The Meghalaya State Finance Commission Act, 2012(Act No. 4 of 2012)

No. 27 
Postal Registration No. N. E.-771/2006-2008 
The Gazette of Meghalaya 
EXTRAORDINARY 
PUBLISHED BY AUTHORITY 
Shillong, Friday, March 30, 2012, 10th Chaitra, 1934 (S. E.) 
PART - IV 
GOVERNMENT OF MEGHALAYA 
LAW (B) DEPARTMENT 
ORDERS BY THE GOVERNOR 
NOTIFICATION 
The 30th March, 2012. 
No.LL(B) 114/2010/57 .-The Meghalaya State Finance Commission Act, 2012 
(Act No.4 of 2012) is hereby published for general information. 
MEGHALAYA ACT NO.4 OF 2012. 
(As passed by the Meghalaya Legislative Assembly) 
Received the assent of the Governor on 29th March, 2012. 
Published in the Gazette of Meghalaya Extra-Ordinary issue dated 30th March, 2012. 
170 THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) MARCH 30, 2012 
MEGHALAYA STATE FINANCE COMMISSION AC'r, 2012 
An 
Act 
[PART -IV 
to constitute a State Finance Commission and to determine the qualifications 
requisite for appointment as members of the Finance Commission and the manner 
in which they shall be selected and to prescribe their powers and for matter 
connected therewith. 
Whereas, it is expedient to make all the local bodies of the State to 
have fmancial autonomy to further democratic decentralization for which 
constitution of a State Finance Commission to consider and recommend the 
principle which will govern the distribution of revenue between the State 
Government and the Local Bodies is necessary; 
And, whereas, further, Part IX of the Constitution of India does apply 
to the state of Meghalaya; 
And, whereas, also, Part IX-A of the Constitution of India, except 
normal areas of Shillong, does not apply to the tribal areas of the State of 
Meghalaya; 
And, whereas, it is expedient to constitute a single State Finance 
Commission for all the local bodies which will also be suitable to local bodies 
exempted by the aforementioned provisions of the Constitution on the basis of the 
existing administrative arrangements to enable all the local bodies to have financial 
autonomy to perform functions analogous to the functions of other local bodies 
constituted under Part IX and Part IX-A of the constitution while retaining the 
distinctive tribal identity protected by the Sixth Schedule of the Constitution of 
India which is foundational to the local bodies of the State; 
Be it enacted by the Legislature of the State of Meghalaya in the 
Sixty-third Year of the Republic of India as follows: -
PART -IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARy) MARCH 30, 2012 171 
Short titl~ and 
commencement. 
Definitions. 
Constitution of 
a State Finance 
Commission. 
1. (1) This Act may be called the Meghalaya State Finance 
Commission Act, 2012. 
(2) It 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, -
(a) "Act" means the Meghalaya State Finance Commission 
Act, 2012; 
(b) "Commission" means the Meghalaya State Finance 
Commission constituted under sub-section (1) of 
section 3 of the Act; 
(c) "members" means members of the Commission 
including the chairperson, other members and include 
the Member-Secretary appointed under section 4 of 
the Act; 
(d) "prescribed" means prescribed by.rules made under 
this Act; 
(e) "State Government" means the Government of the 
State of Meghalaya; and 
(f) "State Legislature" means the Legislature of the State 
of Meghalaya; 
(g) "Traditional Bodies" means the existing Chiefs of 
Traditional Institutions or Village Durbars by whatever 
name they are constituted under the customary laws 
or conventions. 
3. (1) The State Government shall, as soon as may be within one 
year from the commencement of this Act and thereafter at the 
expiry of every filth year, constitute a body to be known as the 
Meghalaya State Finance Commission to review the fmancial 
position of the Traditional Bodies, Municipalities or Municipal 
Boards notwithstanding any term by which urban local bodies are 
called in the State and also the Autonomous District Councils as 
the State Government may deem it necessary and to make 
recommendations as to -
172 THE GAZETTE OF MEGHALAYA, (EXTRAORDINARy) MARCH 30, 2012 [PART -IV 
(a) the principles which should govern-
(i) the distribution between the State and the 
Traditional Bodies, Municipalities or Municipal 
Boards or the Autonomous District Councils of 
the n~t proceeds of the taxes, duties, tolls and 
fees leviable by the State, which may be divided 
between them to enable these bodies to perform 
. the functions assigned and whic1:;l may be 
assigned to it under any laws in force or orders 
and the allocation between the Traditional 
Bodies, Municipalities and the Autonomous 
District Councils at all levels of their respective 
shares of such proceeds; 
(ii) the determination of the taxes, duties, tolls and 
fees which may be assigned to or, appropriated 
by the Traditional Bodies, Municipalities and the 
Autonomous District Councils; 
(iii) the grant-in-aid to the Traditional Bodies, 
Municipalities and the Autonomous District 
Councils from the Consolidated Fund of 
Meghalaya; 
(b) the measures needed to improve the [mancial position 
of the Traditional Bodies, Municipalities and the 
Autonomous District Councils; 
(c) any other matter. referred to the Commission by the 
State Government in the interests of sound finances 
of the Traditional Bodies, Municipalities and the 
Autonomous District Councils; and 
(d) any other matter referred to the Commission by the 
State Government in the interest of the effective 
implementation of responsibilities required to be 
undertaken by the Village Durbars, Municipalities 
and Autonomous District Councils. 
