LexThe Nagaland Municipal Act,2001
Nagaland · state statute
Open in Lexace · Ask the AI about this act275 70. Doubts as to powers of functions of the Municipal authorities: (1) If any doubt arises as to whether any particular or function appertains to any Municipal authority, the matter shall be referred to the Government for decision. (2) The Government shall convey its decision on the matter referred to in sub-section (1) to the Municipal Council or town Council (3) The decision of the Government conveyed under sub-section (2) shall be final and binding on the Municipal Council or Town Council. 71. Exercise of powers and performance of functions subject to conditions: Save as otherwise provided in this Act, the exercise of any powers or the performance of any function conferred or imposed upon Municipal Council or Town Council, as the case may be, and its respective authority bey or under this Act, which involve an expenditure shall be subject to the following conditions, namely:- (a) Such expenditure in son far as it is incurred in the year in which such power is exercised or such functions is performed shall be provided for under the budget-grants for the years, and (b) If the exercise of such power or performance of such function in a year involves or likely to involve and expenditure for any period or at any time after the close of the said year, such expenditure shall not be incurred, unless provided for in the budget of the relevant year duly sanctioned by the Government. 72. Transfer of functions of Government: (1) Notwithstanding anything contained in this Act or any other law for the time being force, the Government may, in consultation with Municipal Council or Town Council and subject to such conditions as the Government may think fit to impose, transfer, by an order published in the Official gazette, to that Municipal Council or town Council, any function or duty of the Government under any law, which the Legislative Assembly of the State is competent to enact or which is otherwise within the executive power of the State and which appears to be related to the matters arising within the area of such Municipal Council or Town Council. (2) Without prejudice to the generality of the provisions of sub-section (1) the Government may transfer any Municipal functions and duties, as are performed or discharged by the departments of the Government in 276 relation to any of the matters specified in the Twelfth Schedule in the Constitution. (3) The Government shall, on such transfer, allot to such Municipal Council or town Council, such fund and personnel, as may be necessary to enable such Municipal Council or Town Council, as may be specific in this behalf. CHAPTER - VII Municipal officers and other Municipal employees 73. Appointment and pay of establishment: (1) The Municipal Council or Town Council, as the case may be, may, with the previous approval of the Government, create post of different categories as may be necessary for exercising powers or perfoiiiiing functions of the Municipal councilor Town council. (2) The Government may in consultation with municipalities, make rules for regulating the method of recruitment qualifications required for recruitments, the conditions of service, discipline and control of employees, their duties and functions and their classification into different categories on the basis of their duties and responsibilities and scale of pay of such posts. CHAPTER -VIII Direction and control 74. Powers of Government to require production of documents and submission of reports: (1) The Government may at any time require any municipal authority of a municipality, or the Chief Officer of the Municipality— (a) To produce any record, correspondence, plan or other documents in its possession or under his control; (b) to Furnish any report, return, plan, estimate, statement, accounts or other statistics relating to the proceedings, duties or works of the municipality or any municipal authority. 277 For the purpose of inspection and thereupon the municipal authority or the Chief Officer, as the case may be, shall comply with such requirement within such time, as the case may be, shall comply with such requirement within such time, as may be specified by the Government for the purpose. (3) Every Municipality shall,- (a) Forward to the Government, the proceedings of the meetings of the Municipality and of a Committee thereof within such time and in such manner as maybe prescribed; and (b) Submit to the Government such periodical reports relating to the affairs of the Municipality, as the Government may direct. 75. Power of Government to depute officers to make inspection or examination and report: The Government may depute any of its officers to inspect or examine any department, office, service, work or property of the Municipality and to report thereon, and such officer may, for the purpose of such inspection or examination, exercise all the powers of the Government under section 74. 