THE PUNJAB MUNICIPAL CORPORATION LAW (EXTENSION TO CHANDIGARH) 
ACT, 1994 
__________ 

ARRANGEMENT OF SECTIONS 
___________ 

SECTIONS 

1.  Short title and commencement. 
2.  Extension and amendments of Punjab Act 42 of 1976. 
3.  Repeal of Punjab Act III of 1911 and savings. 
4.  Transitory provision. 
5.  Repeal of Ordinance 7 of 1994 and saving. 

THE SCHEDULE. 

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THE PUNJAB MUNICIPAL CORPORATION LAW (EXTENSION TO CHANDIGARH) 
ACT, 1994 

ACT NO. 45 OF 1994 

[22nd July, 1994.] 

An Act to provide for the extension of the Punjab Municipal Corporation Act, 1976 to the Union 

territory of Chandigarh. 

BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:― 

1. Short title and commencement.―(1) This Act may be called the Punjab Municipal Corporation 

Law (Extension to Chandigarh) Act, 1994. 

(2) It shall be deemed to have come into force on the 24th day of May, 1994. 

2. Extension and amendments of Punjab Act 42 of 1976.–(1) The Punjab Municipal Corporation 

Act, 1976 is hereby extended to, and shall be in force in, the Union territory of Chandigarh. 

(2) With effect from the commencement of this Act,― 

(a) the references, in the Punjab Municipal Corporation Act, 1976 (Pun. Act 42 of 1976), to State, 
authorities,  or  City  mentioned  in  column  1  of  Part  I  of  the  Schedule  annexed  to  this  Act  shall  be 
construed as if references therein to State, authorities, or City respectively mentioned or referred to 
opposite thereto in column 2 of that Part; 

(b)  the  Punjab  Municipal  Corporation  Act,  1976  (Pun.  Act  42  of  1976)  shall  be  amended  as 

specified in Part II of the Schedule. 

3. Repeal of Punjab Act III of 1911 and savings.―(1) The Punjab Municipal Act, 1911 in so far as 
it applies to the Union territory of Chandigarh or any part thereof shall stand repealed on the coming into 
force of this Act: 

Provided that the repeal shall not affect― 

(a) the previous operation of the Punjab Municipal Act, 1911 (Pun. Act III of 1911) so repealed 

or anything duly done or suffered thereunder, or 

(b) any right, privilege, obligation or liability acquired, accrued or incurred under the said Act so 

repealed, or 

(c)  any  investigation,  legal  proceeding  or  remedy  in  respect  of  any  such  right,  privilege, 

obligation or liability as aforesaid, 

and any such investigation, legal proceeding or remedy may be instituted, continued or enforced as if this 
Act had not been passed:  

Provided further that, subject to the preceding proviso, anything done or any action taken (including 
any appointment or delegation made, notification, instruction or direction issued, form or bye-law framed, 
certificate obtained, permit or licence granted or registration effected) under such Act shall be deemed to 
have  been  done  or  taken  under  the  corresponding  provisions  of  the  Act  now  extended  to  that  Union 
territory, and shall continue to be in force accordingly unless and until superseded by anything done or 
any action taken under the said Act. 

(2)  In  every  law  or  notification  passed  or  issued  before  the  commencement  of  this  Act  in  which 
reference  is  made  to  or  to  any  Chapter  or  section  or  provision  of  the  said  Act  hereby  repealed,  such 
references shall, so far as may be practicable, be taken to be made to the said Act or, their corresponding 
Chapter or section. 

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4. Transitory provision.―Notwithstanding anything contained in this Act, the Central Government 
may, if necessary, appoint a person to be called the Special Officer, to exercise the powers and discharge 
the functions of the Municipal Corporation of Chandigarh until the day on which the first meeting of the 
Corporation is held after the commencement of this Act. 

5.  Repeal  of  Ordinance  7  of  1994  and  saving.―(1)  The  Punjab  Municipal  Corporation  Law 

(Extension to Chandigarh) Ordinance, 1994 is hereby repealed. 

(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed 

shall be deemed to have been done or taken under the corresponding provisions of this Act.  

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THE SCHEDULE 

(See section 2) 

THE PUNJAB MUNICIPAL CORPORATION ACT, 1976 

(PUNJAB ACT 42 OF 1976) 

PART I 

Constructions 

2 

References 

1 

1. Punjab State  

2. State of Punjab  

3. Whole of Punjab State  

Union territory of Chandigarh 

4. Whole of the State of Punjab  

5. Punjab where it refers to the State of Punjab  

6. Punjab Government  

7. Government of Punjab  

8. Government of the State of Punjab  

Administrator 

9. State Government  

10. The Government of Punjab  

11. Government  

12. Divisional Commissioner  

prescribed authority 

13. Director  

14. Associate councillor 

15. City  

Section 2,― 

(a) for clause (1), substitute― 

Councillor 

Chandigarh. 

