly or in part, or conduct the management of any newspaper of other periodical publication except in the discharge of his official duties;
    • (c) take part in or subscribe in aid of, or assist in any way, any political movement or organization carried on or run in any part of India or elsewhere relating to the affairs of India;
    • (d) canvass or otherwise interfere or use his influence in connection with, or take part in any election to a legislative body or local authority otherwise than in the exercise of his vote or in the discharge of any duty assigned to him officially.
79. (2) If such officer or servant contravenes any provision of sub-section (1) he shall be liable to any punishment prescribed by rul;es under Section 95.
80. (3) If any question arises as to whether a movement or organization is political or n ot for the purposes of this section, the question shall be referred to the State Government whose decision shall be final. 97. Liability of Municipal employees for misappropriation of funds Liability of Municipal employees for misappropriation of funds.- Every employee of the Council shall be personally liable for the loss, waste, misapplication or misappropriation of any money or other property (held for the administration of the Council). If such loss or waste or misapplication or misappropriation is a direct consequence of the neglect or misconduct in his capacity as servant of the Council, and suit for compensation for the same may be institute against him, as if the money or the property had belonged to the State Government. 98. Municipal officer or servant not to be interested in any contract with Council Municipal officer or servant not to be interested in any contract with Council.-
81. (1) No person shall be eligible for employment as a Municipal officer or servant if he-
    • (a) has, directly or indirectly, by himself or his partner, any share or interest in any contract or employment with , by or on behalf of the Council, other than an interest in land held on a lease from the Council, or is a Director, Secretary, Manager or other salaried officer of an incorporated company which has any such share or interest; or
    • (b) has acted or is acting professionally in relation to any matter on behalf of any person having therein any such share or interest as aforesaid.
82. (2) If at any time subsequent to anyb appointment it comes to the notice of the Council that any Municipal officer or servant was not eligible for employment under sub-section (1) on the date of his appointment, the Council may, terminate has service: Provided that no order under this sub-sections shall be passed until reasonable opportunity has been given to the person concerned to furnish his explanation.
83. (3) Nothing in the foregoing sub-sections shall apply to any such share or interest as is specified in the explanation below Section 35. 99. Penalty for officer or servant being interested in any contract, etc Penalty for officer or servant being interested in any contract, etc.-Any Municipal Officer or servant who knowingly acquires, directly or indirectly any share or interest in any contract or except in so far as concerns his own employment as Municipal officer or servant, not being a share or interest such as, under clause (i) of section 35, it is permissible for a person to have without being thereby disqualified for being an officer or servant of such Council, shall be liable to be punished with fine which may extend to five hundred rupees. 99A. Essential municipal officers and servants A. Essential municipal officers and servants.- No essential municipal officer or servant shall-
    • (a) Unless he is authorized in that behalf by the terms of his contract, resign his appointment or quit his employment without giving a notice in writing of not less than one month to the authority appointing him, of his intention so to do; or
    • (b) absent himself from duty otherwise than on leave duly granted and not subsequently cancelled; or
    • (c) neglect or refuse to perform any of the duties or willfully perform them in an inefficient manner. 99B. Power of Government to declare emergency B. Power of Government to declare emergency.- If the Government is of the opinion that stoppage of the cessation of the performance of any of the essential services will be prejudicial to the safety or health or the maintenance of services essential to the life of the community in the municipality, it may, by notification, declare that an emergency exist in the municipality and that in consequence there of no member of such of the essential municipal services and for such period as may be specified in the notification shall, notwithstanding any law for the time being in force or any agreement:-
    • (a) withdraw or absent himself from his duties otherwise than on leave duly granted ; or
    • (b) neglect or refuse to perform his duties or willfully perform them in and inefficient manner.

Property vested in Council.-

1. (1) Subject to any special reservation made or to any special conditions imposed by the Government, all property of the nature hereinafter in this section specified and situated within the city, shall vest in and be under the control of the Municipality, and with all other property which has already vested, or may hereafter vest in the Municipality, shall be held and applied by it for the purposes of this Act, that is to say,-
   • (a) all public gates, town-walls tank, wells, markets, slaughter houses, manure and night-soil depots and public buildings of every description which have been constructed or maintained out of the municipal fund;
   • (b) all public streams, tanks, reservoirs, cisterns, wells, springs, acquaducts, conduits, tunnels, pipes, pumps and other water works , and all bridges, buildings, engines, works materials and things connected therewith or an appertaining there to, and also adjacent land not being private property appertaining to any public tank or well;
   • (c) all public sewers and drains, and all sewers, drains, tunnels culverts, gutters and water courses in alongside or under any streets and all works materials and things appertaining thereto;
   • (d) all dust, dirt, dung, ashes, refuse, animal matter, or filth , night-soil or rubbish of any kind, collected by the Council or by any customary or private sweeper from the streets, houses, privies, sewers, cesspools or elsewhere ;
   • (e) all public lamps, lampposts and apparatus connected therewith or appertaining thereto;
   • (f) all public streets, not being land owned by the State Government and the pavement, stone and other material thereof and also trees growing on and erections, materials, implements and things provided for such streets;
   • (g) all land or other property transferred to the Council by the State Government or acquired by gift, purchase or otherwise for public purposes;
2. (2) The State Government may, by notification, direct that any property which has vested in the Council shall cease to be so vested; and thereupon the property specified in the notification shall cease to be so vested, and the State Government may pass such orders as it thinks fir regarding the disposal and management of such property.
3. (3) The State Government may resume any immovable property transferred to the Council by itself or any other local authority, where such property is required for a public purpose, without payment of any compensation other than the amount paid by the Council for such transfer and the market value at the date of resumption of any building or works subsequently erected or executed thereon by the Council: Provided that before taking any such action, the State Government shall obtained take into consideration the view or objections of the Council;

Management of nazul lands Management of nazul lands.-

1. (1) The nazul lands transferred to the Council by the State Government shall be managed in accordance with the bye-laws made by the Council with the previous approval of the State Government.
2. (2) The Council may, with the previous approval of the State Government from time to time, add to vary or rescind the bye-laws, made under sub-section (1).

Acquisition of land.-

1. (1) When any land, whether within or without the limits of a Municipality, is required for the purposes of this Act and the Council is unable to acquire it by agreement the State Government , may at the request of the Council, proceed to acquire such land under the provisions of the Land acquisition Act, 1894(1 of 1894; and, on the payment b y the Council of the compensation awarded under that Act, and of any other charges incurred by the State Government in connection with the acquisition, the land shall vest in the Council. Explanation- When any land is required for a new street, or for the improvement of an existing street, the Council may proceed to acquire , in addition to the land to be occupied by the street, the land necessary for the sites of the buildings to be erected on the sides of the street, and such land shall be deemed to be required for the purposes of this Act.
2. (2) A Council shall not, without the previous sanction of the State Government, transfer any land which has been acquired for and vests in the Council under sub-section (10 or divert such land to a purpose other than the purpose for which it has been acquired.
3. (3) Notwithstanding any thing contained in the Indian Stamp Act, 1899 (II of 1899) , all instruments of transfer of land in favour of a Council for the purposes of this Act shall be exempt from payment of Stamp duty.

Transfer of Municipal Property to Central Government.- The Council may, with the sanction of State Government, transfer to the Central Government any property vested under Section 1000 or 102, but not so as to affect any trust or public right subject to which the property is held.

Formation of Municipal Fund and it shall be held in trust by Council.- There shall be formed for each municipality a Municipal Fund, and it shall be held by the Council in trust for the purposes of this Act, subject to the provision there in contained.