76. Power to annual or suspend any proceedings, resolution or order of Municipality or of municipal authority,-- (1) The Government may, by order in writing, stating the reasons therefor, annual any proceedings, or resolution or order of,-- (a) The Municipality; or (b) Any other municipal authority; or (c) Any officer of the municipality, If the Government considers that such proceedings or resolution or order, as the case maybe,- Is in excess of the power conferred by this Act or the rules made thereunder, or against any direction of the Government; or (ii) Is likely to cause waste or damage of any property of the Municipality or loss or municipal fund; or (iii) Is likely to lead to a breach of peace or encourage lawlessness, by causing injury or annoyance to any class of persons. (2) No such proceedings, resolution or order shall be annulled after the expiry of a period of forty five days,- 278 (a) In the case of a proceedings or resolution or order of the Municipality or a Committee, from the date of receipt there of from the Municipality or a Committee thereof, as the case may be; (b) in the case of a proceedings or resolution or order of any other municipal authority or any officer of the Municipality, within fifteen days from the date of-receipt of a report under section 74 or from the date, the Government comes to know of such proceedings or resolution or order in any other manner, whichever is earlier. (3) Not'ithstanding anything contained in sub-section (1) or sub-section (2) no such order of annulment shall be passed by the Government unless a period of ten days has been given to the Municipality or the Municipal authority or the officer of the Municipality to show cause and the causes shown are considered by the Government. (4) The Government may also, by order in writing suspend the execution of any proceedings, resolution or order of the Municipality or the Standing Committee or other municipal authority or any officer or the Municipality (a) in the case of the Municipality or a Committee, within fifteen days from the date of receipt thereof by the Government; (b) In the case of any other municipal authority or any officer of the Municipality, within fifteen days from the date of receipt of a report under section 74 or from the date, the Government comes to know of such proceedings or resolution or order in any other manner, whichever is earlier: Provided that the order of suspension shall cease to operate on the expiry of a period of thirty days from the date referred to in clause (a) or clause (b) of sub-section (2) 77. General powers of Government over officers,— Notwithstanding anything contained in this Act, the Government,— (a) May reverse or modify any order of any officer of the Government, passed or purporting to, have been passed under this Act, if the Government considers such order tobe,— (i) Not in accordance with the provisions of this Act or the rules made thereunder; or (ii) For any reason, to be recorded in writing, inexpedient, and 279 (b) Shall for the purpose of carrying out the provisions of this Act, exercise over its officers all powers of superintendence, direction and control. Provided that where such revision or modification affects or is likely to affect any person adversely, such revision or modification shall not be made without giving the person reasonable opportunity of being heard. 78. Powers to issue directions and policy guidelines The Government may, from time to time, issue such directions or policy guidelines, not inconsistent with the provisions of this Act or the rules made thereunder, as it may consider necessary, to the Municipalities for the purpose of performing their functions under this Act and it shall be the duty of the Municipalities to perform their functions in accordance with such directions or policy guidelines. 79. Powers of Government in case of default. - 1f, at anytime. - (a) It appears to the Government on the report refereed to in section 74; or (b) The Government, is satisfied after inquiry, that the Municipality or any municipal authority has made default in performing any function or discharging any duty imposed on it by or under this Act or the rules made thereunder or any law for the time being in force it may, by order, in writing fix a period for the due performance of such function or discharge of such duty and the Municipality shall be bound to perform such function or discharge such duty within the period so fixed. 80. Dissolution of Municipality,— (1) If in the opinion of the Government, a Municipality,— (a) Is not competent to perform, or has shown gross neglect in the performance of, the duties imposed upon it by or under this Act or any other law for the time being in force; or (b) Persistently makes default in the performance of such duties or complying with lawful directions and orders issued by the Government or any authority under any law for the time being in force to issue such directions or orders; or (c) Exceeds or abuses its power; or (d) The financial position and the credit of the Municipality is seriously threatened, the Government may by an order published in the Official Gazette with reasons therefor, dissolve the Municipality: 280 Provided that Municipality shall be given reasonable opportunity of being heard within a period of not less than fifteen days in such manner, as may be prescribed before its dissolution. (2) If any question arises as to whether any of the grounds mentioned in clauses (a), (b), (c), or (d) of sub-section (1), has been satisfied the opinion of the Government as recorded in writing in the order of dissolution, shall be final and conclusive. 