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NEW DELHI MUNICIPAL COUNCIL ACT. 1994 (AS PASSED BY THE HOUSES OF PARLIAMENT)

[14th July, 1994]

Short title, extent and commencement.

1. Short title, extent and commencement. (1) This Act may be called the New Delhi Municipal Council Act, 1994.

(2) It extends to New Delhi.

(3) It shall be deemed to have come into force on the 25th day of May, 1994.

Definitions. 2. Definitions. In this Act, unless the context otherwise requires,--

(1) "Administrator" means the Administrator of the National Capital Territory of Delhi; 2

(2) "Appellate Tribunal" means an Appellate Tribunal constituted under section 253;

(3) "budget-grant" means the total sum entered on the expenditure side of a budget estimate under a major head and adopted by the Council and includes any sum by which such budget-grant may be increased or reduced by transfer from or to other heads in accordance with the provisions of this Act and the regulations made thereunder;

(4) "building" means a house, out-house, stable, latrine, urinal, shed, hut, wall (other than a boundary wall) or any other structure, whether of masonry, bricks, wood, mud, metal or other material but does not include any portable shelter;

(5) "bye-law" means a bye-law made under this Act, by notification in the Official Gazette;

(6) "casual vacancy" means a vacancy occurring otherwise than by efflux of time in the office of a member of the Council;

(7) "Chairperson" means the Chairperson of the Council;

(8) "Corporation" means the Municipal Corporation of Delhi established under the Delhi Municipal Corporation Act, 1957 (66 of 1957);

(9) "Council" means the New Delhi Municipal Council established under this Act;

(10) "dangerous disease" means-- (a) cholera, plague, chicken-pox, small-pox, tuberculosis, leprosy, enteric fever, cerebrospinal meningitis and diptheria; and (b) any other epidemic, endemic or infectious disease which the Chairperson may, by notification in the Official Gazette, declare to be a dangerous disease for the purposes of this Act;

(11) "Delhi" means the entire area of the National Capital Territory of Delhi except New Delhi and Delhi Cantonment as defined in

clause (11) of section 2 of the Delhi Municipal Corporation Act, 1957 (66 of 1957);

(12) "drain" includes a sewer, a house drain, a drain of any other description, a tunnel, a culvert, a ditch, a channel and any other device for carrying off sewage, offensive matter, polluted water, waste water, rain water or sub-soil water;

(13) "entertainment" includes any exhibition, performance, amusement, game or sport to which persons are ordinarily admitted on payment;

(14) "factory" means a factory as defined in the Factories Act, 1948 (63 of 1948);

(15) "filth" includes offensive matter and sewage;

(16) "goods" includes animals;

(17) "Government" means the Government of the National Capital Territory of Delhi;

(18) "house-gully" means a passage or strip of land constructed, set apart or utilised for the purpose of serving as or carrying a drain or affording access to a latrine, urinal, cesspool or other receptacle for filth or other polluted matter, by municipal employee or other person employed in the cleansing thereof or in the removal of such matter therefrom;

(19) "hut" means any building which is constructed principally of wood, bamboo, mud, leaves, grass, cloth or thatch and includes any structure of whatever material made which the Council may declare to be a hut for the purposes of this Act; 3

(20) "inhabitant", in relation to the municipal area of New Delhi includes any person ordinarily residing or carrying on business or owning or occupying immovable property therein and in case of a dispute, means any person or persons declared by the Chairperson to be an inhabitant;

(21) "land" includes benefits to arise out of land, things attched to the earth or permanently fastened to anything attached to the earth and rights created by law over any street;

(22) "licensed engineer" and "licensed plumber" mean respectively a person licensed under the provisions of this Act as an engineer and a plumber;

(23) "market" includes any place where persons assemble for the sale of, or for the purpose of exposing for sale, meat, fish, fruits, vegetables, animals intended for human consumption or any other articles of human food whatsoever, with or without the consent of the owner of such place notwithstanding that there may be no common regulation for the concourse of buyers and sellers and whether or not any control is exercised over the business of, or the person frequenting, the market by the owner of the place or by any other person;

(24) "member", in relation to the Council, means a member of the Council and includes the Chairperson;

(25) "municipal market" means a market vested in or managed by the Council;

(26) "municipal water works" means water works vested in the Council;

(27) "New Delhi" means the area within the boundaries described in the First Schedule;

(28) "nuisance" includes any act, omission, place, animal or thing which causes or is likely to cause injury, danger, annoyance or offence to the sense of sight, smell or hearing or disturbance to rest or sleep, or which is or may be dangerous to life or injurious to health or property;

(29) "occupier" includes-- (a) any person who for the time being is paying or is liable to pay to the owner the rent or any portion of the rent of the land or building in respect of which such rent is paid or is payable; (b) an owner in occupation of or otherwise using his land or building; (c) a rent-free tenant of any land or building; (d) a licensee in occupation of any land or building; and (e) any person who is liable to pay to the owner damages for the use and occupation of any land or building;

(30) "offensive matter" includes animal carcasses, kitchen or stable refuse, dung, dirt and putrid or putrefying substances other than sewage;

(31) "Official Gazette" means the Official Gazette of the National Capital Territory of Delhi; 4

(32) "owner" includes a person who for the time being is receiving or is entitled to receive, the rent of any land or building whether on his own account or on account of himself and others or as an agent, trustee, guardian or receiver for any other person or who should so receive the rent or be entitled to receive it if the land or building or part thereof were let to a tenant and also includes-- (a) the custodian of evacuee property in respect of evacuee property vested in him under the Administration of Evacuee Property Act, 1950 (31 of 1950); and (b) the estate officer to the Government of India, the Secretary of the Delhi Development Authority, constituted under the Delhi Development Act, 1957 (11 of 1957), the General Manager of a railway and the head of a Government department, in respect of properties under their respective control;

(33) "permises" means any land or building or part of a building and includes-- (a) the garden, ground and out-houses, if any, appertaining to a building or part of a building, and (b) any fittings affixed to a building or part of a building for the more beneficial enjoyment thereof;

(34) "prescribed" means prescribed by rules made under this Act;

(35) "private market" means a market which is not a municipal market;

(36) "private street" means any street, which is not a public street and includes any passage securing access to two or more places belonging to the same or different owners;

(37) "public place" means any place which is open to the use and enjoyment of the public, whether it is actually used or enjoyed by the public or not;

(38) "public securities" means any securities of the Central Government or a State Government or any securities guaranteed by the Central Government or State Government or any securities issued under this Act or any debentures issued by the Bombay, Calcutta, Delhi or Madras Municipal Corporation;

(39) "public street" means any street which vests in the Council as a public street or the soil below the surface of which vests in the Council or which under the provisions of this Act becomes, or is declared to be, a public street;

(40) "railway administration" has the meaning assigned to it in the Railways Act, 1989 (24 of 1989);

(41) "rate payer" means a person liable to pay any rate, tax, cess or licence fee under this Act;

(42) "rateable value" means the value of any land or building fixed in accordance with the provisions of this Act and the bye-laws made thereunder for the purpose of assessment to property taxes;

(43) "regulation" means a regulation made by the Council under this Act by notification in the Official Gazette;

(44) "reside",-- (a) a person shall be deemed to "reside" in any dwelling- house which or some portion of which he sometimes, although not uninterruptedly, uses as a sleeping apartment, and 5 (b) a person shall not be deemed to cease to "reside" in any such dwelling-house merely becasue he is absent from it or has elsewhere another dwelling-house in which he resides, if there is the liberty of returning to it at any time and no abandonment of the intention of returning to it;

(45) "rubbish" includes ashes, broken bricks, broken glass, dust, malba, mortar and refuse of any kind which is not filth;

(46) "rule" means a rule made by the Central Government under this Act by notification in the Official Gazette;

(47) "Scheduled Castes" means such castes, races or tribes or parts of or groups within such castes, races or tribes as are deemed to be Scheduled Castes under article 341 of the Constitution;

(48) "service passage" or "lane" or "bye-lane" means a passage or strip of land constructed, set apart or utilised for the purpose of serving as or carrying a drain or electricity cable (underground or over-head) and any electrical and other allied installations or any other civic services by municipal employees or other person employed in the service thereof;

(49) "sewage" means night-soil and other contents of latrines, urinals, cesspools or drains, and polluted water from sinks, bath- rooms, stables, cattle sheds and other like places and includes trade effluents and discharges from factories of all kinds;

(50) "shed" means a slight or temporary structure for shade or shelter;

(51) "street" includes any way, road, lane, square, court, alley, gully, passage, whether a thoroughfare or not and whether built upon or not, over which the public have a right of way and also the roadway or footway over any bridge or causeway;

(52) "trade effluent" means any liquid either with or without particles of matter in suspension therein, which is wholly or in part produced in the course of any trade or industry carried on at trade premises, and in relation to any trade premises means any such liquid as aforesaid which is so produced in the course of any trade or industry carried on at those premises, but does not include domestic sewage;

(53) "trade premises" means any premises used or intended to be used for carrying on any trade or industry;

(54) "trade refuse" means the refuse of any trade or industry;

(55) "vehicle" includes a carriage, cart, van, dray, truck, hand- cart, bicycle, tricycle, cycle-rickshaw, motor vehicle and every wheeled conveyance which is used or is capable of being used on a street;

(56) "water course" includes any river, stream or channel whether natural or artificial;

(57) "water works" includes all lakes, tanks, streams, any river, cisterns, springs, pumps, wells, reservoirs, aqueducts, water trucks, sluices, mains, pipes, culverts, hydrants, stand-pipes and conduits and all lands, buildings, machinery bridges and things, used for, or intended for the purpose of, supplying water;

(58) "workshop" means any premises (including the precincts thereof) other than a factory, wherein any industrial process is carried on;

(59) "year" means a year commencing on the 1st day of April. 6 CHAP THE COUNCIL CHAPTER II THE COUNCIL Constitution of the Council

Establishment of the Council.

3. Establishment of the Council. (1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be a Council charged with the municipal government of New Delhi, to be known as the New Delhi Municipal Council.

(2) The Council shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and may by the said name sue and be sued.

Composition of the Council.

4. Composition of the Council. (1) The Council shall consist of the following members, namely:-- (a) a Chairperson, from amongst the officers, of the Central Government or the Government, of or above the rank of Joint Secretary to the Government of India to be appointed by the Central Government in consultation with the Chief Minister of Delhi; (b) three members of Legislative Assembly of Delhi representing constituencies which comprise wholly or partly the New Delhi area; (c) five members from amongst the officers of the Central Government or the Government or their undertakings, to be nominated by the Central Government; and (d) two members to be nominated by the Central Government in consultation with the Chief Minister of Delhi to represent from amongst lawyers, doctors, chartered accountants, engineers, business and financial consultants, intellectuals, traders, labourers, social workers including social scientists, artists, media persons, sports persons and any other class of persons as may be specified by the Central Government in this behalf.

(2) The Member of Parliament, representing constituency which comprises wholly or partly the New Delhi area, shall be a special invitee for the meetings of the Council but without a right to vote.

(3) Out of the eleven members referred to in sub-section (1), there shall be at least three members who are women and one member belonging to the Scheduled Castes.

(4) The Central Government shall nominate, in consultation with the Chief Minister of Delhi, a Vice-Chairperson from amongst the

members specified in clauses (b) and (d) of sub-section (1).

Duration of the Council.

5. Duration of the Council. (1) The Council, unless sooner dissolved under section 398 or any other law for the time being in force, shall continue for five years from the date appointed for its first meeting and no longer.

