Chapter IV Chapter IV

Property and Fund

All property within the local limits of the jurisdiction of a Gram Panchayat other than property maintained by the Central or the State Government or a local authority or any other Gram Panchayat shall vest in and belong to the Gram Panchayat and shall with all other property of whatsoever nature or kind which may become vested in the Gram Panchayat, be under its direction, management and control.

(1) The State Government may allocate to a Gram Panchayat any public property situated within its local jurisdiction, and thereupon such property shall vest in and come under the control of the Gram Panchayat. (2) No property vested in or belonging to a Gram Panchayat shall be transferred by way of sale, gift, mortgage, exchange or lease except with the previous sanction of the State Government. (3) Where the State Government is of opinion that any property vested in or belonging to a Gram Panchayat is required for the purpose of any national or State development plan or for any other public purpose, the State Government may resume such property, and upon such resumption, the property shall cease to vest in the Gram Panchayat and shall re-vest in the State Government. (4) No compensation other than the amount paid by the Gram Panchayat for such transfer and the market value of any building or works erected or executed on such property by the Gram Panchayat at the time of resumption shall be payable.

Acquisition of land for Gram Panchayat (1) Where a Gram Panchayat requires land for carrying out any of the purposes of this Act, it may negotiate with the person or persons having interest in the said land, and if it fails to reach an agreement, it may make an application to the District Collector for the acquisition of the land, who may, if he is satisfied that the land is required for a public purpose, take steps to acquire the land under the provisions of the Sikkim land (Requisition and Acquisition) Act, 1977 and such Land shall, on acquisition, vest in the Gram Panchayat.

(1) For every Gram Panchayat there shall be constituted a Gram Panchayat Fund bearing the name of Gram Panchayat and there shall be placed to the credit thereof:

1. (a) contributions and grants, if any, made by the Central or the State Government;
2. (b) contributions and grants, if any, made by a Zilla Panchayat or any other local authority;
3. (c) loans, if any, granted by the Central Government or the State Government;
4. (d) all receipts on accounts of taxes, rates and fees levied by the Gram Panchayat;
5. (e) all sums received by way of gift or contribution;
6. (f) all other sums received by or on behalf of the Gram Panchayat;
7. (g) such percentage of the land revenue collected by it as may be determined by the State Government. (2) Every Gram Panchayat shall set apart and apply annually such sum as may be required to meet the cost of its administration including allowances payable to the members. (3) Every Gram Panchayat shall have the power to spend such sums as the State Government may, by order, specify, for carrying out the purposes of this Act. (4) The Gram Panchayat Fund shall be vested in the Gram Panchayat and the balance to the credit of the Fund shall be kept in such custody as the State Government may direct. (5) Subject to such general control as the Gram Panchayat may exercise from time to time, all orders and cheques for payment from the Gram Panchayat Fund shall be signed by the Sabhapati or in his absence by the Up-Sabhapati.

(1) Subject to the rates which may be fixed by the State Government a Gram Panchayat, may levy the following taxes, rates, and fees namely:

1. (a) a tax on fairs, melas, hats and other entertainments;
2. (b) a general sanitary tax for the construction or maintenance or both the construction and maintenance of public latrines and for the removal and disposal of refuse;
3. (c) a water rate where arrangements for the supply of water for drinking, irrigation or any other purpose are made;
4. (d) a fee for temporary erection on, or putting up projections over, or temporary occupation of, any village road or place;
5. (e) a fee on private latrines, premises or compounds cleaned by the Gram Panchayat agency;
6. (f) a fee for grazing cattle on grazing lands vesting in a Gram Panchayat;
7. (g) a fee on the registration of animals sold in any market or place belonging to or under the control of the Gram Panchayat;
8. (h) a market fee on persons exposing goods for sale in any market or on any place or any building or structure therein belonging to or under the control of the Gram Panchayat;
   • (i) a fee for the use of dharmasalas and encamping grounds;
9. (j) a fee for drainage where system of drainage has been introduced by the Gram Panchayat;
10. (k) a temporary tax for special works of public utility;
11. (l) a tax on houses. (2) The Gram Panchayat shall not levy taxes, rates or fees referred to in sub-section

1. (1) if such taxes, rates or fees have already been levied by any other authority under any law for the time being in force or by any other local authority.

1. (1) The State Government may, in the manner specified in the notification regulate the imposition, assessment and collection of taxes, rates and fees under section 33.
2. (2) Subject to the provisions of this Act or rules made thereunder, no person shall object in respect of his liability to any assessment made or tax imposed under this Act.

An appeal against the levy of any tax, rate or fee under section 33 may be preferred to the prescribed authority in such manner and within such time as may be prescribed and the decision of such authority shall be final.

Any arrear of tax, rate or fee levied under section 33 shall be recoverable as arrears of land revenue or public demand. or if the Gram Panchayat passes a resolution to that effect and communicates it to the District Collector.

1. (1) The District Collector, on receipt of such communication of the sum recoverable under section 36 and on being satisfied with the demand, shall proceed to recover it.
2. (2) Any sum so recovered shall be sent to the gram Panchayat and shall be credited to the Gram Panchayat Fund.

1. (1) If on a complaint made to it or otherwise it appears to the State Government that any tax, rate or fee levied by a Gram Panchayat is excessive, it may, after calling for a report from the Gram Panchayat in this regard, abolish, suspend or reduce the amount of any such tax, rate or fee.
2. (2) The State Government may, on its own motion or otherwise after giving the gram Panchayat an opportunity of expressing its view in the matter, by order, exempt from the payment of any tax in whole or in part
   • (a) any person or class of persons; or
   • (b) any property or description of properties, subject to such conditions as may be specified in such order.

1. (1) Every Gram Panchayat shall, at such time and in such manner as may be prescribed, prepare each year a budget of its estimated receipts and disbursements for the following year and shall submit the budget to the State Government for approval through the Zilla Panchayat of the district concerned.
2. (2) No expenditure shall be incurred unless the budget is approved by the State Government.

A Gram Panchayat may prepare in each year supplementary estimate providing for any modification of its budget and submit it to the State Government for approval through the Zilla Panchayat of the district concerned within such time and in such manner as may be prescribed.

A gram Panchayat shall keep such accounts in such manner as may be prescribed.