PUNJAB MANAGEMENT AND TRANSFER OF MUNICIPAL PROPERTIES ACT, 2020 THE PUNJAB MANAGEMENT AND TRANSFER OF
MUNICIPAL PROPERTIES ACT, 2020 [Act No. 08 of 2020] [20th March, 2020] An Act to provide for inclusive and sustainable delivery of
basic civic services in municipal towns and cities of the State of Punjab by
unlocking and optimal utilization of resources namely the land and buildings
and for the matters connected therewith or incidental thereto. BE it
enacted by the Legislature of the State of Punjab in the Seventy-first Year of
the Republic of India as follows:- (1)
This Act may be called the Punjab Management
and Transfer of Municipal Properties Act, 2020. (2)
It shall extend to the whole of the State of
Punjab. (3)
It shall come into force on and with effect
from the date of its publication in the Official Gazette. In
this Act, unless the context otherwise requires,- (a)
"basic civic services" means
services of drinking water supply, drainage, sewerage, solid waste disposal,
street lighting and improvement of environment as provided by a Municipality; (b)
"building" means a house,
out-house, stable, shed, hut and other enclosed structure, whether of masonry
bricks, wood, mud, metal or any other material whatsoever, whether used as
human dwelling or otherwise and also includes verandahs, fixed platforms,
plinths, door-steps, electric meters, walls including compound walls and
fencing and the like, but does not include plant or machinery comprised in a
building; (c)
"Collector" means the Deputy
Commissioner and includes an Additional Deputy Commissioner or Commissioner,
Municipal Corporation or any officer specially appointed by the Government to
perform the functions of a Collector under this Act; (d)
"Government" means the Government
of Punjab in the Department of Local Government; (e)
"Municipality" means an institution
of local self-government as defined in the Punjab Municipal Act, 1911 or the
Punjab Municipal Corporation Act, 1976 or Improvement Trust incorporated or
constituted under the Punjab Town Improvement Act, 1922; (f)
"municipal property" means the land
and building owned by a Municipality; (g)
"occupant" means a person occupying
the property owned by a Municipality in an authorized or unauthorized manner; (h)
"Officer of the Municipality" means
the Commissioner under the Punjab Municipal Corporation Act, 1976 or the
Executive Officer under the Punjab Municipal Act, 1911 or the Executive Officer
under the Punjab Town Improvement Act, 1922, as the case may be; (i)
"prescribed" means prescribed by
rules made under this Act; (j)
"relative" means a person as
defined in clause (77) of section 2 of the Companies Act, 2013; (k)
" specified" means specified by
notification by the Government in the Official Gazette; (l)
"tenant" means a person to whom the
municipal property has been rented or leased out; (m)
"transfer" means sale or lease of a
municipal property for a price or rent; (n)
"Tribunal" means the Tribunal
constituted under section 17 of this Act; (o)
"urban area" means the area
comprised within the limits of a Municipality; and (p)
words and expressions used but not defined in
this Act shall have the same meaning as assigned to them in the Punjab
Municipal Act, 1911 or the Punjab Municipal Corporation Act, 1976 or the Punjab
Town Improvement Act, 1922. Notwithstanding
anything contained in any law for the time being in force enacted by the State
of Punjab, every Municipality shall cause- (a)
all municipal properties to be identified and
entered into a Property Register in such manner as may be specified by the
Government; (b)
all municipal properties to be demarcated and
notified for the information of the general public; (c)
the name and address of the tenant or an
occupant, whether authorized or unauthorized, along with the details of the municipal
property under the possession of such an occupant, to be notified for the
information of the general public; and (d)
to follow Government orders on Asset
Management Policy and Capital Investment Plan. Notwithstanding
anything contained in any law for the time being in force enacted by the State
of Punjab, a Municipality may transfer a municipal property in a transparent
manner through an open e-auction in the case of commercial properties and
through draw of lots in the case of residential properties. In case of other
properties, the Municipality shall follow the directives of the Government as
specified from time to time: Provided
that open e-auction and draw of lots shall be conducted in such manner as laid
down under this Act. (1)
Notwithstanding anything contained in any law
for the time being in force enacted by the State of Punjab, a Municipality may
vest the proprietary rights of a municipal property in a tenant or an occupant
of such a municipal property at a price determined by the Price and Rent
Fixation Committee constituted for this purpose under section 7 of this Act and
