The PUNJAB MANAGEMENT AND TRANSFER OF MUNICIPAL PROPERTIES ACT, 2020

PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 63 
(CHTR 12, 1942 SAKA) 
PART I 
GOVERNMENT OF PUNJAB 
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB 
NOTIFICATION 
The Ist April, 2020 
No. 8-Leg./2020.-The following Act of the Legislature of the State 
of Punjab received the assent of the Governor of Punjab on the 20th day of 
  
March, 2020, is hereby published for general information :— 
THE PUNJAB MANAGEMENT AND TRANSFER OF 
MUNICIPAL PROPERTIES ACT, 2020 
(Punjab Act No. 8 of 2020) 
AN 
ACT 
to provide for inclusive and sustainable delivery of basic civic services 
in municipal towns and cities of the State of Punjab by unlocking and optimal 
utilization of resources namely the land and buildings and for the matters 
connected therewith or incidental thereto. 
BE it enacted by the Legislature of the State of Punjab in the Seventy- 
first Year of the Republic of India as follows:- 
1. (1) This Act may be called the Punjab Management and Transfer Short title, extent 
of Municipal Properties Act, 2020. and 
Commencement. 
(2) It shall extend to the whole of the State of Punjab. 
(3) It shall come into force on and with effect from the date of its 
publication in the Official Gazette. 
2. In this Act, unless the context otherwise requires, - Definitions. 
(a) “basic civic services’ means services of drinking water supply, 
drainage, sewerage, solid waste disposal, street lighting and 
improvement of environment as provided by a Municipality; 
(b) “building” means a house, out-house, stable, shed, hut and other 
enclosed structure, whether of masonry bricks, wood, mud, 
metal or any other material whatsoever, whether used as 
human dwelling or otherwise and also includes verandahs, 
fixed platforms, plinths, door-steps, electric meters, walls 
including compound walls and fencing and the like, but does 
not include plant or machinery comprised in a building; 
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64 PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 
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(c) 
(d) 
(e) 
(f) 
(g) 
(h) 
(i) 
Q) 
(k) 
(1) 
(m) 
"Collector" means the Deputy Commissioner and includes an 
Additional Deputy Commissioner or Commissioner, Municipal 
Corporation or any officer specially appointed by the 
Government to perform the functions of a Collector under 
this Act; 
"Government" means the Government of Punjab in the 
Department of Local Government; 
"Municipality" means an institution of local self-government 
as defined in the Punjab Municipal Act, 1911 or the Punjab 
Municipal Corporation Act, 1976 or Improvement Trust 
incorporated or constituted under the Punjab Town 
Improvement Act, 1922; 
"municipal property” means the land and building owned by a 
Municipality; 
"occupant" means a person occupying the property owned by 
a Municipality in an authorized or unauthorized manner; 
“Officer of the Municipality” means the Commissioner under 
the Punjab Municipal Corporation Act, 1976 or the Executive 
Officer under the Punjab Municipal Act, 1911 or the Executive 
Officer under the Punjab Town Improvement Act, 1922, as 
the case may be; 
"prescribed" means prescribed by rules made under this Act; 
“relative” means a person as defined in clause (77) of section 
2 of the Companies Act, 2013; 
“specified” means specified by notification by the Government 
in the Official Gazette; 
"tenant" means a person to whom the municipal property has 
been rented or leased out; 
‘transfer’ means sale or lease of a municipal property for a 
price or rent; 
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PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 65 
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(n) 
(0) 
(p) 
3. 
"Tribunal" means the Tribunal constituted under section 17 of 
this Act; 
"urban area" means the area comprised within the limits of a 
Municipality; and 
words and expressions used but not defined in this Act shall 
have the same meaning as assigned to them in the Punjab 
Municipal Act, 1911 or the Punjab Municipal Corporation Act, 
1976 or the Punjab Town Improvement Act, 1922. 
Notwithstanding anything contained in any law for the time 
being in force enacted by the State of Punjab, every Municipality shall cause- 
(a) 
(b) 
(c) 
(d) 
4. 
all municipal properties to be identified and entered into a 
Property Register in such manner as may be specified by the 
Government; 
all municipal properties to be demarcated and notified for the 
information of the general public; 
the name and address of the tenant or an occupant, whether 
authorized or unauthorized, along with the details of the 
municipal property under the possession of such an occupant, 
to be notified for the information of the general public; and 
to follow Government orders on Asset Management Policy 
and Capital Investment Plan. 
Notwithstanding anything contained in any law for the time 
being in force enacted by the State of Punjab, a Municipality may transfer a 
municipal property in a transparent manner through an open e-auction in the 
case of commercial properties and through draw of lots in the case of residential 
properties. In case of other properties, the Municipality shall follow the directives 
of the Government as specified from time to time: 
Provided that open e-auction and draw of lots shall be conducted in 
such manner as laid down under this Act. 
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Management of 
municipal 
property. 
Transfer of 
municipal 
property.

