The UTTAR PRADESH BOARD FOR DEVELOPMENT OF MUNICIPAL FINANCIAL RESOURCES ACT, 2011

THE UTTAR PRADESH BOARD FOR DEVELOPMENT OF 
MUNICIPAL FINANCIAL RESOURCES ACT, 2011  
(U.P Act no. 11 of 2011) 
 
[As passed by the Uttar Pradesh Legislature, assented to by the 
Governor on March 16, 2011 and published in U.P. Gazette 
Extraordinary on March 18, 2011] 
AN 
ACT 
to provide for the establishment of the Uttar Pradesh Board for 
Development of Municipal Financial Resources and the matters connected 
herewith or incidental thereto. 
         It is hereby enacted in the Sixty-second Year of the Republic of 
India as follows :– 
CHAPTER I 
PRELIMINARY 
Short title, 
extent and 
commencement 
1. (1) This Act may be called the Uttar Pradesh Board for 
Development of Municipal Financial Resources Act, 2011.  
 (2)  It extends to the whole of the State of Uttar Pradesh.  
(3) It shall come into force on such date as the State 
Government may, by notification, appoint. 
Definitions 
 
2. (1) In this Act, unless there is anything repugnant in the 
subject or context,– 
(a) “Board” means the Uttar Pradesh Board for 
Development of Municipal Financial Resources; 
(b) "Chairperson" means the Chairperson of the Board 
and the Head of the Department thereof; 
(c) “Member” means a member of the Board other than 
ex-officio member; 
(d) "Municipality" means a Municipal Corporation or 
Municipal Council or a Nagar Panchayat, constituted under 
clause (1) of Article 243-Q of the Constitution of India; 
 (e) “Municipal Act” means the Uttar Pradesh Municipal 
Corporation Act, 1959, and the Uttar Pradesh Municipalities 
Act, 1916;  
(f) “Property tax” means the property tax on lands and 
buildings levied under the Municipal Act;   
(g) “Regulation” means regulations made under  
section 37.  
(2) Words and expressions used in this Act but not defined 
shall have the meanings respectively assigned to them in the 
Municipal Acts. 
Act to override 
other laws 
3.  With effect from the date of notification referred to in   sub-
section (1) of section 4, the provisions of the Municipal Acts, or any 
other law relating to any of the matters provided for in this Act shall 
be deemed to have been modified to the extent of the provisions of  
this Act.  
 CHAPTER-II 
ESTABLISHMENT OF THE BOARD 
Establishment 
of the Board 
4. (1) The State Government shall, by notification, establish a 
Board to be called the Uttar Pradesh Board for the Development of 
Municipal Financial Resources.   
(2) The Board shall be a body corporate.  
(3) The head office of the Board shall be at Lucknow. 
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[The Uttar Pradesh Board for Development of Municipal Financial Resources Act, 2011] 
Composition 
of the Board 
5. (1) The Board shall consist of a Chairperson and 4 other 
Members and the Director Local Bodies Uttar Pradesh shall be ex-officio 
member of the Board. 
(2) The Chairperson shall be a person with administrative 
experience of not less than 25 years and must have held the post of 
Chief Secretary of the State Government or the Secretary to the 
Government of India or any other post equivalent thereto having 
experience of departments related to urban administration.   
(3) The Members shall be the persons having special knowledge 
and experience in the fields of municipal administration, finance and 
accounts, valuation of urban properties, State Laws including 
municipal laws or civil engineering or as the State Government may 
determine, and must have at least 25 years of experience in relevant 
field and held the post of at least the Secretary to the State Government 
or equivalent thereto.  
(4) The Board shall appoint a Secretary to exercise and perform 
such duties, under the control of the Chairperson, in such manner as 
may be specified by regulations.  
 (5) The Chairperson and the Members of the Board shall hold 
office for a period of five years from the date he enters upon his office 
and the terms and conditions of their service, including salaries and 
allowances, shall be such as may be prescribed : 
Provided that the Chairperson or a Member shall not hold office 
after he has attained the age of sixty five years.  
(6) The salary, allowances and other conditions of services of 
Chairperson and Members shall not be varied to their disadvantage 
after appointment.  
(7) The Chairperson or any Member of the Board shall not hold 
any other office during the tenure thereof as such. 
(8) The Chairperson shall be the Chief Executive Officer of the 
Board. 
(9) Where the Chairperson is unable to discharge his functions 
owing to absence, illness, death, resignation or any other cause or 
where any vacancy occurs in the office of the Chairperson, a Member 
nominated by the Chairperson in this behalf and, in the absence of 
such nomination or where there is no Chairperson, any Member 
chosen by Members present from amongst themselves, shall exercise 
the powers and discharge the duties of the Chairperson.  
(10) A person shall be disqualified for appointment as the 
Chairperson or a Member, if he:- 
(a)  has been adjudged as insolvent; or  
(b) has become physically or mentally incapable of acting; 
or 
(c) has been convicted and sentenced to imprisonment for 
any offence involving moral turpitude; or 
(d) has acquired such financial or other interest as is likely 
to affect his functions as the Chairperson or a Member; or  
(e) has so abused his position as to render his continuance 
in the office pre-judicial to the public interest; or 
(f) is a Member of Parliament, or any State Legislature or 
any local authority or is a candidate for election thereto; or 
(g) is or has been an active Member of a political party or 
has held or holds a post therein. 
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[The Uttar Pradesh Board for Development of Municipal Financial Resources Act, 2011] 
 