upon satisfaction of such conditions as may be specified by the Government from
time to time: Provided
that a tenant or an occupant has been in continuous possession of such a
municipal property for at least twelve years: Provided
further that a tenant or an occupant should not be or should not have been an
employee of the Municipality or Department of Local Government or an elected
member of the Municipality or his relative or Member of Parliament or his
relative or a Member of the Punjab Legislative Assembly or his relative. (2)
A tenant or an occupant shall furnish
necessary proof in the form of electricity meter connection or water supply
connection or ration card or any other Government issued document showing that
the municipal property sought to be vested was in his continuous possession for
the last twelve years. (3)
A municipal property vested in a tenant or an
occupant in accordance with this section shall not be sold or leased or
mortgaged with possession, wholly or partially, or otherwise alienated, in any
manner, for a period of twenty years, other than by way of inheritance or by
way of pledging or mortgaging such a property in favour of the State Government
or Semi-Government Organizations or Banks for securing loan for effecting
improvements on the said property, (4)
A tenant shall be liable to pay arrear of lease
rent, if any, due to the municipality along with due price before the
proprietary rights are vested in him. (1)
No person, who has been transferred a
municipal property on rent through a written agreement by a Municipality, shall
sublet the same to another person. (2)
In case a municipal property is sublet by the
tenant, the Municipality shall cancel such a tenancy or lease forthwith and
such property shall vest to the Municipality without any notice to the tenant
or an occupant. (3)
In case of death of a tenant, the tenancy or
lease rights of such a municipal property may be vested in the legal heir(s) of
the deceased tenant: Provided
that such a legal heir(s) undertakes in writing to agree with the terms and
conditions of the tenancy or lease agreement. (1)
The Government shall constitute a Price and
Rent Fixation Committee for every district in the State of Punjab to determine
the reserve price or rent of a municipal property which a Municipality intends
to transfer under the provisions of this Act. (2)
The Price and Rent Fixation Committee shall
be headed by the Collector and which shall also consist of the following
members, namely:- (a)
the Members of Parliament, and all Members of
the Punjab Legislative Assembly or their nominee whose constituency comprises
part or whole of the area of the Municipality; (b)
Mayor or President of the Municipality; and (c)
Officer of the Municipality, duly deputed by
the Government. (3)
The price of the municipal property
determined by the Price and Rent Fixation Committee and duly approved by the
Government shall be commensurate with the prevailing Collector rate. (4)
The lease money or the rent of a municipal
property shall be the rate fixed by the Price and Rent Fixation Committee as
duly approved by the Government or the price discovered by a Municipality
through an open e-auction, whichever is higher. (5)
The lease money or the rent of a municipal
property determined in sub-section (3) shall be enhanced by at least five per
cent every year. (6)
The price determined by the Price and Rent
Fixation Committee for commercial municipal property as duly approved by the Government shall be the reserve price for auction of such
property. (7)
The rent fixed by the Price and Rent Fixation
Committee for residential municipal property as duly approved by the Government
shall be the lease money or rent for such municipal property. (8)
Wherever a municipal property has been under
continuous lease or occupation for a period of twelve years or more, and is
intended to be transferred to the tenant or occupant, the price shall be fixed
in the following manner, namely:- (i)
for Economically Weaker Sections (EWS),
having an annual income not more than rupees three lakhs, at the rate of 12.5
per cent of the Collector Rate; (ii)
for Lower Income Groups (LIG), having an
annual income more than rupees three lakhs but not more than rupees eight
lakhs, at the rate of 25 per cent of the Collector rate; (iii) for Medium Income Groups (MIG), having an annual income
more than rupees eight lakhs but not more than rupees fifteen lakhs at the rate
of 50 per cent of the Collector rate; (iv)
for High Income Groups (HIG), having an
annual income more than rupees fifteen lakhs, at the Collector rate; (v)
for the aforesaid purpose, proof of Income
shall be the Income Tax Return filed by a tenant or an occupant of the previous
year of the year in which the transfer is to be made. In case a tenant or an
occupant is not required to file Income Tax Return, in that case, he shall get
