ASSAM MUNICIPAL CORPORATION ACT, 2022

Act No. 08 of 2022

27th April, 2022

An Act to provide constitution of Municipal Corporations in the State of Assam. Whereas it is expedient to make provisions for establishment and administration of Municipal Corporations in the State of Assam. It Is hereby enacted in the Seventy-third year of the Republic of India as follows:-

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S.1 Short title, extent and commencement

(1) This Act may be called the Assam Municipal Corporation Act, 2022.

(2) It extends to the whole of the State of Assam excluding cantonment areas therein.

(3) It shall come Into force on such date as the State Government may, by notification, appoint In this behalf, and different dates may be appointed for different Municipal Corporation areas in the State.

S.2 Definitions

In this Act, unless the context otherwise requires,-

• (1) "annual value" means the value of any land or building determined under the provisions of this Act;
• (2) "Appellate Authority" means the Empowered Standing Committee as provided under section 12 of this Act;
• (3) "Auditor" means an Auditor appointed by the Government for performing Audit of the accounts of the Corporation;
• (4) "Authority" means any authority established under any Central or State Act for the time being in force;
• (5) "balance sheet" means the balance sheet prepared for the accounts of the Corporation;
• (6) "bio-medical waste" means any waste generated during diagnosis, treatment or immunization of human beings or animals or in research activities pertaining thereto or in the production or testing of biologicals;
• (7) "bridge" includes a culvert;
• (8) "budget estimate" means the budget estimate prepared for the probable receipt and expenditu
  

S.3 Declaration of intention to constitute a Municipal Corporation area

(1) The Governor may, after making such inquiry as he may deem fit, and having regard to the population of any urban area, the density of population therein, the revenue generated for the local administration of such area, the percentage of employment in non-agricultural activities in such area, the economic importance of such area, and such other factors as may he prescribed, by notification, declare such area to be a Municipal Corporation,

Publication of Declaration.

(2) The notification about the constitution of a Corporation shall be published in the Official Gazette and in at least two leading newspapers, at least one of which shall be in vernacular language intelligible to the inhabitants of the local area concerned.

(3) A copy of the notification shall also be pasted in a conspicuous place In the office of the Deputy Commissioner of the district and, where there is a Municipal Board, also in the office of the Municipal Board, and such other public places

S.4 Power to abolish or alter limits of Municipal Corporation area

(1) The Governor may, by notification,-

• (a) withdraw any Municipal Corporation area or part thereof from the operation of this Act, or
• (b) exclude from a Municipal Corporation area any local area comprised therein and defined in the notification, or
• (c) include within a Municipal Corporation area any local area contiguous to such Municipal Corporation area and defined in the notification, or
• (d) unite two or more contiguous Municipal Corporation area so as to constitute one Municipal Corporation area, or
• (e) revise the boundary of two or more contiguous Municipal Corporation areas:

Provided further that the procedure laid down for the constitution of a Municipal Corporation area under this Act shall be followed mutatis mutandis in each such case.

(2) The Municipal Corporation for the purpose of election to Councillors may re-determine the boundaries of existing wards. For this, Government may by order published i

S.5 The Constitution of Corporation

(1) There shall be a Corporation charged with the Municipal Administration of a city notified to be a Municipal Corporation under this Act,

(2) The State Government, by notification in the Official Gazette, shall determine the number of wards into which the city shall be divided, the number of Councillors to be elected to the Corporation and the number of seats to be reserved in favour of the Scheduled Castes, the Scheduled Tribes and the Women,

(3) Fifty percent of the seats of the Councillors shall be reserved for women Including the seats reserved for the Scheduled Castes and the Scheduled Tribes and such seats may be allotted by rotation to different wards of the Corporation every ten years,

(4) Reservation of seats in the Corporation for the Scheduled Castes and Scheduled Tribes and the number of seats so reserved shall bear, as nearly as may be, the same proportion to the total number of seats to be fined by direct election in the Corporation as the popul

S.6 Incorporation of Corporation

(1) The Municipal Corporation shall be a body corporate with perpetual succession and a common seal.

(2) All executive actions of the Empowered Standing Committee shall be expressed to be taken in the name of the Corporation,

(3) Subject to the provisions of this Act, the Corporation shall have the power to acquire, hold and dispose off properties.

S.7 Composition of the corporation and election of Councillors

(1) The Councillors elected in a general election or a by-election of the Corporation in accordance with the provisions relating to municipal elections in the State, shall constitute the Corporation.