81. Consequences of dissolution,— (1) When a Municipality is dissolved under Section 80 (a) All members of the Municipality shall vacate their offices forthwith; (b) All powers, functions and duties of the Municipality; and the Chairperson or Deputy Chairperson of a Municipal Council or a Town Council, as the case maybe shall during the dissolution, subject to such directions, as the Government may from time to time, give in this behalf, be exercised, performed, and discharged by a Government officer to be known as Administrator, as the government may, by notification, appoint in this behalf, and (c) all properties vested in the Municipality shall, during the period of dissolution, vest in the Government. (2) The Government shall fix the remuneration of the Administrator appointed under clause (b) of sub-section (1) and may direct that such remuneration shall be paid out of the Municipal fund of the Municipality. (3) Upon the dissolution of a Municipality under sub-section (1), the Government shall reconstitute a Municipality in accordance with the provisions of this Act. 82. Appointment of an Administrator when election cannot be completed,- (1) Where on account of an order of any Court, election to constitute a Municipality cannot be completed,- (a) Before the expiry of its duration specified under section 10 (b) Before the expiry of a period of six months from the date of its dissolution; The Government may, by notification, direct that during the period of operation of the order of the Court,- 281 (i) All powers sand duties of the municipality, Chairperson and Deputy Chairperson, when elections to constitute a Municipal Council or a Town Council, as the case may be, cannot be completed and the committees thereof, shall, subject to such directions, as the Government may, from time to time, give in this behalf, be exercised and performed by a government officer to be known as Administrator, as the Government may appoint in this behalf, and (ii) all properties vested in the Municipality, shall, during the period of the operation of the order of the Court, vest in the Government. (2) The Government shall fix the remuneration of the Administrator appointed under clause (i) of sub section (1), and may direct that such remuneration shall be paid out of the municipal Fund. (3) After the expiry of the period of the order the Court, the Government shall take further steps to constitute the Municipality in accordance with the provisions of this Act. 83. Appointment of Administrator in special or emergent circumstances, (1) Notwithstanding anything contained in this Act, where due to certain special, emergent or unforseen circumstances, election to a Municipality cannot be held or completed before the expiry of its duration specified in section 10 or before the expiry of a period of six months of its dissolution, the Government may, by notification, appoint a Government officer to be known as Administrator to exercise, perform and discharge the powers, duties and functions of a Municipality subject to such directions, as may be given in this behalf by the Government. (2) All powers and duties of a Municipality, Chairperson or Deputy Chairperson, when election to constitute a municipal Council or a Town Council as the case may be, cannot be held or completed and the committees thereof, shall subject to such direction as the Government may from time to time, give in this behalf, be exercised and performed by such Administrator, (3) All properties vested in the Municipality, shall during the period, when elections are not held or completed, vest in the Government. (4) The government shall fix the remuneration of Administrator appointed under sub-section (1), and may direct that such remuneration shall be paid out of the Municipal Fund. 282 CHAPTER -IX Urban Station Committee 83.A.(1) Where an area is specified as Urban Station Committee area under section 5, the Government shall, by notification, establish Urban Station Committee for such area. (2) The Urban Station Committee shall be composed of such members to be appointed or elected as the Government may, by notification, direct. (3) A Committee established under sub section (1) of this section shall be a body corporate by the name of "The Urban Station Committee" and shall have a perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold or dispose of properties and may by the said name sue and be sued. (4) The Government may appoint any person, whether a member of the Urban Station Committee or not, to be Chairperson or Deputy Chairperson or may authorize such committee to elect its Chairperson or Deputy Chairperson or both and fix the term of the office of Chairperson and Deputy Chairperson. 83B. Functions and Powers of Urban Station Committee: Subject to the financial resources at the disposal and organisational capacity of an Urban Station Committee, the Government may, by notification, assign any of the functions and powers of Municipal Council or Town Council to the Urban Sation Committee, as maybe specified. 83 C. Urban Station Committee Fund All moneys received by Urban Station Committee shall be kept and be applied in the manner as provided under the provisions of Chapter - I of Part III of this Act. 283 Part — Ill Finance Chapter - 1 Municipal Fund 84. Municipal Fund: There shall be constituted for each municipality a Municipal Fund to be called: (a) In the case a municipal council, the municipal fund of the Municipal Council, and (b) In the case a Town Council, the municipal fund of the Town Council. to be held in a Trust by the Municipal Council or the Town Council, as the case may be, for the purpose of this Act and all the moneys realised or realisable under this Act and all moneys otherwise received by the Municipal Council or the Town Council, as the case maybe, shall be credited thereto. 