Act No. 05 of 2007
16th April, 2007
An Act to provide for the municipal governance in the State of Sikkim in conformity with the provisions of the Constitution of India as amended by the Constitution (Seventy-fourth Amendment) Act, 1992, based on the principles of participation in, and decentralization, autonomy, and accountability of, urban self-government at various levels, to improve the quality of life of the urban dwellers of Sikkim, to introduce reforms in financial management and accounting systems, to enhance internal resource generation capacity, to improve the organizational design of Municipalities, to ensure professionalization of the municipal personnel, and to provide for matters connected therewith or incidental thereto.
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(1) This Act may be called the Sikkim Municipalities Act, 2007.
(2) It extends to the whole of Sikkim except the cantonments.
(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 areas and for different provisions of this Act.
In this Act, unless the context otherwise requires,-
(1) The Governor may, after making such enquiry 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 be prescribed, by notification, declare his intention to specify such area to be a larger urban area, or a smaller urban area, or an area in transition from a rural area to an urban area referred to in this Act as a transitional area:
Provided that no such declaration shall be made unless the population,-
Provided further that the non-agri
(1) The notification about the constitution of a municipal area shall be published in the Official Gazette and in at least two leading newspapers, at least one of which shall be in vernacular intelligible to the inhabitants of the municipal area concerned.
(2) A copy of the notification shall also be pasted in a conspicuous place in the office of the District Collector of the district and, where there is a Municipality, also in the office of the Municipality, and in such other public places as the State Government may direct.
(3) A public proclamation about the constitution of a municipal area may, if the State Government considers it necessary so to do, be made either by beating of drum throughout the municipal area concerned or through any other publicity media.
Any inhabitant of the city, town, or Nagar Panchayat, or any area referred to in sub-section (3) of section 3, in respect of which a notification has been published under section 4, may, if he objects to anything contained in the notification, submit his objection in writing to the State Government within one month from the date of its publication, and the State Government shall take such objection into consideration.
On the expiry of one month from the date of publication of the notification and after consideration of all or any of the objections which may be submitted, the Governor may, by notification, constitute such city, town, transitional area, or any area referred to in sub-section (3) of section 3, or such part thereof as may be specified in the notification, as a municipal area under this Act.
The Governor may, for the purpose of application of the provisions of this Act, classify, on the basis of the population as ascertained at the last preceding census of which the relevant figures have been published, any municipal area as-
Provided that for the purpose of classification of municipal areas in any eco-sensitive area, tourist centre, pilgrim centre, or bazar of any class, the Governor may, by notification, determine a separate size of population for each class of such municipal area.
Subject to the provisions of sub-section (I) of section 10, until any law providing for the election of Councillors is enacted, the State Government may, having regard to population, dwelling pattern, geographical condition, and economic consideration of a municipal area, by notification, determine for such municipal area the number of wards, which shall be,-
The Governor may, by notification,-
Provided that the procedure laid down for the constitution of a municipal area under this Act shall be followed mutatis mutandis in each such case:
Provided further that the views of the Municipality affected by any such notification shall be invited by the State Government within such time as may be specified in the notification, and the State Government sh
(1) The State Government may, by notification, and for reasons to be recorded in writing, exempt any smaller urban area or any area of a Nagar Panchayat or any area referred to in sub-section (3) of Section 3 from the operation of any of the provisions of this Act considered unsuited thereto, and, thereupon, the said provisions shall not apply to such smaller urban area or area of a Nagar Panchayat or any area referred to in sub-section (3) of Section 3, as the case may be, until such provisions are applied thereto by notification.
(2) While a notification exempting any smaller urban area or any area of a Nagar Panchayat or any area referred to in sub-section (3) of Section 3 from the provisions of this Act under sub-section (1) remains in force, the State Government may make rules consistent with the provisions of this Act in respect of any matter within the purview of such provisions from the operation of which the smaller urban area or the area of a Nagar Panchayat or any
(1) The Municipality shall consist of such number of elected Councillors as may be determined in accordance with the provisions of any law relating to municipal election in Sikkim.
(2) The Municipality shall be a body corporate with perpetual succession and a common seal, and may, by the name of the Municipality of the city or the town or the Nagar Panchayat, as the case may be, by reference to which the Municipality is known, sue and be sued.