(2) The Corporation shall, unless dissolved earlier, continue for a period of five years from the date of its first meeting after the general election and no longer.

(3) An election to constitute the Corporation shall be completed, as the case may be, -

• (a) before the expiry of the period specified in sub-section (2) above,
• (b) before the expiry of a period of six months from the date of its dissolution:

Provided that where the remainder of the period for which the dissolved Corporation would have continued is less than six months, it shah not be necessary to hold an election for constituting the Corporation for such period.

(4) The Corporation constituted upon its dissolution before the expiration of the period specified in sub-

S.8 Slate Election Commission

(1) Notwithstanding anything contained in this Act, the superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections of Councillors shall be vested in the State Election Commission constituted by the State Government under Article 243-ZA of the Constitution of India.

(2) A person shall not be qualified to be chosen as a Councillor unless -

• (a) his name is registered as an elector in an electoral roll for any ward in the city; and
• (b) he furnishes a declaration in the form of an affidavit, in the format as may be prescribed, at the time of filing nomination paper, containing the following information, which shall be made public by the respective returning officers by displaying a copy of the affidavit on the Notice Board of his office -
  • (i) whether the candidate has been convicted/acquitted/discharged of any criminal offence in the past and if convicted, whether he was punished
    

S.9 Term of office of Councillors of Corporation

Subject to the provisions of section 7 of the Act, a Councillor shall hold office for a period of five years from the date of the first meeting of the Corporation, in the case of a Councillor chosen to fill a casual vacancy, for the remainder of the term of office of his predecessor, unless -

• (a) the Corporation is dissolved earlier, or
• (b) he resigns his office by notice, in writing, under his hand addressed to the Mayor, and, thereupon, his office shall become vacant from the date of the notice, or
• (c) his election is void, or is declared to be void, under the provisions of any law relating to municipal elections in the State, or
• (d) the entire area of the ward from which he has been elected Is withdrawn from the operation of this Act,

S.10 Remuneration and allowances of Councillors

The Mayor, the other members of the Empowered Standing Committee, and the other Councillors may receive such remuneration and allowances as may be prescribed by Government.

S.11 Municipal authorities

(1) The municipal authorities for the purposes of giving effect to the provisions of this Act shall be,-

• (i) The Corporation;
• (ii) The Empowered Standing Committee;
• (iii) The Mayor; and
• (iv) The Commissioner.

(2) The Presiding Officer of the Municipal Corporation shall be the Mayor.

S.12 Constitution of Empowered Standing Committee for the Corporation

(1) The Corporation shall consist of an Empowered Standing Committee.

(2) The Empowered Standing Committee shall consist of the Mayor, the Deputy Mayor, and seven other Councillors.

(3) The Deputy Mayor of the Municipal Corporation and other members of the Empowered Standing Committee shall be nominated by the Mayor from among the Councillors within a period of seven days of his/her entering office and shall assume charge after taking oath of secrecy under section 6 of the Act.

(4) The Mayor shall be the presiding officer of the Empowered Standing Committee.

(5) The manner of transaction of business of the Empowered Standing Committee shall be such as may be prescribed.

(6) The Empowered Standing Committee shall be collectively responsible to the Municipal Corporation.

S.13 Executive power of Corporation to be exercised by Empowered Standing Committee

Subject to the provisions of this Act and the rules and the regulations made thereunder, the executive power of a Corporation shall be exercised by the Empowered Standing Committee.

S.14 Election of Mayor

(1) The Councillors shall, in the first meeting under section 22 of the Act, elect in accordance with such procedure as may be prescribed one of the Councillors to be the Mayor, who shall assume office forthwith after taking the oath of secrecy under section 15 of the Act.

(2) If the Councillors fail to elect a Mayor under sub-section (1) above, the State Government shall appoint by name one of the Councillors to be the Mayor.

(3) In the case of any casual vacancy in the office of the Mayor caused by death, resignation, removal or otherwise, the Councillors shall, in accordance with such procedure as may be prescribed, elect one of the Councillors to fill up the vacancy.

S.15 Oath of secrecy to be taken by Mayor and members of Empowered Standing Committee

(1) The Mayor and the members of the Empowered Standing Committee of a Corporation shall assume office after taking the oath of Secrecy as per Form B provided in the Schedule I of the Act.