(2) The Council,-- (a) where it is dissolved before the expiry of its duration

under sub-section (1), shall be reconstituted within a period of six months of such dissolution; and (b) where it is dissolved after the expiry of its duration, shall be reconstituted before such expiry. 7

Disqualification for membership of the Council.

6. Disqualification for membership of the Council. (1) No person, other than a member of the Legislative Assembly of the National Capital Territory of Delhi, shall be disqualified for being nominated as a member of the Council on the ground that he holds an office of profit for purposes of election to the legislature of the National Capital Territory of Delhi under any law for the time being in force.

(2) If a person sits or votes as a member of the Council when he knows that he is not qualified or that he is disqualified for such membership, he shall be liable in respect of each day on which he so sits or votes to a penalty of three hundred rupees to be recovered as an arrear of tax under this Act. Members

Oath or affirmation.

7. Oath or affirmation. (1) Every member before taking his seat shall make and subscribe at a meeting of the Council an oath or affirmation according to the following form, namely:-- "I, A.B. having been nominated as a member of Council do swear in the name of God/solemnly affirm that I will bear true faith and allegiance to the Constitution of India as by law established, that I will faithfully discharge the duty upon which I am about to enter."

(2) If a person sits or votes as a member before he has complied

with the requirements of sub-section (1), he shall be liable in respect of each day on which he sits or votes as the case may be, to a penalty of three hundred rupees to be recovered as arrears of tax under this Act.

Vacation of seat.

8. Vacation of seat. (1) If a member resigns his seat by writing under his hand addressed to the Chairperson and delivered to him, his seat shall thereupon become vacant.

(2) If during three successive months, a member is without permission of the Council, absent from all the meetings thereof, the Council may recommend to the Central Government that the seat of such member may be declared vacant. Committees of the Council

Setting-up of committees.

9. Setting-up of committees. (1) The Council may constitute as many committees as it thinks fit for the exercise of any power or discharge of any function which the Council may by resolution delegate to them or for inquiring into, reporting or advising upon any matter which the Council may refer to them.

(2) Any such committee shall consist of members of the Council only: Provided that a committee may, with the sanction of the Council, co-opt not more than two persons who are not members of the Council, but who in the opinion of the Council possesses special qualifications for serving on such committee.

(3) Each committee constituted under this section shall be presided by the Chairperson of the Council.

(4) Any matter relating to a committee constituted under this section, not expressly provided in this Act may be provided by regulations made in this behalf. 8 CHAP FUNCTIONS OF THE COUNCIL CHAPTER III FUNCTIONS OF THE COUNCIL

General powers of the Council.

10. General powers of the Council. (1) Subject to the provisions of this Act and the rules, regulations and bye-laws made thereunder the municipal government of New Delhi shall vest in the Council.

(2) Without prejudice to the generality of the provisions of sub-

section (1), it shall be the duty of the Council to consider all periodical statements of the receipts and disbursements and all progress reports and pass such resolutions thereon as it thinks fit.

(3) The Council may at any time require the Chairperson-- (a) to produce any record, correspondence, plan or other document which is in his possession or under his control as Chairperson or which is recorded or filed in his office or in the office of any municipal officer or other municipal employee subordinate to him; (b) to furnish any return, plan, estimate, statement, account or statistics concerning or connected with any matter pertaining to the administration of this Act or the municipal government of New Delhi. (c) to furnish a report by himself or to obtain from the head of any department subordinate to him and furnish with his own remarks thereon, a report, upon any subject concerning or connected with the administration of this Act or the municipal government of New Delhi.

(4) Every such requisition shall be complied with by the Chairperson without any unreasonable delay; and it shall be incumbent on every municipal officer and other municipal employee to obey any order made by the Chairperson in pursuance of any such requisition: Provided that the Chairperson shall not be bound to comply with any such requisition if with the previous approval of the Administrator he makes a statement that such compliance would be prejudicial to public interest or to the interests of the Council.

Obligatory functions of the Council. 11. Obligatory functions of the Council. Subject to the provisions of this Act and any other law for the time being in force, it shall be incumbent on the Council to make adequate provisions by any means or measures which it may lawfully use or take, for each of the following matters, namely:-- (a) the construction, maintenance and cleansing of drains and drainage works and of public latrines, urinals and similar conveniences; (b) the construction and maintenance of works and means for providing supply of water for public and private purposes; (c) the scavenging, removal and disposal of filth, rubbish and other obnoxious or polluted matters; (d) the construction or purchase, maintenance, extension, management for-- (i) supply and distribution of electricity to the public; (ii) providing a sufficient supply of pure and wholesome water; (e) the reclamation of unhealthy localities, the removal of noxious vegetation and generally the abatement of all nuisances; (f) the regulation of places for the disposal of the dead and the provision and maintenance of places for the said purpose; (g) the registration of births and deaths; (h) public vaccination and inoculation; (i) measures for preventing and checking the spread of dangerous diseases; (j) the establishment and maintenance of hospitals, dispensaries and 9 maternity and child welfare centres and the carrying out of other measures necessary for public medical relief; (k) the construction and maintenance of municipal markets and regulation of all markets; (l) the regulation and abatement of offensive or dangerous trade or practices; (m) the securing or removal of dangerous buildings and places; (n) the construction, maintenance, alteration and improvements of public streets, bridges, culverts, causeways and the like; (o) the lighting, watering and cleansing of public streets and other public places; (p) the removal of obstructions and projections in or upon streets, bridges and other public places; (q) the naming and numbering of streets and premises; (r) the establishment, maintenance of, and aid to, schools for primary educations subject to such grants as may be determined by the Central Government from time to time; (s) the maintenance of municipal offices; (t) the laying out or the maintenance of public parks, gardens or recreation grounds; (u) the maintenance of monuments and memorials vested in any local authority in New Delhi immediately before the commencement of this Act or which may be vested in the Council after such commencement; (v) the maintenance and development of the value of all properties vested in or entrusted to the management of the Council; (w) the preparation of plans for economic development and social justice; (x) the maintenance including the expansion and upgradation of facilities of the hospitals existing on the date of the commencement of this Act; (y) sanction or refuse erection or re-erection of buildings; and (z) the fulfilment of any other obligation imposed by or under this Act or any other law for the time being in force.

Discretionary functions of the Council. 12. Discretionary functions of the Council. Subject to any general or special order of the Government, or the Central Government from time to time, the Council may provide either wholly or in part for all or any of the following matters, namely:-- (a) the furtherance of education including cultural and physical education, by measures other than the establishment and maintenance of, and aid to, schools for primary education; (b) the establishment and maintenance of, and aid to, libraries, museums, art galleries, botanical or zoological collections; (c) the establishment and maintenance of, and aid to, stadia, gymnasia, akharas and places for sports and games; (d) the planting and care of trees on roadsides and elsewhere; (e) the surveys of buildings and lands; (f) the registration of marriages; (g) the taking of a census of population; (h) the provision of housing accommodation for the inhabitants of any area or for any class of inhabitants; (i) the providing of music or other entertainments in public places or places of public resort and the establishment of theatres and cinemas; (j) the organisation and management of fairs and exhibitions; 10 (k) the acquisition of movable or immovable property for any of the purpose before mentioned, including payment of the cost of investigations, surveys or examinations in relation thereto for the construction or adaptation of building necessary for such purposes; (l) the construction and maintenance of-- (i) rest-houses, (ii) poor-houses, (iii) infirmaries, (iv) children's homes, (v) houses for the deaf and dumb and for disabled and handicapped children, (vi) shelters for destitute and disabled persons, (vii) asylums for persons of unsound mind; (m) the construction and maintenance of cattle pounds; (n) the building or purchase and maintenance of dwelling- houses for municipal officers and other municipal employees; (o) any measures for the welfare of the municipal officers and other municipal employees or any class of them including the sanctioning of loans to such officers and employees or any class of them for construction of houses and purchase of vehicles; (p) the organisation or management of chemical or bacteriological laboratories for the examination or analysis of water, food and drugs for the detection of diseases or research connected with the public health or medical relief; (q) the provision for relief to destitute and disabled person; (r) the establishment and maintenance of veterinary hospitals; (s) the organisation, construction, maintenance and management of swimming pools, public wash houses, bathing places and other institutions designed for the improvement of public health; (t) the organisation and management of farms and dairies within or without New Delhi for the supply, distribution and processing of milk and milk products for the benefit of the residents of New Delhi; (u) the organisation and management of cottage industries, handicraft centres and sales emporia; (v) the construction and maintenance of warehouses and godowns; (w) the construction and maintenance of garrages, sheds and stands for vehicles and cattle biers; (x) the provision for unfiltered water supply; (y) the improvement of New Delhi in accordance with improvement schemes approved by the Council; (z) any measure not hereinbefore specifically mentioned, likely to promote public safety, health, convenience or general welfare. CHAP THE CHAIRPERSON CHAPTER IV THE CHAIRPERSON

Appointment, etc., of the Chairperson.

13. Appointment, etc., of the Chairperson. (1) The Central Government shall, by notification in the Official Gazette, appoint a suitable person as the Chairperson of the Council in accordance with

clause (a) of sub-section (1) of section 4.

(2) The Chairperson so appointed shall hold office for a term of five years in the first instance: Provided that his appointment may be renewed from time to time for a term not exceeding one year at a time: Provided further that where the Chairperson holds a lien on any service under the Central Government or the Government, 11 the Central Government may at any time after reasonable notice to the Council replace his services at the disposal of the concerned Government.

(3) The Central Government may remove the Chairperson from office at any time if it appears to that Government that he is incapable of performing the duties of his office or has been guilty of neglect or misconduct in the discharge of such duties, which renders his removal expedient.

(4) The Chairperson shall not undertake any work unconnected with his office without the sanction of the Central Government and of the Council.

Leave of absence of Chaiperson.

14. Leave of absence of Chaiperson. (1) Leave may be granted to the Chairperson by the Administrator.

(2) Whenever such leave is granted to the Chairperson, the Central Government shall appoint another person to officiate as Chairperson in his place.

Appointment of officiating Chairperson in case of death, resignationor removal of Chairperson. 15. Appointment of officiating Chairperson in case of death, resignation or removal of Chairperson. If any vacancy occurs in the office of Chairperson on account of death, resignation or removal, the Central Government shall appoint another person to officiate as Chairperson in his place for a term not exceeding two months, pending the appointment of a Chairperson under section 13.

Salary and allowances of the Chairperson and members.

16. Salary and allowances of the Chairperson and members. (1) The Chairperson shall be paid out of the New Delhi Municipal Fund constituted under section 44 such monthly salary and such monthly allowances, if any, as may from time to time be fixed by the Central Government and may be given such facilities, if any, in relation to residential accommodation, conveyance and the like as may from time to time be fixed by that Government: Provided that the salary of the Chairperson shall not be varied to his disadvantage after his appointment.

(2) The members shall be entitled to receive allowances for attendance at meeting of Council and of any of its committees at such rates as may be determined by rules made in this behalf.

Service regulations of members. 17. Service regulations of members. If a member is an officer in the service of the Government or the Central Government, the Council shall make such contribution towards his leave allowances, pension and provident fund as may be required by the conditions of his service under the Government or the Central Government to be paid by him or for him, as the case may be. 12

Functions of the Chairperson. 18. Functions of the Chairperson. Save as otherwise provided in this Act the entire executive power for the purpose of carrying out the provisions of this Act and of any other Act, for the time being in force which confers, any power or imposes any duty on the Council, shall vest in the Chairperson who shall also-- (a) exercise all the powers and perform all the duties specifically conferred or imposed upon him by this Act or by any other law for the time being in force; (b) prescribe the duties of and exercise supervision and control over the acts and proceedings of, all municipal officers and other municipal employees and subject to any regulation that may be made in this behalf, dispose of all questions relating to the service of the said officers and other employees and their pay, privileges, allowances and other conditions of service; (c) on the occurrence or threatened occurrence of any sudden accident or any unforeseen event or natural calamity involving or likely to involve extensive damage to any property of the Council, or danger to human life, take such immediate action as he considers necessary and make a report forthwith to the Council and the Administrator of the action he has taken and the reasons for the same as also of the amount of cost, if any, incurred or likely to be incurred in consequence of such action, which is not covered by a budget-grant; and (d) subject to any regulation that may be made in this behalf, be the disciplinary authority in relation to all municipal officers and other municipal employees.

