LexThe Gujarat Municipal Finance Board Act, 1979
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Open in Lexace · Ask the AI about this act1979 : Guj. 12 ] Gujarat Municipal Finance Board Act, 1979
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GOVERNMENT OF GUJARAT
LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT
Gujarat Act No. 12 of 1979
The Gujarat Municipal Finance Board
Act, 1979
(As modified up to the 31st October, 2012)
[1979 : Guj. 12 Gujarat Municipal Finance Board Act, 1979
THE GUJARAT MUNICIPAL FINANCE BOARD ACT, 1979.
CONTENTS.
PREAMBLE.
SECTIONS.
CHAPTER I.
PRELIMINARY.
1. Short title and Commencement.
2. Definitions.
CHAPTER II.
ESTABLISHMENT AND CONSTITUTION OF THE BOARD.
3. Establishment of Board.
4. Constitution of Board.
5. Disqualifications for membership.
6. Term of office and conditions of service of members.
7. Cessation of membership.
8. Vacancies how to be filled.
9. Absence of Chairman.
10. Acts not to be invalidated by vacancy, in formality etc.
11. Meetings of Board.
12. Committees of the Board.
13. Officers and Servants of Board.
CHAPTER III.
POWERS, DUTIES AND FUNCTIONS OF THE BOARD.
14. Duties and functions of the Board.
15. Powers of the Board.
CHAPTER IV.
CONTRACT, FINANCE, ACCOUNTS AND AUDIT.
16. Execution of contract by Board.
17. Board's Fund.
18. Grants and subventions to the Board.
19. Loans to the Board.
20. Power to borrow.
21. Accounts and audit.
CHAPTER V.
MISCELLANEOUS.
22. Reports.
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SECTIONS.
23. Government to give directions to the Board.
24. Duty of local authorities to assist.
25. Dissolution or supersession of the Board in certain circumstances.
26. Protection of action taken under this Act.
27. Members, officers and servants of the Board to be public servants,
28. Power to make rules.
30. Regulations.
31. Amendment of enactments relating to local authorities.
SCHEDULE.
[1979 : Guj. 12 Gujarat Municipal Finance Board Act, 1979
GUJARAT ACT NO. 12 OF 1979. 1 οͺ
[THE GUJARAT MUNICIPAL FINANCE BOARD ACT, 1979].
Amended by Guj 1 of 1999.
Amended by Guj 8 of 2008.
An Act to make provision for better management by the Municipal Corporations
and Municipalities in the State, of their financial resources and for regulation
of giving of certain grants and loans by the State Government to those
bodies and for that purpose to establish a Municipal Finance Board
and for matters connected therewith.
It is hereby enacted in the thirtieth Year of the Republic of India as follows :β
CHAPTER I.
PRELIMINARY.
1. (1) This Act may be called the Gujarat Municipal Finance Board Act, 1979.
(2) This section shall come into force at once and the remaining provisions shall
come into force on such date as the State Government may, by notification in the
Official Gazette, appoint.
2. In this Act, unless the context otherwise requires,β
(a) "Board" means the Gujarat Municipal Finance Board established under
section 3;
(b)"Chairman" means the Chairman of the Board;
(c)"Fund" means the fund of the Board;
(d)"local authorit y" means a municipal corporation constituted under the
Bombay Provincial Municipal Corporations Act, 1949 or a Municipality
constituted or deemed to be constituted under the Gujarat Municipalities Act,
(e) "member" means a member of the Board;
(f) "prescribed" means prescribed by rules made under this Act;
(g) "regulations" means regulations made under this Act;
(h) "rules" means rules made under this Act.
CHAPTER II.
ESTABLISHMENT AND CONSTITUTION OF THE BOARD.
3. (1) As soon as may be after the commencement of this Act, the State
Government shall, by notification in the Official Gazette, with effect from a date
to be specified therein, establish ed for the purpose of this Act, a Board to be
called the "Gujarat Municipal Finance Board".