(2) The oath of secrecy shall be administered by the Secretary to the State Government in-charge of Municipal Affairs or his nominee not below the rank of a Deputy Secretary to the State Government.

S.16 Removal of Mayor

(1) The Mayor may, at any time, by giving a notice, in writing, to the Corporation, resign his office, and the procedure for acceptance or otherwise of the resignation shall be such as may be prescribed.

(2) The Mayor shall cease to hold office as such if he ceases to be a Councillor.

(3) The Mayor may be removed from office by a resolution carried by a majority of two third of the total number of Councillors holding office for the time being at a special meeting to be requisitioned for this purpose by not less than one third of the elected Councillors in the manner prescribed: Provided that no such resolution shall be mowed before the expiry of six months from the date of entering office by the Mayor.

S.17 Deputy Mayor

(1) The Deputy Mayor shall, in the absence of the Mayor, preside over the meetings of the Corporation.

(2) When -

• (a) the office of the Mayor falls vacant by reason of death, resignation, removal or otherwise; or
• (b) the Mayor is, by reason of leave, illness or other cause, temporarily unable to exercise the powers, perform the functions, or discharge the duties, of his office, the Deputy Mayor shall exercise the powers, perform the functions, and discharge the duties, of the Mayor until a Mayor Is elected under sub-section (1) of section 14 of the Act and enters office or until the Mayor resumes his duties.

(3) The Deputy Mayor shall, at any time, exercise such other powers, perform such other functions, and discharge such other duties, as may be delegated to him under the provisions of this Act.

S.18 Term of office of Mayor and members of empowered Standing Committee

The term of office of the Mayor and the members of the Empowered Standing Committee shall be co-terminus with the duration of the Corporation.

S.19 Delegation of powers and functions

(1) The Corporation may, by resolution, delegate, subject to such conditions as may be specified in the resolution, any of its powers or functions to the Empowered Standing Committee.

(2) The Empowered Standing Committee may, by order in writing, delegate, subject to such conditions as may be specified in the order, any of its powers or functions to the Mayor or to the Commissioner.

(3) Subject to such standing orders as may be made by the Empowered Standing Committee in this behalf,-

• (a) the Mayor may, by order, delegate, subject to such conditions as may be specified in the order, any of his powers or functions to the Deputy Mayor or the Commissioner;
• (b) the Commissioner may, by order, delegate, subject to such conditions as may be specified in the order, any of his powers or functions, excluding the powers or functions under sub-section (2) of section 271 or section 280 of this Act, to any officer or other employee of the Corporation; and

S.20 Reservation of office of Mayor

The office of the Mayor in the Corporation shall be reserved for the Scheduled Castes, the Scheduled Tribes and women to such extent, and in such manner, as may be prescribed by the Government time to time.

S.21 Maintenance of Roster

The Government may for the purpose of reservation of the office of the Mayor, prescribe a roster indicating reservation for Scheduled Castes, the Scheduled Tribes and Women respectively.

S.22 First meeting of the Corporation

(1) The first meeting of the Corporation after the general election of Councillors to the Corporation shall be convened within 30 days from the date of publication of the names of elected Councillors to the Municipal Corporation in the Official Gazette under the provisions of this Act.

(2) Seven days notice shall be given for the meeting.

(3) In the case of a Municipal Corporation, the meeting shall be convened by the Secretary to the State Government, Department of Housing and Urban Affairs or any officer not below the rank of a Deputy Secretary to the State Government duly authorized by him.

S.23 Officers of the Corporation

(1) Appointment of Commissioner.- Immediately after the constitution of Municipal Corporation Government shall depute and appoint a senior officer not below the rank of Joint Secretary to the Government of Assam as Commissioner of the Corporation or such terms and conditions, as may be prescribed. He shall not be a member of the Corporation, but shah be a whole time officer of the Corporation and shall have the right to attend all the meetings of the Corporation without any right of voting. The executive power for the purposes of carrying out the provisions of this Act shall be vested in the Commissioner, who shall also perform such duties and exercise such powers as may be prescribed.

(2) The Government may appoint efficient officers on deputation from State Government to the posts like the Additional Commissioner, the Joint Commissioner, the Chief Engineer, the Collector, the Accounts and Audit Officer, the Medical and Health Officer, the Food Inspector, the Motor Vehicle

S.24 Employees of the Corporation

(1) There shall be a Staff Selection Committee consisting of such officers as may be prescribed for recruitment to all category of posts and staff as per qualifications and other requirements as may be prescribed.