 (11) The Chairperson or a Member shall only be removed from 
his office by the State Government on the grounds of proved 
misbehavior or on the grounds specified in clause (b), clause (d) or 
clause (e) of sub-section (10) after a panel of three enquiry officers 
appointed, from amongst officers equivalent to Chief Secretary to the 
State Government, for this purpose, on a reference made to them by 
the State Government, has, on enquiry, held by the panel and in 
consultation with the leader of opposition of the State Legislative 
Assembly, reported that the Chairperson or the Member ought to, on 
any such grounds be removed. 
Appointment 
of Chairperson 
and Members 
6. (1) The Governor shall, appoint a person, on the advice of 
the chief Minister, as the Chairperson and the Members of the Board. 
 (2) The person appointed under sub-section (1) shall, before 
entering upon the office, make and subcribe before the Governor or 
any person nominated by him an oath of affirmation in such form as 
may be prescribed.  
 (3) The person appointed under sub-section (1) may, by 
writing under his hand addressed to the Governor, resign his office.  
(4) The person appointed under sub-section (1) may be 
removed from office in such manner as may be prescribed. 
Staff of the 
Board 
7. (1) The Board may with the approval of the State 
Government, create such posts of officers and employees of the Board 
and make appointments on such post in such manner as may be 
prescribed.  
(2) The terms and conditions of service including salaries and 
allowances of the staff appointed under sub-section (1) shall be such 
as may be laid down in the regulations.  
(3) For the purposes of carrying out its functions under this 
Act, the Board may requisition the services of any officer or employee 
of a municipality.    
(4) The staff referred to in sub-section (1) shall be under the 
administrative and disciplinary control of the Chairperson who shall 
be the appointing authority thereof.  
Organization 8. (1) The Board may be organized into three or more wings viz 
Administrative wing, Valuation wing and Research and Analysis 
activities wing and such other wings as may be needed.  
(2) The Board may establish regional offices in the State with 
appropriate staff with the prior approval of the State Government.  
(3) The Board may reorganize its wings and regional offices 
from time to time as required to implement the provisions of this Act. 
Validation 9. Notwithstanding anything to the contrary  contained in any 
other provision of this Act, no action of the Board shall be invalid or 
otherwise called in question merely on the ground of the existence of 
any vacancy or defects in the constitution of the Board. 
 CHAPTER-III 
POWERS, FUNCTIONS AND PROCEDURES OF THE BOARD 
Functions of 
the Board 
10. The functions of the Board shall be - 
(a) to review the fiscal strength of various municipalities 
and assess the efficiency of different sources of revenue so as 
to enhance it and also to create new such sources; 
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[The Uttar Pradesh Board for Development of Municipal Financial Resources Act, 2011] 
(b) to enumerate, or cause to enumerate, all properties in the 
municipalities in the State and develop a data-base; 
(c) to review the property and water tax and other revenue resource 
systems and suggest suitable basis for valuation of properties and rates 
of tax and non tax items of municipalities;  
(d) to design and formulate transparent procedure for valuation of 
properties, inspection for their verification in municipalities;  
(e) to undertake valuation or cause valuation of all properties in the 
Municipalities in the state including central, state or local body 
properties and exempted properties; 
(f) to recommend modalities for periodic revision;  
(g) to adjudicate property tax disputes;  
(h) to ensure transparency in valuation process and facilitate 
disclosure of valuations for fair comparison;  
(i) to publish the annual work plan in the official Gazette of the 
State Government;  
(j) to give such advice on valuation of properties and enhancement 
of Municipal Revenue to Municipalities, as the State Government may, 
from time to time, require it to do or on the request of Municipalities by 
means of resolution ; 
(k) to discharge such other functions in the field of user charges, 
resource generation and valuation therefore including development of 
expertise in valuation of land and building, as the State Government 
may, from time to time, require it to do or on the request of 
municipalities by means of resolution.   
Proceedings of 
the Board 
11. The Board shall meet at such time and place within the 
State as the Chairperson may think fit and shall regulate its own 
procedure consistent with regulations that may be framed in this 
behalf. 
Responsibility 
of 
Municipality 
12. (1) When called upon, by the Board, to furnish any 
information, return, particulars, records, documents or registers or 
any other material, the municipality shall furnish the same within the 
time specified in this regard.  
(2) When called upon by the Board, a municipality shall fully 
cooperate with and assist the Board to perform its functions.  
(3) Where a municipality fails, for whatever reason,  to comply 
with any direction under sub-section (1) or sub-section (2) the Board 