Chairperson not to be interested in any contract, etc., with theCouncil. 19. Chairperson not to be interested in any contract, etc., with

the Council. (1) A person shall be disqualified for being appointed as the Chairperson who has directly or indirectly, by himself or by a partner or any other person, any share or interest in any contract made with, or any work being done for, the Council other than as such Chairperson.

(2) If the Chairperson acquires directly or indirectly, by himself or by his partner, or any other person, any share or interest

in any such contract or work as is referred to in sub-section (1), he shall, unless the Central Government in any particular case otherwise decides, be liable to be removed from his office by the order of the authority competent to remove him under the provisions of this Act: Provided that before an order of removal is made the Chairperson shall be given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him.

Exercise of powers to be subject to sanction. 20. Exercise of powers to be subject to sanction. Save as otherwise provided in this Act, the exercise of any power or the performance of any duty conferred or imposed upon the Council by or under this Act which will involve expenditure, shall be subject to the following conditions, namely:-- (a) that such expenditure, in so far as it is to be incurred in the year in which such power is exercised or duty performed, shall be provided for under a current budget-grant; and (b) that if the exercise of such powers or the performance of such duty involves or is likely to involve expenditure for any period or at any time after the close of the said year, such expenditure shall not be incurred without the sanction of the Council. 13 CHAP PROCEDURE CHAPTER V PROCEDURE Transaction of business by the Council

Meetings.

21. Meetings. (1) The Council shall ordinarily hold at least one meeting in every month for the transaction of business.

(2) The Chairperson and in his absence the Vice Chairperson may, whenever he thinks fit, and shall, upon a requisition in writing by not less than one-fourth of the total number of members, convene a special meeting of the Council.

(3) Any meeting may be adjourned until the next or any subsequent date, and an adjourned meeting may be further adjourned in like manner.

First meeting of the Council. 22. First meeting of the Council. The first meeting of the Council shall be held as early as possible and shall be convened by the Administrator.

Notice of meetings and business. 23. Notice of meetings and business. A list of the business to be transacted at every meeting except at an adjourned meeting shall be sent to the address of each member at least seventy-two hours before the time fixed for such meeting; and no business shall, except where the Chairperson otherwise directs, be brought before, or transacted at, in any meeting other than the business of which a notice has been so given: Provided that any member may send or deliver to the Secretary notice of any resolution going beyond the matters mentioned in the notice given of such meeting so as to reach him at least forty-eight hours before the date fixed for the meeting and the Secretary shall, with all possible despatch, take steps to circulate such resolution to every member in such manner as he may think fit.

Quorum.

24. Quorum. (1) The quorum necessary for the transaction of business at a meeting of the Council shall be prescribed by the Central Government.

(2) If at any time during a meeting of the Council, there is no quorum, it shall be the duty of the Chairperson or the person presiding over such meeting either to adjourn the meeting or to suspend the meeting until there is a quorum.

(3) Where a meeting has been adjourned under sub-section (2), the business which would have been brought before the original meeting if there had been a quorum present there at, shall be brought before, and may be transacted at an adjourned meeting, whether there is a quorum present or not.

Presiding Officer.

25. Presiding Officer. (1) The Chairperson or in his absence, the Vice-Chairperson, or in the absence of both, such other member present as is decided by the Council shall preside at every meeting of the Council.

(2) The Chairperson or the person presiding over a meeting shall have and exercise a second or a casting vote in all cases of equality of votes.

Method of deciding questions.

26. Method of deciding questions. (1) Save as otherwise provided in this Act, all matters required to be decided by the Council shall be decided by the majority of the votes of the members present and voting.

(2) The voting shall be by show of hands, but the Council may, subject to such regulations as may be made by it, resolve that any question or class of question shall be decided by ballot.

Members not to vote on matter in which they are interested. 27. Members not to vote on matter in which they are interested. No member shall vote at a meeting of the Council or of any Committee thereof on any question relating to his own conduct or vote or take part in any discussion on any matter (other than a matter affecting generally the residents of New Delhi) which affect his pecuniary interest or any property in respect of which he is directly or indirectly interested, or any property of or for which he is a manager or agent.

Right to attend meetings of Council and its committees, etc., andright of members and to ask questions in relation to the municipalgovernment of New Delhi. 28. Right to attend meetings of Council and its committees, etc., and right of members and to ask questions in relation to the municipal

government of New Delhi. (1) Any municipal officer authorised by the Chairperson in this behalf may attend, speak in, or otherwise take part in the proceedings of, any meeting of the Council or any of its Committees, but none of the persons specified herein shall by virtue of this sub-section be entitled to vote in any such meeting. 14

(2) A member may, subject to the provisions of sub-section (3), ask the Chairperson questions on any matter relating to the municipal government of New Delhi or the administration of this Act in any meeting of the Council.

(3) The right to ask a question shall be governed by the following conditions, namely:-- (a) not less than seven clear days' notice in writing specifying the question shall be given to the Secretary; (b) no question shall-- (i) bring in any name or statement not strictly necessary to make the question intelligible, (ii) contain argument, ironical expressions, imputations, epithets or defamatory statements, (iii) ask for an expression of opinion or the solution of a hypothetical proposition, (iv) ask as to the character or conduct of any person except in his official or public capacity, (v) relate to a matter which is not primarily the concern of the Council, (vi) make or imply a charge of a personal character, (vii) raise questions of policy too large to be dealt with within the limits of an answer to a question, (viii) repeat in substance questions already answered or to which an answer has been refused, (ix) ask for information on trivial matters, (x) ordinarily ask for information on matters of past history, (xi) ask for information set forth in accessible documents or in ordinary works of reference, (xii) raise matters under the control of bodies or persons not primarily responsible to the Council, (xiii) ask for any information on matter which is under adjudication by a court of law.

(4) The Chairperson shall not be bound to answer a question if it asks for information which has been communicated to him in confidence or if in the opinion of the Chairperson it cannot be answered without prejudice to public interest of the Council.

(5) The Council may make regulations for the transaction of business at its meetings: Provided that the time, place and procedure for the first meeting after the constitution of the Council under section 4 shall be determined by the Administrator.

Keeping minutes proceedings. 29. Keeping minutes proceedings. Minutes in which shall be recorded the names of the members present at, and the proceedings of each meeting of the Council, and every other committee constituted

under sub-section (1) of section 9 shall be drawn up and recorded in a book to be kept for that purpose, and shall be laid before the next ensuring meeting of the Council, or of such committee, as the case may be, and signed at such meeting by the presiding officer thereof. 15

Circulation of minutes and inspection of minutes and reports ofproceedings. 30. Circulation of minutes and inspection of minutes and reports

of proceedings. (1) Minutes of the proceedings of each meeting of the Council shall be circulated to all the members and shall at reasonable times be available at the municipal office for inspection by any other person on payment of a fee of two rupees.

(2) Full reports, if any, of such proceedings shall similarly be available for inspection, by any member without charge and by any other person on payment of a fee of two rupees.

Forwarding minutes and reports of proceedings to the Administrator. 31. Forwarding minutes and reports of proceedings to the

Administrator. (1) The Secretary shall forward to the Administrator a copy of the minutes of the proceedings of each meeting of the Council, within ten days from the date on which the minutes of the proceedings of such meeting were signed under section 29.

(2) The Administrator may also in any case ask for a copy of any paper or all the papers which were laid before the Council or any committee thereof and the Secretary shall forward to the Administrator a copy of such paper or papers.

(3) The Secretary shall also forward to the Administrator as soon

as may be after the date referred to in sub-section (1) a full report of the proceedings of each meeting of the Council, if any such report be prepared. Validation

Validation of proceedings, etc.

32. Validation of proceedings, etc. (1) No act done or proceedings taken under this Act shall be questioned on the ground merely of-- (a) the seat of any member remaining unfilled from any cause whatsoever; (b) the existence of any vacancy in, or any defect in the constitution of, the Council or in any committee thereof; (c) any member having voted or taken part in any proceedings in contravention of section 27; (d) any defect or irregularity not affecting the merits of the case.

(2) Every meeting of the Council or of any committee thereof, the minutes of the proceeding of which have been duly drawn up and signed shall be deemed to have been duly convened and to be free from all defects and irregularities. CHAP MUNICIPAL OFFICERS AND OTHER MUNICIPAL EMPLOYEES CHAPTER VI MUNICIPAL OFFICERS AND OTHER MUNICIPAL EMPLOYEES

Appointment of certain officers.

33. Appointment of certain officers. (1) The Council shall appoint suitable persons to be the Secretary and Chief Auditor of the Council, and such other officer or officers as the Council may deem fit on such monthly salaries and such allowances, if any, as may be fixed by the Council: Provided that the Chief Auditor shall not be eligible for any other office under the Council after he has ceased to hold this office.

(2) The appointment of the Secretary and the Chief Auditor shall be made with the previous approval of the Administrator.

Schedule of permanent posts and creation of temporary posts. 34. Schedule of permanent posts and creation of temporary posts.

(1) The Chairperson shall from time to time prepare and lay before the Council a Schedule of category `A' and category `B' posts other than the posts of Secretary and Chief Auditor specified in section 33, setting forth the designations and grades of municipal officers and other municipal employees who should be maintained permanently in the service of the Council indicating therein the salaries, fees and allowances which are proposed to be paid to such officers and other employees. 16

(2) The Council shall approve and sanction the Schedule either without modifications or with such modifications as it thinks fit or may amend it either on its own motion or otherwise.

(3) The Chairperson may create any category `B', or category `C', or Category `D' post and for a period not exceeding six months any category `A' post: Provided that no such categtory `A' post shall be beyond the said period without the previous approval of the Council.

(4) In this section and in section 36-- (i) "category `A' post" means any post, which having regard to its scale of pay or emoluments, would, if such post had been in the Central Government, be classified as a Group `A' post under the Central Government in accordance with the orders issued by that Government from time to time; (ii) "category `B' post" means any post which having regard to its scale of pay or emoluments, would, if such post had been in the Central Government, be classified as a Group `B' post under the Central Government in accordance with the orders issued by that Government from time to time; (iii) "category `C' posts" means any post, which having regard to its scale of pay or emoluments would, if such post had been in the Central Government, be classified as a Group `C' post under the Central Government, in accordance with the orders issued by that Government from time to time; (iv) "category `D' posts" means any post, other than a category `A' or category `B' or category `C' post.

Restriction on employment of permanent officers and other employees. 35. Restriction on employment of permanent officers and other employees. No permanent officer or other employee shall be entertained in any department of the municipal administration unless he has been

appointed under sub-section (1) of section 33 or his office and emoluments are included in the Schedule for the time being in force prepared and sanctioned under section 34 or is appointed against a permanent post under section 36.

Power to make appointments.

36. Power to make appointments. (1) Subject to the provisions of section 33, the power of appointing municipal officers and other municipal employees, whether temporary or permanent,-- (a) to category `A', category `B' and category `C' posts, shall vest in the Chairperson; and (b) to category `D' posts shall vest in the Secretary.