(3) Subject to the provisions of this Act, the Municipality shall have the power to acquire, hold and dispose of property.
(1) The Councillors elected in a general election or by-election of a Municipality in accordance with the provisions of any law relating to municipal election in Sikkim, shall constitute the Municipality.
(2) The Municipality 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 a Municipality shall be completed-
Provided that where the remainder of the period for which the dissolved Municipality would have continued is less than six months, it shall not be necessary to hold a bye election for constituting the Municipality for such period.
(4) The Municipality constituted upon its dissolution before the expiration of the period specified i
Each Municipality shall consist of such number of Councillors as are specified in the Table below:
| Population Range | Municipality Type | Minimum Number | One Additional Councillor for Incremental Number | Maximum Number |
|---|---|---|---|---|
| 70,000 or more | Municipal Corporation | 11 | Every sixty five thousand above seventy thousand | 7 |
| 5,000 or more but less than 70,000 | Municipal Council | 7 | Every thirty two thousand five hundred above five thousand | 5 |
| 3,000 or more but below 5,000 | Nagar Panchayat | 5 | - | 5 |
Notwithstanding anything contained in this Act, the superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, elections of Councillors shall be vested in the State Election Commission constituted under the provisions of any law relating to municipal election in Sikkim.
(1) The State Government shall, by notification, reserve seats for the Scheduled Castes, the Scheduled Tribes, the backward class of citizens, and the most backward class of citizens in every Municipality, 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 filled by direct election in that Municipality as the population of the Scheduled Castes, the Scheduled Tribes, the backward class of citizens, and the most backward class of citizens in the municipal area of that Municipality bears to the total population of that area, and such seats may be allotted by rotation to different wards of that Municipality, at such interval, and in such manner, as may be specified in the notification.
(2) Not less than one-third of the total number of seats reserved under sub-section (1) shall be reserved for women belonging to the Scheduled Castes, or the Scheduled Tribes, or the backward class of citizens, or the most ba
(1) Every person who is elected as a Councillor shall, before taking his seat, make and subscribe an oath or affirmation of his allegiance to the Constitution of India in such Form, and in such manner, as may be prescribed.
(2) The Chief Councillor shall assume office after taking an oath of secrecy in such Form, and in such manner, as may be prescribed.
(3) If any person, having been elected a Councillor, fails to make and subscribe, within three months of the date on which his term of office commences, the oath or affirmation under sub-section (1), such person shall cease to hold his office, and his seat shall be deemed to have become vacant.
Subject to the provisions of sub-section (3) or sub-section (4), as the case may be, of Section 12, a Councillor shall hold office for a period of five years from the date of the first meeting of the Municipality under Section 28, or, in the case of a Councillor chosen to fill a casual vacancy, for the remainder of the term of office of his predecessor, unless-
No employee of a Municipality shall be eligible to contest an election to become a Councillor of that Municipality or any other Municipality.
The Chief Councillor and the other Councillors may receive such remuneration and allowances as may be prescribed:
Provided that different rates may be prescribed for different classes of Municipalities.
(1) The municipal authorities for the purpose of giving effect to the provisions of this Act shall be,
(2) The presiding officer of the Municipality shall be, in the case of-
(3) The Executive Authority of every M
(1) Subject to the provisions of this Act and the rules, and the regulations, made there under, the executive and financial powers of a Municipality shall be exercised by the Executive Authority.
(2) All executive actions of the Executive Authority shall be expressed to be taken in the name of the Municipality.
(1) The Executive Authority may determine, either generally or for 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-
(c) In the case of a Municipal Councillor a Nagar Panchayat, t
(1) The Councillors shall, in the first meeting under section 28, elect in accordance with such procedure as may be prescribed one of the Councillors to be the Chief Councillor, who shall assume office forthwith after taking the oath of secrecy under section 16.
(2) If the Councillors fail to elect a Chief Councillor under sub-section (1), the State Government shall, within seven days from the date of the first meeting as aforesaid, appoint by name one of the Councillors to be the Chief Councillor.
(3) In the case of any casual vacancy in the office of the Chief Councillor 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.
(4) The term of office of the Chief Councillor shall be coterminous with the duration of the Municipality.