PART II 

‗(1) ―Administrator‖ means the administrator of the Union territory of Chandigarh appointed 

by the President under article 239 of the Constitution; 

(1A) ―backward classes‖ means any of the backward classes specified from time to time by 

the Administrator and whose names are published in the Official Gazette;‘; 

(b) omit clause (6); 

(c) after clause (7), insert― 

‗(7A) ―Corporation‖ means the Municipal Corporation of Chandigarh constituted under this 

Act;‘; 

4 

 
 
 
 
 
 
 
 
 
 
 
 
 
(d) after clause (8), insert― 

‗(8A) ―councillor‖, in relation to the Corporation, means a person elected or nominated under 

sub-section (3) of section 4;‘; 

(e) for clause (10), substitute― 

‗(10)―district‖ means district of Chandigarh covering the entire area of the Union territory of 

Chandigarh; 

(10A) ―District Planning Committee‖ means a Committee constituted under article 243ZD of 

the Constitution;‘; 

(f) omit clause (12); 

(g) after clause (14), insert― 

‗(14A)  ―Election  Commission‖  means  the  Election  Commission  of  the  Union  territory  of 

Chandigarh referred to in section 10;‘; 

(h) after clause (17), insert― 

‗(17A)  ―Finance  Commission‖  means  the  Finance  Commission  of  the  Union  territory  of 

Chandigarh referred to in section 84A;‘; 

(i) for clause (23), substitute― 

‗(23)  ―licensed  architect‖,  ―licensed  engineer‖  and  ―licensed  plumber‖  mean  respectively  a 
person registered and licensed as architect, engineer and plumber under section 16 of the Capital 
of Punjab (Development and Regulation) Act, 1952 (Punjab Act XXVII of 1952);‘; 

(j) after clause (26), insert― 

‗(26A) ―Municipality‖ means an institution of self-government constituted under article 243Q 

of the Constitution; 

(26B)  ―Municipal  area‖  means  the  territorial  area  of  the  Municipality  as  is  notified  by  the 

Administrator under section 3 of the Act;‘; 

(k) after clause (36), insert― 

‗(36A) ―population‖ means the population as ascertained at the last preceding census of which 

the relevant figures have been published;‘; 

(l) after clause (37), insert― 

‗(37A) ―prescribed authority‖ means such authority or officer as the Administrator may, from 

time to time, by order to be published in the Official Gazette, prescribe: 

Provided  that  the  Administrator  may  prescribe  different  authorities  or  officers  for  different 

provisions of this Act;‘; 

(m) for clause (43), substitute― 

‗(43)  ―public  street‖  means  any  street  or  the  soil  below  the  surface  thereof  which  is 

specifically vested in the Corporation by an order of the Administrator issued in this behalf;‘; 

(n) for clause (51), substitute― 

‗(51) ―rural areas‖ means the areas of the Union territory of Chandigarh which are not urban 

areas;‘; 

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(o) for clause (52), substitute― 

‗(52)  ―Scheduled  Caste‖  means  any  of  the  Scheduled  Castes  specified  in  Part  II  of  the 

Schedule to the Constitution (Scheduled Castes) (Union territories) Order, 1951;‘; 

(p) for clause (60), substitute― 

‗(60)  ―urban  areas‖  means  such  areas  as  the  Administrator,  may,  having  regard  to  the 
population  of  the  area,  density  of  the  population  therein,  the  revenue  generated  for  local 
administration,  the  percentage  of  employment  in  non-agricultural  activities,  the  economic 
importance or such other factors as he may deem fit, specify to be urban area by notification in 
the Official Gazette;‘.  

After section 2, insert― 

―2A.  The  application  of  certain  definitions  of  the  Capital  of  Punjab  (Development  and 
Regulation)  Act,  1952.―The  words  used and not  defined in this  Act  but  defined in the  Capital  of 
Punjab  (Development  and  Regulation)  Act,  1952  (Punjab  Act  XXVII  of  1952)  shall  have  the 
meanings respectively assigned to them in that Act.‖. 

For section 3, substitute― 

―3.  Declaration  of  area  to  be  municipal  area.―(1)  For  the  purposes  of  this  Act,  the 
Administrator shall, by notification, specify such territorial area of the Union territory of Chandigarh 
to be the Municipal area of the Municipal Corporation of Chandigarh. 

(2)  The  Administrator  may,  from  time  to  time,  after  consultation  with  the  Corporation,  by 
notification,  alter  the  limit  specified  under  sub-section  (1)  so  as  to  include  therein  or  to  exclude 
therefrom such area as may be specified in the notification. The Corporation shall send its views to 
the Administrator within a period of three months of the date on which it is first consulted. 

(3)  The  power  to  issue  a  notification  under  sub-section  (2)  shall  be  subject  to  the  condition  of 

previous publication. 

(4) When the limits specified under sub-section (1) are altered so as to include therein any area, 
this Act and, except as the Administrator may otherwise by notification direct, all rules, notifications, 
bye-laws,  orders,  directions  and  powers  made,  issued  or  conferred  and  all  taxes  and  fees  imposed 
under  this  Act  and  in  force  throughout  the  area  specified  under  sub-section  (1)  shall  apply  to  such 
included area.‖. 