(2) The Board shall be a body corporate, having perpetual succession and a
common seal, with powers subject to the provisions of this Act, to acquire, hold
or dispose of property both, movable and immovable and to contract and to do
all things necessary for the purpose of this Act, and may sue or be sued by its
corporate name.
(3) The head office of the Board shall be at such place, as the State Government
may, by notification in the Official Gazette, direct.
4. (1) The Board shall consist of the following members, namely:β
Short title and
commencement.
Definitions.
Bom. LIX of 1949.
Guj. 34 of 1964.
Establishment of
Board.
Constitution of
Board.
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(i) a Chairman to be appointed by the State Government;
(ii) three members to be appointed by the State Government who, in the
opinion of the State Government, have knowledge of the municipal
finances or municipal administration 1a[out of whom at least one shall be
a woman];
(iii) three members to be appointed by the State Government by virtue of
their office from amongst the officers of the State Government 1b[out of
whom at least one shall be a woman];
(iv) one member to be appointed by the State Government by virtue of
his office or otherwise from amongst the officers of the State
Government who in the opinion of the State Government, has experience
in the financial matters and administration of the Government and the
local authorities.
(2) The member appointed under clause (iv) of sub-section (2) shall be the Chief
Executive Officer of the Board.
5. A person shall be disqualified for being appointed as, or for being a member, if heβ-
(a) has been removed or dismissed from the service of Government, or, of a local
authority or, a corporation owned or controlled by Government; or
(b) has been convicted of an offence which in the opinion of the State
Government involves moral turpitude; or
(c) is of unsound mind and stands so declared by a competent court; or
(d) is an undischarged insolvent; or
(e) has such financial or other interest as is likely to affect prejudiciall y his
functions as a member of the Board.
6. 2[(1) The Chairman and the members other than those appointed by virtue of
their office shall hold office during the pleasure of the State Government.]
(2) A member who is appointed by virtue of his office shall, unless dismissed
earlier, cease to be such member on his ceasing to hold that office.
(3) (a) The Chairman shall be entitled to draw such honorarium, sitting fees
and allowances as may be prescribed.
(b) The members other than those appointed by virtue of their office,
shall be entitled to draw such sitting fees and allowances as may be
prescribed.
(c) The members who are appointed by virtue of their office may be paid
such compensatory allowance f or the purpose of meeting the personal
expenditure in attending the meetings of the Board or any committee
thereof or for being appointed in connection with the work undertaken by
or for the Board as may be prescribed.
(4) The honorarium, sitting fees and allowances of the Chairman and sitting fees
and allowances including compensatory allowance of the members shall be paid
from the Fund.
7. (1) If a member-
(a) becomes subject to any of the disqualifications mentioned in section
5, or
(b) tenders his resignation in writing to, and such resignation is accepted
by, the State Government, or
Disqualifications
for membership.
Term of office and
conditions of
service of members.
Cessation of
membership.
[1979 : Guj. 12 Gujarat Municipal Finance Board Act, 1979
(c) is absent without the permission of the Board from three consecutive
meetings of the Board or from all meetings of the Board for three
consecutive months,
he shall cease to be a member of the Board.
(2) The State Government may, by order, suspend from office for such period as
it thinks fit, or remove from office, any member of the Board who in its opinion,-
(a) has refused to act, or
(b) has become incapable of acting, or
(c) has so abused his position as member as to render his continuance on
the Board detrimental to the interest thereof or of the general public, or
(d) is otherwise unfit to continue as a member.
8. Any vacancy of a member of the Board shall be filled 3[as early as practicable]:
Provided that, during any such vacancy the continuing members may act as if no
vacancy had occurred.
9. If the Chairman is by infirmity or other wise rendered incapable of carrying at his
duties or is absent on leave or otherwise, in circumstances not in volving the vacation of
his appointment, such person, as the State Government may appoint, shall act as the
Chairman.