(2) The claims of the members of the Scheduled Castes shall be taken into consideration, consistently with the maintenance of efficiency of administration, in the making of appointments of municipal officers and other municipal employees.

Officers and other employees not to undertake any extraneous work. 37. Officers and other employees not to undertake any extraneous work. No municipal officer or other municipal employee shall undertake any work unconnected with his duties under this Act except with the permission of the Chairperson. 17

Officers and other employees not to be interested in any contract,etc., with the Council. 38. Officers and other employees not to be interested in any

contract, etc., with the Council. (1) A person shall be disqualified for being appointed as a municipal officer or employee if he has, directly or indirectly, by himself or by a partner or any other person any share or interest in any contract made with, or any work being done for, the Council other than as such officer or employee.

(2) If any such officer or other employee acquires, directly or indirectly, by himself or by a partner or any other person, any share or interest in any such contract or work as is referred to in sub-

section (1), he shall unless the authority appointing him in any particular case otherwise decides, be liable to be removed from his office by an order of such authority: Provided that before an order of removal is made, such officer or other employee shall be given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him:

Punishment for municipal officers and other employees.

39. Punishment for municipal officers and other employees. (1) Every municipal officer or other municipal employee shall be liable to have his increments or promotion withheld or to be censured, reduced in rank, compulsorily retired, removed or dismissed for any breach of any departmental regulations or of discipline or for carelessness, unfitness, neglect of duty or other misconduct by such authority as may be prescribed by regulation: Provided that no such officer or other employee as aforesaid shall be reduced in rank, compulsorily retired, removed or dismissed by an authority subordinate to that by which he was appointed: Provided further that the Council may be regulations provide that municipal employees belonging to such classes or categories as may be specified in the regulations shall be liable also to be fined by such authority as may be specified therein.

(2) No such officer or other employee shall be punished under

sub-section (1) unless he has been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. Provided that this sub-section shall not apply-- (a) where an officer or other employee is removed or dismissed on the ground of conduct which had led to his conviction on a criminal charge; or (b) where the authority empowered to remove or dismiss such officer or other employee is satisfied that for some reason, to be recorded by that authority, it is not reasonably practicable to give that person an opportunity of showing cause.

(3) If any question arises whether it is not reasonably practicable to give any officer or other employee an opportunity of

showing cause under sub-section (2), the decision thereon of the authority empowered to remove or dismiss such officer or other employee shall be final.

(4) An officer or other employee upon whom a punishment has been inflicted under this section may appeal to such officer or authority as may be prescribed by regulations: Provided that in the case of an officer or other employee appointed by the Chairperson, an appeal shall lie to the Administrator.

Consultation with the Union Public Service Commission. 40. Consultation with the Union Public Service Commission. No appointment to any category A post within the meaning of clause (i) of

sub-section (4) of section 34 shall be made except after consultation with the Commission: 18 Provided that no such consultation with the Commission shall be necessary in regard to the selection for appointment-- (a) to any acting or temporary post for a period not exceeding one year; or (b) to such ministerial posts as may from time to time be specified by the Council in consultation with the Commission when such posts are to be filled by promotion; or (c) to a post when at the time of such appointment the person to be appointed thereto is in the service of the Central Government or a State Government in a Group A post; (d) to a permanent or temporary post, if the officer or other employee to be appointed is not likely to hold that post for more than one year; or if such officer or other employee is likely to hold the post for more than one year but not more than three years and the Commission advises that the appointment may be made without consulting the Commission; or (e) to such other posts, as may, from time to time, be specified by the Central Government in consultation with the Commission.

Power of Commission to make regulations and reference to the CentralGovernment in case of difference between the Commission and theCouncil. 41. Power of Commission to make regulations and reference to the Central Government in case of difference between the Commission and

the Council. (1) The Commission may make regulations for the following matters, namely:-- (a) the procedure to be followed by the Commission in advertising posts, inviting applications, scrutinizing the same and selecting candidates for interview; (b) the procedure to be followed by the Commission for selecting candidates for appointment and by the Council for consultation with the Commission; (c) any other matter which is incidental to, or necessary for, the purpose of consultation with the Commission.

(2) In the case of any difference of opinion between the Commission and the Council on any matter, the Council shall refer the matter to the Central Government and the decision of that Government thereon shall be final.

Recruitment to category B and category C posts. 42. Recruitment to category B and category C posts. The direct recruitment to category B and category C posts may be made by the Government through such agencies as may be prescribed for it.

Power of Council to make regulations.

43. Power of Council to make regualtions. (1) The Council may make regulations to provide for any one or more of the following matters, namely:-- (a) the tenure of office, salaries and allowances, provident funds, pensions, gratuities, leave of absence and other conditions of service of officers and other employees appointed under this Chapter; (b) the powers, duties and functions of Secretary; (c) the qualifications of candidates for appointment to posts specified in section 33 and to posts dealt with in the

Schedule of posts referred to in sub-section (1) of section 34 and the manner of selection for appointments to such posts; 19 (d) the procedure to be followed in imposing any penalty

under sub-section (1) of section 39, suspension pending departmental inquiries before the imposition of such penalty and the authority by whom such suspension may be ordered; the officer

or authority to whom an appeal shall lie under sub-section (4) of that section; (e) any other matter which is incidental to or necessary for, the purpose of regulating the appointment and conditions of service of persons appointed to services and posts under the Council and any other matter for which in the opinion of the Council provisions should be made by regulations.

(2) No regulation under clause (c) of sub-section (1) shall be made except after consultation with the Commission. CHAP REVENUE AND EXPENDITURE CHAPTER VII REVENUE AND EXPENDITURE The New Delhi Municipal Fund

Constitution of the New Delhi Municipal Fund.

44. Constitution of the New Delhi Municipal Fund. (1) Save as otherwise provided in this Act-- (a) all funds which immediately before the establishment of the Council vested in the New Delhi Municipal Committee; (b) all moneys received by or on behalf of the Council under the provisions of this Act or of any other law for the time being in force, or under any contract; (c) all proceeds of the disposal of property by, or on behalf of, the Council; (d) all rents accruing from any property of the Council; (e) all moneys raised by any tax, rate or cess levied for the purposes of this Act; (f) all fees collected and all fines levied under this Act or under any rule, regulation or bye-law made thereunder; (g) all moneys received by or on behalf of the Council from the Government or Central Government or any individual or association of individuals by way of grant or gift or deposit; (h) all interests and profits arising from any investment of, or from any transaction in connection with, any money belonging to the Council, including loans advanced under this Act; and (i) all moneys received by or on behalf of the Council from any other source whatsoever, shall form one Fund to be entitled "the Municipal Fund of New Delhi" (hereafter in this Act referred to as "the New Delhi Municipal Fund").

(2) The New Delhi Municipal Fund shall be held by the Council in trust for the purposes of this Act subject to the provisions herein contained and a General Account relating to all moneys received by or on behalf of the Council shall be maintained. 20

New Delhi Municipal Fund to be kept in the State Bank of India. 45. New Delhi Municipal Fund to be kept in the State Bank of India. All moneys payable to the credit of the New Delhi Municipal Fund in the General Account shall be received by the Chairperson and shall be forthwith paid into the State Bank of India to the credit of the said Account which shall be entitled "The General Account of the New Delhi Municipal Fund".

Operation of the Accounts.

46. Operation of the Accounts. (1) Save as otherwise provided in this Act no payment shall be made by the State Bank of India out of the New Delhi Municipal Fund except on a cheque signed by both-- (a) the Financial Adviser or an officer subordinate to him authorised by the Chairperson in this behalf; and (b) the Chairperson or the Secretary or an officer subordinate to the Chairperson authorised by him in this behalf.

(2) Payment of any sum due by the Council in excess of five hundred rupees shall be made by means of a cheque signed in accordance

with sub-section (1) and not in any other way.

(3) Payments not covered by sub-section (2) may be made in cash.

Payments not to be made unless covered by a budget-grant. 47. Payments not to be made unless covered by a budget-grant. No payment of any sum out of the New Delhi Municipal Fund shall be made unless the expenditure of the same is covered by a 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 this section shall not apply to payments made in the following classes of cases, namely:-- (a) refund of taxes and other moneys which are authorised under this Act; (b) repayment of moneys belonging to contractors or other persons and held in deposit and of moneys collected or credited to the New Delhi Municipal Fund by mistake; (c) sums payable in any of the following circumstances-- (i) under orders of the Central Government on failure of the Council to take any action as required by that Government; or (ii) under any other enactment for the time being in force; or (iii) under the decree or order of a civil or criminal court passed against the Council; or (iv) under a compromise of any claim, suit or other legal proceedings; or (v) on account of cost incurred in taking immediate action by the Chairperson under clause (c) of section 18 to avert a sudden threat of danger to the property of the Council or to human life; (d) temporary payments for works urgently required by the Central Government in the public interest; (e) sums payable as compensation under this Act or under any rules, regulations or bye-laws made thereunder; (f) expenses incurred under section 287 by the Chairperson on special measures taken on the outbreak of dangerous diseases.

Duty of persons signing cheques. 48. Duty of persons signing cheques. Before any person signs a cheque in accordance with section 46, he shall satisfy himself that the sum for which the cheque is drawn is either-- (a) required for a purpose or work specifically sanctioned by the proper authority and covered by a current budget-grant, or (b) required for any payment referred to or specified in section 47. 21

Procedure when money not covered by a budgetgrant is expended. 49. Procedure when money not covered by a budgetgrant is expended. Whenever any sum is expended under clauses (c) (e) or (f) of the proviso to section 47, the Chairperson shall forthwith communicate the circumstances to the Council, which may take such action under the provisions of this Act as shall, in the circumstances appear possible and expedient for covering the amount of the additional expenditure.

Application of New Delhi Municipal Fund.

50. Application of New Delhi Municipal Fund. (1) The moneys from time to time credited to the New Delhi Municipal Fund shall be applied in payment of all sums, charges and costs necessary for carrying out the provisions of this Act, and of the rules, regulations and bye-laws made thereunder, or of 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 New Delhi Municipal Fund under any other enactment for the time being in force.

Temporary payments from the New Delhi Municipal Fund for worksurgently required for the public service. 51. Temporary payments from the New Delhi Municipal Fund for

works urgently required for the public service. (1) On the written requisition of a Secretary to the Central Government, the Chairperson may at any time undertake the execution of any work certified by such Secretary to be urgently required in public interest, and for this purpose may temporarily make payments from the New Delhi Municipal Fund so far as the same can be met without unduly interfering with the regular work of the Council.

(2) The cost of work so executed and of the establishment engaged in executing the same shall be paid by the Central Government and credited to the New Delhi Municipal Fund.

(3) On the receipt of any requisition under sub-section (1) the Chairperson shall forthwith forward a copy thereof to the Council together with a report of the steps taken by him in pursuance of the same.

Investment of surplus moneys.

52. Investment of surplus moneys. (1) Surplus money standing at the credit of General Account of the New Delhi Municipal Fund which cannot immediately be applied for the purposes specified in section 50 shall be deposited in the State Bank of India or in such scheduled bank or banks as the Council may select or be invested in public securities.

(2) The loss, if any, arising from such deposit or investment shall be debited to the General Account of the New Delhi Municipal Fund.

Constitution of Finance Commission.