Credit of moneys to Municipal Fund.-

1. (1) There shall be credited to the Municipal Fund-
   • (a) all moneys received by or on behalf of the Council under the provisions of this Act or of any other law for the time being in force or under any contract;
   • (b) the balance, if any standing at the commencement of this Act, at the credit of the Municipal Fund;
   • (c) all proceeds of the disposal of property by, or on behalf of the Council;
   • (d) all rent accruing from any property of the Council;
   • (e) all moneys raised by any tax levied for the purposes of this act;
   • (f) all fees payable and levied under this Act;
   • (g) all moneys received by way of compensation or for compounding offences under the provisions of this Act;
   • (h) all moneys received by, or on behalf of the Council from the State Government or private individuals by way of grant or gift or deposits; and
     • (i) all interest and profits arising from any investment or from any transaction in connection with, any money belonging to the Council;
2. (2) Nothing in this section of in this act shall affect any obligations of a Council arising from a trust legally imposed upon or accepted by a Council.
3. (3) A Council may, for the purpose of efficient discharge of any of the duties imposed upon it under clauses(d),
   • (j) and (l) of section 123 by a resolution passed in that behalf, earmark for each such purpose a specified portion of its income every year for a specified number of years for being credited to a fund called the Public Utility Scheme Fund.

Application of Municipal property and fund Application of Municipal property and fund.-

1. (1) All property vested in Council under this Act, all funds received by it in accordance with the provisions of this Act, and all sums accruing to it under the provisions of any law for the time being in force, shall, subject to the provisions of this Act, be applied for the purposes of this Act, within the limits of the Municipality.
2. (2) Notwithstanding anything contained to sub-section (1), it shall be lawful; for a Council , subject to rules framed under this act:-
   • (a) to incur expenditure beyond the Municipal limits on the acquisition of land, or on the contraction , maintenance or repair of works, for the purpose of obtaining a supply of water required for the inhabitants of the Municipality or on providing the supply of electrical energy for the use of the inhabitant of the said Municipality or on establishing slaughter houses or places for the disposal of night soil or sewage or carcasses of animals or for drainage works , or for the purpose of providing mechanically propelled transport facilities for the convenience of the public or for to the purpose of setting up of diaries or parks for the supply, distribution and procuring of milk or milk product for the benefit of the inhabitants of the Municipality or for any other purpose calculated to promote the health, safety or convenience of the inhabitants of then said Municipality; or
   • (b) to make a contribution towards expenditure incurred by any other local authority or out of an public Fund for measures affecting to the health, instruction, safety or convenience of the public calculated to benefit the residents within the limits of the contributing Municipality or
   • (c) to create scholarship tenable outside the limits of the Municipality, or
   • (d) to utilize the Municipal fire brigade and other mechanical appliance beyond the Municipal limits ; or
   • (e) to make with the previous sanction of the State Government, any other kind of contribution as may be deemed necessary by the Council: Provided that nothing in this section or in any other provision of this act, shall be deemed to make it unlawful for a Council when it has constructed works beyond the limits of the Municipality for the supply of water or electrical energy or for drainage as aforesaid.-
   • (a) to supply or extend to or for the benefit of any person or building or lands in any place, whether such place is or is not within the limits of the said Municipality, any quantity of water of electrical energy not required for the purpose of this Act within the said Municipality or the advantages afforded by the system of drainage-works on such terms and conditions with regard to payment and to the continuance of such supply or advantages as shall be settled by agreement between the Council and such persons or the occupier or owner of such buildings or land, or
   • (b) to incur any expenditure on such terms with regard to payment as may be settled as aforesaid for the construction, maintenances, repair or change of any connection pipe or any electric supply lines or other works necessary for the purpose of such supply or for the extension of such advantages.

Repayment of loans.-Notwithstanding anything contained in Section 106, it shall be the duty of a Council to apply annually out of the Municipal fund first such as may be required for the payment of any amount falling due on any loan legally contracted by it.

Custody and investment of Municipal Fund.-

1. (1) In places where there is a Government treasury or sub-treasury or a bank to which the Government treasury business has been made over, the Municipal fund shall be kept in such treasury, sub-treasury or bank.
2. (2) In places where there is no such treasury or sub-treasury or banks, the Municipal fund may, with the previous approval of the State Government, be deposited with any banker who furnishes such security for the safe custody and repayment on demand of the fund so deposited as the State Government may, in each case , think sufficient.
3. (3) A Council may, from time to time with the previous sanction of the State Government, invest any portion of its Municipal fund in securities of the Government of India or in such other securities, including fixed deposits in banks, as the State Government may approve in this behalf, and may vary such investments for others of the like nature; and the income resulting from the securities and proceeds of the sale of the same shall be credited to the Municipal Fund.
4. (4) Notwithstanding anything contained in sub-sections (1), (20 and (3), a Council shall maintain cash balance not less than such amount as may be prescribed by rules in the office for meeting the current charges and may recoup the same as and when such cash balance in depleted on account of expenditure therefrom.

Provisions governing the disposal of Municipal property vesting in or under the management of Council.- No streets, land public places, drains or irrigation channels shall be sold, leased or otherwise alienated, save in accordance with such rules as may be made in this behalf.-

1. (2) Subject to the provisions of sub-section (1)-
   • (a) the Chief Municipal Officer may, in his discretion, grant a lease of any immovable property belonging to the Council, including any right of fishing or of gathering and taking fruits, flowers and then like, of which the premium or rent, or both, as the case may be, does not exceed two hundred and fifty rupees for any period not exceeding twelve months at a time: Provided that every such lease granted b y the Chief Municipal Officer, other than the lease of the class in respect of which the President-in-Council has by resolution exempted the Chief Municipal Officer from compliance with the requirements of this proviso, shall be reported by him to the President-in-Council within fifteen days after the same has been granted.
   • (b) with the sanction of the President-in-Council, the Chief Municipal Officer may, by sale or otherwise grant a lease of immovable property including any such right as aforesaid for any period not exceeding three years at a time of which the premium , or rent, or both, as the case may be, for any one year does not exceed one thousand five hundred rupees;
   • (c) with the sanction of the Council, the Chief Municipal Officer may lease, sell or otherwise convey any immovable property belonging to the Council.
2. (3) The sanction of the President-in-Council or of the Council under sub-section (2) may be given either generally for any class of cases or specially in any particular case: Provided that-
   • (i) no property vesting in the Council in trust shall be leased, sold or otherwise conveyed in a manner that is likely to prejudicially effect the purpose of the trust subject to which such property is held;
   • (ii) no land exceeding fifty thousand rupees in value shall be sold or otherwise conveyed without the previous sanction of the State Government and every sale or other conveyance of property vesting in the Council shall be deemed to be subject to the conditions and limitations imposed by this Act or by any other enactment for the time being in force.

Contracts by or on behalf of the Council.- The contracts by or on behalf of the Council shall be expressed to be made by the Chief Municipal Officer in accordance with the rules made in this behalf.

Cancellation or modification of arrangement binding permanently or for a number of years.- Where a Council has entered into any arrangement or made any promise, purporting to bind it or its successors for a number of years or for an unlimited period, to continue to any educational or charitable institutions, a yearly contribution from the Municipal property or fund, it shall be lawful for the Council or its successors with the sanction of the State Government to cancel such arrangement or promise, or to discontinue, or to diminish such yearly contribution:

Power of Council to borrow money Power of Council to borrow money.- Subject to the restrictions contained in any enactment relating to raising of loans by local authorities for the time being in force a Council may, in pursuance of a resolution passed at a special meeting convened for the purpose, raise a loan of any moneys required for carrying out the purpose of this Act: Provided that-

1. (i) no loan shall be raised without the previous sanction of the State Government ; and
2. (ii) the terms upon, the period within and the method by which the loan is to be raised and repaid, shall be subject to the approval of the State Government.

