THE PUNJAB LOCAL GOVERNMENT ACT 2019

(Act XIII of 2019)

C O N T E N T S

 

Section                                               Heading

 

PART 1

PRELIMINARY

Chapter I – Applicability and Interpretation

 

           1.      Short title, extent and commencement.

           2.      Definitions.

 

Chapter II – Succeeding Local Governments and their General Responsibility

 

           3.      Dissolution of existing local governments.

           4.      Succession of the defunct local governments.

           5.      General authority and responsibility of a local government.

           6.      Local governments to work within the Provincial framework.

           7.      Certain matters to be prescribed.

 

PART 2

CONSTITUTION AND FUNCTIONING OF LOCAL GOVERNMENTS

 

Chapter III – Local Areas

 

           8.      Demarcation of local areas.

           9.      Classification of urban local areas.

           10.    Change of name of a local area.

           11.    Periodic review of local areas.

           12.    Power of the Government to direct special reviews.

           13.    Procedure for review of local areas.

           14.    Changes in the limits and re-classification of local areas.

 

Chapter IV – Local Governments

 

           15.    Constitution of local governments.

           16.    Name of a local government.

           17.    Division, amalgamation or re-classification of local governments.

 

Chapter V – Composition of Local Governments

 

           18.    Local government structure.

           19.    Composition of the head’s cabinet.

           20.    Representation of councillors in the councils.

 

Chapter VI – Functions of Local Governments

 

           21.    Responsibility of local governments.

           22.    Assignment of additional responsibilities by Government.

           23.    Extent of Government control on functions of the local governments.

           24.    Discharge of functions by local governments.

           25.    Delegation of functions to Panchayats and Neighbourhood Councils.

           26.    Agency arrangements.

           27.    Appointment of an undertaker by Government.

           28.    Delegation of functions etc. and agency arrangements not to diminish responsibility of a local government.

           29.    Quality and accessibility of public services.

 

Chapter VII – Joint Authorities

 

           30.    Establishment of joint authorities by voluntary action.

           31.    Subsequent joining of a local government.

           32.    Power of the Government to establish joint authority in relation to certain functions.

           33.    Operating Officer of a joint authority.

           34.    Joint committees to oversee and direct functions of joint authorities.

           35.    Expenses of a joint authority how defrayed.

           36.    Assets etc. of a joint authority.

           37.    Dissolution of a joint authority.

           38.    Succession of a joint authority.

 

Chapter VIII – Authority of Local Governments

 

           39.    Extent of authority of local governments.

           40.    Manner of exercise of authority by a local government.

           41.    All acts and orders to be taken or made in the name of local government.

 

Chapter IX – Duties of Certain Functionaries

 

           42.    Duties and powers of a head of the local government.

           43.    Duties and powers of a convenor.

           44.    Duties of a councillor.

           45.    Duties and powers of Chief Officer.

           46.    Attendance of council meetings etc. by Chief Officer.

           47.    Duty of Chief Officer etc. in case of an illegal order or instruction.

           48.    Personal responsibility for acts done and expenditure incurred without lawful authority.

 

Chapter X – Contracts

 

           49.    Principles governing contracts.

           50.    Form of contract.

           51.    Power to make contract.

           52.    Validity of a contract.

 

Chapter XI – Meetings of the Council

 

           53.    Disposal of business of a local government.

           54.    Business of the council to be disposed of at meetings.

           55.    Decisions at the meetings how made.

           56.    Ordinary, special and emergency meetings.

           57.    Presiding over of council meetings.

           58.    Quorum of council meetings.

           59.    Frequency of council meetings.

           60.    Councillors, members and certain other persons to abstain from meetings on account of personal interest.

           61.    Vacancy or defect in membership not to effect power of a council to act.

           62.    Right of public to attend council and committee meetings.

           63.    Preservation of order at council meetings.

           64.    Record of proceedings of meetings.

           65.    Indemnity of councillors in relation to anything said in proceedings of a meeting.

           66.    Defraying of expenses in relation to meetings.

           67.    Bye-laws for meetings.

 

Chapter XII – Committees and Sub-committees of the Council

 

           68.    Appointment of committees and sub-committees.

           69.    Membership of a committee or a sub-committee.

           70.    Requirement of political balancing in the committees.

           71.    Cessation of a committee or sub-committee.

           72.    Cessation of membership of a committee or sub-committee on loss of membership of council.

           73.    Exemption from personal liability of a member who is not a member of local government.

           74.    Bye-laws for committees and sub-committees.

           75.    Certain provisions of Chapter XI to apply to committees and sub-committees.

 

PART 3

ELECTIONS, TERM OF OFFICES AND RELATED MATTERS

 

Chapter XIII – Authority for Local Government Elections

 

           76.    Election Commission to conduct local government elections.

           77.    Duty of Election Commission to consider certain matters brought to its notice.

           78.    Election Commission to report on elections and certain other matters.

           79.    General powers of the Election Commission.

           80.    All authorities and persons to assist the Election Commission.

           81.    Delegation of powers etc.

           82.    Election Commission to regulate its own procedure.

 

Chapter XIV – Election Method, Franchise and Related Matters

 

           83.    Election method in general.

           84.    Electoral units.

           85.    Review and reconstitution of electoral units.

           86.    Procedure for constitution of electoral units.

           87.    Electoral rolls.

           88.    Electoral rolls to be open to inspection and purchase.

           89.    Right to enrolment as a voter.

           90.    Right to vote.

 

Chapter XV – Conduct of Elections

 

           91.    Notification of election date and call up for election.

           92.    Only nominated and eligible persons allowed to contest elections.

           93.    Polling stations and appointment of electoral officers.

           94.    All political parties, electoral groups and candidates allowed to appoint election and polling agents.

           95.    Rights and power of an election agent or polling agent.

           96.    Code of Conduct for elections.

           97.    Returned candidates.

           98.    Election to be called in question only before Election Tribunal within forty-five days of declaration of results.

           99.    Election Tribunal.

           100.  Powers of the Election Tribunal.

           101.  Procedure for hearing of an election petition.

           102.  Decision of Election Tribunal and right of appeal.

           103.  Ground for declaring the election of a returned candidate void.

           104.  Declaration of a person other than a returned candidate as elected.

           105.  Declaration of an election as a whole void.

           106.  Notification of election, resignation and removal of the head of the local government, convenor and councillors.

           107.  Limit of election expenses and consequences of exceeding such limit.

           108.  Duty to declare election expenditure and consequences of failure.

 

Chapter XVI – Qualifications and Term of Office of Councillors

 

           109.  Qualification for being a candidate and to hold the office of head of the local government, convenor or councillor.