85. Custody of Municipal Fund All moneys received on account of the Municipal Fund of a Municipality, shall be deposited with the State Bank of India or any of its subsidiaries, or with any notionalized bank or with the Nagaland State Cooperative Bank in the municipal area of the Municipality and shall be credited to an account to be called (a) In the case of Municipal Council, the account of the Municipal Council; or (b) in the case of a Town Council, the account of the Town Council, as the case may be, to which it belongs: Provided that if in the Municipal area of the Municipality, there is no branch of the State Bank of India or anyone of its subsidiaries or any Nationalized Bank or with the Nagaland State Cooperative Bank, the moneys on account of the Municipal Fund may, with the approval of the Government be deposited in any other bank in the Municipal area or in any branch of the State Bank of India or any of its subsidiaries or in any Nationalized Bank or the Naga] and State Cooperative Bank outside the municipal area. Provided further that all moneys on account of the Municipal Fund of a municipality shall be deposited in one bank account only: 284 Provided further that all moneys on account of the Municipal Fund of a Municipality may be transferred from one bank to another bank through a resolution passed in this behalf by a Municipality in the prescribed manner. 86. Application of Municipal Fund: (1) All 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 regulations made thereunder or for which payment is duly directed, sanctioned or required by or under any of the provisions of this Act. (2) Such moneys shall likewise be applied in payment of all sums, payable out of the Municipal Fund under any other enactment for the time being in force. (3) Notwithstanding anything contained in this Act, such moneys may also be applied in payment of all sums, charges and costs on all acts and things which are likely to promote the safety, health welfare, or convenience of the inhabitants of the municipal area, or the expenditure whereon may be declared by the Municipality, with the sanction of the Government, to be an appropriate charge on the Municipal Fund. (4) No expenditure out of the Municipal Fund shall be incurred by any Municipality beyond the municipal area of such Municipality; Provided that the Municipality may, with the approval of the Government, incur expenditure beyond the Municipal area of the Municipality for the execution of projects or for creation of physical assets outside the limits of such municipal area as well as for the operation and maintenance thereof for carrying out the purposes of this Act. 87. Payment not to be made unless covered by budget-grant: No payment of any sum shall be made out of the Municipal Fund unless such expenditure is covered by the current budget grant and a sufficient balance of such budget-grant is still available notwithstanding any reduction or transfer thereof, which may have been made under the provisions of this Act. Provided that the provisions of this section shall not apply to the payments made in the following classes of cases, namely:- (a) Refund to taxes and other moneys, which are authorised under this Act; (b) Refund of securities and call deposits to contractors or other persons; (c) Sums payable in any of the following circumstances, namely 285 (d) under the orders of the Government on the failure of the Municipality to take any action as required by the Government; or (i) under any other enactment for the time being in force; or (ii) under a decree or order of a civil or criminal court passed against the Municipality; or (iii) under a compromise of any claim, suit or other legal proceedings; or (iv) on account of costs incurred in taking immediate action under section 63 by the Chairperson in the case of Municipal Council or Town council as the case may be; (d) temporary payment for works urgently required by the government in the public interests; (e) sums payable as compensation under this Act or the rules made thereunder; (f) Expenses incurred by the Municipality on special measures, if any taken on the outbreak of dangerous diseases; and (g) amount payable to the government by way of audit fee, if any 88. Power of Government to direct use of Municipal Fund for a particular purpose, - Notwithstanding anything contained in this Act, the Government may require a Municipality to earmark a particular portion of the Municipal Fund of the Municipality or a particular grant of a part thereof, or any item of receipt under any head or any percentage thereof, or any share of tax receivable by the Municipality under other law for the time being in force, or any part thereof to be utilised exclusively for any specified: purpose and it shall be mandatory on the part of the municipality to do so. 89. Investment of surplus moneys, - (1) Surplus moneys standing at the credit of the Municipal Fund, which cannot immediately or at an early date be applied for the purposes specified in section 87, shall be invested in the prescribed manner: Provided that adequate safeguards, as may be prescribed, shall be followed against the unproductive and speculative investments. (2) The loss, if any, arising from such investments, shall be debited to the Municipal Fund. 286 90. Constitution of Special Funds,- (1) Notwithstanding anything contained in Section 85, the Municipality may, with the prior approval of the Government, constitute such special fund or funds, as may be necessary for the purposes of this Act. (2) The constitution and disposal of such funds shall be made in such manner, as may be prescribed. 