(1) The Chief Councillor shall cease to hold office as such if he ceases to be a Councillor.
(2) The Chief Councillor may, at any time, by giving a notice, in writing, to the Municipality, resign his office, and such resignation shall take effect from such date as may be specified in the notice or, if no such date is specified, from the date of its receipt by the Municipality.
(3) The Chief Councillor may be removed from office by a resolution carried by a majority of the total number of Councillors holding office for the time being at a special meeting to be called for this purpose upon a requisition made in writing by not less than one-third of the total number of Councillors:
Provided that no such resolution shall be moved before the expiry of six months from the date of entering office by the Chief Councillor, and if such resolution is not carried by a majority of the total number of Councillors, no further resolution for such purpose shall be moved before
(1) The Deputy Chief Councillor shall be elected by the Councillors from amongst themselves:
Provided that the Deputy Chief Councillor may resign by a letter, in writing, addressed to the Chief Councillor.
(2) The Deputy Chief Councillor shall, in the absence of the Chief Councillor, preside over the meetings of the Municipality.
(3) When-
(4) The Depu
(1) Each ward of a Municipality shall have an Area Sabha.
(2) The Councillor elected from a ward shall be the chairperson of the Area Sabha for that ward.
(3) The composition of the Area Sabha, the representation of various interest groups therein, and the functions thereof, shall be such as may be prescribed.
(1) Subject to such directions as the State Government may give from time to time, a Municipal Corporation may constitute a Subject Committee consisting of Councillors to deal with the following matters, namely:-
(2) A Municipal Corporation, or a Municipal Council, or a Nagar Panchayat, singly or jointly, may constitute an Ad hoc Committee or a Joint Committee to perform such functions as the State Government may direct.
(1) the first meeting of a Municipality after the general election of Councillors to the Municipality shall be convened within thirty days from the date of publication of the names of the elected Councillors in the Official Gazette under the provisions of any law relating to municipal election in Sikkim.
(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 in charge of Urban Development and Housing Department or any other officer not below the rank of a Deputy Secretary to the State Government, duly authorized by him.
(4) In the case of a Municipal Councillor a Nagar Panchayat, the meeting shall be convened by such officer of the Urban Development and Housing Department of the State Government as may be authorized by the Secretary of that Department.
(1) Having regard to the need for ensuring maximum possible economy in municipal administration and subject to the prior approval of the State Government, the Municipal Corporation may have a Chief Municipal Officer and other officers to deal with all or any of the functions relating to finance and accounts, health, sanitation, architecture and town planning, engineering, administration, law, fire services, urban forestry, parks, gardens, playgrounds, promotion of cultural, educational and aesthetic aspects, cattle pounds, prevention of cruelty to animals, and internal audit.
(2) Appointment of Chief Municipal Officer referred to in sub-section (1) may be made either on a regular basis or on deputation from the State Government or any agency of the State Government or on a contract basis for such term, not being less than three years, as the State Government may consider necessary.
(3) The method of, and the qualifications required for, recruitment, and the terms and
Payment of salaries and allowances to the officers including the statutory officers and other employees of the Municipality shall be made from such Fund as the State Government may, by notification, specify from time to time.
(1) Every Municipality shall-
A Municipality may, subject to the underwriting of the costs by, and the approval of, the Central Government or the State Government, as the case may be, undertake any function belonging to the functional domain of the Central Government or the State Government, as the case may be, and such functions may include primary education, curative health, public transport, supply of energy, and urban poverty alleviation.
A Municipality may, having regard to the satisfactory provision of the core municipal services 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, such functions in the sphere of-
The State Government may, by rules, provide for the following matters relating to the conduct of business of the Municipality or any committee of the Municipality:-
A. Transaction of Business by Municipality
Subject to such rules as the State Government may make in this behalf, if a Councillor has any pecuniary interest, direct or indirect, in any contract or proposed contract with or without employment under, or in any other matter concerning, the Municipality, he shall, before he is present at a meeting of the Municipality or of a committee thereof at which such contract or employment or other matter is a subject for consideration, disclose, in the manner prescribed, the fact regarding such contract or employment or other matter, and shall abide by the directions of the Presiding Officer of the meeting as to his taking part in the consideration or discussion of, or vote on, any question with respect to such contract or employment or other matter.
