Provided that such a legal heir(s) undertakes in writing to agree with the terms and conditions of the tenancy or lease agreement.

Price and Rent Fixation Committee 7. (1) The Government shall constitute a Price and Rent Fixation Committee for every district in the State of Punjab to determine the reserve price or rent of a municipal property which a Municipality intends to transfer under the provisions of this Act.

1. (2) The Price and Rent Fixation Committee shall be headed by the Collector and which shall also consist of the following members, namely:-
   • (a) the Members of Parliament, and all Members of the Punjab Legislative Assembly or their nominee whose constituency comprises part or whole of the area of the Municipality;
   • (b) Mayor or President of the Municipality; and
   • (c) Officer of the Municipality, duly deputed by the Government.
2. (3) The price of the municipal property determined by the Price and Rent Fixation Committee and duly approved by the Government shall be commensurate with the prevailing Collector rate.
3. (4) The lease money or the rent of a municipal property shall be the rate fixed by the Price and Rent Fixation Committee as duly approved by the Government or the price discovered by a Municipality through an open e-auction, whichever is higher.
4. (5) The lease money or the rent of a municipal property determined in sub-section (3) shall be enhanced by at least five per cent every year.
5. (6) The price determined by the Price and Rent Fixation Committee for commercial municipal property as duly approved by the Government shall be the reserve price for auction of such property.
6. (7) The rent fixed by the Price and Rent Fixation Committee for residential municipal property as duly approved by the Government shall be the lease money or rent for such municipal property.
7. (8) Wherever a municipal property has been under continuous lease or occupation for a period of twelve years or more, and is intended to be transferred to the tenant or occupant, the price shall be fixed in the following manner, namely:-
   • (i) for Economically Weaker Sections (EWS), having an annual income not more than rupees three lakhs, at the rate of 12.5 per cent of the Collector Rate;
   • (ii) for Lower Income Groups (LIG), having an annual income more than rupees three lakhs but not more than rupees eight lakhs, at the rate of 25 per cent of the Collector rate;
   • (iii) for Medium Income Groups (MIG), having an annual income more than rupees eight lakhs but not more than rupees fifteen lakhs at the rate of 50 per cent of the Collector rate;
   • (iv) for High Income Groups (HIG), having an annual income more than rupees fifteen lakhs, at the Collector rate;
   • (v) for the aforesaid purpose, proof of Income shall be the Income Tax Return filed by a tenant or an occupant of the previous year of the year in which the transfer is to be made. In case a tenant or an occupant is not required to file Income Tax Return, in that case, he shall get an income certificate issued from the Sub-Divisional Magistrate of the area concerned; and
   • (vi) for categories referred to as items (i), (ii) and (iii), the municipal property only up to fifty square metres shall be transferred at the rate specified therein.