Vesting of 
66 PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 
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5. (1) Notwithstanding anything contained in any law for the 
proprietary rights | 
in tenants or 
occupants. 
Sub-letting of a 
municipal 
property in 
future. 
time being in force enacted by the State of Punjab, a Municipality may vest the 
proprietary rights of a municipal property in a tenant or an occupant of sucha 
municipal property at a price determined by the Price and Rent Fixation 
Committee constituted for this purpose under section 7 of this Act and upon 
satisfaction of such conditions as may be specified by the Government from 
time to time: 
Provided that a tenant or an occupant has been in continuous possession 
of such a municipal property for at least twelve years: 
Provided further that a tenant or an occupant should not be or should 
not have been an employee of the Municipality or Department of Local 
Government or an elected member of the Municipality or his relative or Member 
of Parliament or his relative or a Member of the Punjab Legislative Assembly 
or his relative. 
(2) A tenant or an occupant shall furnish necessary proof in the 
form of electricity meter connection or water supply connection or ration card 
or any other Government issued document showing that the municipal property 
sought to be vested was in his continuous possession for the last twelve years. 
(3) A municipal property vested in a tenant or an occupant in 
accordance with this section shall not be sold or leased or mortgaged with 
possession, wholly or partially, or otherwise alienated, in any manner, for a 
period of twenty years, other than by way of inheritance or by way of pledging 
or mortgaging such a property in favour of the State Government or Semi- 
Government Organizations or Banks for securing loan for effecting 
improvements on the said property, 
(4) A tenant shall be liable to pay arrear of lease rent, if any, due 
to the municipality along with due price before the proprietary rights are vested 
in him. 
6. (1) No person, who has been transferred a municipal property 
on rent through a written agreement by a Municipality, shall sublet the same to 
another person. 
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PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 67 
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(2) In case a municipal property is sublet by the tenant, the 
Municipality shall cancel such a tenancy or lease forthwith and such property 
shall vest to the Municipality without any notice to the tenant or an occupant. 
(3) In case of death of a tenant, the tenancy or lease rights of 
such a municipal property may be vested in the legal heir(s) of the deceased 
tenant: 
Provided that such a legal heir(s) undertakes in writing to agree with 
the terms and conditions of the tenancy or lease agreement. 
7.(1) The Government shall constitute a Price and Rent Fixation 
Committee for every district in the State of Punjab to determine the reserve 
price or rent of a municipal property which a Municipality intends to transfer 
under the provisions of this Act. 
(2) The Price and Rent Fixation Committee shall be headed by 
the Collector and which shall also consist of the following members, namely:- 
(a) the Members of Parliament, and all Members of the Punjab 
Legislative Assembly or their nominee whose constituency 
comprises part or whole of the area of the Municipality; 
(b) Mayor or President of the Municipality; and 
(c ) Officer of the Municipality, duly deputed by the Government. 
(3) The price of the municipal property determined by the Price 
and Rent Fixation Committee and duly approved by the Government shall be 
commensurate with the prevailing Collector rate. 
(4) The lease money or the rent of a municipal property shall be 
the rate fixed by the Price and Rent Fixation Committee as duly approved by 
the Government or the price discovered by a Municipality through an open 
e-auction, whichever is higher. 
(5) The lease money or the rent of a municipal property determined 
in sub-section (3) shall be enhanced by at least five per cent every year. 
(6) The price determined by the Price and Rent Fixation 
Committee for commercial municipal property as duly approved by the 
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Price and Rent 
Fixation 
Committee.