The State Government may-
(1) If, in the opinion of the State Government, the Municipality 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 law 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), by an order published in the Official Gazette, and stating therein the reasons therefore, declare the Municipality to be incompetent or in default or to have exceeded or abused its powers, as the case may be, and dissolve it with effect from such date, as may be specified in the order.
(2) The State Government shall, before making any order under sub- section (1), give a notice to the Municipality calling upon the Municipality to submit representation, if any, against the proposed order within such period as may be specified in the not
(1) not withstanding 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 37,-
Provided that the State Government shall fix the remuneration of such
(1) There shall be a fund to be called the Municipal Fund which shall be held by the Municipality in trust for the purposes of this Act, and all moneys realized or realizable under this Act and all moneys otherwise received by the Municipality shall be credited thereto.
(2) Subject to such directions as the State Government may give in this behalf, and keeping in view the classification of municipal areas under section 7, the receipts and expenditure of the Municipality shall be kept under the following heads of accounts:-
Explanation.-For the purposes of this section, "commercial projects" shall include bazars, bazar development projects, property devel
(1) The State Government may, from time to time, give grants or other financial assistance to a Municipality with directions, if any, as to the manner in which such grants or other financial assistance shall be applied.
(2) The Municipality shall maintain separate accounts for each such grant or other financial assistance.
Every head of account specified in sub-section (2) of section 39 shall be split up into revenue account and capital account and all items of receipts and expenditure shall be kept appropriately under such revenue account or capital account, as the case may be.
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 there under and for payment of all sums payable out of the Municipal Fund under any other law for the time being in force.
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 any provision of this Act:
Provided that this section shall not apply to any payment in the following cases:-
Whenever any sum is paid in any of the cases referred to in the proviso to section 42, the Chief Municipal Officer shall forthwith communicate to the Executive Authority, the circumstances of such payment, and, thereupon, the Executive Authority may take, or recommend to the Municipality to take, such action under the provisions of this Act as may appear to the Executive Authority to be feasible and expedient for covering the amount of such payment.
(1) On a requisition, in writing, by the State Government, the Chief Councillor may, at any time, require the Chief Municipal Officer 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 Municipality.
(2) The cost of any 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) The Chief Councillor shall, on receipt of a requisition under sub-section (1), forthwith forward a copy thereof to the Municipality together with a report of the steps taken in pursuance of the said requisition.
Notwithstanding anything contained elsewhere in this chapter, the Municipality may, with the approval of the State Government, authorize expenditure to be incurred beyond the limits of the municipal area for creation of physical assets and for maintenance thereof for providing the core municipal services.
(1) Notwithstanding anything contained elsewhere in this chapter, the State Government may, by order, require the Municipality 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 Municipality other than taxes, duties and fines assigned to the Municipality 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 in the order, and it shall be the duty of the Municipality to act accordingly.
(2) The State Government may, for carrying out the purposes of sub-section (1), make rules for different classes of Municipalities.
Subject to the other provisions of this 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 39 shall be operated by such officers of the Municipality as may be authorized by the Executive Authority.
(1) Surplus moneys standing at the credit of any of the heads of accounts referred to in section 39, which are not required, either immediately or at any date in the near future, to be applied for the purposes of this Act by the Municipality, may, in accordance with such rules as may be made by the State Government in this behalf, be transferred by the Municipality, either in whole or in part, to any other head of account:
Provided that no such money shall be transferred permanently from any head of account to any other head of account without the previous approval of the Municipality:
Provided further that such surplus moneys standing at the credit of the Commercial Projects Account shall not be transferred to the General Administration Account.
(2) Surplus moneys, which are not transferred under sub-section (1), may be invested in public securities or small savings schemes, approved by the Municipality, or deposited at interest with such nationalized bank as
(1) The Chief Municipal Officer shall prepare in each year a budget estimate for Revenue Account along with an establishment schedule of the Municipality for the ensuing year, and such budget estimate shall be an estimate of the income and the expenditure of the Municipality under such account.
(2) Subject to the provisions of sub-section (2) of section 39, the budget estimate shall separately state the income and the expenditure of the Municipality to be received and incurred under 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 Municipality 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 Chief Councillor shall present the budget estimate to the Municipality on the thirty-first day of August in each year.