Annual estimate of income and expenditure.-

1. (1) The Chief Municipal Officer shall, on or before the first day of January each year, cause in the prescribed form and manner, to be prepared and laid before the finance committee and if there is no finance committee before the President-in-Council an estimate of the income and expenditure of the Council for the next financial year.
2. (2) The finance committee or the President-in-Council as the case may be, shall, as soon as may be, consider the budget estimates prepared by the Chief Municipal Officer and make such modifications and additions there to as it shall think fit and submit the same to the Council not later than the thirty-first day of January.
3. (3) the Council shall, as soon as may be consider the budget estimates as submitted by the Finance Committee or the President-in-Council as the case may be, and may adopt them without any change or subject to such alternations as it may deem expedient and shall forthwith submit the copies of the budget estimates as adopted by it to the prescribed authority and the State Government: Provided that no estimates shall be approved unless provisions is made there in for the council having at its credit at the end of the year a balance of not less than such amount as may be prescribed in this behalf. Provided further that if for any reasons the budget estimates could not be finally adopted by the Council before 31st day of March, as budget estimates.
   • (a) recommended by the Finance Committee or the President-in-Council as the case may be, or
   • (b) prepared by the Chief Municipal Officer, if the Finance Committee or President-in-Council has not considered the budget estimates, shall be deemed to be the budget estimates finally adopted by the Council until then estimates are so adopted. Provided also that if, in the opinion of the State Government, the condition of indebtedness of any Council is such that it is desirable to have control of the State Government over its budget the State Government may direct that the budget of such Council shall be subject to the prior sanction of the State Government and the power to vary or alter budget grants under section 117 and 118 shall be subject to such conditions as may be prescribed.

Power of Council to alter budget grants.-The Council may from time to time, during the financial year, transfer the amount or a portion of the amount of one budget grant from one major head to another in the budget estimate, or increase the amount of any budget grant, or make an additional budget grant for the purpose of meeting any special or unforeseen requirement arising during the said year, but not in such a way as to bring the estimated cash balance at the close of the year below the limit prescribed under the first proviso to sub-section (3) of section 116.

Power of Council to readjust income and expenditure during year.-

1. (1) If any time during the financial year it appears to the Council that the income of the Municipal fund during the same year will not suffice to meet the expenditure sanctioned in the budget estimates of that year, it shall be incumbent on the Council forthwith to sanction any measure which they may consider necessary for proportioning the year’s income to the expenditure.
2. (2) For the purposes of sub-section (1), the Council may either diminish the sanctioned expenditure of he year , so far as it may be possible so to do with due regard to all the requirements of this Act, or have reccurse, subject to the conditions and limitations prescribed by this Act, to supplementary taxation or to an increase of the rates, or adopt all or any of those methods.

Publication of accounts.- The annual accounts of receipts and expenditure, and the budget when sanctioned, shall be open to public inspection free of charge and shall be published in Hindi language in Devnagari Script.

Quarterly abstracts of accounts-

1. (1) The Chief Municipal Officer shall draw up a quarterly abstract of the receipt and expenditures of the preceding quarter and such abstract shall be examined by the prescribed authority.
2. (2) The abstract of the Municipal accounts drawn up under sub-section (1) shall be placed before the Council.
3. (3) For the purpose of examining the accounts by the Council, the Council shall have access to all the Municipal accounts and to all records and correspondence relating there to, and the Chief Municipal Officer shall furnish to the Council any explanation concerning the receipts and expenditure which it may call for.
4. (4) Any Councillor may, with the permission of the President and in the presence of the Chief Municipal Officer inspect any document relating to accounts of the Council within two days before the meeting of the Council in which they are to be considered.

Audit of Municipal Accounts-

1. (1) Notwithstanding anything contained in Section 3 of the Madhya Pradesh Local Fund Audit Act, 1933 (IX of 1933), the annual accounts of every Council shall be subject to audit under the said Act and the Council shall be liable to pay such audit fee as the State Government may from time to time, specify in this behalf.
2. (2) Copies of the Audit Report of the Auditor on the annual account of the Council under sub-section (1) shall be furnished to the State Government or such other authority as may be specified by the State Government in this behalf in addition to the President and Chief Municipal Officer.
3. (3) If the accounts of the Council are not audited under the sub-section (1) by the Local Fund Audit Department, the Council, shall have the option, subject to sanction of the State Government, to get its accounts audited by an outside agency.

Municipal authorities to remedy defects and report.

1. (1) The Council or the Chief Municipal Officer, as the case may be, shall forthwith remedy any defects or irregularities that may be communicated by the prescribed authority or Local Fund Audit Department or the outside auditing agency, as the case may be, and shall send a report to the State Government directly or through such authority as the State Government may prescribe, of the action taken by the Municipal authorities concerned within a period of three months from the date of receipt of the Audit Report: Provided that if there is difference of opinion between the Municipal authorities and the prescribed authority or the Local Fund Audit Department, or if the Municipal authority does not remedy any defect or irregularity within the said period of three months, the matter shall be referred to the State Government within such time and in such manner as may be prescribed by rules, and the State Government may pass such orders thereon as it thinks fit. The orders of the State Government shall be final and the Municipal authorities shall take action in accordance therewith.
2. (2) If within any period fixed by an order made by the State Government under sub-section (1), the Municipal authority concerned fails to comply with such orders, the provisions relating to defaults contained in Section 327, shall with all necessary modifications, be deemed to apply to this case and the State Government shall act accordingly.