91. Operation of bank accounts, Save as otherwise provided in this Act, no payment shall be made from the bank account referredtoinsection 86 out of the Municipal Fund, except on cheque signed by,- (a) in the case of Municipal Council,- (i) the Chairperson or if so authorised by the Chairperson, the Deputy Chairperson or an elected member, as the case may be; and (ii) The Executive Officer; and (b) In the case of Town Council,- Chairperson, or if so authorised by the Chairperson, the Deputy Chairperson or an elected member, as the case maybe, and (ii) The Executive Officer 92. Duty of persons signing the cheque, Before a cheque is signed in accordance with the provisions of section 91 or a bill signed for payment of any amount from the bank account,- (a) In the case of the Municipal Fund of a Municipal Council,- (i) The Chairperson or when so authorised under clause (a) of section 91, the Deputy Chairperson or an elected members, as the case maybe; and (ii) The Executive Officer; and (b) in the case of Municipal fund of Town Council,- The Chairperson or when so authorised under clause (b) of section 91, the Deputy Chairperson or an elected member, as the case may be; and (ii) The Executive Officer Shall satisfy themselves that the sum for which the cheque is drawn or which is specified for payment in the bill, as the case may be, is either,- 287 (i) Required for the purpose or work specifically sanctioned by the appropriate authority; or (ii) required for payment referred to, or specified, in section 87 or section 88 as the case may be. Chapter -II Borrowing 93. Power to raise loan by issue of debentures,— (1) As may be authorised by notification, Municipal Council or Town Council may, by passing a resolution in this behalf, raise a loan, by the issue of debentures or otherwise on the security of any immovable property vested in it or proposed to be acquired by it or any of the taxes, rates, ceases, fees and charges levied under this Act, for any sum of money, which may be required,- (a) For acquiring any land, which it has power to acquire; (b) For erecting any building, which it has power to erect; (c) For the execution of any permanent work, the provision of any plant, or the doing of any other thing, which it has power to execute, provide or do, if the cost of carrying out the purpose in question is required to be spread over a term of years; (d) for payment of debt due to the Government; (e) For repaying any loan previously raised under this Act or any other Act previously in force; or (f) for any other purpose for which the Municipal Council or the Town Council as the case may be, is by virtue of this Act or any other law for the time being in force, authorised to borrow: Provided that, - (i) no loan shall be raised without the prior approval of the Government; and (ii) The amount of loan, the rate of interest to be paid for such loan and the terms and conditions, including the date of floatation, the time and method or repayment, shall be subject to the approval of the Government. 288 (2) When any sum of money has been borrowed under sub-section (1), no portion of any sum of money borrowed for the purposes referred to in clause (c) of sub-section (1), shall be applied to the payment of salary and allowances to any officers or the Municipal Council or the Town Council, as the case may be, other than those exclusively employed in connection with the carrying out of that purpose. (3) The loan raised under sub-section (1), shall not be spent on purchase of vehicles and contingent expenditure unless specially provided for in the concerned scheme or project. 94. Form and effect of debentures,— All debentures issued under this Chapter shall, (a) Be in such form, as the Municipal Council or the Town Council, as the case may be, may, with the previous sanction of the Government, determine; and (b) be transferable in such manner, as shall be expressed therein. 95. Constitution and investment of sinking Funds,— (1) Municipal Council or a town Council, as the case may be, authorised under sub-section (1) of section 93, shall constitute sinking Funds for the repayment of moneys borrowed on debentures issued and shall pay every year into such Sinking Funds such sum, as will be sufficient for the repayment within the period fixed for the loan of all moneys borrowed on the debentures issued. (2) All moneys paid into the Sinking Funds shall, as soon as possible be invested by the Chief Officer, under the directions of the Municipality, in public securities in the prescribed manner. (3) All dividends and other sums received in respect of any such investment shall, as soon as possible after receipt be paid into the Sinking Funds and invested in the manner laid down in sub-section (2) 96. Application of Sinking Fund:— A Sinking Fund or any part thereof, shall be applied in or towards the discharge of the loan or part of the loan for which such fund was created and until such loan or part is wholly discharged, such Fund shall not be applied for any other purpose. 