Section 4,― 

(a) for sub-section (1), substitute― 

―(1) For the purposes of carrying out the provisions of this Act, there shall be a corporation 
charged  with  the  municipal  government,  to  be  known  as  the  Municipal  Corporation  of 
Chandigarh.‖; 

(b) in sub-section (2), for ―Every‖, substitute ―The‖; 

(c) for sub-section (3), substitute― 

―(3) The Corporation shall be composed of the following members, namely:― 

(i) members to be directly elected, representing wards; 

(ii) nine members with voting rights to be nominated by the Administrator, from amongst 
the  persons  who  are  eminent  or  distinguished  in  public  affairs  or  those  who  have  special 
knowledge or practical experience in respect of 1[municipal administration; and] 

1. Subs. by Act 50 of 2000, s. 2, for ―municipal administration‖ (w.e.f. 11-12-2000). 

6 

 
                                                           
1[(iii) the member of House of the People representing the constituency which comprises 

wholly or partly, the municipal area, with the right to vote.] 

Section 5.―In sub-section (2),― 

(i) in the first proviso, for ―forty and more than fifty‖, substitute ―twenty‖; 

(ii) omit second proviso.  

For section 6, substitute― 

―6. Reservation of seats for women, Scheduled Castes and backward classes.―(1) Seats shall 
be  reserved  for  women  belonging  to  the  Scheduled  Castes,  from  amongst  the  seats  reserved  under 
sub-section (4) of section 5 for the Scheduled Castes, the number of such seats being determined by 
the Administrator by an order published in the Official Gazette, which shall not be less than one-third 
of the total number of seats reserved for the Scheduled Castes. 

(2)  Seats  shall be  reserved  for  women,  the number  of  such seats  being  determined  by  an  order 
published  in  the  Official  Gazette  by  the  Administrator  which  shall  not  be  less  than  one-third 
(including the number of seats reserved for women belonging to the Scheduled Castes) of the total 
number of seats to be filled up by direct election: 

Provided  that  the  seats  reserved  for  the  Scheduled  Castes  or  for  women  (including  those 
belonging to the Scheduled Castes) shall be allotted by rotation to different wards in such a manner as 
the Administrator may, by order published in the official Gazette in this behalf, determine. 

(3) The reservation of seats under sub-section (4) of section 5 and under sub-section (1) of this 
section  shall  cease  to  have  effect  on  the  expiration  of  the  period  specified  in  article  334  of  the 
Constitution. 

(4)  The  Administrator  may,  if  he  considers  it  necessary,  by  an  order  published  in  the  Official 
Gazette, direct that such number of seats as may be specified in the order shall be reserved in favour 
of backward classes of citizens: 

Provided  that,  when  a  backward  class is  deleted  by  an  order  of  the  Administrator,  the  member 
elected from such class shall not cease to hold office merely as a result of such deletion and shall hold 
office as he would have held had the deletion not been made.‖. 

For section 7, substitute― 

―7.  Duration  of  the  Corporation.―(1)  The  Corporation,  unless  sooner  dissolved  under  

section 407, shall continue for five years from the date appointed for its first meeting and no longer. 

(2) An election to constitute the Corporation shall be completed– 

(a) before the expiry of its duration specified in sub-section (1); 

(b) before the expiration of a period of six months from the date of its dissolution: 

Provided that where the reminder of the period for which the dissolved Corporation would have 
continued is less than six months, it shall not be necessary to hold any election under this sub-section 
for constituting the Corporation for such period. 

(3)  The  Corporation  constituted  upon  its  dissolution  before  the  expiration  of  its  duration  shall 
continue  only  for  the  reminder  of  the  period  for  which  the  dissolved  Corporation  would  have 
continued under sub-section (1) had it not been so dissolved.‖. 

1. Ins. by Act 50 of 2000, s. 2 (w.e.f. 11-12-2000). 

7 

 
 
 
                                                           
Section 8.―For sub-section (2), substitute― 

―(2) The Administrator shall, by an order in the Official Gazette, determining,― 

(a) the number of wards; and 

(b) extent of each ward.  

(3) The Election Commission shall, by an  order in the  Official Gazette, determine the wards in 
which  seats  shall  be  reserved  for  the  Scheduled  Castes,  for  women  and  the  manner  in  which  seats 
shall be rotated under the proviso to sub-section (2) of section 6.‖. 

For section 10, substitute― 

―10.  Elections  to  the  Corporation.―(1)  The  superintendence,  direction  and  control  of 
preparation  of  the  electoral  rolls  for,  and  the  conduct  of  all  elections  to  the  Corporation  shall  be 
vested  in  the  Election  Commission  appointed  under  section  7  of  the  Delhi  Municipal  Corporation  
Act,  1957  (66  of  1957),  and  the  Election  Commission  so  appointed  under  that  section  shall  be 
responsible for the functions conferred on the Election Commission under this sub-section. 

(2) The Administrator shall, when so requested by the Election Commission, make available to 
that  Commission  such  staff  which  the  Administrator  considers  necessary  for  the  discharge  of  the 
functions conferred on the Commission by sub-section (1).‖. 

Section 12.―In clause (a), for ―twenty-five years‖, substitute ―twenty-one years‖. 