(6) The budget estimate shall be prepared, pres
(1) The Chief Municipal Officer shall, while preparing the budget estimate, add at the end thereof a report indicating whether the following services are provided at a subsidized rate and, if so, the extent of the subsidy, the reasons thereof, the source from which the subsidy is met, and the sections or the categories of the local population who are the beneficiaries of such subsidy, namely:-
Explanation.- A service shall be construed to be provided at a subsidized rate if the total cost of providing such service, comprising the expenditure on operation, maintenance, and adequate provision for depreciation of assets and debt servicing, exceeds the income for the rendering of such service.
(2) The Executive Authority shall examine the report referred to in sub-section (1) and shall place it before the Municipality with its recommendatio
(1) The Municipality shall consider the budget estimate and the recommendations thereon, if any, of the Executive Authority, and shall, by the thirtieth day of September in each year, adopt the budget estimate for the ensuing year with such changes therein as it may consider necessary, and shall submit the budget estimate so adopted to the State Government.
(2) The budget estimate received by the State Government shall be returned to the Municipality before the thirty-first day of March of the year immediately preceding the year to which the budget estimate relates with or without modifications of the provisions thereof.
(3) A copy of the budget estimate as received from the State Government shall be sent to the District Planning Committee for information.
Subject to the recommendation of the Executive Authority, the Municipality may, from time to time, during a year-
The Chief Municipal Officer shall prepare and maintain, in such manner as may be prescribed, accounts of receipts and expenditure of the Municipality separately under revenue account and capital account on the basis of accrual.
The State Government shall prepare and maintain a Manual to be called the Municipal Accounting Manual containing details of all financial matters, and procedures relating thereto, in respect of the Municipality.
(1) The Chief Municipal Officer shall, within four months of the close of a year, cause to be prepared under revenue account and capital account a financial statement containing an account of income and expenditure and an account of receipts and payments for the preceding year in respect of the Municipality.
(2) The Form of the financial statement, and the manner in which the financial statement shall be prepared, shall be such as may be prescribed.
(1) The Chief Municipal Officer shall, within three months of the close of a year, cause to be prepared a balance sheet of assets and liabilities of the Municipality for the preceding year.
(2) The Form of the balance sheet, and the manner in which the balance sheet shall be prepared, shall be such as may be prescribed.
The financial statement prepared under section 56 and the balance sheet of assets and liabilities prepared under section 57 shall be placed by the Chief Municipal Officer before the Chief Councillor, who shall, after examination of the said financial statement and the balance sheet, adopt them, and shall remit them to the Auditor as may be appointed by the State Government in this behalf.
(1) The municipal accounts as contained in the financial statement, including the accounts of special funds, if any, and the balance sheet shall be examined and audited by the Director, by whatever name called, or any other person of equivalent rank, as may be appointed by the State Government or an Auditor appointed by the Municipality from the panel of professional Chartered Accountants prepared in that behalf by that Government.
(2) (a) The Comptroller and Auditor-General of India shall provide technical guidance to, and supervision over, the proper maintenance of accounts of the Municipalities and audit thereof.
Explanation.-The technical guidance to, and supervision over, the proper maintenance of accounts of the Municipalities by the Comptroller and Auditor-General of India shall include providing guidance regarding maintenance of accounts, standard of audit, guidelines of certification, training for capacity building, comments on accounts, and test audit of Mun
(1) As soon as practicable after the completion of audit of the accounts of the Municipality, but not later than the thirtieth day of September each year, the Auditor shall prepare a report of the accounts audited and examined and shall send such report along with the report of the results of the test check of accounts of the Comptroller and Auditor-General of India to the Chief Municipal Officer.
(2) The Auditor shall include in the report as aforesaid a statement showing
(1) The Chief Municipal Officer shall place the audited financial statement, the balance sheet and the report of the Auditor and his comments along with the report of the results of the test check of accounts of the Comptroller and Auditor-General of India before the Executive Authority who, after the examination thereof, shall place them before the Municipality with its comments, if any.
(2) The Chief Municipal Officer shall remedy any defect that has been pointed out by the Auditor in his report.