           110. Defection from a political party or electoral group.

           111.  Effect of being found to be disqualified to be candidate, head of the local government, convenor or councillor.

           112.  Bar against double membership and requirement to tender resignation to contest for certain other political offices.

           113.  Term of office of the council, head of the local government, convenor and councillors.

           114.  Oath of office and submission of declaration etc.

           115.  Every head of the local government, convenor and councillor to declare assets annually.

           116.  Effect of failure to take oath or submit declaration.

           117.  Resignation by a head of the local government, convenor or councillor.

           118.  Fresh elections in case of vacancy in the office of the head of the local government.

           119.  Filling of casual vacancies of convenor and councillors.

           120.  Temporary accession to the office of a head of the local government and convenor.

           121.  Power of the Government to appoint an administrator.

 

PART 4

LOCAL GOVERNMENT FINANCE AND PROPERTIES

 

Chapter XVII – Local Government Funds

 

           122.  Funds of a local government.

           123.  Credit of moneys to a local fund.

           124.  Application of local fund.

           125.  Credit of monies to public fund.

           126.  Application of public fund.

           127.  Custody of funds.

           128.  Investment of surplus funds.

           129.  Cognizance of wrongful application of moneys.

 

Chapter XVIII – Local Government Budget

 

           130.  Legal basis for local government expenditure

           131.  Submission of estimates of receipt and expenditure by head of the local government and its approval.

           132.  Government to certify estimates if not approved by a local government.

           133.  Revision of the approved estimates.

           134.  Duty of a local government to readjust income and expenditure in certain cases.

           135.  Receipts to always exceed the expenditure of local governments.

           136.  Ring fencing of expenditure of local governments.

           137.  Authority of the Government to review approved estimates.

           138.  Advance notification of provisional amounts by Finance Commission.

 

Chapter XIX – Borrowing by Local Governments

 

           139.  Power of a local government to borrow money for certain purposes.

           140.  Conditions precedent for approval of a loan and methods of borrowing.

           141.  Local Development Fund.

           142.  Limits on authority of local government to borrow moneys.

           143.  Application of sums raised by borrowing.

           144.  Repayment of borrowed moneys.

           145.  Sinking fund.

           146.  Investment of sinking fund.

           147.  Inspection of sinking funds and payment of any deficient amounts by local government.

           148.  Attachment of local fund in default of repayment of loan.

           149.  Annual statement of moneys borrowed.

 

Chapter XX – Local Government Properties

 

           150.  Local government properties.

           151.  Application of local government properties.

           152.  Disposal of local government properties.

           153.  Resumption of a property by the Government.

           154.  Annual stock take of local government properties.

           155.  Insurance of certain local government properties.

 

 

Chapter XXI – Local Government Taxes, Fees, Rates and Tolls

 

           156.  Authority of a local government to levy taxes etc

           157.  Procedure for imposition, revision or abolishment of a local tax etc.

           158.  Date on which local taxes etc. become effective.

           159.  Rating areas and property tax.

           160.  Power of the Finance Commission in case of unfair local taxes etc.

           161.  Duty to furnish information on liability to local tax etc.

           162.  Power of entry for the purpose of valuation of local taxes etc.

           163.  Presentation of bill for local taxes and rates.

           164.  Notice of demand to be issued on non-payment of bill.

           165.  Payment of local tax etc. subsequent to receipt of bill or notice of demand and consequences of default.

           166.  Investigation of objections by Chief Officer.

           167.  Opportunity to make appeal against the determination of Chief Officer.

           168.  Liability for local tax etc. to be called in question only under this Act.

           169.  Payments to be made in authorized banks against receipts.

           170.  Writing off of irrecoverable taxes etc.

           171.  Tax etc. not to become invalid for defect in form.

           172.  Records pertaining to valuation, assessment and collection of local tax etc.

           173.  Authority of the Government to appoint any of its agency or officer for local tax collection.

 

Chapter XXII – Local Government Finance Commission

 

           174.  Establishment of Local Government Finance Commission.

           175.  Term of office and premature removal of certain members.

           176.  Casual vacancies.

           177.  Eligibility for appointment as an expert or a member representing heads of the local governments.

           178.  Certain restrictions to apply on subsequent employment of an expert member.

           179.  Oath of office of members of Finance Commission.

           180.  General functions of the Finance Commission.

           181.  Right of local governments to refer objections to Finance Commission.

           182.  Procedure of Finance Commission.

           183.  Duty of local governments and other public entities etc. to cooperate with Finance Commission.

           184.  Secretariat of the Finance Commission.

 

Chapter XXIII – Inter-governmental Fiscal Transfers

 

           185.  Provincial allocable amount and transfers to the local governments.

           186.  Process for determination of provincial allocable amount and share of individual local governments.

           187.  Duty of Finance Commission to consider views of Government and local governments.

           188.  Term of formulae on share of local governments and their revision.

           189.  Principles for determining provincial allocable amount.

           190.  Principles for determining transfers to individual local governments and related grants.

 

Chapter XXIV – Local Government Accounts and Audit

 

           191.  Accounts of local governments to be kept in the prescribed manner.

           192.  Annual statement of accounts.

           193.  Monthly abstract of accounts.

           194.  Authority for audit of local government accounts.

           195.  Extra-ordinary audits.

           196.  Audit reports.

           197.  Consideration of audit report and duty to remedy defects.

           198.  Authority of Auditor General to inspect documents etc.

           199.  Punishment for obstruction etc. in the audit.

           200.  Statement of accounts and audit reports to be made public.

           201.  Audit fees.

 

PART 5

ACCOUNTABILITY, OVERSIGHT AND RESPONSIVENESS

 

Chapter XXV – Internal Controls

 

           202.  Power of the council to remove a head of the local government and convenor.

           203.  Certain limitations to apply in bringing a resolution for removal of a head of local government and convenor.

           204.  Oversight through committees of the council.

           205.  Internal inspections.

           206.  Internal inquiries.

 

Chapter XXVI –Continuous Supervision of Local Governments

 