Section 13,― 

(i) in sub-section (1), after clause (1), insert― 

―(m) if he is so disqualified by or under any law for the time being in force for the purposes 

of elections to the House of the People: 

Provided that no person shall be disqualified on the ground that he is less than twenty-five 

years of age, if he has attained the age of twenty-one years; 

(n) if he is so disqualified by or under any law made by Parliament.‖; 

(ii) in sub-section (2), after clause (c), insert― 

―(d) a person shall not be disqualified for being nominated as a member of the Corporation on 
the ground that he holds office of profit for the purposes of election to the House of the People 
under any law for the time being in force.‖. 

After section 13, insert― 

―13A. Decisions on questions as to disqualification of members.―(1) If any question arises as 
to  whether  a  member  has  become  subject  to  any  disqualifications  mentioned  in  section  13,  the 
question shall be referred for the decision of the Administrator and his decision shall be final.‖. 

Section 15,― 

(i) omit sub-section (2); 

(ii) in sub-section (3), for ―Director‖, substitute ―Administrator‖. 

Section 16,― 

(i) in sub-section (1), for ―Director‖, substitute ―Administrator‖; 

(ii) in the proviso to sub-section (1), for ―four‖, substitute ―six‖;  

(iii) in sub-section (2),― 

(a) in the opening portion, for  ―Scheduled Castes‖, substitute ―Scheduled Castes, backward 

classes or for the women, as the case may be,‖; 

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(b) after the words ―Scheduled Castes‖ occurring at the end, add ―backward classes or be a 

woman‖. 

Section 17,― 

(a) omit ―or co-opted‖ and ―or co-option‖; 

(b) for ―Director‖, substitute ―Election Commision‖.  

Section 35.―In sub-section (1), omit ―other than an associated councillor‖.  

After section 35, insert― 

―35A.  Vacation  of  seats in  case  of  multiple  membership.―No  councillor  shall  be  a  member 
both of the Corporation and Parliament and if a person is so chosen, then at the expiration of fourteen 
days from the date of the publication in the Gazette of India, or as the case may be, in the Official 
Gazette whichever is later, that he has been so chosen, that person‘s seat in Parliament shall become 
vacant unless he has previously resigned his seat in the Corporation.‖.  

Section 36.―For sub-section (1), substitute― 

―(1) If a councillor becomes subject to any of the disqualifications mentioned in section 13, his 

seat shall thereupon become vacant. 

(1A)  If  during  three  successive  months,  a  councillor  is,  without  permission  of  the  Corporation, 

absent from all meetings thereof, the Corporation may declare his seat vacant.‖. 

Section 38,― 

(a) for sub-sections (1), (2) and (2A), substitute― 

―(1) The Corporation shall, at its first meeting in each year, elect one of its elected members 
to  be  the  Chairperson  to  be  known  as  the  Mayor  and  the  other  two  such  members  to  be  the  
Senior Deputy Mayor and the Deputy Mayor of the Corporation: 

Provided  that  during  the  duration  of  the  Corporation,  the  office  of  the  Mayor  shall  be 
reserved  in  favour  of  a  member  who  is  a  woman  for  the  first  and  the  fourth  year  of  the 
Corporation and in favour of a member belonging to a Scheduled Caste in the third year of the 
Corporation.‖; 

(b) after sub-section (3), insert― 

―(3A)  If  the  vacancy  be  a  casual  vacancy  in  the  office  of  the  Mayor  and  is  reserved  for  a 
woman or for a member belonging to the Scheduled Caste, the vacancy shall be filled by electing 
one  of  the  councillors  from  amongst  women  or  members  of  the  Scheduled  Castes,  as  the  case 
may be.‖; 

(c) for sub-section (6), substitute― 

(6) The Mayor may obtain reports from the Commissioner on any matter connected with the 

municipal government of Chandigarh.‖. 

After section 41, insert― 

―41A. Wards Committees.―(1) There shall be constituted such number of Wards Committees 
consisting of one or more wards, within the territorial area of the Corporation, as the Administrator 
may, from time to time, by order published in the Official Gazette, determine. The order shall indicate 
the name of the Wards Committee and also the extent of the area comprised within the jurisdiction of 
such Committee. 

(2) Each Wards Committee shall consist of― 

(a) all the councillors, elected from the wards in the territorial jurisdiction of the Committee; 

9 

 
(b) the person, if any, nominated by the Administrator, under clause (ii) of sub-section (3) of 

section 4 if his name is registered as an elector within the territorial limits of the Committee; 

(c) such number of persons, as may be prescribed, to be nominated by the Administrator. 

41B. Chairperson of Wards Committee.―(1) The Wards Committee shall, at its first meeting 

in each year, elect one of its members who is a councillor to be Chairperson: 

Provided that where a Wards Committee consists of one ward only, the councillor representing 

that ward in the Corporation shall be the Chairperson of that Committee. 

(2) The Chairperson of the Wards Committee shall hold office from the date of his election until 

the election of his successor in office unless in the meantime, he resigns his office as Chairperson. 

(3)  On  the  occurrence  of  any  casual  vacancy  in  the  office  of  the  Chairperson,  the  Wards 
Committee shall, within one month of occurrence of such a vacancy, elect one of its members who is 
a councillor as Chairperson: 

Provided that where a vacancy has arisen on the resignation or death of the only councillor on the 
Committee,  the  Administrator  may  appoint  any  other  councillor  as  Chairperson  of  the  Ward 
Committee till election is held to fill the vacancy in due course. 