53. Constitution of Finance Commission. (1) After the commencement of this Act the Finance Commission referred to in sub-

section (1) of section 107A of the Delhi Municipal Corporation Act, 1957 (66 of 1957) shall review the financial position of the Council and make recommendations to the Administrator as to,-- (a) the principles which should govern,-- (i) the distribution between the National Capital Territory of Delhi and the Council of the net proceeds of the taxes, duties, tolls and fees leviable by the National Capital Territory of Delhi which may be divided between them; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to or appropriated by, the Council; (iii) the grants-in-aid to the Council from the Consolidated Fund of the National Capital Territory of Delhi; 22 (b) the measures needed to improve the financial position of the Council, (c) any other matter referred to the Finance Commission by the Administrator in the interest of sound finance of the Council.

(2) The Administrator shall cause every recommendation made by the Commission under this section together within an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly of the National Capital Territory of Delhi. Special Funds

Constitution of special funds.

54. Constitution of special funds. (1) The Council shall constitute such special fund or funds as may be prescribed by regulations and such other funds necessary for the purposes of this Act as may be so prescribed.

(2) The constitution and disposal of such funds shall be effected in the manner laid down by regulations. Budget estimates

Adoption of budget estimates.

55. Adoption of budget estimates. (1) The Council shall, on or before the 31st day of March of every year, adopt for the ensuing year the budget estimate which shall be an estimate of the income and expenditure of the Council to be received and incurred on account of the municipal government of New Delhi.

(2) On or before the 15th day of February of each year the Council shall determine the rates at which various municipal taxes, rates and cesses shall be levied in the next following year and save as otherwise provided in this Act the rates so fixed shall not be subsequently altered for the year for which they have been fixed.

(3) Budget estimates shall be prepared in such form as may be approved by the Council and presented and adopted in such manner and shall provide for all such matters as are prescribed by regulations made in this behalf.

Power of Council to alter budget estimates.

56. Power of Council to alter budget estimates. (1) On the recommendation of the Chairperson in respect of the budget estimate, the Council may from time to time, during the year, (i) increase the amount of budget grant under any head; (ii) make additional budget grant for the purpose of meeting any special or unforeseen requirement arising during the said year; (iii) transfer the amount or portion of the amount of the budget grant under any head to any other head; or (iv) reduce the amount of the budget grant under any head: Provided that due regard shall be had to all the requirements of this Act and in making any increase or any additional budget-grant, the estimated cash balance at the close of the year shall not be reduced below the sum of one lakh rupees or such higher sum as the Council may determine in respect of the budget estimate. 23

(2) Every increase in a budget grant and every additional budget

grant made in any year under sub-section (1) shall be deemed to be included in the budget estimates finally adopted for that year.

(3) The Council may from time to time during the year-- (a) reduce the amount of a budget grant; or (b) sanction the transfer of any amount within a budget grant.

(4) The Chairperson may from time to time during the year sanction the transfer of any amount not exceeding ten thousand rupees within a minor head if such transfer does not involve a recurring liability: Provided that every such transfer if it exceeds ten thousand rupees shall be reported forthwith by the Chairperson to the Council and the Chairperson shall give effect to any order that may be passed by the Council in relation thereto.

Power of Council to re-adjust income and expenditure during the year. 57. Power of Council to re-adjust income and expenditure during

the year. (1) If at any time during the year it appears to the Council that, notwithstanding any reduction of budget grant that has been made under section 56 the income of the New Delhi Municipal Fund during the same year will not suffice to meet the expenditure sanctioned in the budget estimates of that year and to leave at the close of the year the cash balance specified in or determined under the proviso to sub-

section (1) of section 56, then, it shall be incumbent on the Council to sanction forthwith any measures which it may consider necessary for adjusting the year's income to the expenditure.

(2) For the purposes of sub-section (1), the Council may either diminish the sanctioned expenditure of the year so far as it may be possible so to do with regard to all the requirements of this Act, or have recourse to supplementary taxation under section 97 or to an increase of the rates of cesses, fees, fares and other charges leviable under this Act, or to adopt all or any of these methods.

(3) If the whole or any part of any budget-grant included in the budget estimates for a year remains unexpended at the close of that year, and the amount thereof has not been taken into account in the opening balance entered in the budget estimates of any of the next two following years, the Chairperson may sanction the expenditure of such budget-grant or the unexpended portion thereof during the next two following years for the completion of the purpose or object for which the budget-grant was originally made and not for any other purpose or object. ACCOUNTS AND AUDIT Scrutiny and audit of accounts

Accounts to be kept. 58. Account to be kept. These shall be kept in such manner and in such form as may be prescribed by regulations the General Account of all receipts and expenditures of the Council. 24

Audit

59. Audit (1) The Chief Auditor shall conduct a monthly examination and audit of the accounts of the Council and shall report thereon to the Chairperson, who shall publish monthly an abstract of the receipts and expenditure of the month last proceeding signed by him and by the Chief Auditor.

(2) The Chairperson may also, from time to time and for such period, as he may think fit, conduct independently any examination and audit of the accounts of the Council.

(3) For the purpose of examination and audit of the accounts of the Council, the Chief Auditor shall have access to all the accounts of the Council and to all records and correspondence relating thereto.

(4) The Chief Auditor shall audit the accounts of the Council with the assistance of the officers and other employees subordinate to him.

(5) In the discharge of his functions under this section the Chief Auditor shall,-- (a) audit the accounts of expenditure from the revenue of the Council, expenditure on account of loan works and expenditure incurred out of special funds and shall ascertain whether moneys shown therein as have been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged, and whether the expenditure conforms to the authority which governs it; (b) audit the accounts of debts, deposits, sinking funds, advances, suspense and remittance transactions of the Council and report upon those accounts and upon the results of verification of the balance relating thereto.

(6) The Chief Auditor shall examine and audit the statement of accounts relating to the commercial services conducted in any department of the Council including the trading, manufacturing and profit and loss accounts, and the balance-sheets where such accounts are maintained under the orders of the Council and shall certify and report upon these accounts.

(7) The Chief Auditor shall in consultation with the Chairperson and subject to any directions given by the Council determine the form and manner in which his reports on the accounts of the Council shall be prepared and shall have authority to call upon any officer of the Council to provide any information necessary for the preparation of these reports.

(8) The Chief Auditor may make such querries and observations in relation to any of the accounts of the Council which he is required to audit and call for such vouchers, statements, returns and explanation in relation to such accounts as he may think fit. 25

(9) Every such querry or observation as aforesaid shall be promptly taken into consideration by the officer or authority to whom it may be addressed and returned without delay with the necessary vouchers, documents or explanations to the Chief Auditor.

(10) The power of the Chief Auditor with regard to the disapproval of, and the procedure with regard to the settlement of objections to expenditure from the revenues of the Council shall be such as may be prescribed by the Chairperson in Consultation with Chief Auditor, and with the approval of the Council.

(11) If the Chief Auditor considers it desirable that the whole or any part of the audit applied to any accounts which he is required to audit shall be conducted in the offices in which those accounts originate he may require that those accounts, together with all books and documents having relation there to, shall at all convenient times be made available in the said offices for inspection.

(12) The Chief Auditor shall have the power to require that any books or other documents relating to the accounts he is required to audit shall be sent for inspection by him: Provided that if the documents are confidential, he shall be responsible for preventing disclosure of their contents.

(13) The Chief Auditor shall have authority to frame standing orders and to give directions on all matters relating to audit, and particularly, in respect of the method and the extent of audit to be applied and the raising and pursuing the objections.

(14) Expenditure sanctioned by the Chief Auditor shall be audited by an officer to be nominated by the Council.

(15) The Chief Auditor shall report to the Chairperson any material impropriety or irregularity which he may at any time observe in the expenditure or in the recovery of moneys due to the Council or in the accounts of the Council.

(16) The Chairperson shall cause to be laid before the Council every report made by the Chief Auditor to the Chairperson and every statement of the views of the Chief Auditor on any matter affecting the exercise and performance of the powers and duties assigned to him under this Act and the Council may take such action in regard to any of the matters as aforesaid as the Council may deem necessary.

(17) As soon as may be after the commencement of each year, the Chief Auditor shall deliver to the Council a report of the entire accounts of the Council for the previous year.

(18) The Chairperson shall cause the said report to be printed and shall forward as soon as may be printed copy thereof to each member of the Council. 26

(19) The Chairperson shall also forward without delay to the Government so many copies of the said report, as may be required by the Government with a brief statement of the action taken or proposed to be taken if any: Provided that the Government may at any time appoint auditor for the purpose of making a special audit of the General Account of the New Delhi Municipal Fund and reporting thereon to the Government and the costs of such audit, as determined by the Government, shall be chargeable to the New Delhi Municipal Fund. The auditor so appointed may exercise any power which the Chief Auditor may exercise. CHAP TAXATION CHAPTER VIII TAXATION Levy of taxes

Taxes to be imposed by the Council under this Act.

60. Taxes to be imposed by the Council under this Act. (1) The Council shall for the purposes of this Act, levy the following taxes, namely:-- (a) property tax; (b) a tax on vehicles and animals; (c) a theatre-tax; (d) a tax on advertisements other than advertisements published in the newspapers; (e) a duty on the transfer of property; and (f) a tax on buildings payable along with the application for sanction of the building plan.

(2) In addition to the taxes specified in sub-section (1) the Council may, for the purposes of this Act; levy any of the following taxes, namely:-- (a) an education cess; (b) a tax on professions, trades, callings and employments; (c) a tax on the consumption, sale or supply of electricity; (d) a betterment tax on the increase in urban land values caused by the execution of any development or improvement work; (e) tolls.

(3) The taxes specified in sub-section (1) and sub-section (2) shall be levied, 27 assessed and collected in accordance with the provisions of this Act and the bye-laws made thereunder. Property tax

Rates of property tax.

61. Rates of property tax. (1) Save as otherwise provided in this Act, the property tax shall be levied on lands and buildings in New Delhi and shall consist of not less than ten and not more than thirty per cent. of the rateable value of lands and buildings: Provided that the Council may, when fixing the rate at which the property tax shall be levied during any year, determine that the rate leviable in respect of lands and buildings or portions of lands and buildings in which any particular class of trade or business is carried on shall be higher than the rate determined in respect of other lands and buildings or portions of other lands and buildings by an amount not exceeding one-half of the rate so fixed: Provided further that the tax may be levied on graduated scale, if the Council so determines. Explanation.--Where any portion of a land or building is liable to a higher rate of the tax such portion shall be deemed to be a separate property for the purpose of municipal taxation.

(2) The Council may exempt from the tax lands and buildings of which the rateable value does not exceed one thousand rupees.

Premises in respect of which property tax is to be levied. 62. Premises in respect of which property tax is to be levied.

(1) Save as otherwise provided in this Act, the property tax shall be levied in respect of all lands and buildings in New Delhi except-- (a) lands and buildings or portions of lands and buildings exclusively occupied and used for public worship or by a society or body for a charitable purpose: Provided that such society or body is supported wholly or in part by voluntary contributions, applies its profits, if any, or other income in promoting its objects and does not pay any dividend or bonus to its members. Explanation.--"Charitable purpose" includes relief of the poor, education and medical relief but does not include a purpose which relates exclusively to religious teaching; (b) lands and buildings vested in the Council, in respect of which the said tax, if levied, would under the provisions of this Act be leviable primarily on the Council; (c) agricultural lands and buildings (other than dwelling houses).

(2) Lands and buildings or portions thereof shall not be deemed to be exclusively occupied and used for public worship or for a

charitable purpose within the meaning of clause (a) of sub-section (1) if any trade or business is carried on in such lands and buildings or portions thereof or if in respect of such lands and buildings or portions thereof, any rent is derived.