           207.  Inspectorate of Local Governments.

           208.  Yearly inspections.

           209.  Special inspections.

           210.  Powers of the person inspecting a local government.

           211.  Local governments to take action on inspection report.

 

Chapter XXVII – Responsiveness to Citizens Needs

 

           212.  Duties of local governments towards residents of local area.

           213.  Requirement to consult residents in certain cases.

           214.  Community initiatives.

 

Chapter XXVIII – Transparency

 

           215.  General rules of conduct.

           216.  Conflict of interest.

           217.  Duty to abstain from proceedings in case of conflict of interest.

           218.  Register of interests.

           219.  Code of Conduct for councillors, officers etc.

           220.  Misconduct.

           221.  Certain orders to be in writing or to be reduced to writing.

           222.  All orders of local government to be open to inspection.

 

Chapter XXIX – Oversight by the Government

 

           223.  Supervision of local governments.

           224.  Calling in question the legality of an order etc. of local government.

           225.  Right of certain government officers to attend local government meetings etc.

           226.  Power to call for information.

           227.  Power of the Government to inquire into complaints.

           228.  Power of the Government to suspend certain resolutions or orders and prohibit certain actions of local government.

           229.  Power of the Government to require a local government to take action.

           230.  Procedure where head of the local government fails to show cause or to take action on directions of the Government.

           231.  Power of the Government to take action on its own.

           232.  Power of the Government to suspend or remove a head of the local government, convenor or councillor.

           233.  Suspension or dissolution of a local government.

           234.  Effect of suspension or dissolution of a local government.

           235.  Reinstatement of suspended council.

           236.  Bar of suits and impact of suspension of resolution etc.

 

PART 6

COORDINATION AND CONFLICT MANAGEMENT

 

Chapter XXX – Punjab Local Government Commission

 

           237.  Establishment of Punjab Local Government Commission.

           238.  Chairperson and members of the Commission.

           239.  Term of office and premature removal of certain members.

           240.  Casual vacancies.

           241.  Eligibility for appointment of expert members.

           242.  Certain restrictions to apply on subsequent employment of an expert member.

           243.  Oath of office of members of the Commission.

           244.  Functions of the Commission and duty of the government to have regards to their reports.

           245.  Certain powers of a court to vest upon the Commission.

           246.  Procedure of the Commission.

           247.  Duty of the Government, local governments etc. to cooperate with the Commission.

           248.  Secretariat of the Commission.

 

 

Chapter XXXI – Coordination and Dispute Management

 

           249.  Inter-agency coordination.

           250.  Resolution of disputes.

 

Chapter XXXII – Planning, Development and Land Use

 

           251.  Local development plan.

           252.  Initiation of proposals for new works etc.

           253.  Approval of annual development plan.

           254.  Government to certify annual development plan if not approved by a local government.

           255.  Evaluation and approval of proposals for new works etc.

           256.  Planning guidelines.

           257.  Local Planning Board.

           258.  Duty of every local government to maintain public service infrastructure maps.

           259.  Land use planning and land use permissions.

260.  Local development and land-use plans to abide by relevant provincial and regional planning considerations.

 

PART 7

REGULATION AND ENFORCEMENT

 

Chapter XXXIII – Offences Relating to Local Government Elections

 

           261.  Prohibition to give, offer or promise illegal gratification.

           262.  Prohibition to impersonate as a voter.

           263.  Prohibition to unduly influence outcome of election.

           264.  Prohibition of certain unwarranted practices.

           265.  Canvassing on a polling day prohibited.

           266.  Disorderly conduct near polling station.

           267.  Prohibition on tampering with ballot paper etc.

           268.  Interference with the secrecy of voting prohibited.

           269.  Duty to maintain secrecy.

           270.  Conduct of officials or any other person employed in connection with election.

           271.  Breach of official duty in connection with election.

           272.  Illegal assistance to a candidate by government servants.

           273.  Prohibition of excessive expenditure on election.

           274.  Failure to correctly declare election expenditure.

           275.  Summary trial.

           276.  Cognizance of offences under this Chapter.

 

Chapter XXXIV – Municipal Offences and their Cognizance

 

           277.  Municipal offences.

           278.  Cognizance of municipal offences.

           279.  Proceedings before the enforcement officer.

           280.  Certain powers of a court to vest upon enforcement officer.

           281.  Appeal against order of an enforcement officer.

           282.  Cognizance of an offence under this Chapter by courts.

           283.  Appointment of Inspectors and Enforcement Officers.

           284.  General powers of Inspectors and Enforcement Officers.

           285.  Appointment of Municipal Magistrates.

           286.  Right of citizen not effected.

 

Chapter XXXV – Offences Relating to Good Conduct and Conflict of Interest

 

           287.  Punishment for acting dishonestly.– In addition to any punishment for this act provided for

           288.  Punishment for acting despite conflict of interest.– A person who has a conflict of interest

           289.  Punishment for failure to disclose immediate relatives etc.– A head of the local

           290.  Cognizance of an offence under this Chapter by courts.– No court shall take cognizance of

 

Chapter XXXVI – Offences Relating to Local Taxes

 

           291.  Punishment for failure to provide information on liability to tax etc.

           292.  Punishment for non-payment of tax etc.

           293.  Cognizance of offences under this Chapter.

 

PART 8

MISCELLANEOUS

Chapter XXXVII – Officers and Servants of Local Governments

 

           294.  Chief Officer, other officers and servants of local governments.

           295.  Security of tenure for the Chief Officer and other officers.

           296.  Local Government Service.

           297.  Service cadre for servants of the local governments.

           298.  Continuation of the Punjab Local Government Board.

           299.  Composition of the Board.

           300.  Functions of the Board and method for conduct of business.

 

Chapter XXXVIII – General Matters

 

           301.  Appeal against orders of local governments.

           302.  All heads of the local governments, convenors, councillors, officer and servants of the local governments to be public servants.