41C. Resignation of Chairperson and members of Wards Committee.―(1) Any member of 
the Wards Committee, may resign his office by writing under his hand addressed to the Chairperson 
and delivered to the Commissioner; and the Chairperson may resign his office by writing under his 
hand addressed to the Mayor and delivered to the Commissioner. 

(2) A resignation under sub-section (1) shall take effect from the date specified for the purpose in 
writing referred to in that sub-section, or if no such date is specified, from the date of its receipt by 
the Chairperson or the Commissioner, whichever is later. 

41D.  Functions  of  Wards  Committee.―(1)  Subject  to  the  provisions  of  this  Act,  a  Wards 
Committee shall exercise the powers and perform the functions as may be determined from time to 
time by the Corporation by resolution. 

(2)  When  any  question  arises  as  to  whether  any  matter  falls  within  the  purview  of  the  Wards 
Committee or the Corporation, it shall be referred to the Corporation and its decision thereon shall be 
final. 

41E.  Special  Committees.―(1)  The  Administrator  may,  by  order  published  in  the  Official 
Gazette,  constitute  one  or  more  Special  Committees  in  addition  to  Wards  Committees  and  the 
Committees referred to in section 42, as he thinks fit for the exercise of any power or discharge of any 
function which the Corporation, may, by resolution, delegate to them or for inquiring into, reporting 
or advising upon any matter which the Corporation may refer to them. 

(2) Any such Committee may consist of one or more councillors and such other persons having 
special  knowledge  or  practical  experience  as  the  Administrator  may  nominate  representing  various 
interests which he may think fit, such as industry, commerce, labour, literature, science, art and social 
services. 

41F.  Constitution  of  District  Planning  Committees.―(1)  There  shall  be  constituted  in  the 
district, a District Planning Committee to consolidate the plans prepared by the Corporation and the 
Panchayats in the District, and to prepare a draft development plan for the district as a whole. 

(2)  The  manner  in  which  the  seats  in  the  District  Planning  Committee  constituted  under                 

sub-section  (1)  shall  be  filled,  the  functions  which  may  be  assigned  to  such  Committee  and  the 
manner in which the Chairperson of such Committee shall be chosen, shall be as prescribed by the 
Government, subject, however, to the provisions of article 243ZD of the Constitution. 

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(3) In preparing the draft development plan of the district, the District Planning Committee shall 

have regard to― 

(i) the matter of  common interest between the Panchayats and Municipalities in the district 
including  spatial  planning,  sharing  of  water  and  other  physical  and  natural  resources,  the 
integrated development of infrastructure and environment conservation; and 

(ii) the extent and type of available resources whether financial or otherwise. 

(4) While preparing the draft development plan of the district, the District Planning Committee 

shall consult such institutions and organizations as the Government may, by order, specify. 

(5) The Chairperson of District Planning Committee shall forward the draft development plan as 

recommended by such Committee to the Government. 

(6)  Any  matter  relating  to  a  Committee  constituted  under  section  41A  or  this  section,  not 

expressly provided in this Act, the same may be provided in the rules made in this behalf.‖. 

Section 42,― 

(a) omit sub-sections (1), (2), (4) and proviso to sub-section (5); 

(b) in sub-section (3), omit ―a Building and‖. 

Section 44,― 

(a) in clause (q), add at the end ―except such important parks and stadia as may be specified by 

the Administrator by an order issued in this behalf‖; 

(b) after clause (t), insert― 

―(tt) the preparation of plans for economic development and social justice;‖. 

Section 45.―In the opening portion, for ―The Corporation‖, substitute― 

―Subject  to  any  general  or  special  orders  of  the  Administrator  from  time  to  time,  the 

Corporation‖. 

Section 47,― 

(i) for sub-section (1), substitute― 

―(1) The Administrator shall, by notification in the Official Gazette, appoint a suitable officer 

as the Commissioner of the Corporation. 

(1A)  The  reporting  authority  on  the  work  and  conduct  of  the  Commissioner  shall  be  the 

Adviser to the Administrator and reviewing and accepting authority shall be the Administrator.‖; 

(ii) after second proviso to sub-section (2), add― 

―Provided  also  that  where  the  Commissioner  holds  a  lien  on  any  service  under  any 
Government,  the  Administrator  may  at  any  time  replace  his  services  at  the  disposal  of  that 
Government.‖; 

(iii) in sub-section (3),― 

(a) omit clause (a); 

(b) omit ―by giving a notice of at least one month to the Corporation‖. 

Section 50.―Omit ―for a term not exceeding two months‖. 

Sections 65 and 66.―Omit ―ad hoc‖ wherever it occurs. 

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For section 71, substitute― 

“71. Appointment of certain officers.―(1) The Administrator shall appoint suitable officers to 
be  respectively,  the  Municipal  Engineer,  the  Municipal  Health  Officer,  the  Municipal  Chief 
Accountant, the Municipal Secretary and the Municipal Chief Auditor and may appoint one or more 
Assistant Commissioners and such other officer or officers of a status equivalent to or higher than the 
status of any of the officers specified earlier in this sub-section as the Administrator may deem fit on 
such monthly salaries and allowances, if any, as may be fixed by the Administrator. 

