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The Jharkhand Municipal Act 2011

Jharkhand · state statute
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[JHARKHAND ACT 07 OF  2012] 
Jharkhand Municipal Act, 2011 
 
       An Act  to consolidate and amend the laws relating to the Municipal Governments in 
the State of Jharkhand 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 introduce reforms in financial management and 
accounting systems, internal resource generation capacity and organizational design of 
municipalities, to ensure professionalisation of the municipal personnel, and to provide 
for matters connected therewith or incidental thereto.  
 
      BE it enacted by the Legislature of the State of Jharkhand in the Sixty-one year of the 
Republic of India as follows:-  
 
                     PART - I 
PRELIMINARY 
Chapter – 1 
 
1. Short title, extent and commencement-  
(1) This Act may be called the Jharkhand Municipal Act, 2011. 
(2) It shall extend to the whole of the State of Jharkhand excluding cantonment 
areas therein.  
(3) The provisions of the Act shall come into force on such date as the State 
Government may, by notification, appoint in this behalf.  
2. Definitions - In this Act, unless the context otherwise requires -  
(1) “Ad hoc Committee” means an Ad hoc committee appointed under 
section 47 of this Act; 
(2) “Administrator” means any officer appointed by the State Government 
to exercise the powers and perform the functions and discharge duties 
conferred or imposed on the municipalities, the Standing Committee and 
the Municipal Commissioner or the Executive Officer, by or under this 
Act;  
(3) “Advertisement" means any word, letter, model, sign, placard, board, 
notice, device, or representation whether illuminated or not, in the nature 
of and employed, wholly or in part, for the purpose of advertisement, 
announcement or direction and includes any hoarding or similar structure 
used or adapted to be used for the display of advertisement; 
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(4) "Advertiser" means a person who has been permitted, or has applied, 
under the rules, to display advertisement by writing or exhibiting by 
hanging or pasting or putting up a board or hoarding and, also includes an 
agent, representative or servant of such person; 
(5) “Annual Rental Value” of a holding means the gross annual rental at 
which a holding may reasonably be expected to be let out. 
(6) "Archaeological site" means an area in which archaeological relics are 
situated;  
(7) "Architect" means an architect duly registered with Indian Council of 
Architects;  
(8) “Area Sabha” means an Area Sabha constituted under section 39 of this 
Act; 
(9) "Assessment list" means any municipal assessment register referred to 
under this Act, and includes any register subsidiary thereto;  
(10) "Auditor" means an Auditor appointed under section 117 of this Act , and 
includes any officer   authorized by him to perform all or any of the 
functions of an Auditor under this Act;  
(11) "Backward Classes" means any socially and educationally Backward 
Classes of citizens recognized by the Government for purposes of clause 
(4) of Article 15 of the Constitution of India; 
(12) "Balance sheet" means the balance sheet prepared under section 115 of 
this Act,  
(13) “Bio-medical waste" means any waste generated during diagnosis, 
treatment, immunization or any health services of human beings or 
animals or in research activities pertaining thereto or in the production or 
testing of biologicals;  
(14) "Bridge” includes culvert;  
(15) "Budget estimate" means the budget estimate prepared under section 108 
of this Act;  
(16) "Budget grant" means the total sum entered on the expenditure side of a 
budget estimate under a major head and adopted by the municipality, and 
includes any sum by which such budget grant is increased or reduced by 
transfer from or to other heads in accordance with the provisions of this 
Act and the rules and the regulations made thereunder;  
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(17) "Building" means a structure constructed for whatever purpose and of 
whatever materials, and includes the foundation, plinth, walls, floors, 
roofs, chimneys, fixed platforms, verandas, balconies, cornices or 
projections or part of a building or anything affixed thereto or any wall 
(other than a boundary wall of less than three meters in height) enclosing, 
or intended to enclose, any land, sign or outdoor display-structure but does 
not include a tent, shamiana or tarpaulin shelter; 
(18) "Building line” means a line beyond which the outer face or any part of 
an external wall of a building should not project in the direction of any 
street, existing or proposed and sanctioned;  
(19) “Regulation” means a regulation made under the provisions of this Act; 
(20) “Candidate” means a person who has been duly nominated or claimed to 
have been duly nominated as a candidate of any election;  
(21) "Carriage" means any wheeled vehicle, with springs or other appliances 
acting as springs, which is ordinarily used for the conveyance of human 
beings, and includes an in-rickshaw, cycle-rickshaw, bicycle or tricycle, 
but does not include a perambulator or other form of vehicle designed for 
the conveyance of children or elderly, infirm or handicapped persons;  