           303.  Remuneration etc. for heads of the local governments, convenors and councillors.

           304.  Right to information.

           305.  Training of heads of the local governments, convenors and councillors.

           306.  Manner of exercise of authority of the government.

           307.  Delegation of powers by a local government.

           308.  Bar of suits etc. for action taken in good faith.

           309.  Bar against employment of head of the local government, convenor and councillors in the local government.

           310.  Power to make rules and bye-laws.

           311.  Power to issue regulations and standing instructions.

           312.  Repeal and Savings.

           313.  Amendments in the Fifteenth Schedule.

           314. Removal of difficulties.

           315.  Act to override other laws.

 

Chapter XXXIX – Transitional Arrangements

 

           316.  Interim authorities and continuation of public services.

           317.  Interim maintenance of offices and authorities to be transferred to local governments under this Act.

           318.  Fiscal transfers and taxes etc. to continue.

           319.  Fiscal transfers and budget of the succeeding local governments for the first year in office.

           320. Salaries and emoluments of officers and servants of the local governments during transition.

 

SCHEDULES

 

           First Schedule

           Second Schedule

           Third Schedule

           Fourth Schedule

           Fifth Schedule

           Sixth Schedule

           Seventh Schedule

           Eighth Schedule

           Ninth Schedule

           Tenth Schedule

           Eleventh Schedule

           Twelfth Schedule

           Thirteenth Schedule

           Fourteenth Schedule

           Fifteenth Schedule

           Sixteenth Schedule

 

 


 

[1]THE PUNJAB LOCAL GOVERNMENT ACT 2019

(Act XIII of 2019)

[4 May 2019]

 

An Act to reconstitute local governments in the Punjab and for related purposes

 

Whereas it is expedient to reconstitute local governments in the Punjab for effective discharge of certain public services and to provide for their authority and duties for this purpose, and matters connected therewith and ancillary thereto;

Be it enacted by Provincial Assembly of the Punjab as follows:-

PART 1

PRELIMINARY

Chapter I – Applicability and Interpretation

 

1.         Short title, extent and commencement.– (1) This Act may be called the Punjab Local Government Act, 2019.

            (2)        It shall extend to the whole of the Punjab other than the areas notified as cantonments under the Cantonments Act, 1924 (II of 1924), or the Cantonments Ordinance, 2002 (CXXXVII of 2002), in relation to the matters covered there under and such other areas under active possession and direct control of the Armed Forces of Pakistan that may be notified by the Government for this purpose.

            (3)        It shall come into force at once.

 

2.         Definitions.– In this Act, unless there is anything repugnant in the subject or context:-

(a)          ‘Act’ means the Punjab Local Government Act, 2019;

(b)         ‘administration’ means the part of a local government comprising Chief Officer, other officers and servants of the local government;

(c)          ‘Auditor General’ means the Auditor General of Pakistan appointed under Article 168 of the Constitution;

(d)         ‘authorized auditor’ means any commercial auditor other than the Auditor General authorized by the Government to undertake extra-ordinary audit of a local government under section 195 of this Act;

(e)          ‘Board’ means the Punjab Local Government Board continued under section 298 of this Act;

(f)          ‘Cabinet’ means the Cabinet of Ministers, with the Chief Minister as its head as mentioned in Article 130 of the Constitution;

(g)          ‘candidate’ means a candidate for election under this Act;

(h)         ‘cantonment’ means a place or places declared and notified as cantonment under the Cantonments Act, 1924 (II of 1924), or the Cantonments Ordinance, 2002 (CXXXVII of 2002) by the Government of Pakistan;

(i)           ‘census’ means population and housing census taken by the Government of Pakistan under the Census Ordinance, 1959 (X of 1959);

(j)           ‘Chief Minister’ means the Chief Minister of the Punjab;

(k)         ‘Chief Officer’ means an officer of the local government who is the head of the respective administration and includes a Chief Corporation Officer who shall be the head of the administration of a Metropolitan Corporation;

(l)           ‘circumstances of emergency’ mean circumstances imminently endangering public health, safety, loss of life or significant or large scale harm to property and require an immediate action;

(m)       ‘Collector’ means a Revenue Officer appointed under section 7 of the Punjab Land Revenue Act, 1967 (XVII of 1967);

(n)         ‘Commission’ means the Punjab Local Government Commission constituted under section 237 of this Act;

(o)         ‘committee’ means a committee of the council constituted under section 68 of this Act;

(p)         ‘consolidated fund’ means Provincial Consolidated Fund within the meanings of Article 118 of the Constitution;

(q)         ‘constituting local government’ means a local government constituting a joint authority established under section 30 of this Act;

(r)           ‘Constitution’ means the Constitution of the Islamic Republic of Pakistan.

(s)          ‘Convenor’ means the convenor of the council and in relation to the holding of a meeting of the council, shall also include a councillor or any other person presiding over the meeting in his absence;

(t)           ‘corrupt practice’ means involvement of a head of the local government, convenor, councillor, officer or servant of a local government in corruption and includes any of the following:

(i)        coercive practice by impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence the actions of a party to achieve a wrongful gain or to cause a wrongful loss to another party;

(ii)      collusive practice by arrangement between two or more parties to the procurement process or contract execution, designed to achieve with or without the knowledge of the procuring agency to establish prices at artificial, non-competitive levels for any wrongful gain;

(iii)    offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence the acts of another party for wrongful gain;

(iv)    any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation;

(v)      obstructive practice by harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in a procurement process, or affect the execution of a contract or deliberately destroying, falsifying, altering or concealing of evidence material to the investigation or making false statements before investigators in order to materially impede an investigation into allegations of a corrupt, fraudulent, coercive or collusive practice; or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation, or  acts intended to materially impede the exercise of inspection and audit process.

(u)         ‘corruption’ by a head of the local government, convenor, councillor or an officer or servant of a local government or any other person acting under this Act means:

(i)     accepting, obtaining or offering any gratification or valuable thing, directly or indirectly, other than the legal remuneration, as a reward for doing or for bearing to do any official act; or

(ii)   dishonestly or fraudulently misappropriating, or indulging in embezzlement or misuse of property or resources of a local government; or

(iii)  possession of pecuniary sources or property by himself or any of his dependents or any other person, through him or on his behalf, which cannot be accounted for and which are disproportionate to his known sources of income; or

(iv) maintaining standard of living beyond known sources of income; or

(v)   having a reputation of being corrupt; or

(vi) entering into plea bargain under any law for the time being in force and return the assets or gains acquired through corruption or corrupt practices, voluntarily;

(v)         ‘Council’ means the council comprising the convenor and other councillors of a local government;

(w)        ‘councillor’ means a councillor of the council and includes a convenor;