(2) The Municipal Chief Auditor shall not be eligible for any office under the Corporation after 

he has ceased to hold his office. 

71A. Schedule of permanent posts and creation of temporary posts.―(1) The Commissioner 
shall,  from  time  to  time,  prepare  and  lay  before  the Corporation two  Schedules  of  posts  other  than 
those specified in section 71 setting forth the designations and grades of municipal officers and other 
municipal  employees  who  should  be  maintained  permanently  in  the  service  of  the  Corporation 
indicating therein the salaries, fees and allowances which are proposed to be paid to such officers and 
other employees. 

(2)  Of  the  two  Schedules  referred  to  in  sub-section  (1),  the  first  Schedule  shall  deal  with  

category ‗A‘ posts and the Second Schedule with other posts. 

(3) The  Corporation  may  sanction  the two  Schedules either  without  modifications  or  with such 
modifications as it thinks fit and thereafter may amend them if it thinks it necessary. Such sanction or 
amendment shall be subject to the approval of the Administrator. 

(4)  The  Commissioner  may  create  for  a  period  not  exceeding  six  months  any  group  ‗B‘,  ‗C‘  

and ‗D‘ posts. 

71B. Power to make appointments.―(1) Subject to the provisions of section 71, the power of 
appointing municipal officers and other municipal employees whether temporarily or permanent shall 
vest in the Commissioner. 

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

71C.  Recruitment.―(1)  Notwithstanding  anything  contained  in  section  71B,  the  direct 
recruitment  to  various  posts  may  be  made  by  the  Administrator  through  such  agencies  as  may  be 
prescribed by him.‖. 

Section 75.―In clause (b), for ―sub-section (7) of section 71‖, substitute― 

―the Schedules referred to in section 71A‖. 

After section 84, insert― 

―84A. The Finance Commission.―(1) The Finance Commission constituted under section 107A 
of the Delhi Municipal Corporation Act, 1957 (66 of 1957) shall also be responsible, for the purposes 
of this Act, to review the financial position of the Corporation and to make recommendations to the 
Administrator as to― 

(a) the principles which should govern,― 

(i)  the  determination  of  taxes,  duties,  tolls  and  fees  which  may  be  assigned  to,  or 

appropriated by, the Corporation; 

(ii) the grant-in-aid to the Corporation from the Consolidated Fund of India; 

(b) the measures needed to improve the financial position of the Corporation; 

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(c) any other matter referred to the Finance Commission by the Administrator in the interest 

of sound functioning of the Corporation. 

(2)  The  Commission  shall  determine  their  procedure  and  shall  have  such  powers  in  the 

performance of their functions as may be prescribed. 

(3)  The  Administrator  shall  cause  every  recommendation  made  by  the  Commission  under  this 
section  together  with  an  explanatory  memorandum  as  to  the  action  taken  thereon  to  be  laid  before 
each House of Parliament.‖. 

Section 87,― 

(a)  in  sub-section  (3),  in  clause  (b),  in  the  proviso,  for  ―five  hundred  rupees‖,  substitute  ―ten 

thousand rupees‖; 

(b) in sub-section (4), for ―five thousand rupees‖, substitute ―one lakh rupees‖.  

Section 90,― 

1[(a) in sub-section (1),— 

(i) clauses (b) and (c) shall be omitted; 

(ii) in clause (e),  the  word  ―and‖  occurring  at  the  end,  shall  be 

omitted; 

(iii) after clause (f), the following clause shall be inserted, namely:— 

―(g) a tax on entertainments and amusements.‖ ]; 

2[(b) in sub-section (6),— 

(i)  after  the  words  and  figures  ―Punjab  Motor  Vehicles Taxation 
Act, 1924, the words ―as applicable to the Union territory of Chandigarh‖, 
shall be inserted; 

(ii) clauses (d) and (e) shall be omitted.]. 

Omit sections 113 to 117 (both inclusive).  

After section 126, insert― 

―126A.  Prior  approval  of  the  Chief  Administrator.―Notwithstanding  anything  contained  in 
sections  122  to  125,  every  permission  given  by  the  Commissioner  shall  be  subject  to  the  prior 
approval of the Chief Administrator appointed under clause (e) of section 2 of the Capital of Punjab 
(Development  and  Regulation)  Act,  1952,  (Punjab  Act  XXVII  of  1952)  and  subject  to  such 
conditions as the Chief Administrator may impose in this behalf.‖. 

Omit section 127 

Section 152.―In the proviso to sub-section (1), for ―one thousand rupees‖, substitute ―ten thousand 

rupees‖. 

Section 174.―Omit clause (c). 

Section 225.―Omit sub-section (2). 

Omit sections 226 to 275 (both inclusive). 

Omit sections 286 to 312 (both inclusive). 

Omit sections 343 to 346 (both inclusive). 

1. Subs. by Act 31 of 2017, s. 2, for clause (a)  (w.e.f. 1-7-2017). 
2. Subs. by s. 2, ibid., for clause (b) (w.e.f. 1-7-2017). 