may issue a show cause notice to the municipality for withholding, 
for a period not exceeding two years, a part of the financial transfers, 
not exceeding thirty per cent of its annual value during the preceding 
financial year, to be devolved by the State Government to that 
municipality.  If the municipality still fails to comply with or fails to 
furnish a satisfactory guarantee in this regard, the Board may 
recommend such withholding to the State Government, where upon 
the State Government shall withhold such financial transfers for said 
period:  
 Provided that where the municipality, subsequently, complies 
with direction, the State Government shall release the financial 
transfers so withheld, on being satisfied with such compliance. 
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[The Uttar Pradesh Board for Development of Municipal Financial Resources Act, 2011] 
Obligation to 
file statement 
and disclose 
liability 
13. (1) Every owner or occupant of any land or building shall 
file a statement before the Board or any Person  authorized by it in 
this behalf, in such manner and within such time, specifying such 
particulars, as may be prescribed.  
(2) The Board may, by general or specific communication, call 
upon an inhabitant of a municipality to furnish such information and 
particulars as may be specified, in order to ascertain-  
(a)  whether such inhabitant is liable to pay a tax imposed 
or a charge or a fee under this Act or any Municipal Act or 
rules or regulations made thereunder; 
(b)  at what amount he should be  assessed;  
(c)  the annual value of the building or land which he 
occupied and the name and address of the owner; 
(d)  any other information that may be necessary for 
carrying out its functions, or levy of the tax, charge or fee. 
Offences and 
Penalties 
14. Any person who – 
 (i) fails to file the statement as required; or  
(ii) fails to furnish the information and particulars called 
upon, shall be guilty of an offence and shall be punishable 
with fine which may extend to rupees ten thousand and when 
the offence is a continuing one, with a fine which may extend 
to rupees five hundred per day.   
Composition 
of offences 
15. (1) The Board may accept from a person who has 
committed or is reasonably suspected of having committed an offence 
under this Act, a sum of money not exceeding twenty thousand  by 
way of composition fee  and compound the offence. 
(2) On the composition of any offence,  no proceedings shall be 
taken or continued against the person in respect of such offence, and 
if any proceeding  in respect of that offence have already been 
inhibited against him, the composition shall have the effect of his 
acquittal. 
Cognizance of 
offences 
16. No court shall  take cognizance  of any offence under this 
Act except on a complaint in writing of an officer authorized in this 
behalf by the Board. 
Determination 
of valuation 
and its 
duration 
17. (1) The State Government shall, from time to time, by 
notification, specify the municipality where the general valuation of 
lands and buildings shall be made by the Board, in accordance with 
the provisions of Municipal Acts or any other law for the time being in 
force in such municipality, as the case may be, in so far as they 
relate to determination of annual valuation : 
Provided that the Board may cause to be made, subject to 
such conditions as may be prescribed, the general valuation of lands 
and buildings in the municipality, as aforesaid, under its 
superintendence, direction and control on payment of such 
remuneration as it may determine, and every such valuation shall be 
deemed to have been made by the Board.  
(2) The valuation made by the Board shall become operative 
with effect from such date, as the State Government may, by 
notification, appoint in this behalf and shall remain in force in 
respect of such area for a period of five years and be revised 
thereafter at the termination of successive period of five years : 
Provided that the valuation of land or building in any 
municipality shall be made in accordance with the provisions of the 
Municipal Acts. 
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[The Uttar Pradesh Board for Development of Municipal Financial Resources Act, 2011] 
  (3) Notwithstanding anything contained in sub-sections (1)and 
(2) if, during the currency of any period referred to in sub-section (2) 
any new building is erected, or any existing  building is reconstructed 
or substantially altered or improved in any area of municipality,  the 
determination of valuation of such premises shall be subject to the 
same criteria as has been fixed by the Board for such premises, and 
its valuation shall be covered by such procedure as may be 
determined by the Board for its immediate valuation with prior 
mandatory filing of statement of particulars by the owner or occupier.  
(4) The Municipality shall and within such time, as may be 
prescribed, send to the Board list of all new buildings erected and also 
all existing buildings reconstructed or substantially altered or 
improved within its jurisdiction. 
(5) The mutation of properties shall be made by the 
municipality as per provisions of Municipal Acts, or rules made 
thereunder but the information of mutation with concerned record 
shall be given to the Board by the mutating officer within seven days 
of mutation. 
 