(2) The existing regular employees appointed and already working in the Municipal Board notified as Corporation under the provisions of this Act shall be suitably accommodated in the Corporation as per provisions of the Service conditions as may be prescribed.

S.25 Salaries and allowances of officers and other employees

All officers and other employees of a Corporation including the officers referred to in section 23 of the Act shall receive salaries and allowances out of the Municipal Fund: Provided that the State Government may make such contribution towards the salaries and allowances as aforesaid as it may, from time to time, determine.

S.26 Leave and other conditions of service

All officers and other employees of the Corporation shall be subject to such conditions of service including leave and other benefits, as may be prescribed.

S.27 Core municipal functions

(1) (a) The Corporation shall provide on its own or arrange to provide through any agency the following core municipal services:-

• (i) water-supply for domestic, industrial, and commercial purposes,
• (ii) drainage and sewerage,
• (iii) solid waste management,
• (iv) preparation of plans for economic development and social justice,
• (v) communication system including construction and maintenance of roads, footpaths, pedestrian pathways, transportation terminals, both for passengers and goods, bridges, over-bridges, subways, ferries, and inland water transport system,
• (vi) transport system accessories including traffic engineering schemes, street furniture, street lighting, parking areas, and bus stops,
• (vii) community health and protection of environment including planting and caring of trees on road sides and elsewhere,
• (viii) markets and slaughterhouses,
• (ix) promotion of educational, sports and cultural
  

S.28 Other functions

A Corporation may, having regard to the satisfactory performance of its core functions which shall constitute the first charge on the Municipal Fund, and subject to its managerial, technical and financial capabilities, undertake or perform, or promote the performance of, any of the following functions:-

(1) in the sphere of town planning, urban development and development of commercial infrastructure, -

• (a) planned development of new areas for human settlement;
• (b) measures for beautification of the Corporation area by setting up parks and fountains, providing recreational areas, improving river banks, and landscaping;
• (c) collection of statistics and data, significant to the community; and
• (d) integration of the development plans and schemes of the Corporation area with the district or regional development plan, if any.

(2) in the sphere of protection of environment, -

• (a) reclamation of waste lands, promoti
  

S.29 Meetings

(1) The Corporation shall meet not less than once in every month for the transaction of its business.

(2) The Mayor may, whenever he thinks fit, and shall, upon a requisition in writing by not less than one-fifth of the Councillors, convene a meeting of the Corporation.

S.30 Notice of meeting and list of business

A list of business to be transacted at every meeting of the Corporation, except at an adjourned meeting, shall be sent to the registered address of each Councillor at least seventy-two hours before the time fixed for such meeting, and no business shall be brought before, or transacted at, any meeting other than the business of which notice has been so given: Provided that any emergent business may be brought before, and transacted in, the meeting with the permission of the Mayor: Provided further that any Councillor may send or deliver to the Municipal Secretary notice of any resolution so as to reach him at least forty-eight hours before the time fixed for the meeting, and the Municipal Secretary shall, with all possible despatch, take steps to circulate such resolution to every Councillor in such manner as he may think fit; Provided also that no business, which has no relevance to the business of the Corporation, shall be brought before the Corporation.

S.31 Quorum for transaction of business at a meeting of Corporation and method of deciding questions

(1) The quorum necessary for the transaction of business at a meeting of the Corporation shall be one-fifth of the total number of Councillors.

(2) If at any time during a meeting of the Corporation there is no quorum, it shall be the duty of the person presiding over such meeting either to adjourn the meeting or to suspend the meeting until there is a quorum.

(3) Where a meeting has been adjourned under sub-section (2) above, the business which would have been brought before such meeting shall be brought before, and may be transacted at, the adjourned meeting, and no quorum shall be necessary for such adjourned meeting.

(4) All matters required to be decided at a meeting of the Corporation shall, save as otherwise provided in this Act, be determined by a majority of votes of the Councillors present arid voting.

(5) The voting shall be by show of hands, provided that the Corporation may, subject to such regulations, resolve that any question, or class of

S.32 Presiding officer of a meeting of Corporation

(1) The Mayor shall preside at every meeting of the Corporation; Provided that when a meeting is held to consider a motion for the removal of the Mayor, the Mayor shad not preside at such meeting.