13 

 
                                                           
Section 397.―For sub-section (2), substitute― 

―(2) Every rule, regulation or bye-law made under this Act shall be laid as soon as may be after it 
is made, before each House of Parliament, while it is in session, for a total period of thirty days which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry of 
the session immediately following the session or the successive sessions aforesaid, both Houses agree 
in making any modification in the rule, regulation or bye-law or both the Houses agree that the rule, 
bye-law or regulation should not be made, the rule, bye-law or regulation shall thereafter have effect 
only  in  such  modified  form  or  be  of  no  effect,  as  the  case  may  be;  so,  however,  that  any  such 
modification  or  annulment  shall  be  without  prejudice  to  the  validity  of  anything  previously  done 
under that rule, regulation or bye-law.‖. 

Section 399.―In sub-section (1), omit Parts B, C and D.  

For section 407, substitute― 

“407. Dissolution of Corporation.―(1) If, in the opinion of the Government, the Corporation is 
not  competent  to  perform  its  duties  or  persistently  makes  default  in  the  performance  of  duties 
imposed on it by or under this Act or any other law for the time being in force or exceeds or abuses 
any of its powers, the Government may, by an order published, alongwith the reasons therefor, in the 
Official Gazette, dissolve such Corporation: 

Provided that the Corporation shall be given a reasonable opportunity of being heard before its 

dissolution. 

(2) When the Corporation is dissolved under sub-section (1),― 

(i) all Councillors of the Corporation shall vacate their offices forthwith; 

(ii)  all  powers  and  duties  of  the  Corporation  during  its  dissolution  shall  be  exercised  and 
performed by such persons or authority as the Government may, by notification, appoint in  this 
behalf; and 

(iii) all property in possession of the Corporation shall be held by the Government. 

(3)  Upon  dissolution  of  the  Corporation  under  sub-section  (1),  the  Government  shall 
reconstitute  the  Corporation  as  specified  under  sub-section  (1)  of  section  4,  and  election  to 
reconstitute such  Corporation  shall  be  completed  before the  expiration of  a period  of  six  months 
from the date of dissolution: 

Provided  that  where  the  remainder  of  the  period  for  which  the  dissolved  Corporation  would 
have  continued,  is  less  than  six  months,  it  shall  not be  necessary  to  hold  any  election  under  this 
sub-section for reconstituting the Corporation for such period. 

(4)  The  Corporation  reconstituted  upon  the  dissolution  of  the  existing  Corporation  before  the 
expiration  of  its  duration,  shall  continue  only  for  the  remainder  of  the  period  for  which  the 
dissolved Corporation would have continued under section 7 had it not been so dissolved.‖. 

After section 407, insert― 

―407A.  Appointment  of  a  person  to  carry  out  the  work  of  Corporation  in  certain  
cases.―(1)  All  powers  and  duties  of  the  Corporation  may,  till  it  remains  dissolved  and  is 
reconstituted shall be exercised and performed by such persons or authority as the Government may 
appoint in this behalf. 

(2)  All  properties  vested  in  the  Corporation  shall  till  the  Corporation  remains  dissolved  and  is 

reconstituted shall vest in and devolve upon the Government.‖. 

14 

 
 
 
After section 424, insert― 

“424A. Application of the Capital of Punjab (Development and Regulation) Act, 1952 and 
the Punjab New Capital (Periphery) Control Act, 1952.―Notwithstanding anything contained in 
this  Act,  the  provisions  of  the  Capital  of  Punjab  (Development  and  Regulation)  Act,  1952  (Punjab 
Act XXVII of 1952) and of the Punjab New Capital (Periphery) Control Act, 1952 (Punjab Act 1 of 
1952)  and  the  rules,  regulations,  bye-laws,  notifications,  orders,  scheme,  form  or  notice,  made 
thereunder shall continue to be applicable in relation to the development and regulation of the Union 
territory  of  Chandigarh  as  immediately  before  the  commencement  of  the  Punjab  Municipal 
Corporation Law (Extension to Chandigarh) Act, 1994.‖. 

After section 428, insert― 

‗428A.  Special  provision  as  to  transferred  functions.―(1)  In  this  section  ―transferred 
functions‖  means  such  functions  of  the  administration  which  on  the  commencement  of  the  Punjab 
Municipal  Corporation  Law  (Extension  to  Chandigarh)  Act,  1994,  become  the  functions  of  the 
Corporation. 

(2)  On  and  from  the  commencement  of  the  Punjab  Municipal  Corporation  Law  (Extension  to 

Chandigarh) Act, 1994,― 

(a)  all  stores,  articles  and  other  movable  properties  belonging  to  the  administration 
immediately  before  the  specified  date  and  utilised  for  or  in  connection  with  the  transferred 
functions shall pass to and vest in the Corporation; 

(b) all appointments, notifications, orders, schemes, rules, forms, notices or bye-laws made or 
issued  or  any  licence  or  permission  granted  by  the  administration  immediately  before  such 
specified date in connection with the transferred functions shall continue in force and be deemed 
to have been made, issued or granted by the Corporation unless and until they are superseded by 
any appointment, notification, order, scheme, rule, form, notice or bye-law made or issued or any 
licence or permission granted by the Corporation; 