an income certificate issued from the Sub-Divisional Magistrate of the area
concerned; and (vi)
for categories referred to as items (i), (ii)
and (iii), the municipal property only up to fifty square metres shall be
transferred at the rate specified therein. However, if the municipal property
occupied is more than fifty square metres then on the area of municipal
property beyond fifty square metres, collector rate shall be payable. (1)
Every auction of a municipal property under
this Act shall be done through e-auction and shall be subject to a reserve
price determined under section 7 of this Act. (2)
The Officer of the Municipality shall cause
to publish a public notice of the intention of the Municipality to auction a
municipal property: Provided
that no auction shall be conducted until the expiry of at least thirty days
from the publication of such a notice. (3)
Every notice issued under sub-section (2)
shall give clear details of the municipal property, including its reserve
price, location and size in addition to the terms and conditions of the
auction: Provided
that the Government may prescribe any or all of the terms and conditions of the
auction, and such terms and conditions, shall be clearly mentioned in the
notice. (4)
Notwithstanding anything contained in this
section, where it is observed that the prospective bidders have come to a tacit
understanding to depress the bid price, the Municipality may, after recording
reasons in writing and with the prior approval of the Government, invite sealed
bids in place of an e-auction. (1)
A Municipality may transfer a residential
municipal property on rent or allot it through a draw of lots. (2)
The Officer of the Municipality shall cause
to publish a public notice of the intention of the Municipality to transfer a
municipal property through a draw of lots: Provided
that no such transfer by draw of lots shall be allowed until the expiry of at
least thirty days from the publication of such a notice. (3)
Every notice issued under sub-section (2)
shall give clear details of the municipal property, including its price,
location and size in addition to the terms and conditions of the draw of lots: Provided
that the Government may prescribe any or all of the terms and conditions of the
draw of lots and such terms and conditions shall be clearly mentioned in the
notice. (1)
Where a Municipality has decided to transfer
a municipal property, it shall execute a registered agreement or a deed,
clearly giving the terms and conditions of the transfer. (2)
Every agreement executed by a Municipality
for transfer of property under this Act shall have appropriate penal clauses as
specified in the agreement and in keeping with the provisions of this Act. (3)
The Municipality shall have the right to get
the municipal property vacated in case the agreement executed by it, is
violated in any manner by the person in whose favour the municipal property has
been transferred. In
case a Municipality has decided to transfer its property to a tenant on rent,
such a tenant shall be liable to pay the agreed rent as per terms and
conditions of the agreement: Provided
that where the tenant fails to pay the agreed rent for three months in a row,
he shall be liable to vacate the municipal property forthwith without any
notice and possession of such municipal property shall be deemed to have
reverted to the Municipality. (1)
In case a Municipality decides to transfer a
municipal property in accordance with the provisions of this Act, it shall
identify and prepare a list of such properties, clearly giving details of their
measurements, locations, occupants or tenants. (2)
Every list of municipal property prepared
under sub-section (1), shall be notified for the information of the general
public before these are transferred in accordance with the provisions of this
Act. (1)
A Municipality desirous of transferring a
municipal property in accordance with the provisions of this Act shall pass a
resolution to this effect: Provided
that no such resolution of a Municipality shall be valid unless it is approved
by at least two third of the total elected members of the Municipality. (2)
Every resolution of the Municipality passed
under sub-section (1) shall be sent to the Government for approval. (3)
The Government may, upon receipt of a
resolution of the Municipality under sub-section (2), accord its approval or
disapproval, for reasons, to be recorded in writing: Provided
that the Government shall convey its approval or disapproval within sixty days
of the receipt of such a resolution from a Municipality, failing which the
resolution shall be deemed to have been approved. (1)
In the case of transfer of a municipal
property through auction or draw of lots by a Municipality, the transferee
shall be required to pay the price as per terms and conditions of such a
transfer. (2)