68 PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 
(CHTR 12, 1942 SAKA)   
Government shall be the reserve price for auction of such property. 
(7) The rent fixed by the Price and Rent Fixation Committee for 
residential municipal property as duly approved by the Government shall be 
the lease money or rent for such municipal property. 
(8) Wherever a municipal property has been under continuous 
lease or occupation for a period of twelve years or more, and is intended to be 
transferred to the tenant or occupant, the price shall be fixed in the following 
manner, namely:- 
(i) 
(ii) 
(iii) 
(iv) 
(v) 
(vi) 
for Economically Weaker Sections (EWS), having an annual 
income not more than rupees three lakhs, at the rate of 12.5 
per cent of the Collector Rate; 
for Lower Income Groups (LIG), having an annual income 
more than rupees three lakhs but not more than rupees eight 
lakhs, at the rate of 25 per cent of the Collector rate; 
for Medium Income Groups (MIG), having an annual income 
more than rupees eight lakhs but not more than rupees fifteen 
lakhs at the rate of 50 per cent of the Collector rate; 
for High Income Groups (HIG), having an annual income more 
than rupees fifteen lakhs, at the Collector rate; 
for the aforesaid purpose, proof of Income shall be the Income 
Tax Return filed by a tenant or an occupant of the previous 
year of the year in which the transfer is to be made. In case 
a tenant or an occupant is not required to file Income Tax 
Return, in that case, he shall get an income certificate issued 
from the Sub-Divisional Magistrate of the area concerned; 
and 
for categories referred to as items (1), (ii) and (111), the municipal 
property only up to fifty square metres shall be transferred at 
the rate specified therein. However, if the municipal property 
occupied is more than fifty square metres then on the area of 
municipal property beyond fifty square metres, collector rate 
shall be payable. 
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PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 69 
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8. (1) Every auction of a municipal property under this Act shall be 
done through e-auction and shall be subject to a reserve price determined 
under section 7 of this Act. 
(2) The Officer of the Municipality shall cause to publish a public 
notice of the intention of the Municipality to auction a municipal property: 
Provided that no auction shall be conducted until the expiry of at least 
thirty days from the publication of such a notice. 
(3) Every notice issued under sub-section (2) shall give clear 
details of the municipal property, including its reserve price, location and size in 
addition to the terms and conditions of the auction: 
Provided that the Government may prescribe any or all of the terms 
and conditions of the auction, and such terms and conditions, shall be clearly 
mentioned in the notice. 
(4) Notwithstanding anything contained in this section, where it is 
observed that the prospective bidders have come to a tacit understanding to 
depress the bid price, the Municipality may, after recording reasons in writing 
and with the prior approval of the Government, invite sealed bids in place of an 
e-auction. 
9.(1) A Municipality may transfer a residential municipal property 
on rent or allot it through a draw of lots. 
(2) The Officer of the Municipality shall cause to publish a public 
notice of the intention of the Municipality to transfer a municipal property 
through a draw of lots: 
Provided that no such transfer by draw of lots shall be allowed until 
the expiry of at least thirty days from the publication of such a notice. 
(3) Every notice issued under sub-section (2) shall give clear 
details of the municipal property, including its price, location and size in addition 
to the terms and conditions of the draw of lots: 
Provided that the Government may prescribe any or all of the terms 
and conditions of the draw of lots and such terms and conditions shall be 
clearly mentioned in the notice. 
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Procedure of 
auction. 
Draw of lots.