10. No act or proceeding of the Board or a Committee appointed by the Board shall be
invalid merely on the ground ofβ
(a) any vacancy of a Chairman or a member or any defect in the constitution or
reconstitution of the Board or a committee thereof; or
(b) any defect or irregularity in the appointment of a person as a Chairman or
member of the Board or of a committee thereof; or
(c) any defect or irregularity in such act or proceeding, not affecting the
substance.
11. (1) The Board shall hold meetings at such times and places, and shall subject to
the provisions of sub-sections (2), (3) and (4) follow such procedure in regard to
the transaction of business at its meetings as may be provided in the regulations.
(2) The Chairman, and in his absence any person chosen by the members present
from amongst themselves, shall preside at meetings of the Board.
(3) All questions at a meeting of the Board shall be decided by a majority of the
votes of the members present and voting and, in the case of an equality of votes,
the person presiding shall have a second or casting vote.
(4) The number of members necessary to constitute a quorum at a meeting shall
be such as may be provided in the regulations and no business shall be transacted
at any meet ing unless the members constituting the quorum are present
throughout such meeting.
12. (1) The Board may, from time to time, constitute from amongst its members one
or more committees each consisting of such number as the Board m ay consider
necessary, for the purpose of discharging such of its duties and functions as may
be delegated to such committee or committees by the Board.
(2) A committee constituted under sub -section (1) shall meet at such time and at
such place and shall follow such procedure in regard to the transaction of
business at its meetings (including the quorum) as may be provided in the
regulations.
Vacancies how to
be ailed.
Absence of
Chairman.
Acts not to be
invalidated by
vacancy, in for-
malitv, etc.
Meetings of Board.
Committees of the
Board.
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13. (1) The State Government shall appoint an officer to be the secretary to the
Board who shall be subordinate to the Chief Executive Officer.
(2) The Board may appoint such other officers and servants subordinate to the
Chief Executive Officer as it considers necessary for the efficient performance of
its duties and functions.
(3) The recruitment and conditions of service of-
(a) the secretary shall be such as may be proscribed, and
(b) the other officers and servants shall be such as may be determined by
regulations.
CHAPTER III.
POWERS, DUTIES AND FUNCTIONS OF THE BOARD.
14. The duties and functions of the Board shall be as follows, namely :β
(a) subject to the Local Authorities Loans Act, 1914 or the Saurashtra Local
Authorities Loans Act, 1951 an d to any general or special order made by the
State Government made in this behalf,β
(i) to grant loans to the local authorities, out of the Fund,
(ii) to distribute on behalf of the State Government grant -in-aid of the
revenues of the local authorities, out of the amounts provided to the
Board by the Government for that purpose.
for the performance by such authorities of their duties and
functions under the Bombay Provincial Municipal Corporations Act,
1949 or, as the case may be, the Gujarat Municipalities Act, 1963;
(b) (i) to assess income of a local authority received during any financial
year, from each of the sources mentioned in section 82 of the Bombay
Provincial Municipal Corporations Act, 1949 or, as the case may be,
section 82 of the Gujarat Municipalities Act, 1963; and the expenditure
incurred by a local authority in such financial year in carrying out the
obligatory and discretionary duties or functions imposed on it under the
provisions of the Bombay Provincial Municipal Corporations Act, 1949
or, as the case may be of the Gujarat Municipalities Act, 1963; and
(ii) having regard to such assessment, to tender advice to the local
authorities as to the ways and means to be adopted by them for
increasing the income from any of those sources and the pattern to be
followed in incurring expenditure in carrying out the obligatory and
discretionary duties;
(c) to recommend to the local authorities g enerally or to any local authority in
particular, measures for-
(i) improvement of assessment and collection of taxes and fees levied by
the local authority;
(ii) effecting economy in the expenditure incurred by a local authority,
such as reduction in the number of officers and servants employed by it,
reduction of wasteful expenditure, improvement of administrative
procedure and practice;
(d) to recommend to the State Government principles which should govern the
grant-in-aid of the revenues of the local authorities out of the consolidated Fund
of the State
(e) (i) to tender advice to the local authorities in respect of preparation of
their budget estimates; and
(ii) to make report to the State Government of its observations in relation
Officers a servants
of the Board.