(x)         ‘defunct local government’ means a local government dissolved under section 3 of this Act;

(y)         ‘Director Local Fund Audit’ means the Director of Local Fund Audit Department, Punjab;

(z)          ‘district’ means a District notified under section 5 of the Punjab Land Revenue Act, 1967 (XVII of 1967);

(aa)      ‘Election Commission’ means the Election Commission of Pakistan established under Article 218 of the Constitution;

(bb)     ‘electoral group’ means two or more candidates, not being the candidates of a political party, or two or more political parties, who contest elections under this Act on a joint slate for a shared concern for public purpose in relation to the affairs of a local government and are registered as such with the Election Commission;

(cc)      ‘electoral officer’ means an officer appointed for an election under this Act and includes Presiding Officer, Polling Officer and Assistant Polling Officer;

(dd)     ‘electoral roll’ means a roll of all eligible voters in an electoral unit prepared under section 87 of this Act;

(ee)      ‘electoral unit’ means electoral unit constituted for an election under section 84 of this Act;

(ff)       ‘estimate of receipts and expenditure’ means the estimate of expected receipts and expenditure of a local government for a given financial year, and as the case may be, shall include the estimate of receipts and expenditure of constituent offices, entities and agencies of that local government;

(gg)      ‘Finance Commission’ means the Punjab Local Government Finance Commission constituted under section 174 of this Act;

(hh)     ‘financial year’ means the year commencing on the first day of July and ending on the thirtieth day of June;

(ii)         ‘government agency’ means an office or entity of the government;

(jj)         ‘Government’ means the Government of the Punjab and in relation to the exercise of any authority vested in it under this Act shall mean the authority mentioned in section 306 of this Act;

(kk)     ‘head’s cabinet’ means the cabinet of the head of the local government referred to in section 19 of this Act;

(ll)         ‘head of the local government’ means the head of the local government and includes:

(i)     a Lord Mayor of a Metropolitan Corporation;

(ii)   a Mayor of a Municipal Corporation, Municipal Committee or a Town Committee; and

(iii) a Chairperson of Tehsil Council

(mm) ‘High Court’ means the Lahore High Court, Lahore;

(nn)     ‘Inspector General’ means the Inspector General of the Inspectorate;

(oo)     ‘Inspectorate’ means the Inspectorate of Local Government constituted under section 207 of this Act;

(pp)     ‘joint authority’ means a joint authority established under section 30 of this Act;

(qq)     ‘local area’ means the jurisdiction of a local government determined under section 8 of this Act;

(rr)        ‘Local Council Service’ means the Local Council Service comprising servants of the local governments constituted under section 297 of this Act;

(ss)       ‘local government’ means a local government constituted under subsection (2) of section 3 of this Act;

(tt)         ‘Metropolitan’ means a local area of a Metropolitan Corporation;

(uu)     ‘Minister’ means the Minister as defined in the Punjab Government Rules of Business, 2011 or any other similar law for the time being in force, and where no department has been mentioned with the Minister, it shall mean the Minister in charge of the Local Government and Community Development Department;

(vv)     ‘Municipality’ means the local area of a Municipal Corporation or, as the case may be, a Municipal Committee;

(ww)  ‘Neighbourhood Council’ means a neighbourhood council constituted under the Punjab Village Panchayat and Neighbourhood Councils Act, 2019;

(xx)     ‘officer’ in relation to an officer of a local government shall mean to include a Chief Officer;

(yy)     ‘official Gazette’ means the official Gazette of the Government;

(zz)      ‘Operating Officer’ means the operating officer of a joint authority appointed under section 33 of this Act;

(aaa)   ‘Panchayat’ means a Panchayat constituted under the Punjab Village Panchayat and Neighbourhood Councils Act, 2019;

(bbb) ‘peasant’ means a landless farm worker or a person engaged in subsistence agriculture from not more than five acres of agricultural land whose annual income does not exceed such limit as the Government may from time to time determine having regards to the prevailing poverty line;

(ccc)   ‘political party’ means a political party within the meanings of the Election Act, 2017 (XXXIII of 2017) or any other relevant law for the time being in force;

(ddd) ‘prescribed’ means prescribed by rules made under this Act;

(eee)   ‘prescribed service’ means the Local Government Service, Pakistan Administrative Service constituted under Article 240 of the Constitution and Provincial Management Service constituted under the Punjab Provincial Management Service Rules, 2004 whether called by this or any other title;

(fff)    ‘province’ means the province of the Punjab;

(ggg)   ‘provincial allocable amount’ means sums set aside out of the provincial consolidated fund under section 185 of this Act as a share for transfer to one or more local governments and panchayats and neighbourhood councils under section 186 of this Act.

(hhh) ‘Provincial Assembly’ means the Provincial Assembly of the Punjab;

(iii)       ‘public service’ means a service provided by a local government in relation to its functions for the residents;

(jjj)       ‘Punjab’ means the province of the Punjab;

(kkk) ‘recognized institution’ means an educational institution recognized by the Higher Education Commission established under the Higher Education Commission Ordinance, 2002 or any other similar agency mandated for this purpose under any other relevant law;

(lll)       ‘regulations’ means the regulations issued under section 311 of this Act;

(mmm)    ‘resident’ means a person who ordinarily resides in the local area of a local government, and where relevant as regards the functions of a joint authority, includes persons from outside that area who regularly use facilities or services provided by that joint authority.

(nnn) ‘Rules’ means the rules made under this Act;

(ooo) ‘Secretary’ means the Secretary as defined in the Punjab Government Rules of Business, 2011 or any other similar law, and where no department has been mentioned with the Secretary, it shall mean the Secretary in charge of the Local Government and Community Development Department;

(ppp) ‘servant of local government’ means an employee of the local government appointed or continued under section 297 of this Act;

(qqq) ‘standing instructions’ mean the standing instructions issued under section 311 of this Act;

(rrr)      ‘sub-committee’ means the sub-committee of a committee of the council appointed under section 68 of this Act;

(sss)    ‘tehsil’ means an area notified as Tehsil under the Punjab Land Revenue Act, 1967 (XVII of 1967);

(ttt)       ‘town’ means the local area of a Town Committee;

(uuu) ‘urban local area’ means a Metropolitan, Municipality or a Town; and

(vvv) ‘worker’ means a person who primarily depends upon personal labour or a small scale business for subsistence, a worker as defined in the Industrial Relations Ordinance, 2002 (Ordinance XCI of 2002) and in both cases, his annual income does not exceed such limit as the Government may from time to time determine having regards to the prevailing poverty line.