(3) Where any portion of any land or building is exempt from the property tax by reason of its being exclusively occupied and used for public worship or for a charitable purpose such portion shall be deemed to be a separate property for the purpose of municipal taxation. 28

Determination of rateable value of lands and buildings assessable toproperty tax. 63. Determination of rateable value of lands and buildings

assessable to property tax. (1) The rateable value of any lands or building assessable to any property taxes shall be the annual rent at which such land or building might reasonably be expected to let from year to year less a sum equal to ten per cent. of the said annual rent which shall be in lieu of all allowances for costs of repairs and insurance, and other expenses, if any, necessary to maintain the land or building in a state to command that rent: Provided that in respect of any land or building the standard rent of which has been fixed under the Delhi Rent Control Act, 1958 (59 of 1958) the rateable value thereof shall not exceed the annual amount of the standard rent so fixed.

(2) The rateable value of any land which is not built upon but is capable of being built upon and of any land on which a building is in process of erection shall be fixed at five per cent. of estimated capital value of such land.

(3) All plant and machinery contained or situate in or upon any land or building and belonging to any of the classes specified from time to time by public notice by the Chairperson with the approval of the Council, shall be deemed to form part of such land or building for the purpose of determining the rateable value thereof under sub-

section (1) but save as aforesaid no account shall be taken of the value of any plant or machinery contained or situated in or upon any such land or building.

Charge for supply of water.

64. Charge for supply of water. (1) A charge shall be levied for the water supplied to any land or building by measurement at such rate as shall from time to time be prescribed by the Council in this behalf.

(2) The Council may prescribe such conditions as it may think fit regarding the use of the water and regarding the charges to be paid for water consumed whilst a meter is out of order or under repair: Provided that no condition prescribed under this sub-section shall be inconsistent with this Act or with any bye-law made thereunder.

(3) Any sum payable by a person, who is charged for water supplied, and not paid when it becomes due shall be recoverable as an arrear of tax under this Act.

(4) In prescribing charges for water supplied by measurement

under sub-section (1), it shall be lawful for the Council to prescribe different rates in respect of different classes of lands and buildings.

Taxation of Union properties.

65. Taxation of Union properties. (1) Notwithstanding anything contained in the foregoing provisions of this Chapter, lands and buildings being properties of the Union shall be exempt from the property tax specified in section 61: Provided that nothing in this sub-section shall prevent the Council from levying property tax on such lands and buildings to which immediately before the 26th January, 1950, they were liable or treated as liable, so long as that tax continues to be levied by the Council on other lands and buildings. 29

(2) Where the possession of any land or building, being property of the Union, has been delivered in pursuance of section 20 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954 (44 of 1954) to a displaced person, or any association of displaced persons, whether incorporated or not, or to any other person [hereafter in this

sub-section and the proviso to sub-section (1) of section 66 referred to as the transferee], the property tax specified in section 61 shall be leviable and shall be deemed to have been leviable in respect of such land or building with effect from the 7th day of April, 1958 or the date on which possession thereof has been delivered to the transferee, whichever is later, and such property tax shall, notwithstanding anything contained in any other provision of this Act, be recoverable with effect from that day or date, as the case may be.

Incidence of property tax.

66. Incidence of property tax. (1) The property tax shall be primarily leviable as follows:-- (a) if the land or building is let, upon the lessor; (b) if the land or building is sub-let, upon the superior lessor; (c) if the land or building is unlet, upon the person in whom the right to let the same vests: Provided that the property tax in respect of land and building, being property of the Union, possession of which has been delivered in pursuance of section 20 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954 (44 of 1954) shall be primarily leviable upon the transferee.

(2) If any land has been let for a term exceeding one year to a tenant and such tenant has built upon the land, the property tax assessed in respect of that land and the building erected thereon shall be primarily leviable upon the said tenant, whether the land and building are in the occupation of such tenant or a sub-tenant of such tenant. Explanation.--The term "tenant" includes any person deriving title to the land or the building erected upon such land from the tenant whether by operation of law or by transfer inter vivos.

(3) The liability of the several owners of any buildings which is, or purports to be, severally owned in parts or flats or rooms, for payment of property tax or any instalment thereof payable during the period of such ownership shall be joint and several.

Apportionment of liability for property tax when the premises are letor sub-let. 67. Apportionment of liability for property tax when the premises

are let or sub-let. (1) If any land or building assessed to property tax is let, and its rateable value exceeds the amount of rent payable in respect thereof to the person upon whom under the provision of section 66 the said tax is leviable, that person shall be entitled to receive from his tenant the difference between the amount of the property tax levied upon him and the amount which would be leviable upon him if the said tax was calculated on the amount of rent payable to him.

(2) If the land or building is sub-let and its rateable value exceeds the amount of rent payable in respect thereof to the tenant by his sub-tenant, or the amount of rent payable in respect thereof to a sub-tenant by the person holding under the sub-tenant, the tenant shall be entitled to receive from his sub-tenant or the sub-tenant shall be entitled to receive from the person holding under him, as the case may be, the difference between any sum recovered under this section from such tenant or sub-tenant and the amount of property tax which would be liable in respect of the said land or building if the rateable value thereof were equal to the difference between the amount of rent which such tenant or sub-tenant receives and the amount of rent which he pays.

(3) Any person entitled to receive any sum under this section shall have, for the recovery thereof, the same rights and remedies as if such sum were rent payable to him by the person from whom he is entitled to receive the same. 30

Recovery of property tax from occupiers.

68. Recovery of property tax from occupiers. (1) On the failure to recover any sum due on account of property tax in respect of any land or building from the person primarily liable therefor under section 66, the Chairperson shall recover from every occupier of such land or building by attachment, in accordance with section 108 of the rent payable by such occupier, a portion of the total sum due which bears, as nearly as may be, the same proportion to that sum as the rent annually payable by such occupier bears to the total amount of rent annually payable in respect of the whole of the land or building.

(2) An occupier from whom any sum is recovered under sub-section

(1) shall be entitled to be reimbursed by the person primarily liable for the payment, and may in addition to having recourse to other remedies that may be open to him, deduct the amount so recovered from the amount of any rent from time to time becoming due from him to such person.

Property tax a first charge on premises on which it is assessed. 69. Property tax a first charge on premises on which it is assessed. Property tax due under this Act in respect of any land or building shall, subject to the prior payment of the land revenue, if any, due to the Council or Government or Central Government thereon, be a first charge-- (a) in the case of any land or building held immediately from the Council or Government or Central Government, upon the interest in such land or building of the person liable for such tax and upon the goods and other movable properties, if any, found within or upon such land or building and belonging to such person; and (b) in the case of any other land or building, upon such land or building and upon the goods and other movable properties, if any, found within or upon such land or building and belonging to the person liable for such tax. Explanation.--The term "property tax" in this section shall be deemed to include the costs on recovery of property tax and the penalty, if any, payable as specified in the bye-laws.

Assessment list.

70. Assessment list. (1) Save as otherwise provided in this Act, the Council shall cause an assessment list of all lands and buildings in New Delhi to be prepared in such form and manner and containing such particulars with respect to each land and building as may be prescribed by bye-laws.

(2) When the assessment list has been prepared the Chairperson shall give public notice thereof and of the place where the list or a copy thereof may be inspected, and every person claiming to be the owner, lessee or occupier of any land or building included in the list and any authorised agent of such person, shall be at liberty to inspect the list and to take extracts therefrom free of charge.

(3) The Chairperson shall, at the same time, give public notice of a date, not less than one month thereafter, when he will proceed to consider the rateable values of lands and buildings entered in the assessment list; and in all cases in which any land or building is for the first time assessed, or the rateable value of any land or building is increased, he shall also give written notice thereof to the owner or to any lessee or occupier of the land or building.

(4) Any objection to a rateable value or any other matter as entered in the assessment list shall be made in writing to the Chairperson before the date fixed in the notice and shall state in what respect the rateable value, or other matter is disputed, and all objections so made shall be recorded in a register to be kept for the purpose.

(5) The objections shall be inquired into and investigated, and the persons making them shall be allowed an opportunity of being heard either in person 31 or by authorised agent, by the Chairperson or by any officer of the Council authorised in this behalf by the Chairperson.

(6) When all objections have been disposed of, and the revision of the rateable value has been completed, the assessment list shall be authenticated by signature of the Chairperson or, as the case may be, the officer authorised by him in this behalf, who shall certify that except in the case, if any in which amendments have been made as shown therein, no valid objection has been made to the rateable value or any other matter entered in said list.

(7) The assessment list so authenticated shall be deposited in the office of the Council and shall be open, free of charge during office hours to all owners, lessees and occupiers of lands and buildings comprised therein or the authorised agents of such persons, and a public notice that it is so open shall forthwith be published.

Evidential value of assessment list. 71. Evidential value of assessment list. Subject to such alterations as may thereafter be made in the assessment list under section 72 and to the result of any appeal made under the provisions of this Act, the entries in the assessment list authenticated and deposited as provided in section 70 shall be accepted as conclusive evidence for the purpose of assessing any tax levied under this Act, of the rateable value of all lands and buildings to which such entries respectively relate.

Amendment of assessment list.

72. Amendment of assessment list. (1) The Chairperson may, at any time, amend the assessment list-- (a) by inserting therein the name of any person whose name ought to be inserted; or (b) by inserting therein any land or building previously omitted; or (c) by striking out the name of any person not liable for the payment of property tax; or (d) by incresing or reducing for adequate reasons the amount of any rateable value and of the assessment thereupon; or (e) by making or cancelling any entry exempting any land or building from liability to property tax; or (f) by altering the assessment on the land or building which has been erroneously valued or assessed through fraud, mistake or accident; or (g) by inserting or altering an entry in respect of any building erected, re-erected, altered or added to, after the preparation of the assessment list: Provided that no person shall by reason of any such amendment become liable to pay any tax or increase of tax in respect of any period prior to the commencement of the year in which the notice under

sub-section (2) is given.

(2) Before making any amendment under sub-section (1) the Chairperson shall give to any person affected by the amendment, notice of not less than one month that he proposes to make the amendment and consider any objection which may be made by such person. 32

Preparation of new assessment list. 73. Preparation of new assessment list. It shall be in the discretion of the Chairperson to prepare for the whole or any part of New Delhi, a new assessment list every year or to adopt the rateable value contained in the list for any year, with such alterations as may in particular cases be deemed necessary, as the rateable value for the year following, giving the same public notice as well as individual notices, to persons affected by such alterations, of the rateable value as if a new assessment list had been prepared.

Notice of transfers.

74. Notice of transfers. (1) Whenever the title of any person primarily liable for the payment of property tax on any land or building is transferred, the person whose title is transferred and the person to whom the same is transferred shall within three months after the execution of the instrument of transfer or after registration, if it is registered, or after the transfer is effected, if no instrument is executed, give notice of such transfer in writing to the Chairperson.

(2) In the event of the death of any person primarily liable as aforesaid, the person on whom the title of the deceased devolves, shall give notice of such devolution to the Chairperson within six months from the date of the death of the deceased.

(3) The notice to be given under this section shall be in such form as may be determined by bye-laws made under this Act, and the transferee or the other person on whom the title devolves shall, if so required, be bound to produce before the Chairperson any document evidencing the transfer or devolution.

(4) Every person who makes a transfer as aforesaid without giving such notice to the Chairperson shall, in addition to any penalty to which he may be subjected under the provisions of this Act, continue to be liable for the payment of property tax from time to time payable in respect of the land or building transferred until he gives such notice or until the transfer has been recorded in the Chairperson's book, but nothing in this section shall be held to affect the liability of the transferee for the payment of the said tax.

(5) The Chairperson shall record every transfer or devolution of title notified to him under this section in his books and in the assessment list.