A.-Social Audit.-

Duties of Council Duties of Council.-

1. (1) In addition to the duties imposed upon it by or under this Act or any other enactment for the time being in force, it shall be the duty of a Council to undertake and made reasonable and adequate provision for the following matters within the limits of the Municipality, namely:-
   • (a) lighting public streets, places and buildings;
   • (b) cleansing public streets, places and sewers, and places, not being private property, which are open to the enjoyment of the public whether such places are vested in the Council or not; removing noxious vegetation, and abating all public nuisances;
   • (c) disposing of night soil and rubbish and preparation of compost manure from night soil and rubbish;
   • (d) extinguishing fire and protecting life and property when fire occurs;
   • (e) regulating or abating offensive or dangerous trades or practices;
   • (f) removing obstruction and projection in public streets or places and in spaces not being private property, which are open to the enjoyment of public; whether such spaces are vested in the Council or in the State Government;
   • (g) acquiring, maintaining, changing and regulating places for the disposal of the dead;
   • (h) taking special measures as may be required by the prescribed authority or any other authority empowered to issue a direction in this behalf under any law for the time being in force for disposal of dead bodies during epidemics and other unforeseen emergencies;
     • (i) securing or removing dangerous building or places, and reclaiming unhealthy localities;
   • (j) constructing , altering and maintaining public streets, culverts, Municipal boundary marks, markets, hats, slaughter-houses, latrines, privies, urinals, drains, sewers, drainage works, sewerage works, baths, washing places, drinking fountains, tanks, wells, dams and the like;
   • (k) establishing and managing cattle pounds, including, where the Cattle Trespass Act, 1871 (1 of 1871), is in operation, all the functions of the State Government and the Magistrate of the district under sections 4, 5, 6, 7, 12, 14, 17 and 19 of the Act.
   • (l) obtaining a supply or an additional supply of water, proper and sufficient, for preventing danger to the health of the inhabitants and domestic cattle on account of insufficiency or unwholesomeness, of the current supply when such supply or additional supply can be obtained at a reasonable cost and having such water analysed periodically;
   • (m) naming streets and parks and numbering houses;
   • (n) registering births, marriages and deaths;
   • (o) public vaccination;
   • (p) providing suitable accommodation for any calves, cows or buffaloes required within the Municipal limits for the supply of animal lymph;
   • (q) registration of cattle and carrying out the census of agricultural cattle at such intervals as may be prescribed;
   • (r) taking such measures as may be required to prevent the out-break or spread or recurrence of infectious disease; preparing such annual reports on the Municipal administration as the State Government may, by general or special orders, require the Council to submit;
   • (t) erecting substantial boundary marks of such description and in such position as shall be approved by the Collector, defining the limits or any alteration in the limits of the Municipality;
   • (u) constructing and maintaining residential quarters for the conservancy staff of the Council;
     • (v) establishing and maintaining primary schools; Provided that the State Government may, by notification and subject to such conditions as it may like to impose, exempt any Municipality from any of the provisions of this section.
2. (2) In addition to the duties imposed under sub-section (1) a Council shall, in times of distress such as out-break of an epidemic of famine or other natural calamity, render such assistance and co-operation as the State Government may require for the following matters, namely:-
   • (a) providing special medical aid and accommodation for the sick;
   • (b) giving relief to, and establishing and maintaining relief works for destitute persons within the limits of Municipality.
3. (3) No suit for damages or for specific performance shall be maintainable against any Council or any officer or Councillor thereof, on the ground that any of the duties specified in this section has not been performed.

Discretionary Powers of Council.-A Council may, at its discretion provide, either wholly or partly out of the Municipal property and fund, for all or any of the following matters namely:-

1. (a) reclaiming unhealthy localities, laying out, whether in area previously built upon or not, new public streets, and acquiring land for that purpose, including plots of land for building to abut on such streets.
2. (b) constructing, establishing or maintaining public parks, gardens, play-grounds and open spaces, libraries, museums, lunatic asylums, halls, offices, dharamshalas, rest-house and other public buildings;
3. (c) furthering educational objects;
4. (d) planting and maintaining roadside and other trees’
5. (e) watering public streets and places;
6. (f) playing of music in squares, gardens or other places of public resort;
7. (g) taking a census, for local purposes and granting rewards for information which may tend to secure the correct registration of vital statistics;
8. (h) making a survey;
   • (i) paying the salaries and allowances, rent and other charges incidental to the maintenance of the Court of any stipendiary or honorary Magistrate, or any portion of any such charges;
9. (j) destruction or the detention of dogs and pigs which may be destroyed or detained under the provision of this Act or under any other enactment for the time being in force in the State.
10. (k) securing or assisting to secure suitable places for the carrying on of the dangerous and offensive trades specified by or under this Act;
11. (l) supplying, constructing and maintaining receptacles, fittings, pipes and other appliances whatsoever, on or for the use of private premises for receiving and conducting the sewage thereof into sewers under control of the Council;
12. (m) establishing and maintaining a farm or factory for the disposal of sewage;
13. (n) promoting the well-being of Municipal employees or class of employees and of their dependents;
14. (o) providing housing accommodation for any class of employees of the Council other than the conservancy staff;
15. (p) the construction of sanitary dwelling houses for the poorer classes;
16. (q) making contribution towards the construction, establishment or maintenance of education institutions including libraries and museums, hospitals, dispensaries or similar institutions providing public medical relief or engaged in social work or other institutions of a charitable nature;
17. (r) the acquisition and maintenance of pasture lands or grazing grounds and the establishment and maintenance of dairy farms and breeding stud; the setting up of dairies or farms for the supply, distribution and processing of milk or milk products for the benefit of the inhabitants of the Municipal area;
18. (t) securing and distribution either free or at reduced price, particularly for the use of expectant and nursing mothers, children and invalids, full-cream or skimmed milk, condensed milk, evaporated milk, milk power and synthetic or soyabean milk;
19. (u) establishing and running lodging and boarding houses;
    • (v) establishing and running eating houses such as refreshment rooms tea shops, sweetmeat shops, restaurants, cafes, canteens, hotels and any such place where food and drinks are served; Explanation.- For the purpose of this clause “drinks” shall not include such drinks to which provisions of the Madhya Pradesh Excise Act, 1915 (II of 1915), or the Madhya Pradesh Prohibition Act, 1938 (VII of 1938), apply;
20. (w) providing and maintaining public bathing places or swimming pools with sheds, booths and other conveniences;
    • (x) undertaking any commercial enterprises;
21. (y) constructing and maintaining such roads, buildings and other Government works other than irrigation works, as the State Government may, in accordance with rules made under this Act, transfer to the Council;
22. (z) providing for the maintenance and treatment of lunatics and lepers residing within or removal from the Municipal area at an asylum, hospital or house approved by the State Government;
23. (aa) arranging for the removal of lunatics, lepers and persons needing anti-rabic treatment to an asylum, hospital or house whether within or without the Municipal limits set up for the treatment of such persons;
24. (bb) holding meals and fairs;
25. (cc) establishing ashrams for destitutes, blind, crippled, lame disabled and old persons;
26. (dd) establishing and maintaining veterinary dispensaries;
27. (ee) any public reception, ceremony, entertainment or exhibition within the Municipality at a cost not exceeding such amount as may be prescribed by rules in this behalf: Provided that a resolution in that behalf is passed by the Council at an ordinary meeting;
28. (ff) any matter likely to promote the public health, education, safety and convenience of the public not otherwise provided for;
29. (gg) establishing and maintaining hospitals and dispensaries;
30. (hh) Establishing and maintaining poor houses; and
    • (ii) urban planning including town planning;
31. (jj) regulation of land use and construction of buildings;
32. (kk) planning for economic and social development;
33. (ll) urban forestry, protection of the environment and promotion of ecological aspects;
34. (mm) safeguarding the interest of weaker sections of society including the handicapped and mentally retarded;
35. (nn) urban poverty alleviation; and
36. (oo) any other matter with the previous approval of the State Government.

Management of Public Institutions.-

1. (1) The Management control and administration of every public institution maintained out of Municipal fund shall vest in the Council: Provided that the management of such public institution shall be regulated by rules framed by the State Government in this behalf.
2. (2) When any public institution has been placed under the direction, management and control of the Council, all property, endowments and funds belonging thereto shall be held by the Council in trust for the purposes to which such property, endowments and funds were lawfully applicable at the time when the institution was so placed: Provided that nothing in this section shall be held to prevent the vesting of any trust property in the Treasurer of Charitable Endowments under the Charitable Endowments Act, 1890 (VI of 1890)

Annual letting value of land or building.-

1. (1) Notwithstanding anything contained in this Act or any other law for the time being in force, annual letting value of any building or land, whether revenue paying or not, shall be determined as per the resolution of the Corporation adopted in this behalf on the basis of per square meter of the carpet area of a building or land, as the case may be, taking into consideration the area in which the building or land is situate, its location, situation, purpose for which it is used, its capacity for profitable user, quality of construction of the buildings and other relevant factors and subject to such rules as may be made by the State Government in this behalf. 1-a The Commissioner shall prepare the draft resolution under sub-section (1) for the next financial year and submit before the Corporation before 31st December of each financial year. In case the Corporation fails to adopt the resolution as required by sub-section (1) by 31st March of each financial year then the draft resolution prepared by the Commissioner shall be presented to the Mayor and the resolution as approved by the Mayor shall be deemed to be the resolution finally adopted by the Corporation.
2. (2) On the basis of the resolution adopted by the Corporation under sub-section (1), every owner of land or building shall assess the annual letting value of his land or building and deposit the amount of property tax along with a return in this behalf, in the prescribed form, on or before the date fixed by the Corporation, failing which a surcharge at the rate, as may be determined by the Corporation, shall be charged.
3. (3) The variation up to ten per cent on either side in the assessment made under sub-section (2) shall be ignored. In case where the variation is more than ten percent, the owner of land or building, as the case may be, shall be liable to pay penalty equal to five times the difference of self assessment made by him and the assessment made by the Corporation.
4. (4) An appeal shall lie to the Mayor-in-Council against the orders passed under sub-section (3).