(2) The Mayor or the person presiding over a meeting of the Corporation, shall also have, and may exercise, a casting vote in all cases of equality of votes.

S.33 Maintenance of order at a meeting of Corporation and withdrawal and suspension of Councillors

(1) The Presiding Officer of a meeting of the Corporation shall preserve order thereat and shall have all the powers necessary for the purpose of preserving such order.

(2) The Presiding Officer of a meeting may direct any Councillor, whose conduct is, in his opinion, grossly disorderly, to withdraw immediately from the meeting, and every Councillor so directed shall do so forthwith and shall absent himself during the remainder of the meeting.

S.34 Councillor having pecuniary interest in any contract etc. with Corporation

(1) If a Councillor has any pecuniary interest, direct or indirect, in any contract or proposed contract with or without employment under, or other matter concerning, the Corporation and is present at a meeting of the Corporation or of a committee thereof at which such contract or employment or other matter is subject of consideration, he shall, as soon as practicable after the commencement of such meeting, disclose the fact regarding such contract or employment or other matter, and shall not take part in the consideration or discussion of, or vote on, any question with respect to such contract or employment or other matter: Provided that the provisions of this section shall not apply to a Councillor having interest as a taxpayer or inhabitant of the Municipal Corporation area or consumer of water or having an interest in any matter relating to any civic service to the public.

(2) For the purposes of this section, a Councillor shall be deemed to have an indirect pecuniary in

S.35 Meeting to be ordinarily open to public

(1) Every meeting of the Corporation shall be open to the public, unless a majority of the Councillors present at the meeting decides by a resolution, which shall be put by the presiding officer either on his own motion or at the request of any such Councillor, that any enquiry or deliberation pending before the Corporation shall be held in private.

(2) The Corporation may make regulations providing for the admission of strangers to its meeting and for the removal by force, if necessary, of any stranger for interrupting or disturbing the proceedings of the meeting.

S.36 Right of Commissioner and other Officers to attend meeting of Corporation and Committees etc

The Commissioner, or any other officer of the Corporation authorized by him in writing in this behalf, may attend any meeting of the Corporation or of any of its committees.

S.37 Right of Councillor to ask questions

(1) A Councillor may, subject to the provisions of sub-section (2), ask the Empowered Standing Committee questions on any matter relating to the administration of the Corporation, and all such questions shall be addressed to the Empowered Standing Committee and shall be answered either by the Mayor or by any other member of the Empowered Standing Committee.

(2) The right to ask a question shall be governed by the following conditions, namely:-

• (a) not less than seven working days notice, in writing, specifying the question shall be given to the Municipal Secretary;
• (b) no question shall -
  • (i) bring in any name or statement not strictly necessary to make the question Intelligible,
  • (ii) Contain arguments, ironical expressions, imputations, epithets or defamatory statements,
  • (iii) ask for an expression of opinion or the solution of a hypothetical proposition,
  • (iv) ask as to the character or conduct of any pe
    

S.38 Discussion on urgent public matters

(1) Any Councillor may give notice of raising discussion on a matter of urgent public importance to the Municipal Secretary, stating clearly the matter to be raised.

(2) Such notice, supported by the signatures of at feast two other Councillors, shall reach the Municipal Secretary at least forty-eight hours before the date on which such discussion is sought, and the Municipal Secretary shall immediately place it before the Mayor and circulate the notice among the Councillors in such manner as he may think fit.

(3) The Mayor may admit for discussion such notice as may appear to him to be of sufficient public importance and allow such time for discussion as he may consider appropriate.

(4) There shall be no formal resolution or voting on such discussion.

S.39 Asking for statement from Empowered Standing Committee

(1) Any Councillor may ask for a statement from the Empowered Standing Committee on an urgent matter relating to the administration of the Corporation by giving notice to the Municipal Secretary at least one hour before the commencement of the meeting of the Corporation on any day.

(2) The Mayor or a member of the Empowered Standing Committee may either make a brief statement on the same day or fix a date for making such statement.

(3) Not more than two such matters shall be raised at the same meeting and, in the event of more than two matters being raised, priority shall be given to the matters which are, in the opinion of the Mayor, more urgent and important.

(4) There shall be no debate on such statement at the time it is made.

S.40 Keeping of minutes and proceedings

Minutes of each meeting of the Corporation and of a committee of the Corporation recording therein the names of the Councillors present at such meeting and the proceedings of each such meeting shall be drawn up and entered in a book to be kept for that purpose and shall be laid before the next meeting of the Corporation or such committee, as the case may be, and signed at such meeting by the Presiding Officer thereof.