289 97. Annual Statement, - (1) tatement, - (1) The Chief Officer of a Municipality shall, at the end of the every year, submit to the Municipality, a statement showing:- (a) the amount, which has been invested in the Sinking Fund or Funds during the year under section 95; (b) The date of the last investment made prior to the submission of the statement (c) The aggregate amount of the securities then in hand; and (d) The aggregate amount, which has up to, the date of the statement been applied under section 96, in or towards the discharge of loans. (2) A copy of every such statement shall be submitted to the Government. 98. Annual examination of Sinking Fund:- (1) All Sinking funds constituted under this Act, shall be subject to annual examination of Audit Authority, who shall ascertain whether the cash and the value of securities belonging thereto, are equal to the amount, which should be at the credit of such Funds, had the investment under section 95 been regularly made and had the interest accruing on account of such investment been regularly obtained. (2) The Municipal Council or the Town Council as the case may be, shall forth with, pay into the Sinking Fund such amount, as the Audit Authority may certify to be a deficit in respect of such Fund, unless the Government specially sanctions a gradual re-adjustment of such deficit. (3) If the cash and the value of th securities at the credit of a Sinking Fund are in excess of the amount, which should be at its credit, the Audit authority shall certify the amount os such excess sum and the Municipal Council or the Town Council, as the case may be, shall thereupon, transfer the excess sum to the municipal Fund of the Municipality. (4) If any dispute arises as to accuracy of any deficit of excess referred to in the certificate under sub-section (2) or sub-section (3), the municipal Council or the Town Council, as the case may be, in ay after payment of such deficit or after transfer of such excess, as the case may be, refer the matter to the Government whose decision thereon shall be final. 99. Borrowing by Municipalities:— (1) A Municipality may, with the prior permission of the Government, obtain loans from any financial institution or any nationalised bank or 290 any other Municipality, and the Government may, if it considers so necessary, stand as the guarantor for payment. (2) The Government may require a Municipality to observe such financial discipline in the matter of debt servicing including the creation of Sinking Fund, as the Government may think fit and proper and in doing so, the Government may prescribe different sets of rules for observance by different groups of Municipalities depending upon the circumstances and nature of cases. 100. Power to direct a Municipality to advance loan to another Municipality. The Government may, direct a Municipality, keeping in view its financial position to advance loan to another municipality at such rat of interest, as may be prescribed Chapter - III Budget Estimate 101. Preparation of budget estimate: (1) The Chief Officer of Municipality shall prepare in each year a budget estimate along with an Establishment Schedule of the Municipality for ensuing year, which shall be an estimate of the income and expenditure of the municipality. (2) The. Chief Officer of the municipality shall place before Municipal Council or Town Council, as the case may be, not later than fifteenth day of January in each year, the budget estimate prepared under sub-section (1) along with a copy of the Establishment Schedule of the Municipality. (3) The Budget Estimate and the Establishment Schedule, shall be prepared in such form, in such manner and containing such particulars as may be prescribed. (4) The statement referred to in sub-section (2) of section 119 shall be with the budget estimate. 102. Sanction of the budget estimate,— (1) The Municipality shall consider the budget estimate, and adopt for the ensuing year the budget estimate with such changes, as it may consider necessary, not later than fifteenth day of February of that year and submit the budget estimate so adopted to the Government. 291 (2) If the budget estimate is not adopted by the fifteenth day of February of that year, the Chief Officer of the Municipality shall submit the budget estimate to the Government. (3) The budget estimate received by the Government, under sub-section (1) or sub-section (2), shall be returned to the Municipality before the thirty- first day of March of that year after sanction with or without modifications. 103. Power to alter budget grant,— A Municipality may from time to time, during the year,- (a) increase the amount of any budget-grant under any head; (b) make an additional budget-grant for the purpose of meeting any special or unforeseen requirement arising during the said year; (c) Transfer the amount of any budget-grant or portion thereof under one head to the amount of budget grant under any other heads; or (d) Reduce the amount of the budget-grant under any head. Provided that no such increase in a budget grant or an additional budget grant of the transfer of an amount under budget grant or any portion thereof under any head to another head or reduction in the amount of budget-grant in any year, shall be made without the prior approval of the sanctioning authority referred to in section 102, and after such approval, it shall be deemed to be included in budget estimate finally adopted for the year. Chapter -IV Accounts and Audit 104. Maintenance of Accounts: The Executive Officer, in the case of a Municipal Council or Town Council, as the case may be, shall prepare and maintain accounts of receipts and expenditures of a Municipal Council or a Town Council in such form and in such manner, as may be prescribed. 