(6) On a written request by the Chairperson, the registrar or sub-registrar of New Delhi appointed under the Registration Act, 1908, (16 of 1908) shall furnish such particulars regarding the registration of instruments of transfer of immovable properties in New Delhi, as the Chairperson may from time to time require.

(7) Such information shall be furnished as soon as may be after the registration of an instrument of transfer is effected or, if the Chairperson so requests, by periodical returns at such intervals as the Chairperson may fix.

Notice of erection of building, etc. 75. Notice of erection of building, etc. When any new building is erected or when any building is rebuilt or enlarged or when any building which has been vacant is reoccupied, the person primarily liable for the property tax assessed on the building shall give notice thereof in writing to the Chairperson within fifteen days from the date of its completion or occupation whichever first occurs, or as the case may be, from the date of its completion or occupation whichever first occurs, or as the case may be, from the date of its enlargement or re-occupation; and property tax shall be assessable on the building from the said date.

Notice of demolition or removal of buildings. 76. Notice of demolition or removal of buildings. When any building or any portion of a building, which is liable to the payment of property tax is demolished or removed, otherwise than by order of the Chairperson, the person primarily liable for the payment of the said tax shall give notice thereof in writing to the Chairperson.

(2) Until such notice is given, the person aforesaid shall continue to be liable to the payment of such property tax as he would have been liable to pay in respect of such building if the same or any portion thereof had not been demolished or removed. 33

Power of Chairperson to call for information and returns and to enterand inspect premises. 77. Power of Chairperson to call for information and returns and

to enter and inspect premises. (1) To enable him to determine the rateable value of any land or building and the person primarily liable for the payment of property tax leviable in respect thereof, the Chairperson may require the owner or occupier of such land or building, or of any portion thereof to furnish him within such reasonable period as the Chairperson fixes in this behalf, with information or with a written return signed by such owner or occupier- (a) as to the name and place of residence of the owner or occupier, or of both the owner and occupier of such land or buildings; (b) as to the measurements or dimensions of such land or building or of any portion thereof and the rent, if any, obtained for such land or building or any portion thereof; and (c) as to the actual cost or other specified details connected with the determination of the value of such land or building.

(2) Every owner or occupier on whom any such requisition is made shall be bound to comply with the same and to give true information or to make a true return to the best of his knowledge or belief.

(3) Whoever omits to comply with any such requisition or fails to give true information or to make a true return to the best of his knowledge or belief, shall, in addition to any penalty to which he may be liable, be precluded from objecting to any assessment made by the Chairperson in respect of such land or building of which he is the owner or occupier.

Premises owned by, or let to two or more persons in severalty to beordinarily assessed as one property. 78. Premises owned by, or let to two or more persons in severalty to be ordinarily assessed as one property. Notwithstanding that any land or building is owned by, or let to, two or more persons in severalty, the Chairperson shall for the purpose of assessing such land or building to property tax treat the whole of it as one property: Provided that the Chairperson may, in respect of any land or building which was originally treated as one property but which subsequently passes on by transfer, succession or in any other manner to two or more persons who divide the same into several parts and occupy them in severalty, treat, subject to any bye-law made in this behalf, each such several part, or two or more of such several parts together, as a separate property and assess such part or parts to property tax accordingly.

Assessment in case of amalgamation of premises. 79. Assessment in case of amalgamation of premises. If any land or building, bearing two or more municipal numbers, or portions thereof, be amalgamated into one or more new premises, the Chairperson shall on such amalgamation assign to them one or more number and assess them to property tax accordingly: Provided that the total assessment on amalgamation shall not be greater than the sum of the previous assessments of the several premises except when there is any re-valuation of any of the said premises. 34

Power of Chairperson to assess separately outhouses and portions ofbuildings. 80. Power of Chairperson to assess separately outhouses and portions of buildings. The Chairperson may in his discretion assess any outhouse appurtenant to a building, or any portion of a land or building separately from such building or as the case may be, from the rest of such land or building.

Power of Chairperson to employ valuers.

81. Power of Chairperson to employ valuers. (1) The Chairperson may, if he thinks fit, employ one or more competent persons to give advice or assistance in connection with the valuation of any land or building, and any person so employed shall have power, at all reasonable times and after giving due notice, and on production, if so required, of authorisation in writing in that behalf from the Chairperson, to enter on, survey and value any land or building which the Chairperson may direct him to survey and value.

(2) No person shall willfully delay or obstruct any such person in the exercise of any of his powers under this section. Tax on vehicles and animals

Tax on certain vehicles and animals and rates thereof. 82. Tax on certain vehicles and animals and rates thereof. Save as otherwise provided in this Act, a tax at the rates not exceeding those specified in the Second Schedule shall be levied on vehicles and animals of the descriptions specified in that Schedule which are kept within New Delhi.

The tax on whom leviable. 83. The tax on whom leviable. The tax on vehicles or animals shall be leviable upon the owner of or the person having possession or control of, such vehicles or animals in respect of which the tax is leviable: Provided that in the case of an animal generally used or employed in drawing any vehicle, the tax in respect of such animal shall be leviable upon the owner of, or the person having possession or control of, such vehicle, whether or not such animal is owned by such owner or person: Provided further that the tax under this section shall not be levied in respect of-- (a) vehicles and animals belonging to the Central Government or to the Government or to the Council used or intended to be used solely for public purposes; (b) vehicles intended exclusively for the conveyance free of charge, of the injured, the sick or the dead; (c) children's perambulators or tricycles; (d) a cow or a she-buffalo kept for milking for domestic use if the cow or the she-buffalo is the only cow or she-buffalo kept by the owner or the person having possession or control thereof for such milking and is registered in accordance with bye-laws made in this behalf, so, however, that-- (i) where more cows or, as the case may be, more she buffaloes than one are kept by several such owners or persons constituting a family, the tax under this section shall be levied in respect of all such cows or all such she- buffaloes; (ii) where a cow and also a she-buffalo are kept by the owner or the person having the possession or control thereof or by several such owners or persons constituting a family, the tax under this section shall be levied in respect of the cow and the she-buffalo. 35

Tax when payable. 84. Tax when payable. The tax on vehicles or animals shall be payable in advance in such number of instalments and in such manner as may be determined by bye-laws made in this behalf.

Power of Chairperson to compound with livery stable keeper, etc., fortax. 85. Power of Chairperson to compound with livery stable keeper, etc., for tax The Chairperson may with the approval of the Council, compound for any period not exceeding one year at a time, with any livery stable keeper or other person keeping vehicles for hire or animals for sale or hire, for a lump sum to be paid in respect of the vehicles or animals so kept in lieu of the taxes leviable under section 82 which such livery stable keeper or other person would otherwise person would otherwise be liable to pay. Theatre-tax

Theatre-tax. 86. Theatre-tax. Save as otherwise provided in this Act, there shall be levied a tax (referred to in this Act as theatre-tax) in respect of every cinema, theatre, circus, carnival and other place of entertainment to which persons are ordinarily admitted on payment for performances or shows held or conducted thereat, at such rates not exceeding those specified in the Third Schedule as the Council may determine: Provided that the theatre-tax shall not be levied in respect of any performance or show if the Chairperson is satisfied-- (a) that the entire receipts from such performance or show will be devoted to philanthropic, religious or charitable purposes; or (b) that the performance or show is of a wholly educational character; or (c) that the performance or show is provided for partly educational or partly scientific purposes by a society not conducted or established for profit.

Liability to pay theatre-tax. 87. Liability to pay theatre-tax. Every proprietor, manager, or person-in-charge of a theatre, cinema, circus, carnival or other place of entertainment shall be liable to pay the theatre-tax and shall pay the same in advance before the commencement of the performances or shows: Provided that the Chairperson may, with the approval of the Council, compound for any series of performances or shows or for any period not exceeding one month, with such proprietor, manager or person for a lump sum to be paid for such series of performances or shows or for the performances or shows held or conducted during such period. Tax on advertisements other than advertisements published in the newspapers

Tax on advertisements.

88. Tax on advertisements. (1) Every person, who erects, exhibits, fixes or retains upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle any advertisement or, who displays any advertisement to public view in any manner whatsoever, visible from a public street or public place (including any advertisement exhibited by means of cinematographs), shall pay for every advertisement which is so erected, exhibited, fixed or retained or so displayed to public view, a tax calculated at such rates not exceeding those specified in the Fourth Schedule as the Council may determine: Provided that no tax shall be levied under this section on any advertisement which-- (a) relates to a public meeting, or to an election to Parliament or the Legislative Assembly of Delhi; or (b) is exhibited within the window of any building if the advertisement relates to the trade, profession or business carried on in that building; or (c) relates to the trade, profession or business carried on within the land or building upon or over which such advertisement is exhibited or to any sale or letting of such land or building or any effects therein or to any sale, entertainment or meeting to be held on or upon or in the same; or 36 (d) relates to the name of the land or building upon or over which the advertisement is exhibited, or to the name of the owner or occupier of such land or building; or (e) relates to the business of a railway administration and is exhibited within any railway station or upon any wall or other property of a railway administration; or (f) relates to any activity of the Central Government or the Government or the Council.

(2) The tax on any advertisement leviable under this section shall be payable in advance in such number of instalments and in such manner as may be determined by bye-law made in this behalf. Explanation 1.--The word "structure" in this section includes any movable board on wheels used as an advertisement or an advertisement medium. Explanation 2.--The word "advertisement" in relation to a tax on advertisement under this Act means any word, letter, model, sign, placard, notice, device or representation, whether illuminated or not, in the nature of and employed wholly or in part for the purposes of advertisement, announcement or direction.

Prohibition of advertisements without written permission of theChairperson. 89. Prohibition of advertisements without written permission of

the Chairperson. (1) No advertisement shall be erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or shall be displayed in any manner whatsoever in any place within New Delhi without the written permission of the Chairperson granted in accordance with bye-laws made under this Act.

(2) The Chairperson shall not grant such permission if-- (a) the advertisement contravenes any bye-law made under this Act; or (b) the tax, if any, due in respect of the advertisement has not been paid.

(3) Subject to the provisions of sub-section (2), in the case of an advertisement liable to the advertisement tax, the Chairperson shall grant permission for the period to which the payment of the tax relates and no fee shall be charged in respect of such permission.

Permission of the Chairperson to become void in certain cases. 90. Permission of the Chairperson to become void in certain cases. The permission granted under section 89 shall become void in the following cases, namely:-- (a) if the advertisement contravenes any bye-law made under this Act; (b) if any material change is made in the advertisement or any part thereof without the previous permission of the Chairperson; (c) if the advertisement or any part thereof falls otherwise than through accident; (d) if any addition or alteration is made to, or in the building, wall, hoarding, frame, post or structure upon or over which the advertisement is erected, exhibited, fixed or retained if such addition or alteration involves the disturbance of the advertisement or any part thereof; and (e) if the building, wall, hoarding, frame, post or structure over which the advertisement is erected, exhibited, fixed or retained is demolished or destroyed. 37

Presumption in case of contravention. 91. Presumption in case of contravention. Where any advertisement has been erected, exhibited, fixed or retained upon or over any land, building, wall, hoarding, frame, post or structure or upon or in any vehicle or displayed to public view from a public street or public place in contravention of the provisions of this Act or any bye-laws made thereunder, it shall be presumed, unless and until contrary is proved, that the contravention has been committed by the person or the persons on whose behalf the advertisement purports to be or the agents of such person or persons.