Agreement for 
transfer of 
municipal 
properties. 
Payment of rent. 
Identification and 
notification of 
70 PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 
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10. (1) Where a Municipality has decided to transfer a municipal 
property, it shall execute a registered agreement or a deed, clearly giving the 
terms and conditions of the transfer. 
(2) Every agreement executed by a Municipality for transfer of 
property under this Act shall have appropriate penal clauses as specified 1n the 
agreement and in keeping with the provisions of this Act. 
(3) The Municipality shall have the right to get the municipal 
property vacated in case the agreement executed by it, is violated in any 
manner by the person in whose favour the municipal property has been 
transferred. 
11. In case a Municipality has decided to transfer its property to a 
tenant on rent, such a tenant shall be liable to pay the agreed rent as per terms 
and conditions of the agreement: 
Provided that where the tenant fails to pay the agreed rent for three 
months in a row, he shall be liable to vacate the municipal property forthwith 
without any notice and possession of such municipal property shall be deemed 
to have reverted to the Municipality. 
12. (1) Incase a Municipality decides to transfer a municipal property 
in accordance with the provisions of this Act, it shall identify and prepare a list 
municipal ; . ; ; ; property to be Of such properties, clearly giving details of their measurements, locations, 
transfered. occupants or tenants. 
(2) Every list of municipal property prepared under sub-section (1), 
shall be notified for the information of the general public before these are 
transferred in accordance with the provisions of this Act. 
Resolution of the 13. (1) A Municipality desirous of transferring a municipal property 
Municipality. in accordance with the provisions of this Act shall pass a resolution to this 
effect: 
Provided that no such resolution of a Municipality shall be valid unless 
it is approved by at least two third of the total elected members of the 
Municipality. 
(2) Every resolution of the Municipality passed under sub-section (1) 
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PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 71 
(CHTR 12, 1942 SAKA) 
  
shall be sent to the Government for approval. 
(3) The Government may, upon receipt of a resolution of the 
Municipality under sub-section (2), accord its approval or disapproval, for 
reasons, to be recorded in writing: 
Provided that the Government shall convey its approval or disapproval 
within sixty days of the receipt of such a resolution from a Municipality, failing 
which the resolution shall be deemed to have been approved. 
14. (1) Inthe case of transfer of a municipal property through auction 
or draw of lots by a Municipality, the transferee shall be required to pay the 
price as per terms and conditions of such a transfer. 
(2) In the case of transfer of a property to a tenant or an occupant, 
the Municipality shall communicate the decision to transfer the property to him 
in accordance with the provisions of this Act within fifteen days of the approval 
of the resolution of the Municipality to this effect by the Government. 
(3) In case a Municipality decides to transfer ownership of a 
municipal property to its tenant or occupant at a price fixed by the Price and 
Rent Fixation Committee in accordance with the provisions of this Act, the 
transferee shall give his consent for the same in writing within fifteen days of 
receipt of communication of such a decision of the Municipality. 
(4) Any tenant or occupant, who has given his consent under 
sub-section (3) shall be required to make payment of due price in following 
manner, namely:- 
(a) fifty per cent of the amount within one week from the date of 
issue of letter of decision of transfer by the Municipality; 
(b) balance amount within two months of date of issue of letter 
of decision of transfer; 
(c ) in case the occupier chooses to pay the whole amount in lump 
sum within one week from the date of issue of letter of decision 
of transfer, he shall be entitled to a rebate of five percent on 
the whole amount; 
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Payment of 
Price.

Vacation of 
municipal 
property. 
Registration of 
municipal 
property. 
72 PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 
(CHTR 12, 1942 SAKA)   
(d) if the property is in the name of women or a person above the 
age of sixty-five years then rebate of ten per cent shall be 
given on lump sum payment; and 
(e) if the due price 1s not paid by due dates, interest at the rate of 
twelve percent per annum shall be charged on the due 
price for the period of delay, for not more than ninety days. 
Thereafter, the concerned Municipality shall proceed with 
the eviction of the property. However, the interest shall 
continue to be levied till the date actual possession 1s taken by 
the Municipality. 
15. (1) Where a tenant or an occupant of a municipal property, which 
the Municipality has decided to transfer in accordance with the provisions of 
this Act, refuses to accept the transfer or fails to pay the price, he shall be 
liable to vacate such municipal property within three months of such refusal or 
failure. 
(2) In case a tenant or an occupant fails to vacate the property in 
accordance with the provisions of sub-section (1), the Municipality shall proceed 
to get the property vacated by making a reference to the Tribunal constituted 
under this Act. 
16. (1) Where a Municipality transfers a municipal property to a tenant 
or an occupant under the provisions of this Act, a letter of intent to transfer the 
property shall be issued by the Municipality. 
(2) Every such person, who has been issued a letter of intent to 
transfer the property by a Municipality, shall be eligible to get the property 
registered in his name on full payment of price and past arrears, if any. 
(3) Where a tenant or an occupant of a municipal property, given 
to him for a specific purpose, uses the same for a purpose other than that for 
which it was given, he shall be liable to vacate the property immediately and 
deed of transfer of such property shall be deemed to have been cancelled, 
notwithstanding any other law for the time being in force enacted by the State 
of Punjab. 
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PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 B 
(CHTR 12, 1942 SAKA) 
  