(c) all debts, obligations and liabilities incurred, all contracts entered into and all matters and 
things engaged to be done by, with or for the administration immediately before such specified 
date for or in connection with the transferred functions shall be deemed to have been incurred, 
entered into, engaged to be done by, with or for, the Corporation; 

(d)  all  assessments,  valuations,  measurements  or  divisions  made  by  the  administration 
immediately  before  such  commencement  or  in  connection  with  the  transferred  functions  shall 
continue in force and be deemed to have been made by the Corporation unless and until they are 
superseded by any assessment, valuation, measurement or division made by the Corporation; 

(e) all rates, taxes, fees, rents and other sums of money due to the administration in relation to 
the transferred functions immediately before such commencement shall be deemed to be due to 
the Corporation; 

(f) all rates, fees, rents and other charges leviable in, or in relation to, the transferred functions 
shall, unless and until they are carried by the Corporation continue to be levied at the same rate at 
which they are being levied by the administration immediately before such commencement; 

(g) all suits and transactions and other legal proceedings instituted or which might have been 
instituted by or against the administration immediately before such commencement for any matter 
in  relation  to  the  transferred  functions  may  be  continued  or  instituted  by  or  against  the 
Corporation; 

(h)  every  officer  and  other  employee  serving  under  the  administration  immediately  before 
such  commencement  in  connection  with  the  transferred  functions  shall  be  transferred  to  and 

15 

 
become an officer or other employee of the Corporation with such designation as the Corporation 
may determine and hold office by the same tenure and at the same remuneration and on the same 
terms and conditions of service as he would have held the same if the Corporation had not been 
established and shall continue to do so unless and until such tenure, remuneration and terms and 
conditions are duly altered by the Corporation: 

Provided that the tenure, remuneration and terms and conditions of service of any such officer or 
other  employee  shall  not  be  altered  to  the  disadvantage  without  the  previous  sanction  of  the 
Administrator: 

Provided further that the Corporation may employ any such officer or employee in the discharge 
of  such  functions  as  it  may  think  proper  and  every  such  officer  or  other  employee  shall  discharge 
those functions accordingly. 

(3)  As  soon  as  may  be  after  the  commencement  of  the  Punjab  Municipal  Corporation  Law 

(Extension to Chandigarh) Act, 1994, the Administrator shall decide,― 

(a)  which  stores,  articles  and  other  movable  properties  referred  to  in  clause  (a)  of                    

sub-section (2) have been utilised by the administration for or in connection with the transferred 
functions; 

(b) which debts, obligations, liabilities, contracts, matters and things referred to in clause (c) 
of the said sub-section have been incurred, entered into, or engaged to be done by, with or for the 
administration or in connection with the transferred functions; 

(c)  which  officers  and  other  employees  referred  to  in  clause  (h)  of  that  sub-section  served 

under the administration in connection with the transferred functions.‘. 

Omit section 431. 

Omit Schedule I. 

Third Schedule.―Omit ―sections 258, 259 (1), 260 (1), 263 (4), 265, 266 (1) and (2), 268, 269, 270, 
271, 272 (1) and (2), 273 (1), (2) and (3) and section 274 (1), and the entries there against in the second, 
third and fourth columns‖. 

AMENDMENT OF THE CAPITAL OF PUNJAB (DEVELOPMENT AND REGULATION) ACT, 1952 

For section 7A, substitute― 

(PUNJAB ACT  No. XXVII OF 1952) 

“7A. Power to apply certain provisions of Punjab Act 42 of 1976 to Chandigarh.―(1) The 
Chief  Administrator  may,  from  time  to  time  by  notification  in  the  Official  Gazette,  and  with  the 
previous approval of the Administrator of the Union territory of Chandigarh, apply to Chandigarh or 
any  part  thereof  with  such  adaptations  and  modifications  not  affecting  the  substance  as  may  be 
specified  in  the  notification,  all  or  any  of  the  provisions  of  the  Punjab  Municipal  Corporation  
Act, 1976 (Punjab Act 42 of 1976), in so far as such provisions are applicable to Chandigarh. 

(2) While exercising the powers or performing the functions under the provisions of the Punjab 
Municipal  Corporation  Act,  1976  (Punjab  Act  42  of  1976)  applied  to  Chandigarh  by  a  notification 
under sub-section (1), the Chief Administrator shall be subject to the control of the Administrator and 
not to that of the Commissioner or Deputy Commissioner. 

(3)  Notwithstanding  the  substitution  of  section  7A  of  the  Capital  of  Punjab  (Development  and 
Regulation)  Act,  1952  (hereinafter  referred  to  as  substituted  section)  the  substituted  section  shall 
not― 

16 

 
(a) affect the previous operation of the substituted section or anything duly done or suffered 

thereunder; or 

(b) affect any right, privilege, obligation or liability acquired accured or incurred under the 

substituted section; or 

(c) affect any penalty, forfeiture or punishment incurred in respect of any offence committed 
against substituted section; affect any investigation, legal proceedings or remedy in respect of any 
such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid and any 
such investigation, legal proceedings or remedy may be instituted, continued or enforced, and any 
such  privilege,  forfeiture  or  punishment  may  be  imposed  as  if  this  substitution  has  not  been 
made.‖. 

17 

 