Taxes to be imposed under this Act.-

1. (1) For the purpose of this Act, the Corporation shall, subject to any general or special order which the State Government may make in this behalf, impose in the whole or in any part of the Municipal Area, the following taxes namely.-
   • (a) a tax payable by the owners of buildings or lands situated within the city with reference to the gross annual letting value of the buildings or lands, called the property tax, subject to the provisions of Sections 135,136 and 138.
   • (b) a water tax, in respect of lands and building to which a water supply is furnished from or which are connected by means of pipe with municipal water works.
   • (c) a general sanitary cess, for the construction and maintenance of public latrines and for removal and disposal of refuse and general cleanliness of the city.
   • (d) a general lighting tax, where the lighting of public streets and places is undertaken by the corporation.
   • (e) a general fire tax, for the conduct and management of the fire service and for the protection of life and property in the case of fire.
   • (f) a local body tax on the entry of such goods as may be declared by the State Government by notification in the Official Gazette into the municipal area for consumption, use or sale therein at a rate not exceeding four percent of the value of goods: Provided that no local body tax shall be levied on the goods-
     • (i) brought by a person into the municipal area for his personal use or consumption; or
     • (ii) brought by a registered dealer within the municipal area and transmitted within 15 days thereof-
   • (a) to a registered dealer in any other local body; or
   • (b) in the course of export out of the territory of India; or
   • (c) in the course of inter state trade outside the State.
     • (iii) specified in the Schedule to the Madhya Pradesh Sthaniya Kshetron Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No. 52 of 1976).
2. (2) Notwithstanding anything contained in clause (f) of sub-section (1) if in the opinion of the State Government it is expedient to do so, it may delegate the power to the Corporation to declare the goods on which local body tax shall be levied and the rates thereof.
3. (3) The mode of assessment and collection of the local body tax shall be such as may be prescribed.
4. (4) The water tax under the clause (b) of sub-section (1) shall be charged-
   • (a) on buildings and lands which are exempted from property tax, at a rate as shall be determined by the Corporation.(omitted)
   • (b) on buildings and lands which are not exempted from property tax, at a rate as determined in clause (a) plus such percentage of the property tax, as shall be determined by the Corporation. Provided that the water tax under clause (b) of sub-section (1) shall not be levied on building and land owned by freedom fighters during their life time, if they are exempted from Income Tax and the water connection is for domestic purpose and which does not exceed half inch connection.
5. (5) The taxes under clause (c), (d), and (e) of sub-section (1) shall be levied at a consolidated rate as under:-
   • (a) on buildings and lands which are exempted from property tax at a rate as determined by the corporation (omitted)
   • (b) on buildings and lands which are not exempted from property tax at a rate prescribed under clause (a) plus such percentage of the property tax, as may be determined by the Corporation, subject to the conditions that such percentage shall not exceed ten percent of the amount of property tax.
6. (6) In addition to the taxes specified in sub-section (1), the Corporation may, for the purpose of this Act, subject to any general or special order which the State Government may make in this behalf, impose any of the following taxes, namely:-
   • (a) a latrine or conservancy tax payable by the occupier or owner upon private latrines, privies or cesspools or open premised or compounds cleansed by Corporation agency;
   • (b) a drainage tax, where a system of drainage has been introduced;
   • (c) a tax on persons exercising any profession or art or carrying on any trade or calling within the city;
   • (d) omitted
   • (e) omitted.
   • (f) fees on the registration of cattle sold within the city;
   • (g) market dues on persons exposing goods for sale in any market or in any place belonging to or under the control of the Government or of the Corporation;
   • (h) a betterment tax on properties whose value may have improved as a result of town planning scheme under taken by the Corporation;
     • (i) a tax on pilgrims resorting periodically to a shrine within the limits of the Corporation;
   • (j) a tax on persons occupying houses, buildings or lands within the limits of the Corporation according to their circumstances and property;
   • (k) a toll on new bridge constructed by the Corporation;
   • (l) a tax on advertisement other than advertisements published in news papers.
   • (m) a tax on theaters, theatrical performances and other shows for public amusement;
   • (n) a terminal tax on goods or animals exported from the limits of the Corporation; and
   • (o) any other tax which the State Government has power to impose under the Constitution of India, with the prior approval of the State Government.
7. (7) Subject to the provisions of Article 277 of the Constitution of India, any tax which immediately before the commencement of the Madhya Pradesh Municipal Corporation Law (Extension) Act, 1960 (No. 13 of 1960) was being lawfully levied by the Corporation, may, notwithstanding that such tax is not specified in sub-section (1) or (6), continue to be levied by the Corporation.
8. (8) The imposition of any tax under this Section shall be subject to the provisions of this Act and of any other enactment for the time being in force.
9. (9) omitted
10. (10) Notwithstanding anything contained in this chapter, the Corporation may impose upon properties specified in clause (a) of Section 136, all or any of the taxes specified in clause (b),
    • (c) and (d) of sub-section (1) and clause (b) of sub-section (6) at a rate, in excess of the rate which such tax is imposed, on other properties under the respective clauses, as the State Government may, by notification, specify.