S.41 Circulation and inspection of minutes

Minutes of the proceedings of each meeting of the Corporation shall be circulated to all the Councillors and shall, at all reasonable times, be available at the office of the Corporation for inspection by any Councillor, free of cost, and by any other person on payment of such fee as the Corporation may determine.

S.42 Forwarding of minutes to State Government

(1) The Municipal Secretary shall forward to the State Government a copy of the minutes of the proceedings of each meeting of the Corporation or a committee of the Corporation as early as possible.

(2) The State Government may, in any case, call for a copy or copies of all or any of the papers laid before the Corporation or any committee of the Corporation and, thereupon, the Municipal Secretary shall forward to the State Government a copy or copies of such paper or papers.

S.43 Rules relating to conduct of business of Corporation

The State Government may, by rules, provide for such matters, not provided in this Act, relating to the conduct of business of the Corporation or of its committees, as it may deem necessary.

S.44 Validation of acts and proceedings

(1) No act or proceeding of the Corporation or of any committee of the Corporation shall be called in question merely on the ground of -

• (a) the existence of any vacancy in, or any defect, initial or subsequent, in the constitution of, the Corporation or any committee of the Corporation, or
• (b) any Councillor having voted or taken part in any proceeding in contravention of the provisions of section 34 of the Act, or
• (c) any defect or irregularity not affecting the merit of any case to which such defect or irregularity relates.

(2) Every meeting of the Corporation or any committee of the Corporation, the minutes of the proceedings of which have been duly signed under section 40 of the Act, shall be deemed to have been duly convened and to be free from any defect or irregularity.

S.45 Power of State Government to call for records etc.

The State Government may, at any time, require any municipal authority -

• (a) to produce any record, correspondence, or other documents,
• (b) to furnish any return, plan, estimate, statement, accounts, or statistics, and
• (c) to furnish or obtain any report,

and thereupon such municipal authority shall comply with such requirement.

S.46 Power of State Government to depute officers to make inspection or examination and report

The State Government may depute any of its officers to inspect or examine any department, office, service, work or property of the Corporation and to report thereon, and such officer may, for the purpose of such inspection or examination, exercise all the powers of the State Government under section 45 of the Act: Provided that such officer shall be not below the rank of a Deputy Secretary to the State Government in the case of a Municipal Corporation.

S.47 Power of State Government to require municipal authorities to take action

If, after considering the records required under section 45, or the report under section 46 of the Act, or any information received otherwise by the State Government, the State Government is of opinion that -

• (a) any action taken by a municipal authority is unlawful or irregular or any duty imposed on such authority by or under this Act has not been performed or has been performed in an imperfect, insufficient or unsuitable manner, or
• (b) adequate financial provision has not been made for the performance of any duty under this Act,

the State Government may, by order, require such municipal authority to regularize such unlawful or irregular action or perform such duty or restrain such authority from taking such unlawful or irregular action or direct such authority to make, to the satisfaction of the State Government, within such period as may be specified in the order, arrangement, or financial provision, as the case may be, for the proper perform

S.48 Power of State Government to provide for enforcement of order under section 45

(1) If no action has been taken in accordance with the order under section 47 of the Act within the period specified therein or if no cause has been shown under the proviso to that section or if the cause shown is not to the satisfaction of the State Government, the State Government may make arrangements for the taking of such action and may direct that all expenses connected therewith shall be defrayed from the Municipal Fund.

(2) For the purposes of sub-section (1) above, it shall be lawful for the State Government to appoint, for such period as the State Government may think fit, any person considered suitable by it, who shall exercise and perform, subject to such directions as the State Government may issue from time to time, all or any of the powers and functions of the municipal authorities necessary to implement the order under section 47 of the Act.