(22) "Cart" means any cart, hackney or wheeled vehicle with or without 
springs, which is not a carriage, and includes a hand-cart, a cycle van and 
a push van, but does not include any wheeled vehicle which is propelled 
by mechanical power or its trailer;  
(23) "Casual vacancy" means a vacancy occurring otherwise than by efflux of 
time in the office of a member or in any other elective office,  and 'casual 
election' means an election held to fill a casual vacancy; 
(24) “Cesspool” includes a settlement tank or other tank for the reception or 
disposal of foul matter from building; 
(25) "Charitable purpose" includes the maintenance of an educational 
institution and the hostels attached thereto, which, though wholly or partly 
self-supporting, is maintained without the purpose of profit; 
(26) “Chairperson” and “ Vice-Chairperson” mean - 
(a) in relation to a Municipal Corporation, the Mayor and the Deputy 
Mayor respectively; and 
(b) in relation to a Municipal Council, and a Nagar Panchayat, the 
Chairperson and the Vice-Chairperson respectively; 
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(27) “Commercial building” means any building, which is used or occupied 
for carrying on any trade or commerce or industry or any work connected 
therewith or incidental or ancillary thereto; 
(28) "Commercial Holding" means any holding or part of a holding which is 
used for display storage or sale of goods, either wholesale or retail, or a 
holding which is used for providing any service in lieu of payment. This 
also includes private educational institution, coaching centres etc. to 
whom Government does not provide any assistance whatsoever.  
(29) “Company” means  
(a) a company as defined in section 3 of the Companies Act, 1956 and 
includes a foreign company within the meaning of section 591 of that 
Act; 
(b) a co-operative society registered or deemed to be registered under the 
relevant provisions of the Co-operative Societies Act; 
(c) a body corporate; and  
(d) a firm or association carrying on business in this State whether 
incorporated or not and whether its principal place of business is 
situated in the State or not; 
(30) "Compound" means land, whether enclosed or not, which is the 
appurtenance of a building or the common appurtenance of several 
buildings; 
(31) "Conservancy” means the removal and disposal of sewage, offensive 
matter and rubbish; etc; 
(32) “Council” means the Council constituted for each municipality under 
section 15 of this Act; 
(33) “Councillor”, in relation to a municipality means a person chosen by 
direct election from a Ward of that municipality;  
(34) “Cubical extent" with reference to the measurement of a building, means 
the space contained within the external surface of its walls and roof and the 
upper surface of the floor of its lowest storey, or where the building consists 
of one story only, the upper surface of its floor;  
(35) "Dangerous disease” means -  
(a) cholera, plague, small-pox, cerebrospinal meningitis, diphtheria, 
tuberculosis, leprosy, influenza, encephalitis, poliomyelitis, or 
syphilis; or  
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(b) any other epidemic, endemic, or infectious disease which the 
Government may, by notification, declare to be a dangerous disease 
for the purposes of this Act;  
(36) “Deputy Commissioner” means the Deputy Commissioner of the district 
in which the municipality is situated;  
(37)
 "Development Plan / Master Plan" means the draft Development 
Plan/Master Plan and the final Development Plan/Master Plan prepared 
under this Act;  
(38) "Director of Municipal Administration " means an officer appointed as 
such by the Government, and includes an Additional Director, a Joint 
Director, a Deputy Director, or any other officer of the Government 
authorized by it to perform the functions of the Director of Municipal 
Administration under this Act;  
(39) “District Planning Committee” means the committee constituted in 
pursuance of Article 243-ZD of the Constitution and referred to in section 
383 of this Act to consolidate the plans prepared by the Panchayats and the 
municipalities in the district; 
(40) “Divisional Commissioner” means the Divisional Commissioner of the 
division in which the municipality is situated; 
(41) "Drain" includes a sewer, a house-drain, a drain of any other description, 
a tunnel, a culvert, a ditch, a channel or any other device for carrying off 
sullage, sewage, offensive matter, polluted water, rainwater or sub-soil 
water;  
(42) "Dwelling-house" means a masonry building constructed, used, or 
adapted to be used, wholly or principally for human habitation;  
(43) “Election” means an election to fill any vacancy in the office of Mayor, 
Deputy Mayor, Chairperson and Vice-Chairperson and the Councillor of 
any municipality; 
(44) “Elector”, in relation to a ward, means a person whose name is for the 
time being entered in the electoral roll of that ward;  
(45) “Essential service” means the service in connection with the pumping 
stations, drainage, conservancy or water supply of the municipality and any 
such other service as may be notified by the Government; 
(46) “Executive Officer” means a person appointed by the Government in 
relation to a Municipal Council, or the Nagar Panchayat, the Executive 
Officer of the  Municipal Council or the Nagar Panchayat;   