-A Imposition of Property Tax.-

1. (1) Notwithstanding anything contained in this Act, the tax under clause (i) of sub-section (1) of section 127 shall be charged, levied and paid, at the rate not less than six percent and not more than ten percent of the annual letting value, as may be determined by the Corporation for each financial year. Provided that if the Corporation fails to determine the rate of the property tax by 31st March the rate as prevailing during the previous financial year shall be deemed to be the rate for current financial year.
2. (2) The property tax levied under section 135 shall not be leviable in respect of the following properties, namely:-
   • (a) buildings and lands owned by or vesting in-
     • (i) the Union Government;
     • (ii) the State Government;
     • (iii) the Corporation;
   • (b) buildings and lands the annual value of which does not exceed six thousand rupees in case of Municipal area having population of one lac or above and four thousand eight hundred rupees in case of Municipal area having population below on lac. Provided that if any such building or land is in the ownership of a person who owns any other building or land in then same city, the annual value of such building or land shall for the purposes of this clause, be deemed to be the aggregate annual value of all buildings or lands, owned by him in the city;
   • (c) buildings and lands or portions there of used exclusively for educational purposes including schools, boarding houses, hostels and libraries if such buildings and lands or portions thereof are either owned by the educational institutions concerned or have been placed at the disposal of such educational institutions without payment of any rent;
   • (d) public parks and play grounds which are open to the public and building and land attached thereto if the rent derived there from is exclusively spent for the administration of parks and playgrounds to which they are attached;
   • (e) buildings and land or portions thereof used exclusively for public worship or public charity such as mosques, temples, churches, dharmashalas, gurudwaras, hospitals, dispensaries, orphanages, alms houses, drinking water fountains, infirmaries for the treatment and care of animals and public burial grounds, or other places for the disposal of the dead: Provided that the following buildings and lands or portions thereof shall not be deemed to be used exclusively for public worship or for public charity within the meaning of this Section, namely:-
     • (i) building in or lands on which any trade or business is carried on unless the rent derived from such buildings or lands is applied exclusively to religious purposes or to public charitable institutions aforesaid;
     • (ii) buildings or lands in respect of which rent is derived and such rent is not applied exclusively to religious purposes or public charitable institutions aforesaid.
   • (f) buildings or lands owned by widows or minors or persons subject to physical disability or mental infirmity owing to which they are incapable of earning their livelihood, where the main source of maintenance of such widows or minors or persons is the rent derived form such buildings and lands: Provided that such exemption shall, relate only to the first twelve thousand rupees or the annual value of such buildings and lands.
   • (g) buildings and lands owned by freedom fighters, retired members of Defense Services and their widows during their life time if they are exempted from income tax.
   • (h) building and lands owned by blind persons, abandoned women and mentally incapacitated persons if sufficient proof is produced in this behalf and if the main source of their maintenance is he rent derived from such buildings and lands.
     • (i) buildings and lands in occupation of owner or his residence shall be exempted from property tax to the extent of fifty per cent.
   • (j) the electric pole erected by the Madhya Pradesh Electric Board.
   • (k) property owned by such political party in the State which has been recognized by the Election Commission of India. 128.

Imposition of Taxes and Fees Imposition of Taxes and Fees.-

1. (1) The Council may, by a resolution, at the time to final adoption of the budget estimates for the next financial year, subject to the provisions of this Act and subject to such limitations and conditions, as may be prescribed by the State Government in this behalf-
   • (a) impose any of the taxes or fees specified in this Act; or
   • (b) increase the rates of taxes or fees already imposed.
2. (2) The resolution as referred to in sub-section (1) shall contain-
   • (a) in case of imposition of any tax or fees, the provisions under which such tax or fee is being imposed, class of persons or description of property to be taxed, the amount or rate of tax or fee being imposed, system of assessment and collection to be adopted and the date from which imposition of such tax or fee shall take effect;
   • (b) in case of increase of rate of any tax or fee, the prevailing rate of such tax or fee, the proposed increased rate of such tax or fee and the date from which increase of rate of such tax or fees shall take effect.
3. (3) The resolution, as passed, shall be conclusive evidence of the imposition of a new tax or fee; or increase of rate of any tax or fee, as the case may be: Provided that if the Corporation decides to have supplementary taxation during the financial year; it may do so from such date as the Corporation may resolve, subject to the provisions of this Act and subject to such limitation and conditions as may be prescribed by the State Government in this behalf.
4. (4) Nothing contained in this section shall apply to tax mentioned in clause (i) of sub-section (1) of Section 127, which shall be charged and levied in accordance with Section 127-A.

Abolition or variation in tax.- The Council may, with the prior approval of the State Government, abolish, suspend or reduce the rate of any tax.

Power of State Government in regard to relief in taxes.- If, on a complaint made to it or otherwise, it appears to the State Government that any tax levied by a Council is unfair in its incidence or that such levy or any part thereof is obnoxious to the interest of the inhabitants of the Municipality, it may, by an order, require the Council to remove the objections to any such tax within such time as may be specified therein, and on the failure of Council to comply with the order within the time so specified to the satisfaction of the State Government, the State Government may, by notification and subject to such conditions or restrictions as may be specified therein, abolish, suspend or reduce the amount or rate of any tax.

Power of State Government to grant exemption from taxes.- The State Government may, on it own motion or otherwise, after giving the Council an opportunity of expressing its views in the matter, by order, exempt from payment of any tax in whole or in part any person or class of persons or any property or description of properties for the purpose of granting protection to any industry or for any other purpose in public interest subject to such conditions as may be specified in such order.

A. Creation of Infrastructure Development Fund.-(1) Notwithstanding anything contained in this Act or any other Act for the time being in force, the State Government may create an Infrastructure Development Fund with a view of assist the Municipalities in developing the infrastructure.

1. (2) The sources of the infrastructure fund and the procedure and manner in which the amount from the fund shall be provided in Municipalities shall be such as may be prescribed.

Refund of taxes.--

1. (1) The State Government may make rules under this Act regulating the refund of taxes and such rules may impose limitation on such refunds.
2. (2) No refund of any tax shall be claimable by any person otherwise than that in accordance with the provisions of this Act, and the rules and bye-laws made thereunder.

Preparation of assessment list.-

1. (1) When a tax on buildings or lands or both is imposed, the Chief Municipal Officer shall cause an assessment list of all buildings or lands and buildings in the Municipality to be prepared containing-
   • (a) the name of the street or division in which the property is situated;
   • (b) description of the property sufficient for identification;
   • (c) the name of the owner or occupier; if known;
   • (d) the valuation based on capital or annual letting value, as the case may be, on which the property is assessed;
   • (e) the rate of tax applicable;
   • (f) the amount of tax assessed thereon;
   • (g) If the property is exempted from tax, a note to that effect.
2. (2) In assessing a tax on buildings or lands where the valuation as determined under clause (d) of sub-section (1) is the annual letting value, a sum equal to ten per cent of the said valuation shall be deducted therefrom in lieu of an allowance for repairs or any other account whatsoever.
3. (3) For the purpose of preparing such assessment list the Chief Municipal Officer or any person acting under his authority may inspect any building or land in the Municipality and on the requisition of the Chief Municipal Officer the owner or occupier of any such building or land shall, within such reasonable period as shall be specified in the requisition, be bound to furnish a true return to the best of his knowledge or belief of the name and place of abode of the owner or occupier or of both and the annual letting value and his estimate of the value of such building or land, duly signed by him.

Person liable how to be designated if name is not known.-

1. (1) When the name of the person primarily liable for the payment of the tax on buildings or lands or both in respect of any premises cannot be ascertained, it shall be sufficient to designate him in the Assessment list as “the holder” of such premises, without further description and to serve upon the said person any notice which it may be necessary to serve under this Act.
2. (2) If, any such case, any person in occupation of the premises fails to furnish such information as may be requisite for determining as to who is primarily liable as aforesaid, such person shall, until such information is made available to the Chief Municipal Officer be himself liable for all taxes on buildings or lands or both leviable on the premises of which he is in occupation.

Publication of notice of assessment list.- When the assessment list has been completed, the Chief Municipal Officer shall give public notice thereof, and of the place where the list or a copy thereof may be inspected; and every person claiming to be either owner or occupier of property included in the list, and any agent of such person duly authorized by him in writing may inspect that list and take extracts there from free of any charge.

Public notice of time fixed for lodging objections.-(1) The Chief Municipal Officer shall, at the time of the publication of the assessment list under Section 136, give public notice of a date not earlier than thirty days from the publication of such notice by which objections to the valuation or assessment in such lists may be delivered at his office.

1. (2) The Chief Municipal Officer shall, in all cases in which the property is for the first time assessed or the assessment is increased as a result of increase in the valuation of the property give special notice there of to the owner or occupier of the property, if known and if the owner or occupier of property is not known, shall cause such notice to be affixed in a conspicuous place on the property.
2. (3) Any person, dissatisfied with a valuation or assessment made under this Chapter, may file an objection at the Municipal office stating the grounds to such valuation or assessment on or before the last day fixed in this behalf in public notice referred to in sub-section (1) or (2).