S.49 Power of State Government to dissolve Corporation

(1) If, in the opinion of the State Government, the Corporation has shown its incompetence, or has persistently made default, in the performance of the duties, or in the exercise of the functions, imposed on it by or under this Act or any other Jaw for the time being in force, or has exceeded or abused its powers, or is unable to function under the provisions of this Act, the State Government may, subject to the provisions of sub-section (2) above, by an order published In the Official Gazette, and stating the reasons therefor, declare the Corporation to be incompetent or in default or to have exceeded or abused its powers, as the case may be, and dissolve it for such period, not exceeding six months, and with effect from such date, as may be specified in the order,

(2) (a) Before making any order under sub-section (1) above, a notice shall be given by the State Government to the Corporation calling upon It to submit representation, if any, against the proposed order within

S.50 Consequences of dissolution

Notwithstanding anything contained in this Act or in any other law for the time being in force, with effect from the date of the order of dissolution under sub-section (1) of section 49 of the Act,-

• (a) all the Councillors including the members of the Empowered Standing Committee and of any committee of the Corporation constituted under this Act, and the Mayor and the Deputy Mayor shall vacate their respective offices, and
• (b) all the powers and duties which, under the provisions of this Act or the rules or the regulations made thereunder or any other law for the time being in force, may be exercised or performed by such officer as may be appointed by State Government of appropriate seniority who shall be designated as Administrator during the time of supersession;

Provided that when the State Government appoints more than one person to exercise any powers or perform any duties, it may, by order, and in such manner as it thinks fit, allocate such

S.51 Implementation of recommendations of State Finance Commission

After taking into consideration the recommendations of the State Finance Commission constituted under article 243Y, read with article 243-I of the Constitution of India, the State Government shall determine.

• (a) the devolution of net proceeds of the taxes, duties, tolls and fees to the Municipalities,
• (b) the assignment of taxes, duties, tolls and fees to the Municipalities,
• (c) the sanction of grants-in-aid to the Municipalities from the Consolidated Fund of the State, and
• (d) the other measures required to improve the financial position of the Corporation.

S.52 Financial assistance from State Government

(1) The State Government, may, from time to time, give grants or financial assistance to the Corporation with or without direction as to the manner in which such grants or financial assistance shall be applied.

(2) The State Government may give grants to the Corporation for implementation, in full or in part, of any scheme included in the annual development plan of the Corporation.

S.53 Municipal Fund

(1) There shall be a fund to be called the Municipal Fund which shall be held by the Corporation in trust for the purposes of this Act, and all moneys realized or realizable under this Act and all moneys otherwise received by the Corporation shall be credited thereto.

(2) The receipts and expenditures of the Corporation shall be kept under such heads of accounts, including those for water-supply, drainage and sewerage, solid waste management, road development and maintenance, slum services, commercial projects and other account heads as may be specified and the general account head, in such manner, and in such Form, as may be prescribed, so as to facilitate the imposition of user charges and preparation of any subsidy report under this Act.

(3) Every head of account specified under subsection (1) above, shall be split up into a revenue account and a capital account and all items of receipts and expenditures shall be kept appropriately under such revenue account or cap

S.54 Application of Municipal Fund

The moneys credited to the Municipal Fund from time to time shall be applied for payment of all sums, charges and costs necessary for carrying out the purposes of this Act and the rules and the regulations made thereunder and for payment of all sums payable out of the Municipal Fund under any other law for the time being in force.

S.55 Payments not to be made out of Municipal Fund unless covered by budget grant

No payment of any sum out of the Municipal Fund shall be made unless such expenditure is covered by a current budget grant and a sufficient balance of such budget grant is available, notwithstanding any reduction or transfer thereof under the provisions of this Act: Provided that this section shall not apply to any payment in the following cases:-

• (a) refund of taxes and other moneys which are authorized by this Act,
• (b) repayment of moneys belonging to contractors or other persons and held in deposit and all moneys collected by the Corporation or credited to the Municipal Fund by mistake,
• (c) temporary payment for works urgently required by the State Government in the public interest,
• (d) expenses incurred by the Corporation on special measures on the outbreak of dangerous diseases, natural or technological hazards or in any other emergent case,
• (e) sums payable as compensation under this Act or the rules or the regulations made the
  

S.56 Procedure when money not covered by budget grant is paid

Whenever any sum is paid in any of the cases referred to in the proviso to section 55 of the Act, the Commissioner shall forthwith communicate the circumstances of such payment to the Mayor, and, thereupon, the Mayor may take, or recommend to the Corporation to take, such action under the provisions of this Act as may appear to it to be feasible and expedient for covering the amount of such payment.

S.57 Temporary payment from Municipal Fund for works urgently required in public interest

(1) On a requisition, in writing, by the State Government, the Empowered Standing Committee may, at any time, require the Commissioner to undertake the execution of any work certified by the State Government to be urgently required in the public interest and, for this purpose, to make payment for such work from the Municipal Fund in so far as such payment may be made without unduly interfering with the regular work of the Corporation.