(4) Where a municipal property is occupied by a person or persons 
other than a tenant or an occupant, such person or persons shall be liable to 
vacate the property immediately. The Municipality shall initiate legal proceedings 
under the Code of Criminal Procedure, 1973 against such person or persons 
and shall further initiate eviction proceedings by making a reference to the 
Tribunal constituted under this Act. 
17. (1) The Government shall constitute a Tribunal or authorise any 
officer or officers or do both for the purpose of deciding references or appeal 
against the order of the Municipality as may be made to it by the Municipalities 
or by a tenant or an occupant in the State of Punjab, as the case may be, under 
the provisions of this Act. 
(2) The Tribunal shall consist of a President and two other 
members to be nominated by the Government. 
(3) The President of the Tribunal shall be a retired or serving 
Judge of the Punjab and Haryana High Court or a retired or serving officer not 
below the rank of a Financial Commissioner or Principal Secretary to the 
Government of Punjab: 
Provided that no person shall be eligible for appointment as 
the President of the Tribunal if he is or has been elected or nominated as a 
member of any Municipality in the State of Punjab: 
Provided further that no person shall be eligible for appointment 
as the President of the Tribunal, if he has attained the age of seventy years. 
(4) The member of the Tribunal shall be a person who has 
experience of dealing with matters and laws governing the Municipalities for 
at least ten years and bears a good moral character or is a retired or serving 
officer not below the rank of a Secretary to the Government of Punjab: 
Provided that no person shall be eligible for appointment as a 
member of the Tribunal, if he is or has been elected or nominated as a member 
of any Municipality in the State of Punjab: 
Provided further that no person shall be eligible for appointment 
as the Member of the Tribunal if he has attained the age of seventy years. 
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Constitution of a 
Tnobunal.

Eviction from 
municipal 
property. 
74 PUNJAB GOVT. GAZ. (EXTRA), APRIL 1, 2020 
(CHTR 12, 1942 SAKA) 
(5) The term of office of the President and members of the Tribunal 
shall be two years: 
  
Provided that upon the expiry of the term of two years, the 
President or the Member may be reappointed for a further period of two 
years. 
(6) The Government may remove the President or a Member of 
the Tribunal if such President or Member - 
(1) refuses to act, or becomes, in the opinion of the Government, 
incapable of acting as such; or 
(ii) has been declared insolvent; or 
(iii) has been convicted of any such offence or subjected by a 
Criminal Court to any such order which in the opinion of the 
Government, implies a defect of character and which makes 
him unfit to continue as a President or a Member of the 
Tribunal; or 
(iv) has been declared by notification to be disqualified for 
employment or has been dismissed from public service and 
the reason for such disqualification or dismissal is, in the opinion 
of the State Government, a defect of character which makes 
him unfit to be a President or a Member of the Tribunal. 
(7) The terms and conditions of the appointment of a President or 
a Member of the Tribunal shall be such as may be specified by the Government. 
18. (1) Wherever a municipal property 1s under unauthorized 
occupation, the Officer of the Municipality shall make a reference for eviction 
of such unauthorized occupants to the Tribunal or officer authorised under 
section 17 of this Act. 
(2) The Tribunal or officer shall pass an appropriate order within 
sixty days from the date of receipt of a reference referred to in sub- 
section (1). 
(3) An eviction order passed by the Tribunal or officer shall be 
final. 
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