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(47) “Factory” means a factory as defined in the Factories Act, 1948; 
(48) “Filth” means  
(a) night soil or other contents of latrines, cesspools and drains; 
(b) dirt, dung, refuse, useless or offensive materials thrown out in 
consequence of any process of manufacture, industry or trade; and 
(c) putrid or putrifying substance; 
(49) “Finance Commission” means the State Finance Commission constituted 
under Article 243-I of the Constitution of India and referred to in section 
97 of this Act; 
(50) "Food" includes every article used for food or drink by man, other than 
drugs or water, and any article which ordinarily enters into, or is used in 
the composition or preparation of, human food, and also includes 
confectionery, flavouring and colouring matters, spices and condiments; 
(51) "Footpath" means a pavement, for use by pedestrians;   
(52) "Goods" include animals; 
(53) “Government” means the State Government of Jharkhand; 
(54) "Holding" means land held under one title or agreement and surrounded 
by one set of boundaries: 
      Provided that, where two or more adjoining holdings held by the same owner 
form part and parcel of the site or premises of an apartment and a dwelling house, 
manufactory, warehouse or place of trade or business, such holdings shall be 
deemed to be one holding for the purposes of this Act:  
      Explanation- Holdings separated by a road or other means of communication 
shall be deemed adjoining within the meaning of this clause: 
       Provided further that where any building is capable of being enjoyed 
separately in parts, or where portions of such building are owned separately by 
different persons, or where the building comprises self contained and independent 
units, each of such parts, portions or units shall, on application by the owners, be 
deemed, to be a separate holding;  
(55) "House-drain" means any drain of one or more premises used for the 
drainage of such premises;  
(56) "House-gully" means a passage or a strip of land constructed, set apart or 
utilized for the purpose of serving as a drain or affording access to a privy, 
urinal, cesspool or other receptacle for filthy or polluted matter for 
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municipal employees or for persons employed in the cleaning thereof or 
removal of such matter therefrom, and includes the air space above such 
passage or land;  
(57) "Hut"  means any building, no substantial part of which, excluding the 
walls upto a height of fifty centimeters above the floor or floor level, is 
constructed of masonry, reinforced concrete, steel, iron or other metal;  
(58) "Industrial township" means such urban area or part thereof as the 
Government may, having regard to the size of the area and the municipal 
services being provided or proposed to be provided by an industrial 
establishment in that area and such other factors as it may deem fit, by 
notification, specify to be an Industrial Township;  
(59) "Infectious disease" or "communicable disease" means any disease, 
which may be transmitted from one person to another and declared as such 
by the  Government by notification;  
(60) “Larger urban area” means municipal area classified as a larger urban 
area under section 8 of this Act; 
(61) “Licensed plumber”, “licensed surveyor”, “licensed architect”, “licensed 
engineer”, “licensed structural designer” and “licensed clerk of works” 
respectively, means a person licensed by the municipality as a plumber, 
surveyor, architect, engineer, structural designer or  clerk of works under 
this Act; 
(62) "Market" includes any place, by whatever name called, where persons 
assemble for the sale of meat, fish, fruits, vegetables, live stock, or any other 
article of food of a perishable nature, or any other article for which there is a 
collection of shops or warehouses or stalls, declared and licensed by the 
municipality as a market; 
(63)  "Master plan" means a comprehensive plan showing therein the existing 
and proposed location and general layout of - 
(a) arterial streets and transportation lines, 
(b) residential sections, 
(c) business areas, 
(d) industrial areas, 
(e) educational institutions, 
(f) public parks, playgrounds and other recreational places, 
(g) public and semi-public buildings, and  
(h) any other places put to any specified use; 
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(64) “Metropolitan Planning Committee” means a committee constituted in 
pursuance of Article 243ZE of the Constitution of India and referred to in 
section 384 of this Act to prepare a draft development plan for the 
Metropolitan area as a whole; 
(65) "Milk" includes cream, skimmed milk, separated milk, and condensed, 
sterilized, desiccated or toned milk; 
(66) “Municipal Commissioner” means a person appointed by the 
Government; in relation to a Municipal Corporation, the Municipal 
Commissioner of the Municipal Corporation; 
(67) “Municipality” means an institution of self-government and includes 
Municipal Corporation, Municipal Council, and Nagar Panchayat 
constituted under this Act; 
(68) "Municipal Accounts Committee" means a Municipal Accounts 
Committee constituted under section 124 of this Act;  
(69) "Municipal Accounting Manual" means the Municipal Accounting 
Manual prepared and maintained under section 113 of this Act;  
(70) "Municipal Fund" means the Municipal Fund referred to in section 99 of 