In the case of transfer of a property to a
tenant or an occupant, the Municipality shall communicate the decision to
transfer the property to him in accordance with the provisions of this Act
within fifteen days of the approval of the resolution of the Municipality to
this effect by the Government. (3)
In case a Municipality decides to transfer ownership
of a municipal property to its tenant or occupant at a price fixed by the Price
and Rent Fixation Committee in accordance with the provisions of this Act, the
transferee shall give his consent for the same in writing within fifteen days
of receipt of communication of such a decision of the Municipality. (4)
Any tenant or occupant, who has given his
consent under sub-section (3) shall be required to make payment of due price in
following manner, namely:- (a)
fifty per cent of the amount within one week
from the date of issue of letter of decision of transfer by the Municipality; (b)
balance amount within two months of date of
issue of letter of decision of transfer; (c)
in case the occupier chooses to pay the whole
amount in lump sum within one week from the date of issue of letter of decision
of transfer, he shall be entitled to a rebate of five percent on the whole
amount; (d)
if the property is in the name of women or a
person above the age of sixty-five years then rebate of ten per cent shall be
given on lump sum payment; and (e)
if the due price is not paid by due dates,
interest at the rate of twelve percent per annum shall be charged on the due
price for the period of delay, for not more than ninety days. Thereafter, the
concerned Municipality shall proceed with the eviction of the property.
However, the interest shall continue to be levied till the date actual
possession is taken by the Municipality. (1)
Where a tenant or an occupant of a municipal
property, which the Municipality has decided to transfer in accordance with the
provisions of this Act, refuses to accept the transfer or fails to pay the
price, he shall be liable to vacate such municipal property within three months
of such refusal or failure. (2)
In case a tenant or an occupant fails to
vacate the property in accordance with the provisions of sub-section (1), the
Municipality shall proceed to get the property vacated by making a reference to
the Tribunal constituted under this Act. (1)
Where a Municipality transfers a municipal
property to a tenant or an occupant under the provisions of this Act, a letter
of intent to transfer the property shall be issued by the Municipality. (2)
Every such person, who has been issued a
letter of intent to transfer the property by a Municipality, shall be eligible
to get the property registered in his name on full payment of price and past
arrears, if any. (3)
Where a tenant or an occupant of a municipal
property, given to him for a specific purpose, uses the same for a purpose
other than that for which it was given, he shall be liable to vacate the
property immediately and deed of transfer of such property shall be deemed to
have been cancelled, notwithstanding any other law for the time being in force
enacted by the State of Punjab. (4)
Where a municipal property is occupied by a
person or persons other than a tenant or an occupant, such person or persons
shall be liable to vacate the property immediately. The Municipality shall
initiate legal proceedings under the Code of Criminal Procedure, 1973 against
such person or persons and shall further initiate eviction proceedings by
making a reference to the Tribunal constituted under this Act. (1)
The Government shall constitute a Tribunal or
authorise any officer or officers or do both for the purpose of deciding
references or appeal against the order of the Municipality as may be made to it
by the Municipalities or by a tenant or an occupant in the State of Punjab, as
the case may be, under the provisions of this Act. (2)
The Tribunal shall consist of a President and
two other members to be nominated by the Government. (3)
The President of the Tribunal shall be a
retired or serving Judge of the Punjab and Haryana High Court or a retired or
serving officer not below the rank of a Financial Commissioner or Principal
Secretary to the Government of Punjab: Provided
that no person shall be eligible for appointment as the President of the
Tribunal if he is or has been elected or nominated as a member of any
Municipality in the State of Punjab: Provided
further that no person shall be eligible for appointment as the President of
the Tribunal, if he has attained the age of seventy years. (4)
The member of the Tribunal shall be a person
who has experience of dealing with matters and laws governing the
Municipalities for at least ten years and bears a good moral character or is a
retired or serving officer not below the rank of a Secretary to the Government
of Punjab: Provided