Publication of 
proposed 
valuation list 
18. (1) When the valuation of the land and buildings of any 
Municipality has been completed by the Board shall cause such 
valuation list and the amount of property tax or other taxes thereon to 
be entered in a list.  
 
 (2) The Board shall publish the proposed valuation list, 
prepared under sub-section (1) and shall specify a date within which 
an application for objection to the proposed valuation list may be filed.  
(3) The objections may be filed in such manner as may be 
prescribed. 
 
Hearing of 
objections on 
valuation 
19. After the expiry of the date specified in sub-section (2) of 
section 18 and within such period thereafter as may be prescribed, the 
objection of any entry in the proposed valuation list shall be 
determined after giving the applicant an opportunity of being heard, 
by such persons as may be authorized in this behalf. 
 
Publication of 
final valuation 
list 
20. When the objections, if any, have been disposed off under 
section 19, the Board shall prepare a final valuation list and shall give 
public notice of the place or places where such list may be inspected 
and the valuation together with the amount of property tax thereon as 
recorded in the final valuation list shall be conclusive and no objection 
shall be reheard. 
 
Review of 
valuation 
21. Notwithstanding anything contained in section 20, the 
Board may at any time on  an  application filed  by an owner or 
occupier or by the  municipality or suo moto;  and  after  recording  the  
reasons therefore, review any valuation made earlier.  
 