Investigation of objections by Chief Municipal Officer.-(1) All such objections shall be entered in a register to be maintained for the purpose and on receipt of any objection the Chief Municipal Officer shall give a notice in writing to the objector of the time and place at which his objection will be investigated.

1. (2) At the time and place so fixed, the Municipal Officer shall hear the objection, in the presence of the objector or his authorized agent if he appears , or may for reasonable cause, adjourn the investigation.
2. (3) When the objection has been determined, the order passed on such objection shall be recorded in the said register and, if necessary, an amendment made in the assessment list in accordance with the result of the objection.
3. (4) If the Chief Municipal Officer fails to determine the objection within a period of one year from the date of its filing, it shall be deemed that the objection so filed has been disallowed and the objector may prefer an appeal under section 139 of the Act.

Appeal to Civil Judge.-

1. (1) If any dispute arises as to the liability of any land or building to assessment or as to the basis or principle of assessment or as to the amount of tax assessed an appeal shall lie from the decision of the Council to the Civil Judge Class I having jurisdiction over the Municipal area and if there be no Civil Judge Class I at the headquarter of the Municipality to the Civil Judge Class II having jurisdiction at such headquarter and if there be no Civil Judge Class II at such headquarter to the Civil Judge Class II having jurisdiction, and in case more than one such Civil Judges at the headquarter or having jurisdiction, as the case may be, to such of them as the District Judge may specify.
2. (2) Such appeal shall be presented to the Civil Judge within thirty days from the date of the order passed under Section 138 and shall be accompanied by an extract from the register of objections containing the order objected to.
3. (3) The provisions of Part-II and III of the Indian Limitation Act, 1908 (IX of 1908), relating to appeals shall apply to every appeal preferred under this section.
4. (4) No appeal shall be admitted under this section unless an objection has been preferred under Section 137.
5. (5) The decision of the Civil Judge in an appeal made under sub-section (1) shall, subject to the decision in revision by the Court to which appeals against the decisions of such Civil Judge ordinarily lie, be final and effect shall be given by Council to such decision.
6. (6) The pendency of an appeal under this section shall not operate to delay or prevent the levy of any tax or installment thereof payable in respect of any building or land according to the order of assessment under appeal but, if by the final decision in the appeal it is determined that such tax or installment ought not to have been levied in whole or in part, the Chief Executive Officer shall refund to the person whom the same has been levied, the amount of such tax or installment, or the excess thereof over the amount properly leviable in accordance with such final decision, as the case may be. Explanation.- A reference to a Council in the Section shall be read and construed as a reference to the Chief Municipal Officer.

Authentication of assessment list when all objections disposed of-

1. (1) When all objections made under Section 137 have been disposed of and all amendments required by Section 138 have been made in the assessment list, it shall be authenticated by the Chief Municipal Officer who shall certify under his signature that except in the cases in which amendments have been made as shown therein, no valid objection has been made to the valuation and assessment as entered in the said list:

Provided that where the function of the Council under sub-section (2) of Section 138 is under the provisions of this Act performed by the President-in-Council or any other Committee, such list shall, in addition, be authenticated and certified as aforesaid by not less than two members of such Committee.

1. (2) The Council may, with the previous sanction of the State Government, appoint any Government officer to perform the functions of the Council under this Act and where any officer is so appointed, the list shall be authenticated and certified as aforesaid by such officer. Explanation: For the purpose of this section “Government officer” shall include retired Government officer.
2. (3) The list so authenticated shall be kept in the Municipal Office, and shall be open to inspection during office hours to all owners and occupiers of property entered therein or to the agents of such persons and the notice that it is so open shall be forthwith published.
3. (4) Subject to such alterations as may be made therein under the provisions of Section 138 and to the result of any appeal under Section 139, the entries in the assessment list so authenticated and deposited and the entries, if any, inserted in the said list under the provisions of Section 141 shall be accepted as conclusive evidence-
   • (i) for the purposes of all Municipal taxes of valuation, or annual letting value on the basis prescribed in the rule regulating the tax, of buildings, lands and both buildings and lands to which such entries respectively refer; and
   • (ii) for the purposes of the tax for which such assessment list has been prepared, of the amount of the tax leviable on such buildings or lands or both buildings and lands in any official year in which such list is in force.

Power of Council to amend assessment list.-

1. (1) The Council may, at any time, amend the assessment list by the inclusion, omission or substitution of any matter: Provided that whenever it propose to make any amendment in respect of any matter other than the correction of an arithmetical errors, it shall, before making the amendment, send notice there of persons interested and shall allow thirty days to elapse for the making of any objection to the proposed amendment: Provided further that nothing in this section shall empower the Council to vary the valuation of any premises determined on appeal.
2. (2) If any amendment be made in respect of any matter other than the correction of an arithmetical error, any person on whom a notice is served may object by a written application addressed to the Chief Municipal Officer and delivered at the Council office before the date fixed in the said notice; and the provisions of Sections 138 and 140 shall, with all necessary modifications, apply to such objection.
3. (3) When the erection of a new building is completed after the completion of the assessment list the Council may add the particulars of the Building to then list and in such case the provisions of Sections 135, 136 and 137 shall apply except that no public notice shall be required. In such a case the assessment shall take effect from the beginning of the quarter following then date on which the building is added to the assessment list or from the date when it is occupied or let, if that is earlier.

Entries in assessment list to be final.-Subject to the provisions of Section 141 and decision in appeal, if any preferred under Section 139 every entry in the assessment list authenticated under Section 140 shall be final.

Notice of increase of rent.-(1) When an owner has furnished information or a written return as provided by sub-section

1. (3) of Section 134,he shall give notice in writing the Chief Municipal Officer of any subsequent increase in the rent.
2. (2) If an owner of any land or building or any portion thereof has, after he has been assessed for same, made an increase in the rent thereof, he shall give notice in writing to the Chief Municipal Officer of such increase.
3. (3) The Council shall, on receipt of such notice as to increase of rent, amend the assessment list by alerting the assessment of such land or building or portion thereof as provided by Section 141:

Provided that no revision of assessment shall be made during the year unless the increase in rent is due to material addition or alteration in the building.

Notice to be given of demolition of building.-(1) When any building or any portion of a building, which is liable to the payment of property tax is demolished or removed, otherwise than by order of the Council or has fallen down or has been destroyed by fire or any other cause the person primarily liable for the payment of the said tax shall give notice thereof, in writing, to the Chief Municipal Officer.

1. (2) Until such notice is given the person aforesaid shall continue to be liable to pay the property tax as if same of portion thereof, has not been demolished or removed or has not fallen down or been destroyed by fire or otherwise.

Failure to give notice of an increase of rent.-Whoever fails to give notice of an increase of rent required by sub-sections (1) and (2) of Section143 or gives notice of an increase of rent which in substance is untrue, he shall be punishable with fine which may extend to two hundred rupees.

New assessment list need not be prepared every year.-(1) The Council may, instead of making a new assessment every year, adopt the existing assessment, with such alteration as it thinks fit, as the assessments for each new year, giving to persons affected by such alterations the same notice of the altered valuation and assessment as would have been required if a new assessment had been prepared.

1. (2) The Council shall arrange for a survey for the purposes of assessments of each part of the Municipality at least once in four years.
2. (3) The provisions of Sections 134 to 140 shall, so far as may be, apply for the purposes of this section.