that no person shall be eligible for appointment as a member of the Tribunal,
if he is or has been elected or nominated as a member of any Municipality in
the State of Punjab: Provided
further that no person shall be eligible for appointment as the Member of the
Tribunal if he has attained the age of seventy years. (5)
The term of office of the President and
members of the Tribunal shall be two years: Provided
that upon the expiry of the term of two years, the President or the Member may
be reappointed for a further period of two years. (6)
The Government may remove the President or a
Member of the Tribunal if such President or Member ? (i)
refuses to act, or becomes, in the opinion of
the Government, incapable of acting as such; or (ii)
has been declared insolvent; or (iii) has been convicted of any such offence or subjected by a
Criminal Court to any such order which in the opinion of the Government,
implies a defect of character and which makes him unfit to continue as a
President or a Member of the Tribunal; or (iv)
has been declared by notification to be
disqualified for employment or has been dismissed from public service and the
reason for such disqualification or dismissal is, in the opinion of the State
Government, a defect of character which makes him unfit to be a President or a
Member of the Tribunal. (7)
The terms and conditions of the appointment
of a President or a Member of the Tribunal shall be such as may be specified by
the Government. (1)
Wherever a municipal property is under
unauthorized occupation, the Officer of the Municipality shall make a reference
for eviction of such unauthorized occupants to the Tribunal or officer
authorised under section 17 of this Act. (2)
The Tribunal or officer shall pass an
appropriate order within sixty days from the date of receipt of a reference
referred to in subsection (1). (3)
An eviction order passed by the Tribunal or
officer shall be final. (4)
Every order of the Tribunal or officer
directing eviction of an unauthorized occupant shall be sent to the Collector
for execution. (5)
Upon receipt of an order referred to in
sub-section (4), the Collector, or any other officer not below the rank of an
Executive Magistrate authorized by him in this behalf, shall cause such order
to be executed, within thirty days of the receipt of such an order. (6)
Pursuant to the vacation of a property in
compliance with the orders of the Tribunal or officer, the officer of the
Municipality shall get such a property demarcated and notified as a municipal
property under section 3 of this Act. If any
difficulty arises in giving effect to the provisions of this Act, the
Government may, by order, duly published in the Official Gazette, make such
provisions, not inconsistent with the provisions of this Act, as may appear to
it to be necessary or expedient for the removal of the difficulty. The
Government may, by notification in the Official Gazette, make rules for carrying
out the purposes of this Act. No
civil court shall have jurisdiction to entertain any suit or proceeding in
respect of any matter for which an authority or Tribunal is empowered to take
action in pursuance of any power conferred under this Act. No
suit, prosecution or legal proceedings shall lie against the Government or
President or Member of the Tribunal or a Municipality or against any officer or
employee of the Government or a Municipality in respect of anything done or
intended to be done in good faith in pursuance of this Act or the rules made
there under. Every
Municipality, which has transferred any municipal property in accordance with
this Act, shall submit quarterly reports to the Government, clearly giving
details of the municipal property transferred and names and addresses of the
persons to whom these have been transferred: Provided
that the Government may, at any time seek such other information as may be
required with regard to any action taken or mandated under this Act as may be necessary in larger public
interest. Save
as otherwise provided in this Act, no action of the Government or a
Municipality with regard to transfer or management of any municipal property
under any of the earlier law, rules, schemes or instructions, shall be declared
invalid merely on the ground of enactment of this Act. Provided
that any action with regard to transfer or management of any municipal
property, which is in process at the time of enactment of this Act, shall be
pursued further in accordance with the provisions of this Act. On and
after the commencement of this Act, all notifications, instructions or schemes
related to transfer and management of municipal property issued by the
Government under any other law, including the Punjab Municipal Act, 1911, the
Punjab Municipal Corporation Act, 1976 and the Punjab Town Improvement Act,
1922, shall stand superseded.
Preamble - PUNJAB MANAGEMENT AND TRANSFER OF
MUNICIPAL PROPERTIES ACT, 2020PREAMBLE