(1) After adoption of the financial statement and the balance sheet and the report of the Auditor along with the report of the results of the test check of accounts of the Comptroller and Auditor-General of India by the Municipality, the Chief Municipal Officer shall, forward the same to the State Government together with a report of the action taken thereon by the Municipality and shall also send copies thereof to the Auditor and the Comptroller and Auditor-General of India.
(2) If there is any difference of opinion between the Auditor and the Municipality or if the Municipality does not remedy the defects or the irregularities mentioned in the report of the Auditor within such period as may be prescribed, the Auditor shall refer the matter to the State Government whose decision thereon shall be final and binding.
If any order made by the State Government under this chapter is not complied with, it shall be lawful for that Government to take such steps as it thinks fit to secure the compliance of the order and to direct that all expenses there for shall be defrayed from the Municipal Fund.
In addition to the audit of annual accounts, the State Government or the Municipality may, if it thinks fit, appoint an Auditor to conduct special audit pertaining to a specified item or series of items requiring thorough examination, and the procedure relating to audit shall apply mutatis mutandis to such special audit.
The State Government or the Municipality may provide for internal audit of the day to day accounts of the Municipality in the manner prescribed.
(1) A Municipal Corporation shall, at its first meeting in each year or as soon as may be at any meeting subsequent thereto, constitute a Municipal Accounts Committee.
(2) The Municipal Accounts Committee shall consist of-
(3) The members of the Municipal Accounts Committee shall elect from amongst themselves one member to be its Chairperson.
(4) Subject to the other provisions of this Act, the members of the Municipal Accounts Committee shall hold office until a new Municipal Accounts Committee is constituted.
(5) The manner of submission of resignation by the C
(1) Subject to the approval of the State Government, the Municipality may, from time to time, by a resolution in this behalf passed at a meeting of the Municipality, raise a loan by the issue of debentures or otherwise, on the security of the property tax or all or any of the other taxes, surcharges, cesses, fees, and dues under this Act or both the property tax and all or any of the other taxes, surcharges, cesses, fees, and dues under this Act, or on the guarantee provided by the State Government for any sum of money which may be required for the purpose of-
Notwithstanding anything contained in section 67, the Municipality may, instead of raising a loan under that section, take, on such terms as may be approved by the State Government, credit from any nationalized bank, to be kept in a cash account bearing the name of the Municipality to the extent of such credit and, with the sanction of the State Government, may grant mortgage of all or any of the properties vested in the Municipality by way of securing the repayment of the amount of such credit or of the sums advanced from time to time on such cash account with interest.
Notwithstanding anything contained in this chapter, the Municipality may, from time to time, take a short-term loan repayable within such period, not exceeding twelve months, from any other nationalized bank for such purpose, not being a purpose referred to in sub-section (1) of section 67, on such terms, and on furnishing such security for the repayment of such loan, as may be approved by the State Government.
(1) For the purpose of investment of any portion of the Municipal Fund in the debentures issued by the Municipality for raising a loan, the Municipality may reserve and set apart any portion of such debentures for issue on a par therewith in the name of the Municipality, provided that the intention so to reserve and set apart such debentures shall have been notified as a condition of raising the loan.
(2) The issue of any debentures by the Municipality under sub-section (1) shall not operate to extinguish or cancel such debentures, but every such debenture shall be valid in all respects as if it were issued to, and in the name of, any other person.
(3) The purchase by, or the transfer, assignment, or endorsement to, the Municipality of any debenture issued by it shall not operate to extinguish or cancel such debenture, and every such debenture shall be valid and negotiable in the same manner and to the same extent as if it were held by, or transferred, assigned, or en
Every loan raised by the Municipality under section 67 shall be repaid within such period as may be sanctioned by the State Government.
All debentures issued under this chapter shall be in such Form, and shall be transferable in such manner, as the Municipality may, by regulations, determine, and the right to sue in respect of the moneys secured by any of such debentures shall vest in the holders thereof for the time being without any preference being given to one debenture over another by reason of one being prior to the other in so far as the dates of the debentures are concerned.
(1) The Chief Municipal Officer shall, at the end of every year, prepare, and submit to the Municipality, an annual statement showing-
(2) A copy of every such annual statement shall be submitted to the State Government by the Chief Municipal Officer.
Subject to such guidelines and procedure as the Central Government may lay down from time to time and with the previous approval of the State Government
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