Duties and
functions the Board
Act No. IX of 1914.
Sau. Act No XVIII.
of 1951.
Bom. LIX of 1949.
Guj. 34 of 1964.
Bom. LIX of 1949.
Guj. 34 of 1964.
Bom. LIX 1949.
Guj. 34 of 1964.
[1979 : Guj. 12 Gujarat Municipal Finance Board Act, 1979
to the budget estimates of local authorities generally or in relation to
budget estimates of any local authority in particular;
(f) to make recommendations to the State Government or, as the case may be, any local
authority, as to any other matter referred to the Board in the interests of sound municipal
finance.
15. (1) The Board shall have power to call for any return, statement of accounts,
report, statistics or other information from any local authority, other body or
individual, which is required by it for the discharge and performance of its duties
and functions under this Act, and such authority, body or individual shall be
bound to furnish such information.
(2) The Board shall have the power to enter on and inspect or cause to be entered
on and inspected any work carried on by a local authority.
CHAPTER IV.
CONTRACT, FINANCE, ACCOUNTS AND AUDIT.
16. Every contract or assurance of property on behalf of the Board shall be in writing
and executed by such authority or officer and in such manner as may be provided by
regulations.
17. (1) The Board shall have and maintain its own Fund to which shall be credited
all moneys received by or on behalf of the Board, including grants, subventions
and loans made by the State Government.
(2) The Fund shall be applied subject to the provisions and for the purposes of
this Act.
(3) Except as otherwise directed by the State Government, all moneys forming
part of the fund shall be deposited with the State Bank of India or any bank
included in the Second Schedule to the Reserve Bank of India Act, 1934, or
invested in such securities as may be approved by the State Government.
18. The State Government may, after appropria tion duly made in this behalf, from time
to time, make grants and subventions to the Board for the purposes of this Act, on such
terms and conditions as the State Government may determine.
19. The State Government may, from time to tim e, advance loans to the Board on such
terms and conditions as the State Government may determine.
20. The Board may, from time to time, with the previous sanction of the State
Government and subject to the provisions of this Act and to su ch conditions as the State
Government may, by general or special order, impose, borrow any moneys required for
the purposes of this Act by making arrangements with the banks or other bodies or
institutions approved by the State Government for this purpose.
21. (1) The Board shall cause to be maintained proper books of accounts and such
other books as may be prescribed and shall prepare an annual statement of the
accounts at such time and in such manner as may be prescribed.
(2) The Board shall cause its accounts to be audited annually by such person as
the State Government may direct.
(3) As soon as the accounts of the Board have been audited, the Board shall send
a copy thereof together with a copy of the report of the auditor thereon to the
State Government.
(4) The Board shall comply with such directions of the State Government as the
State Government may after perusal of the report of the auditor think fit to give.
(5) The annual audited statement of accounts together with the report of the
auditor received by the State Government under sub -section (3) shall be laid
before the State Legislature as soon as possible.
Powers of the
Board.
Execution of
contract by Board.
Boards Fund.
Grants and
subventions of the
Board.
Loans to the Board.
Power to borrow.
Accounts and audit.
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CHAPTER V.
MISCELLANEOUS.
22. (1) The Board shall, as soon as may be after the end of each financial year,
prepare and submit to the State Government before such date and in such form as
the State Government may direct, a report giving as account of its activities
during the previous financial year.
(2) Every report submitted to the State Government under sub -section (1) shall
be laid before the State Legislature.
23. The State Government may, by order in writing, give to the Board such directions as
in its opinion are necessary or expedient for carrying out the purposes of this Act and the
Board shall comply with such directions.