this Act;  
(71) "Notification" means a notification published by the Government in the 
Official Gazette;  
(72) "Nuisance" includes any act, omission, place or thing which causes, or is 
likely to cause  injury, danger, annoyance or offence to the sense of sight, 
smell or hearing, or disturbance to rest or sleep, or which is, or may be, 
dangerous to life or injurious to health or property;  
(73) "Occupier" includes any person for the time being is paying or is liable to 
pay, to the owner the rent or any portion of the rent of the land or the 
building in respect of which the word is used or for damages on account of 
the occupation of such land or building and also includes a rent-free tenant: 
Provided that an owner living in, or otherwise using, his own land or building shall 
be deemed  to be the occupier; 
(74)  "Offensive matter" means kitchen or stable refuse, dung, dirt, putrid or 
putrefying substance, or filth of any kind which is not included in sewage;  
(75) “Ombudsman” means an authority constituted for the municipalities for 
conducting investigation and enquiries in respect of, or involving 
corruption, maladministration etc. 
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(76) "Owner" includes the person for the time being receiving rent of any land 
or building or of any part of any land or building, whether on his own 
account or as an agent or trust for any person or society or for any religious 
or charitable purpose or as a receiver who would receive such rent if the 
land or the building or of any part of the land or the building were let to a 
tenant; and also includes with reference to any animal, vessel or boat etc. 
who for the time being is in the change of such object.    
(77) "Platform" means any structure which is placed on or covers or projects 
over any street or any open drain and includes balconies or other extension 
of buildings projecting at any height over such street or drain;  
(78) "Population" means the population as ascertained at the last preceding 
census of which the relevant figures have been published;  
(79) "Premises” means any land or building / land or part of a building or any 
hut or part of a hut, and includes -  
(a) the garden, ground and outhouses, if any, appertaining thereto, and  
(b) any fittings or fixtures affixed to a building or part of a building or 
land or hut or part of a hut for the more beneficial enjoyment thereof;  
(80) "Prescribed" means prescribed by rules made by the Government under 
this Act;  
(81) "Public place" means a space, not being private property, which is open to 
the use or enjoyment of the public whether such space is vested in the 
municipality or not; 
(82) “Public securities” means-, 
(a) securities of the Central Government or any State Government, 
(b) securities, stocks, debentures or shares, the interest whereon has been 
guaranteed by the Central or the State Government, 
(c) debentures or other securities for money issued by or on behalf of 
any local authority in exercise of the powers conferred by any 
enactment for the time being in force in any part of India, 
(d) securities expressly authorized by any order which the Government 
makes in this behalf; 
(83) "Public Service Commission" means the Public Service Commission for 
the State of Jharkhand constituted under Article 315 of the Constitution of 
India; 
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(84) "Public street" means any street, road, lane, gully, alley, passage, 
pathway, square or courtyard, whether a thoroughfare or not, over which the 
public have a right of way, and includes -  
(a) the access or approach to a public ferry,  
(b) the roadway over any public bridge or causeway,  
(c) the footpath attached to any such street, public bridge or causeway,  
(d) the passage connecting to public streets, and  
(e) the drains attached to any such street, public bridge or causeway, 
and, where there is no drain attached to any such street, shall be 
deemed to include also, unless the contrary is shown, all land upto 
the boundary wall, hedge or pillar of the premises, if any, abutting on 
the street, or, where a street alignment has been fixed, upto such 
alignment;  
(85) "Regulations" means the regulations made by a municipality under this 
Act;  
(86) "Rules" means the rules made by the Government under this Act;  
(87) “Scheduled Caste” means such castes, races or tribes or parts of or groups 
within such castes, races or tribes as are notified to be Scheduled Castes 
under Article 341 of the Constitution of India; 
(88) “Scheduled Tribes” means such tribes, or tribal communities or parts of 
or groups within  such tribes or tribal communities as are notified to be 
Scheduled Tribes under Article 342 of the Constitution of India; 
(89) "Sewage" means night soil and other contents of privies, urinals, cesspools 
or drains, and includes trade effluents and discharges from manufactories of 
all kinds;  
(90) “Slaughter house” means any place used for the slaughter of cattle, sheep, 
goats, kids or pigs for the purpose of selling the flesh thereof as meat; 
(91) "Smaller Urban Area" means a municipal area classified as a smaller 
urban area under section 8 of this Act;  
(92) "State Election Commission" means the State Election Commission 
referred to in Article 243-K and Article 243 -ZA of the Constitution of India 
and under Section 17 of this Act;  