 

Chapter II – Succeeding Local Governments and their General Responsibility

 

3.         Dissolution of existing local governments.– (1) All local governments constituted or continued under the Punjab Local Government Act, 2013 (Act XVIII of 2013) are hereby dissolved.

(2)        As soon as may be but not later than one year of the commencement of this Act, the Government shall constitute succeeding local governments in accordance with the provisions of section 15 of this Act.

 

4.         Succession of the defunct local governments.– (1) Subject to subsection (3) below, each local government shall succeed:

(a)    such property of a defunct local government located within the limits of its local area which, in view of the Government, is required by it for the due discharge of any function under this Act;

(b)   such officers and servants of a defunct local government who, in the view of the Government, are required by it for the discharge of any function under this Act; and

(c)    such rights, fund, claim or liability or portion thereof which, in the view of the Government, was respectively raised, made or accrued by a defunct local government in relation to areas comprising its local area.

(2)               Subject to subsection (3) below, the Government shall, having regards to the circumstances appertaining to each case, determine the share of a local government where:

(a)    any property of a defunct local government is required by two or more local governments for the discharge of a function under this Act;

(b)   any officer or servant of a defunct local government is required by two or more local governments for the discharge of a function under this Act; and

(c)    any fund, claim or liability or portion thereof which was respectively raised, made or accrued by a defunct local government in relation to areas comprising the local areas of two or more local governments.

(3)               No local government shall, unless otherwise provided by the Government, succeed to any property, right, fund, claim or liability or portion thereof of a defunct local government which does not pertain to a function assigned to it under this Act.

(4)               All properties, rights, funds, claims and liabilities of a defunct local government which pertain to a function not assigned to any local government under this Act shall be succeeded to by the Government.

(5)               The Government shall, by a general or special order, provide for the manner of succession and discharge of liabilities, if any, of a defunct local government.

(6)               The Government shall assign all properties, rights, funds, claims or liabilities among local governments under this section and all disputes relating to this matter shall be referred to and decided by it and such decision shall be final.

            Explanation: For the purpose of this section, the term ‘property’ shall include any land, building, office, wok, facility, amenity, vehicle, equipment, plant, store or apparatus.

 

5.         General authority and responsibility of a local government.– (1) Subject to and to the extent given under this Act, every local government shall have the authority to run the affairs of respective local area without improper interference.

(2)        A local government shall, having regard to the practical considerations:-

(a)       exercise its authority and incur expenditure in the best interests of the residents without any favour or prejudice in a democratic and accountable manner;

(b)      involve all residents in running its affairs and from time to time consult them on the level, quality, range and impact of services;

(c)       provide services in financially and environmentally sustainable manner; 

(d)      give equitable access to services; and

(e)       promote and undertake development in the respective local area.

(3)        Every resident shall have the right to:

(a)       contribute to the running of the affairs of respective local government in accordance with this Act;

(b)      receive prompt response to his written or oral communication, including any complaint, to a local government;

(c)       be informed of the decisions of the local government affecting his rights, property and reasonable expectations;

(d)      regular disclosure of the state of affairs of the respective local government, including its finances;

(e)       demand that affairs of the respective local government are conducted impartially and without prejudice and are untainted by personal self-interest; and

(f)       use and enjoyment of facilities and services provided by the local government.

(4)        Every resident shall, where applicable, pay promptly toll, tax, fee, rates or other charges imposed by the local government, allow officers and servants of the local government reasonable access to his property in relation to the performance of their duties, and comply with lawful bye-laws or instruction of the local government applicable to him.

 

6.         Local governments to work within the Provincial framework.– (1) Every local government shall function within the framework of the province and adhere to all applicable federal and provincial laws.

(2)        No local government shall do anything or act in a manner that impedes or is otherwise prejudicial to the exercise of executive authority of the Government.

(3)        The Government may require a local government to take such measures, or not to act or do anything, or to run its affairs, or to incur expenditure in a manner as is likely to further the objectives of section 5 of this Act. 

 

7.         Certain matters to be prescribed.– Wherever this Act requires anything to be done but does not make any provision or sufficient provision as to the authority by whom it shall be done, or the manner in which it shall be done, then it shall be done by such authority and in such manner as may be prescribed.

 


PART 2

CONSTITUTION AND FUNCTIONING OF LOCAL GOVERNMENTS

 

Chapter III – Local Areas

 

8.         Demarcation of local areas.– (1) As soon as may be, but not later than six months of the commencement of this Act, the Government shall by an order published in the official Gazette:-

(a)    divide all areas comprising the Punjab, except the areas excluded under sub-section (2) of section 1, into urban and rural local areas;

(b)   identify the limits of each local area;

(c)    having regards to the provisions of section 9 of this Act, classify each urban local area; and

(d)   name each local area.

(2)               All areas comprising a Tehsil, excluding areas notified as cantonments and urban local areas, shall be the local area of that Tehsil.

(3)               As far as may be, each local area shall be compact, contiguous and constitute a territorial unity.

(4)               Each local area shall constitute territorial jurisdiction of the respective local government.

 

9.         Classification of urban local areas.– (1) An area which displays distinct urban features may either be classified as a Metropolitan, Municipality or a Town.

(2)        There shall be following nine Metropolitans in the Punjab, namely:

(a)  areas comprising the cities of Bahawalpur, Dera Ghazi Khan, Faisalabad Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha; and

(b)  notwithstanding anything contained in section 8 of this Act and subsection (1) of this section, all areas comprising the district of Lahore.

(3)        An area referred to in subsection (1), except the area comprising a city which houses the Tehsil headquarters, shall not be classified as a Municipality or a Town, unless it has a population of not less than seventy-five thousand and twenty thousand respectively as per the last available census.

(4)        The area comprising the city which houses a Tehsil headquarters, unless it qualifies to be classified as a Municipal Corporation, shall be a Municipal Committee whether or not its population is less than seventy-five thousand as per the last available census.

 

10.       Change of name of a local area.– The Government may, on its own, or on a resolution of the relevant council approved by not less than two-third of its councillors for the time being in office, change the name of a local area.