Power of Chairperson in case of contravention. 92. Power of Chairperson in case of contravention. If any advertisement is erected, exhibited, fixed or retained in contravention of the provisions of section 89, the Chairperson may require the owner or occupier of the land, building, wall, hoarding, frame, post or structure or vehicle upon, or over or in which the same is erected, exhibited, fixed or retained, to take down or remove such advertisement or may enter any land, building, property or vehicle and have the advertisement dismantled, taken down or removed or spoiled, defaced or screened. Duty on transfer of property

Duty on transfer of property and method of assessment thereto. 93. Duty on transfer of property and method of assessment

thereto. (1) Save as otherwise provided in this Act, the Council shall levy a duty on transfer of immovable property situated within the limits of New Delhi in accordance with the provisions hereafter in this section contained.

(2) The said duty shall be levied-- (a) in the form of a surcharge on the duty imposed by the Stamp Act, 1899 (2 of 1899) as in force for the time being in the National Capital Territory of Delhi, on every instrument of the description specified below, and (b) at such rate as may be determined by the Council not exceeding five per cent on the amount specified below against such instruments: ---------------------------------------------------------------------- Description of instrument Amount on which duty should be levied ---------------------------------------------------------------------- (i) Sale of immovable property. The amount of value of the con- sideration for the sale, as set forth in the instrument. (ii) Exchange of immovable The value of the property of property. the greater value, as set forth in the instrument. (iii) Gift of immovable property. The value of the property as set forth in the instrument. (iv) Mortgage with possession of The amount secured by the mort- of immovable property. gage as set forth in the ins- property. trument. (v) Lease in perpetuity of The amount equal to one sixth of immovable property. the whole amount or value of the rent which would be paid or del- ivered in respect of the first fifty years of the lease as set forth in the instrument. 38

Provisions applicable on the introduction of transfer duty. 94. Provisions applicable on the introduction of transfer duty. On the introduction of the duty on transfers of property-- (a) section 27 of the Stamp Act, 1899 (2 of 1899), as in force in the National Capital Territory of Delhi shall be read as if it specifically required the particulars to be set forth separately in respect of property situated within and without New Delhi; (b) section 64 of the said Act shall be read as if it referred to the Council as well as the Government of National Capital Territory of Delhi. Tax on buildings payable along with the application for sanction of building plans

Tax on building applications.

95. Tax on building applications. (1) Save as otherwise provided in this Act the Council shall levy a tax on buildings at such rates not exceeding those specified in the Fifth Schedule as the Council shall determine.

(2) The tax shall be leviable on every person who makes an application to the Chairperson for the sanction of building plan and shall be payable along with the same. Other taxes

Imposition of other taxes.

96. Imposition of other taxes. (1) The Council may, at a meeting, pass a resolution for the levy of any of the taxes specified in sub-

section (2) of section 60, defining the maximum rate of the tax to be levied, the class or classes of persons or the description or descriptions of articles and properties to be taxed, the system of assessment to be adopted and the exemptions, if any, to be granted.

(2) Any resolution passed under sub-section (1) shall be submitted to the Central Government for its sanction, and if sanctioned by that Government, shall come into force on and from such date as may be specified in the order of sanction.

(3) After a resolution has come into force under sub-section (2), the Council may, subject to the maximum rate, pass a second resolution determining the actual rates at which the tax shall be leviable and the tax shall come into force on the first day of the quarter of the year next following the date on which such second resolution is passed.

(4) After a tax has been levied in accordance with foregoing

provisions of this section, the provisions of sub-section (2) of section 55, shall apply in relation to such tax as they apply in

relation to any tax imposed under sub-section (1) of section 60. Supplementary taxation

Supplementary taxation. 97. Supplementary taxation. Whenever the Council decides to have

recourse to supplementary taxation under sub-section (2) of section 57 in any year, it shall do so by increasing from such date as the Council may determine, the rates at which any tax leviable under this Act is being levied, but every such increase shall be made subject to the maximum rate and any other limitation specified in respect of such tax. Payment and recovery of taxes

Time and manner of payment of taxes. 98. Time and manner of payment of taxes. Save as otherwise provided in this Act, any tax levied under this Act shall be payable on such dates, in such number of instalments and in such manner as may be determined by bye-laws made in this behalf. 39

Presentation of bill.

99. Presentation of bill. (1) When any tax has become due, the Chairperson shall cause to be presented to the person liable for the payment thereof, a bill for the amount due: Provided that no such bill shall be necessary in the case of-- (a) a tax on vehicles and animals; (b) a theatre-tax; and (c) a tax on advertisements.

(2) Every such bill shall specify the particulars of the tax and the period for which the charge is made.

Notice of demand and notice fee.

100. Notice of demand and notice fee. (1) If the amount of the tax for which a bill has been presented under section 99 is not paid within fifteen days from the presentation thereof, or if the tax on vehicles and animals or the theatre-tax or the tax on advertisements is not paid after it has become due, the Chairperson may cause to be served upon the person liable for the payment of the same a notice of demand in the form set forth in the Sixth Schedule.

(2) For every notice of demand which the Chairperson causes to be served on any person under this section, a fee of such amount not exceeding five rupees as may be determined by bye-laws made in this behalf, shall be payable by the said person and shall be included in the cost of recovery.

Penalty in case of default of payment of taxes.

101. Penalty in case of default of payment of taxes. (1) If the person liable for the payment of any tax does not, within thirty days of the service of the notice of demand under section 100 pay the sum due and if no appeal is preferred against such tax, he shall be deemed to be in default.

(2) When the person liable for the payment of any tax is deemed

to be in default under sub-section (1), such sum not exceeding twenty per cent. of the amount of the tax as may be determined by the Chairperson, may be recovered from him by way of penalty, in addition to the amount of the tax and the notice fee, payable under sub-section

(2) of section 100.

(3) The amount due as penalty under sub-section (2) shall be recoverable as an arrear of tax under this Act.

Recovery of tax.

102. Recovery of tax. (1) If the person liable for the payment of the tax does not, within thirty days from the service of the notice of demand, pay the amount due, such sum together with all costs and the penalty provided for in section 101 may be recovered under a warrant, issued in the form set forth in the Seventh Schedule, by distress and sale of the movable property or the attachment and sale of the immovable property, of the defaulter: Provided that the Chairperson shall not recover any sum the liability for which has been remitted on appeal under the provisions of this Act.

(2) Every warrant issued under this section shall be signed by the Chairperson.

Distress.

103. Distress. (1) It shall be lawful for any officer or other employees of the Council to whom a warrant issued under section 102 is addressed to distrain, wherever it may be found in any place in New Delhi; any movable property, or any standing timber, growing crops or grass belonging to the person therein named as defaulter, subject to the following conditions, exceptions and exemptions, namely:-- (a) the following property shall not be distrained:-- (i) the necessary wearing apparel and bedding of the defaulter, his wife and children and their cooking and eating utensils; (ii) tools of artisans; (iii) books of account; or (iv) when the defaulter is an agriculturist his implements of 40 husbandry, seed, grain and such cattle as may be necessary to enable the defaulter to earn his livelihood; (b) the distress shall not be excessive, that is to say, the property distrained shall be as nearly as possible equal in value to the amount recoverable under the warrant, and if any property has been distrained which, in the opinion of the Chairperson, should not have been distrained it shall forthwith be released.

(2) The person charged with the execution of a warrant of distress shall forthwit make an inventory of the property which he seizes under such warrant, and shall, at the same time, give a written notice in the form set forth in the Eighth Schedule, to the person in possession thereof at the time of seizure that the said property will be sold as therein mentioned.

Disposal of distrained property and attachment and sale of immovableproperty. 104. Disposal of distrained property and attachment and sale of

immovable property. (1) When the property seized is subject to speedy and natural decay or when the expense of keeping it in custody is, when added to the amount to be recovered, likely to exceed its value, the Chairperson shall give notice to the person in whose possession the property was at the time of seizure that it will be sold at once, and shall sell it accordingly by public auction unless the amount mentioned in the warrant is forthwith paid.

(2) If the warrant is not in the meantime suspended by the Chairperson, or discharged, the property seized shall, after the

expiry of the period named in the notice served under sub-section (2) of section 103 be sold by public auction by order of the Chairperson.

(3) When a warrant is issued for the attachment and sale of immovable property, the attachment shall be made by an order prohibiting the defaulter from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge, and declaring that such property would be sold unless the amount of tax due with all costs of recovery is paid into the municipal office within fifteen days from the date of the attachment.

(4) Such order shall be proclaimed at some place on or adjacent to such property by beat of drum or other customary mode and a copy of the order shall be affixed on a conspicuous part of the property and upon a conspicuous part of the municipal office and also, when the property is land paying revenue to the Government, in the office of the collector.

(5) Any transfer of or charge on the property attached or any interest therein made without written permission of the Chairperson shall be void as against all claims of the Council enforceable under the attachment.

(6) The surplus of the sale-proceeds, if any, shall, immediately after the sale of the property, be credited to the New Delhi Municipal Fund, and notice of such credit shall be given at the same time to the person whose property has been sold or his legal representative and if the same is claimed by written application to the Chairperson, within one year from the date of the notice, a refund thereof shall be made to such person or representative.

(7) Any surplus not claimed within one year as aforesaid shall be the property of the Council.

(8) For every distraint and attachment made in accordance with the foregoing provisions, a fee of such amount not exceeding two and a half per cent. of the amount of the tax due as shall in each case be fixed by the Chairperson, shall be charged, and the said fee shall be included in the costs of recovery.

Recovery from a person about to leave New Delhi or Delhi. 105. Recovery from a person about to leave New Delhi or Delhi.

(1) If the Chairperson has reason to believe that any person from whom any sum is due or is about or is about to become due on account of any tax is about to move from New Delhi or Delhi, he may direct the immediate payment by such person of the sum so due or about to become due and cause a notice of demand for the same to be served on such person.

(2) If, on the service of such notice, such person does not forthwith pay the 41 sum so due or about to become due, the amount shall be leviable by distress or attachment and sale in the manner hereinbefore provided, and the warrant of distress or attachment and sale may be issued and executed without any delay.

Power to institute suit for recovery. 106. Power to institute suit for recovery. Instead of proceeding against a defaulter by distress and sale as hereinbefore provided, or after a defaulter has been so proceeded against unsuccessfully or with partial success, any sum due or the balance of any sum due, as the case may be, from such defaulter on account of a tax may be recovered from him by a suit in any court of competent jurisdiction.

Power of seizure of vehicles and animals in case of non-payment of taxthereon. 107. Power of seizure of vehicles and animals in case of non-

payment of tax thereon. (1) If the tax on any vehicle or animal is not paid, then, instead of proceeding against the defaulter by distress and sale of his other movable property as hereinbefore provided, the Chairperson may, at any time after the tax has become due, seize and detain the vehicle or animal or both and, if the owner or other person entitled thereto does not within seven days in respect of a vehicle and two days in respect of an animal from the date of such seizure and detention, claim the same and pay the tax due together with the charges incurred in connection with the seizure and detention, the Chairperson may cause the same to be sold and apply the proceeds of the sale or such part thereof as is required in discharge of the sum due and the charges incurred as aforesaid.

(2) The surplus, if any, remaining after the application of the

sale-proceeds under sub-section (1) shall be disposed of in the manner

laid down in sub-sections (6) and (7) of section 104.

Occupiers may be required to pay rent towards satisfaction of propertytax. 108. Occupiers may be required to pay rent towards satisfaction

of property tax. (1) For the purposes of recovering the amount of any property tax from any occupier under section 68, the Chairperson shall cause to be served on such occupier a notice requiring him to pay to the Council, any rent due or falling due from him in respect of the land or building to the extent necessary to satisfy the portion of the sum due for which he is lia