(93) “State Government” means the Government of Jharkhand; 
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(94) “Street” means a public street or a private street, and includes any 
highway and any causeway, bridge, viaduct, arch, road, lane, foot-way, sub-
way, court, alley or riding path or passage, whether a thoroughfare or not, 
over which the public have a right of passage or access or have passed and 
had access uninterruptedly for a period of twenty years; and, when there is a 
foot-way as well as a carriage way in any street, the said term includes both; 
(95)  "Street alignment" means the line dividing the lands comprised in and 
forming part of a street from the adjoining land;  
(96) “Trade effluent” means any liquid, either with or without particles of 
matter in suspension therein, which is so wholly or in part produced in the 
course of any trade or industry carried on at trade premises and in relation to 
any trade premises  means any such liquid as aforesaid which is so produced 
in the course of any trade or industry carried on at those premises, but does 
not include domestic sewage; 
(97) “Ward” means the territorial constituency of municipality divided under 
section 15 of this Act; 
(98) "Ward Committee" means a Ward Committee constituted under section 
34 of this Act; 
(99)  “Water course” includes a river, stream or channel whether natural or 
artificial;  
(100) “Year” means a financial year beginning on the first day of April. 
(101) “Zonal Committee” means the Zonal Committee constituted in a 
municipality under section 49 of this Act. 
 
PART - II 
CONSTITUTION OF MUNICIPALITIES 
Chapter - 2 
 
Constitution of Municipal Areas and Classification of Municipalities 
3. Declaration of intention to constitute a municipal area –  
(1) The State Government may, after making such inquiry as it may deem fit, 
and having regard to the population of any local  area, density of population, 
the percentage of employment in non-agriculture activities in such area, the 
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economic importance of such area, and such other factors as may be 
prescribed, by notification, declare its intention to specify such area to be a 
larger urban area, or a smaller urban area, or a transitional area: 
Provided that local area having acquired urban characteristics and importance such 
as availability of market facilities, established industries or potentialities to attract 
industries or commerce or education, health care or other such infrastructures for 
economic and industrial growth may also be considered. 
(2) The State Government shall, by notification, declare an area specified as - 
(a) a larger urban area to be a Municipal Corporation;  
(b) a smaller urban area to be a Municipal Council; and  
(c) a transitional area that is to say,  an area in transition from a rural 
area to an urban area to be a Nagar Panchayat.   
(3) Notwithstanding anything contained in sub-section (1), the State 
Government may, by notification, determine separate conditions to 
constitute any hill area, pilgrim centre, tourist centre or mandi as a 
municipal area.  
4. Publication of declaration – 
(1) The notification intending to constitute a municipality under section 3 shall 
be published in the official gazette and at least in two leading newspapers 
one of which shall be in vernacular intelligible to the inhabitants of the local 
area concerned.  
(2) A copy of the notification shall be pasted in a conspicuous place in the 
office of the Deputy Commissioner of the District and, in such other places 
as the Government may direct.  
(3) The notification shall also be made either by announcement through mike in 
the local area concerned or through any other publicity media, as the 
Government may direct.  
5. Consideration of objections - 
  
(1) On publication of the notification under section 4, any person residing 
within the local area concerned in relation to which any such notification 
has been published or any municipality or panchayat affected by any such 
notification may submit objections, in writing, to the State Government 
within thirty days from the date of publication of such notification.  
 
(2)
 The State Government shall consider all such objections before proceeding 
further.  
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6. Constitution of Municipality - On the expiry of thirty days from the date of 
publication of the notification under section 4 and after consideration of the 
objections which may be submitted in this regard, the State Government may, by a 
notification, constitute: - 
(1) such a larger urban area as a Municipal Corporation; 
(2) such a smaller urban area as a Municipal Council; and  
(3) such an area in transition from a rural area to an urban area as a Nagar 
Panchayat.  
7. Incorporation of Municipality -  
(1) The municipality constituted under section 6 shall, by its name, be a body 
corporate with perpetual succession and a common seal, and subject to any 
restriction or qualification imposed by this Act or any other law shall be 
vested with the capacity of suing or being sued in its corporate name, enter 
into contracts and do all things necessary for the purpose of this Act;  
(2) All actions of the Municipal Corporation, Municipal Council and Nagar 
Panchayat shall expressly be taken in the name of such municipalities.  