 

11.       Periodic review of local areas.– (1) Every eight years from the commencement of this Act, the Commission, shall review all local areas in the Punjab and if required recommend to the Government extension, curtailment or otherwise alteration of the limits of one or more local areas, or constitution of new local areas, or amalgamation or abolition of existing local areas, or reclassification of a local area.

(2)        All recommendations of the Commission under subsection (1) shall be made in the interest of effective and convenient local government, or to reflect interests of residents, or to accommodate changes in the demographics or nature of a local area.

 

12.       Power of the Government to direct special reviews.– Notwithstanding the provisions of section 11 of this Act, where the Government upon request of the Commission or a resolution of one or more local governments approved by not less than two-third of their respective councillors for the time being in office, or otherwise considers that a special review of all or one or more local areas is necessary, it may, at any time, direct the Commission to conduct a special review of the indicated local areas.

 

13.       Procedure for review of local areas.– (1) For the purpose of conducting a review under section 11 or 12 of this Act, the Commission shall:-

(a)    ensure that all local governments, government agencies, other authorities and persons who may be interested in the review are informed of the proposal to conduct it and of any directions of the Government which are relevant to it;

(b)   consult local governments of the local area effected by the review as well as all the relevant government agencies, other authorities and persons;

(c)    ensure that all local governments, government agencies, other authorities and persons who may be interested in the review are informed of every draft recommendation, or any interim decision not to make any recommendation or any other such order and of the place or places where such recommendation, decision or order can be inspected; and

(d)   take into consideration any representation made to it within the period specified for this purpose.

(2)        The Government may issue general directions to the Commission for the conduct of review in the aforesaid manner.

 

14.       Changes in the limits and re-classification of local areas. (1) On the recommendation of the Commission, the Government may, through an order published in the official gazette, extend, curtail or otherwise alter the limits of a local area, constitute one or more new local areas, amalgamate or abolish any existing local areas, or reclassify a local area.

(2)        No extension, curtailment or otherwise alteration of the limits of a local area, constitution of a new local area, or amalgamation or abolishment of an existing local area, or reclassification of a local area under this section shall be ordered unless a period of not more than three months remains in the term of the respective council under section 112 of this Act.

(3)       Notwithstanding the provisions of subsection (2), where the Government considers that it is not in the public interest to postpone this matter any further, it may, at any time, make an order under subsection (1).

Explanation: For the purpose of this section, re-classification of a local area shall mean to include change of the existing class of an urban local area to another class of urban local area or re-designation of a rural local area as an urban local area and vice versa.

 

Chapter IV – Local Governments

 

15.       Constitution of local governments.– (1) The Government shall, having regards to the provisions of subsection (2) of section 3 of this Act, constitute local governments of various classes in the following manner:-

(a)    a Metropolitan Corporation for each Metropolitan;

(b)   a Municipal Corporation for each Municipality with a population of not less than two hundred and fifty thousand as per the latest census;

(c)    a Municipal Committee for each Municipality with a population of not less than seventy-five thousand as per the latest census;

(d)   a Town Committee for each Town; and

(e)    a Tehsil Council for each Tehsil in the Punjab.

(2)        Every local government shall be a body corporate having perpetual succession and a common seal, and, subject to the provisions of this Act, shall have power to acquire, hold and transfer property, both movable and immovable, to contract and to do all other things necessary for the purposes of its constitution; and shall by its name sue and be sued.

 

16.       Name of a local government.– The Government may, by an order published in the official Gazette, specify the name by which a local government shall be known and unless the name of a local government is so specified, it shall be known as the local government of the respective local area.

Illustration: Pending an order by the Government, Municipal Committee of a Municipality ‘Z’ shall be known as Municipal Committee Z.

 

17.       Division, amalgamation or re-classification of local governments. (1) The Government may, in accordance with an order under section 14 of this Act:-

(a)    divide a local government into two or more local governments; or

(b)   amalgamate two or more local governments into one local government; or

(c)    re-classify a local government.

(2)               When, as a result of such division, amalgamation or re-classification, a new local government is constituted or the limits of a local area are altered under section 14 of this Act:-

(a)    the existing head of the local government, convenor and councillors of a local government which is divided, amalgamated or re-classified shall become the head of the local government, convenor and councillors of such new, reconstituted or re-classified local government as the Government may, by an order, specify as if each of such head of the local government, convenor and councillors had been elected to that local government; and

(b)   the new, reconstituted or re-classified local government shall, to the extent and in the manner ordered by the Government, succeed the local government so divided, amalgamated or reconstituted.

(3)        No division, amalgamation, reconstitution or re-classification of a local government under this section shall be ordered unless a period of not more than three months remains in the term of the respective council under section 112 of this Act.

(4)       Notwithstanding the provisions of subsection (3), where the Government considers that it will not be in the public interest to postpone this matter any further, it may, at any time, make an order under subsection (1).

(5)        Every order under this section shall be in writing and published in the official Gazette.

 

Chapter V – Composition of Local Governments

 

18.       Local government structure.– (1) Every local government shall consist of:-

(a)    a directly elected head of the local government;

(b)   a head’s cabinet comprising such councillors and professionals as is given at section 19 of this Act;

(c)    a council comprising such number and description of councillors, including the convenor, as is given at section 20 of this Act to:

(i)     keep under review the performance of duties and exercise of powers by the head of the local government under this Act;

(ii)   investigate and prepare reports on actions and decisions of the head of the local government under this Act;

(iii) investigate and prepare report on any other matter which it considers to be of importance for the residents;

(iv) submit a proposal for the purpose of this Act to the head of the local government where it considers it appropriate; and

(d)   an administration comprising officers and servants of the local government.

(2)               A head of the local government shall perform such duties and exercise such powers as are mentioned at section 42 of this Act.

(3)               A convenor shall perform such duties and exercise such power as are mentioned at section 43 of this Act.

(4)               The administration of every local government shall be headed by a Chief Officer who shall be appointed by the Government from amongst the officers of the prescribed services.

(5)               The Chief Officer shall perform such duties and exercise such powers as are mentioned at section 45 of this Act.

 

19.       Composition of the head’s cabinet.– (1) The head’s cabinet for various classes of local governments shall comprise such number of councillors and professionals as mentioned in the First Schedule.

(2)        For the purpose of this section, a professional shall mean a person who has successfully completed sixteen years of education from a recognized institution and has an experience of not less than ten years in public administration, public finance, education, public health, or any other area relating to the functions of the local government.