Powers of the 
Board 
22. The Board while performing its functions under this Act, 
shall have the powers of a civil court trying a suit in respect of the 
following matters – 
(a) summoning and enforcing the attendance of any person 
and examining him on oath; 
 (b) requiring the discovery and production of any  
document; 
 (c) receiving evidence on affidavit; 
 (d) requisitioning any public record or copy thereof; 
(e) issuing commissions for inspection of  premises and 
examination of witness and documents; 
(f) such other matters as may be prescribed. 
 
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[The Uttar Pradesh Board for Development of Municipal Financial Resources Act, 2011] 
Powers to issue 
directions 
23. The State Government may from time to time issue 
directions not inconsistent with this Act. 
Power of entry 
and inspection 
into land or 
building 
24. A person, authorized by the Board in this behalf, may 
enter into or upon a premises in such manner as may be prescribed, 
for carrying out the purposes of this Act. 
Bar of 
jurisdiction 
25. No  order  or  proceeding made under this Act shall be 
appealable and  no  civil court shall have jurisdiction in respect of 
any matter which the Board is empowered  by or under this Act to 
decide. 
 CHAPTER-IV 
ACCOUNTS, AUDIT AND REPORT 
Grants by the 
State 
Government to 
the Board 
26. (1) The State Government shall after due appropriation made 
by the State Legislature  by  law  in this  behalf, pay  to the Board, by 
way of grants, such sums of money as the State Government may think 
fit for being utilized for the purposes of this Act.  
 (2) The Board may spend such sums as it thinks fit for 
performing the functions under this Act, and such sums shall be 
treated as expenditure payable out of the grants referred to in sub-
section (1) and may also charge fee from municipalities and others 
towards expenditure of the Board. 
Accounts and 
audit 
27. (1) The Board  shall  maintain  proper  accounts  and 
other relevant records and shall cause to be prepared an annual 
statement of accounts in such form as may be prescribed. 
 (2) Review from sources other than grants under section 26 
shall be regulated by regulations made in this behalf. 
(3) The accounts of  the  Board  shall be audited by the 
Accountant General, Uttar Pradesh, or any other officer authorized 
by him in this behalf  at such intervals as may be specified by State 
Government and any expenditure incurred in connection with such 
audit shall be payable by the Board to the Accountant General. 
(4) Copies of annual statement of accounts of the  Board 
together with the audit report thereon shall be forwarded to the State 
Government. 
(5) A copy of  the annual statement of accounts of the Board 
together with the audit report received by the State Government 
under sub-section (4) shall be laid before each House of the State 
Legislature. 
Annual Report 28. (1) The Board shall prepare an Annual Report of its 
activities during the year, in such form as may be prescribed and 
copies thereof shall be forwarded to the State Government. 
(2) The State Government, shall cause the annual report to be 
laid before each House of the State Legislature. 
Recovery of 
amount due to 
the Board 
29. (1) If  the  amount due to  the Board from a municipality  
under  sub- section (2) of section 26 is not paid within specified time, 
the Board may refer the matter to the State Government and the 
State Government may pay the amount to the Board and deduct or 
pay after deducting the same from any financial transfers payable by 
the State Government to the municipality. 
(2) Without prejudice to sub-section (1), any amount payable 
to the Board, may, on a certificate of the Secretary of the Board, be 
recovered as arrears of land revenue. 
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[The Uttar Pradesh Board for Development of Municipal Financial Resources Act, 2011] 
Expenditure 
incurred on 
account of 
salaries and 
allowances 
including 
contingencies 
30. The expenditure incurred by the Board for meeting, the 
salaries and allowances, including contingencies, of the Chairperson, 
Members, Secretary, officers and employees serving under or for the 
Board shall be paid out of the grant to be provided by the State 
Government. 
 CHAPTER-V 
MISCELLANEOUS 
Delegation of 
Powers and 
Functions by 
Board 
31. The Board may delegate any of its powers and functions 
including financial power, by a resolution adopted by it to the 
Chairperson, Member, Secretary or any officer of the Board except the 
powers under sections 7, 8 and 37. 