(2) The cost of all work so executed, and the proportionate establishment charges for executing such work, shall be paid by the State Government and credited to the Municipal Fund.

(3) On receipt of a requisition under sub-section (1) above, the Empowered Standing Committee shall forthwith forward a copy thereof to the Corporation together with a report of the steps taken in pursuance of the said requisition.

S.58 Power to incur expenditure beyond the limits of Corporation

Notwithstanding anything contained elsewhere in this chapter, the Corporation may, with the approval of the State Government, authorize expenditure to be incurred beyond the limits of the Municipal Corporation area for creation of physical assets relating to the core functions of the Corporation outside the limits of such Municipal Corporation area and for maintenance thereof for carrying out the purposes of this Act.

S.59 Exclusive use of Fund for particular purpose

Notwithstanding anything contained elsewhere in this chapter, the State Government may, by order, require the Corporation to earmark a particular portion of the Municipal Fund or a particular grant or a part thereof, or any item of receipt under any head of account, or any percentage thereof, or any share of tax receivable by the Corporation other than taxes, duties and fines assigned to the Corporation under this Act or any part thereof, to be utilized exclusively for such purpose related to municipal functions as may be specified by the State Government, and it shall be the duty of the Corporation to act accordingly.

S.60 Operation of accounts

Subject to other provisions of Act, payment from the Municipal Fund shall be made in such manner as may be determined by regulations, and the heads of accounts referred to in Section 53 of the Act shall be operated by such officers of the Corporation as may be authorised by the Corporation by regulations.

S.61 Investment of Surplus money

(1) Surplus moneys standing at the credit of any of the heads of accounts of the Municipal Fund which are not required, either immediately or at any early date, to be applied for the purposes of this Act by the Corporation, may, in accordance with such regulations as may be made by the Corporation in this behalf, be transferred by the Corporation, either in whole or in part, to any other head of account of the Municipal Fund: Provided that no such money shall be transferred permanently from any of the heads of accounts to any other head of account without the previous approval of the Corporation: Provided further that such surplus moneys standing at the credit of the Commercial Projects Account of the Municipal Fund shall not be transferred to the General Account of the Municipal Fund.

(2) Surplus moneys which are not transferred under sub-section (1) above may be invested in public securities or small savings schemes, approved by the State Government, or deposited at intere

S.62 Preparation of budget estimate of Corporation

(1) The Commissioner shall prepare in each year a budget estimate along with an establishment Schedule of the Corporation for the ensuing year, and such budget estimate shall be an estimate of the income and expenditure of the Corporation.

(2) Subject to the provisions of sub-section (2) of section 53 of the Act, the budget estimate shall separately state the income and the expenditure of the Corporation to be received and incurred in terms of the various heads of accounts.

(3) The budget estimate shall state the rates at which various taxes, surcharges, cesses and fees shall be levied by the Corporation in the year next following.

(4) The budget estimate shall state the amount of money to be raised as loan during the year next following.

(5) The Mayor shall present the budget estimate to the Corporation on the 15th day of February in each year or as soon thereafter as possible.

(6) The budget estimate shall be prepared, presented and adopted in s

S.63 Report on services provided at subsidized rate

(1) The Commissioner shall, while preparing the budget estimate, append thereto a report indicating whether the following services are being provided at a subsidized rate and, if so, the extent of the subsidy, the reasons therefore, the source from which the subsidy is being met, and the sections or categories of the local population who are the beneficiaries of such subsidy, namely:-

• (a) water-supply and disposal of sewage,
• (b) scavenging, transporting and disposal of solid wastes, and
• (c) streetlight.

(2) The Empowered Standing Committee shall examine the report referred to in sub-section (1) above and place the same before the Corporation with its recommendations, if any.

S.64 Sanction of budget estimate of Corporation

(1) The Corporation shall consider the budget estimate and the recommendations, if any, of the Empowered Standing Committee thereon, and shall, by the fifteenth day of March in each year, adopt the budget estimate for the ensuing year with such changes as it may consider necessary, and submit the budget estimate so adopted to the State Government, in the case of a Municipal Corporation.

(2) The budget estimate received by the State Government under sub-section (1) above shall be returned to the Corporation before the thirty-first day of March of that year with or without modifications of the provisions relating to subventions by the State Government.

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