(3) Subject to the provisions of this Act, the municipality shall have the power 
to acquire, hold and dispose of properties.  
8. Classification of Municipal areas - The State Government may, for the purpose 
of application of the  provisions of this Act may classify any municipal area on the 
basis of the population as ascertained at the last preceding census of which the 
relevant figures have been published, as –  
(1) a larger urban area, namely, Municipal Corporation if the local body area is 
having population of one lakh and fifty thousands and above; 
(2) a smaller urban area, namely, Municipal Council if the local body area is 
having population of forty thousand and above and less than  one lakh and 
fifty thousand;  
Provided a Municipal Council shall be classified as   
Class ‘A’ Municipal Council, if the local body area is having population of one 
lakh and above and less than one lakh and fifty thousand; and  
Class ‘B’ Municipal Council, if the local body area is having population forty 
thousand and above and less than one lakh; and 
(3)
 a transitional area, namely, Nagar Panchayat if the local body area is having 
population of twelve thousand and above and less than forty thousand.:  
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       Provided that for the purpose of classification of municipal areas in any hill area, 
pilgrim centre, tourist centre or mandi town, the Government may, by notification, 
determine separate size of population for each class of such municipal areas.  
      Provided further that the Government may, having regard to the economic importance 
and such other factors in such local area, as it  deem fit, and at its discretion, determine 
any local area irrespective of population specified in sub-section (3 ) constitute, by 
notification, a Nagar Panchayat.  
9. Power to abolish or alter limits of municipal area - The State Government may, 
by notification, - 
(1) withdraw any municipal area or part thereof from the operation of this Act, 
or 
(2) exclude from a municipal area any local area comprised therein and defined 
in the notification, or  
(3) include within a municipal area any local area contiguous to such municipal 
area and defined in the notification, or  
(4) divide any municipal area into two or more municipal areas, or  
(5) unite two or more contiguous municipal areas so as to constitute one 
municipal area, or  
(6) revise the boundary of two or more contiguous municipal areas:  
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 shall consider the views of 
the municipality as aforesaid before a final declaration is made:  
Provided also that no such notification shall be issued where any part of the 
municipal area or any neighbouring area is a Cantonment or part of a Cantonment, 
as defined in the Cantonment Act, 2006 (Central Act No. 41 of 2006).  
10. Power to include certain dwelling house, manufactory, etc., within a 
particular municipal area - Where a dwelling house, manufactory, warehouse, or 
place of industry or business is situated within the limits of two or more adjacent 
municipal areas, the State  Government may, notwithstanding anything contained 
elsewhere in this Act, by notification, declare the municipal area within which such 
dwelling house, manufactory, warehouse, or place of industry or business shall be 
deemed to be included for the purposes of this Act.  
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11. Disposal of assets and liabilities   -      
(1) Where any local area which is within the jurisdiction of any other local 
authority is constituted as or included in a municipality, the Government 
may pass such orders as they may deem fit as to the transfer to such 
municipality, or disposal otherwise, of the assets or institutions of any such 
local authority in the local area and as to discharge of the liabilities, if any, 
of such local authority relating to such assets or institutions. 
(2) Where any local area is excluded from a municipality and included within 
the jurisdiction of any other local authority, the Government may pass such 
orders as they deem fit, as to the transfer to such local authority or disposal 
otherwise, of the assets or institutions of such municipality in the local area 
and as to the discharge of the liabilities, if any, of such municipality relating 
to such assets or institutions.  
12. Power to exempt municipal area from operation of any provisions of the Act 
unsuited thereto –  
(1) The State Government may, by notification, and for reasons to be recorded 
in writing, exempt municipal areas from the operation of any of the 
provisions of this Act considered unsuited thereto, and, thereupon, the said 
provisions shall not apply to such municipal areas until such provisions are 
applied thereto by notification.  
(2) While a notification 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 municipal areas as aforesaid are exempted.  
13. Reconstitution of Municipal Corporation, Municipal Council and Nagar 
Panchayat -   
(1) On and from the date of the commencement of this Act, the Municipal 
Corporation, the Municipal Council and the Nagar Panchayat, already 
constituted under the relevant provisions of various Acts shall be deemed to 
have been constituted and incorporated under this Act and are  declared to 
be the Municipal Corporation, the Municipal Council and the Nagar 
Panchayat, as the case may be, with their respective names and in their 
respective areas. 