Chairperson, 
Members, 
officers and 
employees to 
be Public 
Servants 
32. The Chairperson, Member, Secretary and other officers 
and employees of the Board shall be deemed to be public servant 
within the meaning of section 21 of the Indian Penal Code. 
Protection of 
action taken in 
good faith 
33. No suit, prosecution or other legal proceedings  shall  lie 
against any person for anything which is done in good faith  or 
intended to be done  in pursuance of the provisions of this Act or the 
rules or the regulation or the orders made thereunder. 
Registration of 
Valuers and 
Surveyors 
34. The Board may register a person as a valuer or surveyor  
subject to such qualification  and terms and conditions, including 
charges, as may be determined by regulations. 
Service of 
notices etc. 
35. All  notices  and  processes required  or sought to be 
issued  to or served on the Board shall be served on the Secretary of 
the Board. 
Power to make 
rules 
36. (1) The State Government may, by notification, make rules 
for carrying out the purposes of this Act.  
(2) In particular, and without prejudice to the generality of 
the forgoing powers the State Government may make rules relating to 
any matter not inconsistent with the provisions of this Act which is 
required to be or may be prescribed.   
(3) All rules made by the State Government shall be 
published in the Gazette. 
Power to make 
Regulations 
37. (1) The Board may, with the prior approval of the State 
Government, make regulations, consistent with the provisions of this 
Act, and the rules made thereunder, for carrying out the purposes of 
this Act.  
(2) The State Government may, in according such approval, 
make such additions, alterations and modifications therein as it 
thinks fit:  
Provided that before making such additions, alterations or 
modifications the State Government shall give the Board an 
opportunity to express its views thereon within such period not 
exceeding two months as may be specified by the State Government.  
(3) All regulations made by the Board and approved by the 
State Government shall be published in the Gazette. 
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[The Uttar Pradesh Board for Development of Municipal Financial Resources Act, 2011] 
Power to 
remove 
difficulties 
38. (1)   If any difficulty arises in giving effect to the provisions 
of this Act, by reasons of anything contained in this Act, or any other 
enactment for the time being in force, the State Government may, as 
the occasion requires, by order direct that this Act shall, during a 
period not exceeding twelve months after the date of such order have 
effect subject to such adaptations, whether by way of modifications, 
addition or ommission, as it may deem to be necessary and expedient : 
Provided that no order under sub-section (1) shall be made after 
the expiration of a period of two years from the commencement of this 
Act. 
(2) Every order made under sub-section (1) shall be laid before 
both the Houses of the State Legislature as soon as may be after it is 
made. 
(3) No order made under sub-section (1) shall be called in 
question in any court on the ground that no difficulty as is referred to 
in that sub-section existed or was required to be removed. 
 
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STATEMENT OF OBJECTS AND REASONS 
 On the recommendations of the 13th Finance Commission of 
India it has been decided to make law to provide for establishment and 
incorporation of the Uttar Pradesh Board for development of municipal 
Resources consisting of the Chairperson, four other members and one 
ex-officio member. The main functions of the Board shall be,- 
(a)  to review the fiscal strength of various municipalities and assess 
the efficiency of different sources of revenue so as to enhance it and also 
to create new such sources ; 
(b)  to enumerate, or cause to enumerate, all properties in the 
municipalities in the State and develop a data base ; 
(c)  to review the property and water tax and other revenue resource, 
systems and suggest suitable basis for valuation of properties and rates 
of tax and non-tax items of municipalities ; 
(d)  to design and formulate transparent procedure for valuation of 
properties ; 
(e)  to adjudicate property tax disputes ; 
(f)  to ensure transparency in valuation process and facilitate 
disclosure of valuations for fair comparison. 
The Uttar Pradesh Board for Development of Municipal Financial 
Resources Bill, 2011 is introduced accordingly. 
 
  
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