Responsibility for payment of property tax.- The property tax leviable upon any land or building shall be paid by the owner thereof. Explanation- For the purpose of this section a tenant of land or building or both, under a lease for any agreed period with a covenant for its renewal thereafter, shall be deemed to be owner thereof.

Right of occupier to recover from owner.- Any tax or sum leviable under this Act from the owner may be recovered from the occupier, and in such case such occupier shall, in the absence of any contract to the contrary, be entitled to recover the same from the owner and may deduct the same from any rent then or thereafter due by him to the owner: Provided that the occupier shall not be liable for any such tax or sum due for a period prior to the date of commencement of his occupy.

149.

Notice of transfer of titles, when to be given Notice of transfer of titles, when to be given.-(1) Whenever the title in any land or building or in any part or share of any land or building is transferred, the transferor and the transferee shall, within three months of the registration of the deed of transfer, or if it be not registered, within three months of the execution of the instrument of transfer, or, if no such instrument be executed within ninety days after the transfer is effected, give notice in writing of such transfer to the Council.

1. (2) Every person liable for the payment of a tax on any property, who transfers his title to or over such property without giving notice of such transfer to the Council as aforesaid, shall, in addition to any other liability with he incurs through such neglect, continue to be liable for the payment of all such taxes payable in respect of the said property until he gives such notice or until the transfer is recorded in the Council’s books: Provided that nothing in this section shall affect the liability of the transferee for payment of the said tax or the prior claim of the Council on the property for the recovery thereof: Provided further that the Council shall not recover more than the amount of the tax due in respect of the said property.
2. (3) In the event of the death of the person in whom title to any land or building or in any part or share of any land or building vests, the person who as heir or otherwise takes the title of the deceased by descent or devise shall, within three months from the death of the deceased, give notice of this title to the Council in writing.
3. (4) Nothing in this section shall be deemed to affect the liability of the heir or devises for the said taxes or to affect the prior claim of the Council for the recovery of the taxes due thereupon.

Form of notice of transfer of titles.-(1) The notice to be given under Section 150 shall be in such forms as may be prescribed by rules.

1. (2) On receipt of any such notice the Council may, if it thinks necessary, require the production of the instrument of transfer, if any, or a copy thereof.

Tables for tolls to be shown on demand-A Coouncil imposing any toll under this Act shall cause to be kept, at each place where such toll is to be collected, a table in Hindi Language, written in Devnagri Script , showing the amount leviable in all cases provided for in the rules, including the terms, if any, on which the liability to pay such tolls may be compounded by periodical payment, and it shall be the duty of every person authorized to demand payment of a toll to show such table on the request of any person to whom such demand is made.

Procedure in case of non-payment of tolls or octroi.-

1. (1) If any toll leviable under this Act is not paid on demand, the person appointed to collect it may seize and detain such portion of the load of any animal or vehicle on which the toll is chargeable, as will, in his opinion suffice to defray the amount due in respect of suchn toll and in the absence of any load on an animal or vehicle on which the toll is chargeable, or in the event of its valuable being insufficient to defray the amount due, he may seize and detain the animal or vehicle.
2. (2) The person on seizing or detaining the goods or animal or vehicle, as the case may be, shall, on such seizure or detention give a list of the property seized or detained to the person in charge of such property at the time of its seizure or detention and shall along with such list deliver to him a notice in the form prescribed by rules to the effect that the property so seized or detained shall be sold by auction at the place and time to be specified therein. A copy of each list of the property and the notice shall fortheiwth be sent to the Chief Municipal Officer or to such other officer as he may authorize in this behalf.
3. (3) When the property sezed under sub-section (1) is subject to speedy and natural decay, or when the expense of keeping it together with the amount of octroi or toll chargeable is likely to exceed its value, the same shall be taken forthwith to the Chief Municipal Officer or such officer shall proceed to sell it forthwith.
4. (4) If at any time before the sale is completed the amount due, together with all charges incurred in connection with the seizure or detention is tendered to the Chief Municipal Officer or to the officer authorized as aforesaid the property seized shall forthwith be released.
5. (5) If no such tender is made, the property may be sold and the proceeds of the sale applied to the payment of-
   • (i) the amount due on account of toll;
   • (ii) the charges incurred in connection with the seizure, detention and sale.
6. (6) The surplus proceeds shall be forthwith credited to the Municipal fund and notice of such credit shall be given at the same time to the person in whose possession then property was at the time of seizure or detention. If such person claims the surplus by written application to the Chief Municipal Officer within one year from the date of the notice given under this sub-section, the Chief Municipal Officer shall refund the surplus to him.
7. (7) Any such surplus not so claimed shall be the property of the Council.

Recovery of public auction or private contract.- Notwithstanding anything contained in this Act, the Municipality may, by public auction or private contract, lease the recovery of any of the taxes and fee which may be imposed under this Act, subject to the condition and limitation, if any, prescribed by the State Government in this behalf.

Method of assessment of duty on transfer of immovable property.-

1. (1) The duty imposed by the Indian Stamp Act, 1899 (II of 1899), on instruments of sale, gift and usufructuary mortagage, respectively of immovable property, shall in the case of instruments affecting immovable property, shall in the case of instruments affecting immovable property situated within the limits of any Municipality and executed on or after the date on which the provisions of this Act come into force within Municipality be increased by one percentum on the value of the property so situated, or in the case of an usufructuary mortgage on the amount secured by the instrument as setforth in the instrument: Provided that nothing herein shall apply in case of the transfer of property where the value of the property so transferred or in the case of usufructuary mortgage the amount so secured does not exceed two thousand rupees.
2. (2) For the purpose of this section, Section 27 of he Indian Stamp Act 1899 (II of 1899), shall be read as if it specifically required the particulars referred to therein to be set forth separately in respect of-
   • (a) property situated in any Municipal area;
   • (b) property not situated in any Municipal area.
3. (3) The State Government shall, every year, pay to each Council from the Consolidated Fund of the State a grant-in-aid approximately equal to the extra duty realized under sub-section (1) in respect of the property situate within the are of each such Municipality.
4. (4) The State Government may make rules for carrying out the purposes of this section.

Power of State Government to require Council to impose taxes.- Whenever it appears

to the State Government that the balance of Municipal fund of any Council or its revenue is insufficient for the discharge of its duties or obligatory functions imposed upon it by the Act or

for meeting the expenditure incurred under Section 324 or for the performance of any duties in

respect of which it shall have been declared under section 327 to have committed default, the State Government may require the Council to impose within the Municipal are any tax which it is empowered to impose under Section 127 or to enhance any existing tax in such manner or to such extent as the State Government considers, fit, and the Council shll forthwith proceed to impose or enhance in accordance with the requisition such tax under the provisions of this

Chapter, as if a resolution of the Council had been passed for the purpose under Section 129 or

130, as the case may be: Provided that-

1. (a) the State Government shall take into consideration any objection which the Council or any inhabitant of the Municipality may make against the imposition or enhancement of such tax;
2. (b) it shall not be lawful for he Council to abandon or modify or to abolish such tax when imposed, without the sanction of the State Government.
3. (c) the State Government may, at any time by notification, abolish or reduce the amount or rate of any tax levied or enhanced under this section and the levy of the tax or the enhancement, except as to arrears thereto for accrued due, shall thereupon cease or be modified accordingly.

Tax not invlaid for defect of form.- A tax imposed under this Act shall not invalid for defect of form and where any property is described for the purpose of assessing any such tax, it shall be sufficient to describe it so that it shall be generally known and it shall not be necessary to name the owner or occupier.