24. (1) All local authorities shall render such help and assistance and furnish such
information to the Board and shall make available for the inspection and
examination of (and if necessary, preparation of copies from) such records, and
other documents as t he Board may require to discharge and perform its duties
and functions under this Act.
(2) Without prejudice to the provisions of sub -section (1), every local authority
shall on demand make available to the Board, certified copies of or extracts from
assessment lists and other relevant documents in connection with assessment of
annual letting value of premises and levy of taxes, fees and charges.
(3) Without prejudice to other provisions of this Act and notwithstanding
anything contained in any other law for the time being in force under which any
local authority is constituted, the State Government may give to any local
authority such directions as in its opinion are necessary or expedient for enabling
the Board to discharge its duties and perform its functions under this Act and
thereupon it shall be the duty of the local authority to comply with such
directions.
25. (1) If, in the opinion of the State Government, the B oard is not competent to
perform, or is not properly performing, or deliberately makes default in
performing the duties imposed on it by or under this Act or the rules made
thereunder or otherwise by law or exceeds or abuses its powers, or is acting or
has acted contrary to the provisions of this Act or the regulations made
thereunder, or fails to obey any direction given to it under section 23, the State
Government may, after giving the Board an opportunity to render an
explanation, by an order publi shed, with the reasons there for, in the Official
Gazette, dissolve the Board or supersede it for such period not exceeding one
year as may be specified in the order; and such period may extend beyond the
term for which the members of the Board would have held office if the Board
had not been superseded under this Section.
(2) When the Board is dissolved or superseded, the following consequences shall
ensue :β
(a) all members of the Board shall, in the case of supersession, as from
the date of the order of supersession, and in the case of dissolution as
from the date specified in the order of dissolution vacate their office as
such members;
(b) all powers, duties and function s of the Board shall, during the period
of dissolution or supersession be exercised and performed by such
person or persons as the State Government may, from time to time,
appoint in that behalf;
(c) all property vested in the Board shall during the perio d of dissolution
or supersession vest in the State Government.
(3) After the dissolution of the Board, the Board shall be re -established and
reconstituted in the manner provided in this Act.
Reports.
Government to give
directions to the
Board.
Duty of local
authorities to assist.
Dissolution or
supersession of the
Board in certain
circumstances.
[1979 : Guj. 12 Gujarat Municipal Finance Board Act, 1979
(4) Where the Board is superseded, it shall be re -established and reconstituted in
the manner provided in this Act on the expiration of the period of supersession.
26. No suit, prosecution or other legal proceedings shall lie against the State
Government, the Board or the me mbers or any officers or servants of the State
Government or of the Board for anything which is in good faith done or purported or
intended to be done in pursuance of this Act, rules or regulations.
27. All members, officers and servants of the Board shall be deemed, when acting or
purporting to act in pursuance of any of the provisions of this Act, to be public servants
within the meaning of section 21 of the Indian Penal β¬ode.
28. (1) The State Government may, by notification in the Official Gazette, and
subject to the condition of previous publication, make rules for carrying out the
purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power,
such rules may be made for all or any of the following purposes, namely:β
4[(a) the honorarium, sitting fees and allowances of the Chairman and
sitting fees and allowances including compensatory allowance of the
members under sub-section (3) of section 6.]
(b) the recruitment and conditions of service of the secretary to the
Board, under clause (a) of sub-section (3) of section 13.
(c) the other books to be maintained and the time at and the manner in
which the annual statement of accounts, shall be prepared by the Board
under sub-section (1) of section 21;
(d) any other matter which is to be or may be prescribed under this Act.
(3) All rules made under this section shall be laid for not less than thirty days
before the State Legislature as soon as may be after they are made and shall be
subject to rescission by the State Legislature or to such modifications as the State
Legislature may make during the session in which they are so laid or the session
immediately following.