105. Preparation fMunicipal Account Code:— The Government shall prepare and maintain a code to be known as the Municipal Account Code containing all the financing matters, and the procedure relating thereto in respect of the Municipalities. 292 106. Financial statement, - (1) The Chief Officer of a Municipality shall, within three months of the close of a year, cause to be prepared a financial statement for the preceding year in respect of the accounts 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. 107. Balance Sheet,— (1) The Chief Officer of a Municipality shall, within three months of the close of a year, cause to be prepared a balance sheet of the 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. 108.Submission of financial statement and balance sheet to the Audit Authority,— The financial statement prepared under section 106 and the balance sheet of the assets and liabilities prepared under section 107 shall be placed by the Chief Officer of the Municipality before the Municipal Council or the Town Council. Who after examination of the same, shall adopt and remit these within one month to the Audit Authority provided in section 109. 109. Audit Authority: (1) The audit of the accounts of the Municipality, including the- accounts of the special funds, if any, shall be conducted by the audit authority in such manner as the Government in the Finance Department, may prescribe in consultation with the department of Local Government. (2) The Authority may- (a) Require, by written notice, the production before it or before any officer subordinate to it of any document, which the Audit Authority considers necessary for the proper conduct of the audit, (b) Require, by written notice, any person accountable for and having custody and control of any document, cash or article or to appear in person before such authority. (c) require any person so appearing before it or such officer to make or 293 sign a declaration with respect to such documents, cash or article or to answer any question and to prepare and submit any statement, and (d) cause physical verification of cash and of any stock of articles in the course of examination of accounts. (3) The Chief Officer of the Municipality, shall comply with such requisitions ofthe Audit Authority, as may be made under sub-section (2) 110. Audit Report: (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 Audit Authority shall prepare a report of the account audited and examined and shall send such report to the Chief Officer of the Municipality. (2) The Audit Authority shall include in such report a statement showing,— (a) Every payment, which appears to the Audit Authority to be contrary to law; (b) The account of any deficiency of loss, which appears to have been caused by gross negligence or misconduct of any person; (c) The account of any sum received which ought to have been, but has not been brought into account by any person; and (d) Any other material impropriety or irregularity, which may be observed in the accounts. 111. Placing of audited accounts before the Municipality,— (1) The Chief Officer of a Municipality shall place the audited financial statement, the balance sheet and the report of the Audit Authority and comments thereon, before the Municipality before the thirty-first day December every year for its consideration and its adoption at a special meeting. (2) The Chief Officer shall remedy any defect that has been pointed out by the Audit Authority in its report. 112. Audited accounts to be submitted;— (1) The Chief Officer of the Municipality, shall, after adoption of the financial statement and the balance sheet and the report of the Audit Authority, forward the same to the Government together with a report of 294 the action taken thereon by the Municipality and shall also send copies thereof to the Audit Authority. (2) If there is any difference of opinion between the Audit Authority and the Municipality or if the Municipality does not remedy the defects or irregularities pointed out in the report of the Audit Authority within a reasonable period, the Audit Authority shall refer the matter to the Government whose decision shall be final and binding. 113. Special Audit: In addition to the audit of accounts under section 109 the Government may, if it thinks fit, appoint a person having prescribed qualifications to conduct a special audit pertaining to any specified item or series of items requiring thorough examination and the provisions of this Chapter relating to audit shall, mutatis- mutandis, apply to such special audit. Chapter -V Municipal Property 114. Power to acquire and hold property: Every Municipality shall, for the purpose of this Act, have power to acquire, by gift, purchase or otherwise, and hold, movable and immovable property or any interest therein, whether within or outside limits of the municipal area. 115. Vesting of property;— (1) Notwithstanding anything contained in any other law for the time being in force, the movable and immovable properties of the following categories within the limit of the municipal area of a Municipality shall, unless the Government, by notification, otherwise directs, vest in the Municipality constituted for such area, namely:- (a) All public and common lands not belonging to any Government Department or statutory body or corporation; (b) All public tanks, streams, reservoirs and wells; (c) All public markets and slaughter house; (d) All public sewers and drains, channels, tunnels, culverts and water courses in, alongside or under any street. 