(2) The State Government shall cause every recommendation 
made by the Commission under this section together with an 
explanatory memorandum as to the action taken thereon to be laid 
before the State Legislature. 
PART -IV] THE GAZETTE OF MEGHALAYA , (EXTRAORDINARy) MARCH 30, 2012 173 
The 
Composition 
and 
qualifications 
for appointment 
as, and the 
manner of 
. selection of, 
members of the 
Commission. 
Personal 
interest to 
disqualify 
members. 
4. The composition of the Commission constituted under sub­
section (1) of section 3 shall consist of -
(a) a Chairperson who shall be selected from. among 
persons who have had experience in public affairs; 
(b) and the members not exceeding four in numbers who 
shall be selected from among persons who -
(i) have special knowledge of the finances and 
accounts of Government; or 
(ii) have had wide experience in fmancial matters and 
in administration; or 
(iii) have special knowledge of economics. 
(c) The Member Secretary, who shall be appointed by the 
State Government. 
5. Before appointing a person to be a member of the Commission, 
the State Government shall satisfy itself that the person will have 
no such financial or other interest as is likely to "affect prejudicially 
his functions as a member of the Commission and the State 
Government shall also satisfy itself from time to time with respect 
to every member of the Commission that he has no such interest 
and any person who is or, whom the State Government proposes to 
appoint to be, a member of the Commission shall, whenever 
required by the State Government so to do, .furnish such 
information as the State Government considers necessary for the 
performance by him of his duties under this Act. 
Disqualifications 6. A person shall be disqualified for being appointed as, or for 
for being a 
member of the 
Commission. 
being, a member of the Commission, -
(a) if he is mentally unsound; 
(b) if he is an undischarged insolvent; 
(c) if he has been convicted of immoral offence; 
(d) if he has such fmancial or other interest as is likely to 
affect smooth functioning as member of the 
Commission. 
174 THE GAZETTE OF MEGHALAYA, (EXTRAORDINARy) MARCH 30, 2012 [PART -IV 
Term of office of 
members and 
eligibility for 
reappointment. 
Conditions of 
service and 
salaries and 
allowances of 
members. 
Procedures and 
powers of the 
Commission. 
Power to make 
rules. 
7. Every member of the Commission shall hold office for such 
period as may be specified in the order of the State Government 
appointing him, but shall be eligible forreappoiritment: 
Provided that he may, by letter addressed to the State 
Government, resign his office. 
8. The members of the Commission shall render whole-time or 
part-time service to the Commission as the State Government may 
in each case specify and there shall be paid to the members of the 
Commission such fees or salaries and such allowances as, may be 
prescribed. 
9. (1) The Commission shall determine their procedure and 
methods of functioning as assigned to under this Act. 
(2) The Commission may consider for its adoption the template 
for reports of the Commission recommended by the Thirteenth 
Finance Commission of India. 
(3) The Commission, in the performance of their functions, shall 
have all the powers of a civil court under the Code of Civil 
Procedure, 1908 (Central Act No.5 of 1908), while trying a suit in 
respect of the following matters, namely, -
(a) summoning and enforcing the attendance of any 
official, person or witnesses; 
(b) requiring the production of any document; 
(c) requisitioning any public record from any court or 
office. 
(4) The Commission shall have powers to require any person to 
furnish information on such points or matters as in the opinion of 
the Com.m.ission may be useful for, or relevant to, any matter under 
the consideration of the Commission. 
10. (1) The State Government may, by notification in the Official 
Gazette, m.ake rules to carry out the purposes of this Act. 
(2) Every rule made under this Act shall, as soon as after it is 
made, be laid before the State Legislature. 
L. M. SANGMA, 
Secretary to the Government of Meghalaya, 
Law Department. 
SHILLONG: Printed and Published by the Director, Printing and Stationery, Meghalaya , Shillong . 
(Extraordinary Gazette of Meghalaya) No .53-670+300-31-3-2012. 
website:- http://megpns.gov.in/gazette /gazette.asp 

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