(2) Any appointment, notification, notice, tax, scheme, license, permission, 
rule, regulation or form made or issued or imposed under the Acts referred 
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to in sub-section (1) in respect of such municipality which was in force as 
applicable immediately before the date of the commencement of this Act 
shall continue to be in force and be deemed to have been made, issued or 
imposed under the provisions of this Act unless and until it is superseded by 
any appointment, notification, notice, tax, scheme, license, permission, rule, 
regulation or form made or issued or imposed under the Act. 
14. Review by the Government after publication of census report 
(1) The State Government shall undertake a review of the existing municipalities 
wherever they consider necessary and upgrade or reorganize them, having regard to the 
peri-urban areas and the out growths of the existing Municipal Corporation, Municipal 
Council and Nagar Panchayat, as the case may be, within one year after taking into 
consideration the Census report published by the Government of India. 
(2) The Government may also consider converting panchayats into Nagar Panchayats 
after publication of census report by Government of India: 
Provided that the procedure laid down for constitution of a municipal area shall be 
followed mutatis mutandis in each such case.  
Chapter - 3 
                              Constitution of Councils 
15. The Council -  
(1) There shall be constituted for each municipality a body of members to be 
called the Council having authority over the municipality. 
(2) The Council shall consist of - 
(a) such number of elected councillors, as there are wards within the 
municipal area as specified in section 17 of this Act : 
Provided that the State Government shall determine the number of councillors 
for each municipality before every election, by notification ; 
(b) in addition to the elected members specified in clause (a), the 
following shall also be members in the Council  :- 
(i)
 every Member of Legislative Assembly of the State 
representing a constituency of which a municipality or a 
portion thereof forms part,  
(ii)
 every Member of the House of People representing a 
constituency of which municipality or a portion thereof forms 
part, 
(iii)
 every member of the Council of the States registered as an 
elector within the municipality: 
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Provided that the members specified in clause (b) shall participate in the 
meetings of the Council but shall not have right to vote.  
(c ) persons having special knowledge or experience in municipal 
administration co-opted by the Councillors specified in clause 2 (a) as 
prescribed shall be three in the case of Municipal Corporation, two in the 
case of Municipal Council and one in the case of Nagar Panchayat:  
       Provided also that in the case of Municipal Corporation, two among the co-
opted members; and in case of Municipal Council, one among the co-opted 
members, shall be woman; 
 Provided further that the members co-opted under clause (c) shall participate in 
the meetings of the Council but shall not have right to vote.  
(d) persons belonging to minorities co-opted by the councillors  specified in clause 
(a) as prescribed shall be three in the case  Municipal Corporation,  two in the case 
of Municipal Council and one in the case of Nagar Panchayat:
 
Provided that in the case of Municipal Corporation, two among the co-opted 
members shall be women: 
 Provided further that in the case of Municipal Council, one among the co-opted 
members shall be woman: 
Provided further that while co-opting members belonging to minorities, preference 
may be given to the members belonging to such of the minority communities 
which are not represented in the Council through direct election:  
Provided further that the members co-opted under clause (d) shall participate in the 
meetings of the Council but shall not have right to vote. 
16.
 Constitution of Council -  
(1) All the seats specified in clause 2 (a) of section 15 shall be filled by direct 
elections, and for this purpose, each municipal area shall be divided into 
territorial constituencies referred as Wards. 
(2)   (a) In every Council , as nearly as possible but not exceeding fifty percent 
of the total seats of elected members shall be reserved for    
(i)  Scheduled Castes, 
(ii)  Scheduled Tribes,  
(iii) Backward Classes, and 
(iv) Women 
The number of seats so reserved for Scheduled Castes and Scheduled Tribes shall as 
nearly as possible be  the same proportion to the total number of seats to be filled up by 
direct election in that municipality as the population of the Scheduled Castes and 
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Scheduled Tribes as the case may be  bears to the total population of the  municipality 
and such seats shall be allotted by rotation to different wards in the municipality under the 
direction, control and supervision of the State Election Commission in the manner 
prescribed by it. 
After reservation of seats for the Scheduled Castes and the Scheduled Tribes, the number 
of seats to be reserved for the Backward Classes shall be such number of seats within the 
overall limit of fifty percent reservation for the Scheduled Castes, the Scheduled Tribes 
and the Backward Classes in the manner prescribed. Such seats shall be allotted by 
rotation to different wards in the municipality during subsequent elections under the 
direction, control and supervision of the State Election Commission in the manner 
prescribed by it; 
(b) As nearly as possible but not exceeding fifty percent of the total number of 
seats reserved under clause (a) shall be reserved for women belonging to the 
Scheduled Castes, the Scheduled Tribes and the Backward Classes, as the case 
may be; 
(c)As nearly as possible but not exceeding fifty percent of the total number of the 
seats not reserved for Scheduled Castes, Scheduled Tribes and Backward Classes 
shall be reserved for women. 