295 (e) All public streets and pavements including street parking areas, stones and other material thereof and also trees on public streets or pavement not belonging to any private individual; (f) All public parks and gardens, including squares and public open spaces; (g) All public ghats on rivers or streams or tanks; (h) All public lamps, lamp-posts and apparatus connected with or appertaining thereto; (1) All public places for disposal of the dead excluding those governed by any specific law in this behalf. (j) All land or other properties transferred to the Municipality by the Government or acquired by gift, purchase or otherwise for public purposes; (k) Al solid and liquid wastes collected or lying on a public street or public place, including dead animals and birds; and (1) All stray animals not belonging to any private individual. (2) Where any area is included in a municipal area all movable and immovable properties in such area, of the categories mentioned in sub- section (1) shall vest in the Municipality constituted for such Municipal area. (3) When any immovable property is transferred otherwise than by sale by the Government to a Municipality for public purposes, it shall be deemed to be a condition of such transfer, unless specially provided to the contrary, that should the property be at any time resumed by the Government, the compensation payable therefor shall notwithstanding anything to the contrary contained in the Nagaland Land (Requisition and Acquisition) Act, 1965 (3 of 1965), inno case exceed the amount, if any, paid to the Government for the transfer together with the cost or the present value whichever shall be less, of any buildings erected or other works executed on the land by the Municipality. (4) The management, control and administration of every public institution maintained out of the Municipal fund shall vest in the Municipality. (5) When any public institution has been placed under the direction, management and control of the Municipality, all properties, endowment and funds belonging thereto, shall be held by the Municipality in trust for the purpose to which such properties, endowments and funds were lawfully applicable at the time when the institution was so place. 296 Provided that the extend of the independent authority of the Municipality in respect of such institution may be such, as may be prescribed. 116. Acquisition of immovable property by agreement;— If a Municipality desires to acquire any immovable property for the purposes of the Act, such property may, if so directed by the Municipality, be acquired by agreement by the Chief Officer, on behalf of the Municipality on such terms and at such prices, as maybe approved by the Municipality: Provided that the negotiation for the purpose of such agreement shall be made jointly:- By the Chairperson, the Chief Officer of a Municipal Council or a Town Council and the Officer of Local Government And prior approval of the Government shall be obtained before the making of such agreement. 117.Acquisition where immovable property cannot be acquired by agreement;— Whenever the Municipality is unable to acquire any immovable property under section 116 by agreement, the Government may at the request of the Municipality, acquire the same under the provisions of the Nagaland Land (requisition and Acquisition) Act, 1965 (Act 3 of 1965) and on payment by the Municipality of the compensation awarded under that Act and of the charges incurred by the Government in connection with the procedure related thereto, the land shall vest in the Municipality. 118. Disposal of property;— (1) With respect to the disposal of property, movable and immovable, belonging to the Municipality, the provisions of sub-section (2) and sub- section (3) shall have effect, (2) The Municipality may, (a) Dispose of, by sale or otherwise, any movable property belonging to the Municipality; and (b) With the prior approval of the Government, sell, mortgage, gift or grant a lease of any immovable property belonging to the Municipality. Provided that no such prior approval of the Government shall be necessary in the case of a lease by public auction of any immovable property for a period of five years. 297 (3) The procedure for sale, mortgage or gift, the procedure for granting any lease and the terms and conditions of lease under this section, shall be such as may be prescribed. 119. Registers of immovable and movable properties;— (1) The Chief Officer of a Municipality shall maintain in such manner and in such form, as may be prescribed;— (a) A register and a map of all the immovable properties of which the Municipality is the proprietor or which vest in it, or which the Municipality holds in trust for the Government; and (b) A register of all movable properties belonging to the Municipality. (2) The Chief Officer shall cause to be prepared every year a statement in respect of changes, if any, made in the register of immovable properties specified in sub-section (1) during the preceding year and enclose the statement with the budget estimate prepared under section 101.
Excerpt shown. Open the full act in Lexace.