(4) Any rescission or modification so made by the State Legislature shall be
published in the Official Gazette, and shall thereupon take effect.
29. (1) The Board may, with the previous approval of the State Government, make
regulations consistent with this Act and the rules for the administration of its
affairs.
(2) Without prejudice to the generality of the foregoing powers such regulations
may provide for all or any of the following matters, namely:β
(a) the time and place at which meetings of the Board are to be held, the
procedure in regard to the transaction of business thereat, and the number
of members necessary to constitute a quorum thereat, un der sub-sections
(1) and (4) of section 11;
(b) the time and place at which meetings of a committee are to be held,
and the procedure in regard to the transaction of business (including
quorum) thereat, under sub-section (2) of section 12;
(c) the recrui tment and conditions of service of other officers and
servants, under clause (b) of sub-section (3) of section 13;
(d) the authority by which or the officer by whom and the manner in *
which contract or assurance of property on behalf of the Board is to b e
executed under section 16;
Protection of action
taken under this
Act.
Members, officers a
servants a the Board
to be public
servants.
XLV of 1960.
Power to make
rules
Regulations.
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(e) any other matter for which provision is to be or may be made by
regulations.
(3) Until any regulations are made by the Board under sub -section (1), any
regulations which may be made by it may be made by the State Governme nt and
any regulations so made may be altered or rescinded by the Board in exercise of
its power under sub-section (1).
30. Each of the enactments mentioned in column 1 of the Schedule shall be amended i n
the manner, and to the extent, specified against it in column 2 thereof.
SCHEDULE
(See section 30)
Enactments Amendments
1 2
1.The Bombay Provincial Municipal In section 126 -A, for sub -sections (1) and (2),
Corporations Act, 1949 (Bom. LIX of the following sub-sections shall be substituted,
1949). namely :-
"(1) The State Government may, after considering
recommendations of the Gujarat Municipal Finance
Board, determine whether for augmenting the finances of
the Corporation for any of the purposes of this Act it is
necessary to make any grant to the Corporation and if so,
the amount thereof.
(2) The grant so determined shall be made to the
Corporation every year but it may be revised after a
period of eve ry five years having regard to the
recommendations of the Gujarat Municipal Finance
Board in respect of the revision of grants to
Corporations.".
2. The Gujarat Municipali ties Act. 1963 In section 144, for sub -sections (1) and (2)
(Guj. 34 of 1964). the following sub-sections shall be substituted
namely:-
"(1) The State Government may, after considering the
recommendations of the Gujarat Municipal Finance
Board, determine whether for augmenting the finances of
a municipality for any of the pu rposes of this Act it is
necessary to make any grant to the municipality and if
so, the amount thereof.
(2) The grant so determined shall be made to the
municipality every year but it may be revised after a
period of every five years having regard to the
recommendations of the Gujarat Municipal Finance
Board in respect of the revision of grants to
municipalities.'.
--------------------
1 For Statement of Objects and Reasons, See Gujarat Government Gazette, Extraordinary, Part V, Pages Dated
the 21st February, 1979 Pages 165 and 166.
οͺ This Act was assented to by the Governor on the 31st March, 1979.
Amendment
enactments relating
to local authorities.
[1979 : Guj. 12 Gujarat Municipal Finance Board Act, 1979
1a These words were added by Guj. 8 of 2008, s. 2(1).
1b These words were added, ibid., s. 2(2).
2 This sub-section (1) was and was deemed always to have substituted for original, by Guj, 1 of 1999. S.3. Sch.,
Sr. No. 12(1)
3 The words have been substituted for the words "as early as practicable, and member so appointed shall
hold office so long only as the member in whose place he has been appointed would have held office if the
vacancy had not occured;" by Guj. 1 of 1999. s. 3. sch., Sr. No. 12 (2).
4 This clause (a), was substituted, for the original, by Guj. 1 of 1999. s. 3, Sch., Sr. No. 12 (3).