(d) Such total number of seats reserved for women belonging to the Scheduled 
Castes, the Scheduled Tribes, the Backward Classes and unreserved category shall 
be allotted by rotation under the direction, control and supervision of the State 
Election Commission to different wards in a municipality in such manner as may 
be prescribed by it; 
Explanation  -For the removal of doubts it is hereby declared that the principle of 
rotation for the purposes of reservation of seats for the Scheduled Castes, Scheduled 
Tribes, Backward Classes and Women under this sub-section shall commence from the 
first election held after the commencement of this Act: 
Provided that the State Government shall undertake a review every ten years in the matter 
relating to reservation of offices under clause (a) sub-section (2): 
Provided further that the reservation of offices under clause (a) sub-section (2) shall cease 
to have effect on the expiration of the period specified in Article 334 of the Constitution 
of India. 
(3) Every member elected under clause (a) of sub-section (2) of section 15 shall 
have the right to vote in the meetings of the Council. 
(4) The Council  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. 
(5) An election to constitute a Council  shall be completed, as the case may be, 
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(a) before the expiry of the period specified in sub-section (4), or  
(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 
Council would have continued is less than six months, it shall not be necessary 
to hold an election for constituting the Council for such period. 
(6) The Council constituted upon its dissolution before the expiration of the 
period specified in sub-section (4) shall continue only for the remainder of 
the period for which the dissolved Council  would have continued under 
sub-section (4) had it not been so dissolved. 
(7) In a municipal area newly constituted, the local authority having jurisdiction 
over such area immediately before such area was constituted as a municipal 
area, shall continue to have jurisdiction and to perform its functions till such 
time, not exceeding six months from the date of the notification under 
section 6, as may be   necessary for holding elections. 
(8) If, for any reason, it is not possible to hold the general election of a Council  
before the expiry of the period of five years specified in sub-section (4), the 
Council  shall stand dissolved on the expiration of the said period, and all 
the powers and functions vested in the municipal authorities under this Act 
or  under any other law for the time being in force shall be exercised or 
performed, as the case may be, by such person or persons to be designated 
as Administrator or Board of Administrators as the State Government may, 
by notification, appoint.  
17. Election of Councillors: (1) Each council  shall consist of such number of 
elected councillors as prescribed by the Government. The number of Councillors 
shall be determined on the basis of population ascertained at the last preceding 
census of which relevant figures have been published.   
(2) The superintendence, direction and control of preparation of electoral 
rolls, reservation of seats to various categories, rotation of seats and the 
conduct of elections of councillors under this Act and the rules made 
thereunder shall vest in the State Election Commission constituted under 
Article 243-K read with Article   243 -ZA of the Constitution of India.  
18. Disqualification of Councillors:  
(1)  Notwithstanding anything contained in this Act, a person shall be disqualified for 
election or after election for holding the office as councilor, if such person: 
(a) is not a citizen of India; 
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(b) is so disqualified by or under any law, for the time being in force, for the 
purpose of elections to the Legislature of the State:  
Provided no person shall be disqualified on the ground that he is less than twenty 
five years of age when he has attained the age of twenty one years,  
(c) is in the service of the Central or State Government or any local authority; 
(d) is in the service of any institution receiving aid from the Central or State 
Government  or any local authority; 
(e) has been adjudged by a competent court to be of unsound mind; 
(f)  applies to be adjudicated or is adjudicated as an insolvent;  
(g) has been dismissed from the service of the Central or State Government  or any 
local authority for misconduct and has been declared to be disqualified for 
employment in the public service; 
(h) has been sentenced by a criminal court, whether within or outside India, to 
imprisonment for an offence, other than a political offence for a term exceeding six 
months or has been ordered to furnish security for keeping good behavior under 
section 109 or section 110 of the Code of Criminal Procedure, 1973 and such 
sentence or order not having subsequently been reversed, or absconding being an 
accused in a criminal case for more than six months; 
(i) has under any law for the time being in force become ineligible to be a member 
of any local authority; 
(j) holds any salaried office or office of profit under the Municipality: 
Provided that a person shall not be deemed to ho

Excerpt shown. Open the full act in Lexace.

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