Execution of works, sanction of estimates, and contracts.

(1) The Executive Authority may determine, either generally orfor any class of cases or specially for any particular case, whether the Chief Municipal Officer shall execute any work by a contract or otherwise. (2) (a) When a project is framed for the execution of any work or series of works, the Chief Municipal Officer shall cause a detailed report to be prepared stating the scope of the project, its techno-economic viability. and its social benefits, and shall prepare an estimate. (b) In the case of a Municipal Corporation, the sanctioning authority in respect of such estimate shall be - (i) the Chief Municipal Officer, if the amount does not exceed five lakhs of rupees, (ii) the Executive Authority, if the amount exceeds five lakhs of rupees but does not exceed one crore of rupees, and (iii) the Municipal Corporation, if the amount exceeds one crore of rupees. (c) In the case of a Municipal Councillor' a Nagar Panchayat, the State Government may specify different limits in respect of such estimate .: (d) In respect of an estimate for any other item of expenditure, the Chief Municipal officer, the Executive Authority, and the Municipality shall respectively be the sanctioning authority in respect of the amount mentioned in sub-clause (i), sub- clause (ii), and sub-clause (iii), of clause (b). (3) (a) Subject to the other provisions of this Act, the Municipality may enter into and execute all such contracts as it may consider necessary or expedient under or for any of the purposes of, this Act. (b) Every contract under clause (a) shall be subject to the following,' pr-C'v'lS:Gns:-- (i) every contract shall be executed on behalf of the Municipality by the Chief Municipal Officer or such other officer of the Municipality as the Executive Authority may direct or authorize from time to time, (ii) no such contract as cannot, under any provision of this Act, be entered into without the approval or sanction of any authority or officer under this Act shall be entered into by any officer referred to in sub-clause (i) until and unless such approval or sanction has been duly obtained, (iii) no contract involving an expenditure exceeding ten thousand rupees or such higher amount as the Executive Authority may fix shall be entered into by any officer referred to in sub-clause (i) unless the same has been previously approved by the Executive Authority, and (iv) every contract involving an expenditure exceeding two thousand rupees but not exceeding ten thousand rupees or such higher amount as may be fixed under sub-clause (iii), entered into by an officer referred to in sub-clause (i), shall be reported by such officer to the Executive Authority within one month of such contract. (4) (a) The manner of execution of contracts under this Act shall be determined by regulations. (b) No contract which\s not entered into in accordance with the provisions of this Act or any regulation made thereunder shall be binding on the Municipality