 

20.       Representation of councillors in the councils.– (1) Each council shall consist of such number of general councillors and councillors representing women, religious minorities and other special interests in a local area as is mentioned in the Second Schedule, one of whom shall be the convenor.

            (2)        Nothing contained in sub-section (1) shall prevent a woman or a person belonging to a religious minority or other special interest group from being a candidate for or elected to a general seat.

 

Chapter VI – Functions of Local Governments

 

21.       Responsibility of local governments.– (1) For the purposes of this Act:-

(a)    A Metropolitan Corporation, Municipal Corporation and Municipal Committee shall be responsible for the functions listed in the Third Schedule;

(b)   A Town Committee shall be responsible for the functions listed in the Fourth Schedule; and

(c)    A Tehsil Council shall be responsible for the functions listed in the Fifth Schedule.

(2)               Any office, agency or authority established or maintained by the Government, which at the commencement of this Act is providing public services or discharging other duties in relation to the building control, solid waste management, water supply, and sewerage collection and disposal function in a Metropolitan, shall, subject to such conditions and control as the Government may impose, stand transferred to the respective Metropolitan Corporation.

(3)               Every office, agency and authority referred to in subsection (2) shall be transferred to the respective Metropolitan Corporation as soon as may be but not later than six months of the commencement of this Act.

(4)               A local government shall undertake such other functions as are entrusted to it under any other law for the time being in force.

 

22.       Assignment of additional responsibilities by Government. Nothing in section 21 of this Act shall prevent the Government from assigning any function to a local government which is not included in the Third, Fourth or Fifth Schedule on such terms and conditions as may mutually be agreed.

 

23.       Extent of Government control on functions of the local governments.– (1) Without any prejudice to the provisions of section 6 of this Act, the Government may, from time to time, give policy directions and fix objectives for the effective, transparent and efficient undertaking of functions by a local government.

(2)        A local government shall perform functions listed in Part 1 of the Third, Fourth and Fifth Schedules in such manner and to such extent as may be directed by the Government.

(3)        Having regards to the provision of subsection (1), the council shall provide for the manner and extent to which functions listed in Part 2 of the Third, Fourth and Fifth Schedules shall be performed by the respective local government.

 

24.       Discharge of functions by local governments.– (1) Subject to subsection (2) below, a local government may discharge its functions through one or more of the following means, namely:-

(a)    an officer or servant of the local government;

(b)   a joint authority established under sections 30 and 32 of this Act;

(c)    another local government by mutual agreement under section 25 of this Act;

(d)   an office, authority or agency owned or operated by the Government by mutual agreement under section 26 of this Act; and

(e)    by contracting out.

(2)        No local government shall contract out any public service which constitutes or involves the exercise of power to award administrative or other penalties, interferes with or otherwise affects the liberty of an individual, involves the power to enter, search or seize any property, or a power or duty to enforce any law.

 

25.       Delegation of functions to Panchayats and Neighbourhood Councils.– (1) A local government may by a mutual agreement, delegate one or more of its functions listed in Part 2 of the Third, Fourth or, as the case may be, the Fifth Schedule or one or more public services relating to any such function to a Neighbourhood Council or a Panchayat.

(2)               In performance of a function or delivery of a public service delegated under subsection (1), the Neighbourhood Council or, as the case may be, the Panchayat shall adhere to the general or specific directions of the local government delegating that function.

 

26.       Agency arrangements.– (1) A local government may, through a written agreement, make arrangements with any other local government, or an office, authority or agency of the Government for any of the following purposes:-

(a)    provision by any party to the arrangement to the other of any administrative, professional, technical or any other services related to the functions of that local government;

(b)   the use by one party to the arrangement of any facility, amenity, vehicle, plant, stores or apparatus belonging to the other and placement of the services of any person employed in connection with any facility, amenity, vehicle, plant, stores or apparatus in question;

(c)    the provision or maintenance by one party to the arrangement of any works, facility, amenity, vehicle, plant, store or apparatus for the provision or maintenance of which the other is responsible.

(2)               An office, authority or agency of the Government shall not make arrangements under subsection (1) without prior permission of the Government.

(3)               The expenses incurred by a local government, joint authority or government agency for carrying into effect the agreement under subsection (1) shall be defrayed by the local government for whom services are provided by that local government, joint authority or government agency.

(4)               In case of a disagreement on the amount of expenses or the actual value of expenses paid by a local government during a particular period, the expenses shall be paid by the local government in such amount and in such manner as may be determined by the Commission.

(5)               Every local government and the office, authority or agency of the Government acting under this section shall keep separate accounts for the purposes of subsection (3) in the prescribed manner.

 

27.       Appointment of an undertaker by Government.– (1) In the interest of economy of effort and effectiveness, the Government may appoint any of its office, authority or agency to undertake one or more functions listed at Part I of the Third, Fourth or Fifth Schedule or one or more public services related to any such function in one or more local areas in the Punjab.

(2)        The function or public service referred to in subsection (1) shall not be undertaken by a local government in respect of the local areas referred to in this subsection.

(3)        All expenses required for the undertaking of a function or public service referred to in subsection (1) shall be defrayed by the Government.

(4)        The office, authority or agency referred to in subsection (1) shall, for the purpose of undertaking a function or provision of a public service, be deemed to be a local government within the meaning of this Act.

 

28.       Delegation of functions etc. and agency arrangements not to diminish responsibility of a local government.– Arrangements made under clause (b), (c), (d) and (e) of section 24 of this Act, or delegation of any function under section 25 of this Act and agency arrangements under section 26 of this Act shall not diminish, in any respect, the responsibility of a local government with regards to the function or public service which it outsources, contracts out or delegates to another local government, joint authority, government agency, Panchayat or, as the case may be, a Neighbourhood Council.

 

29.       Quality and accessibility of public services.– (1) The quality of a public service provided by a local government in relation to the functions assigned to it under this Act shall be as under:-

(a)    where standard of provision of a public service is regulated bye-law, the standard of provision of that public service shall be deemed to be the standard laid down by such law;

(b)   where standard of provision of a public service is not regulated bye-law, the Government may, by an order, fix the standard of provision of that public service;

(c)    where standard of provision of a public service is neither regulated bye-law nor fixed by the Government, the standard of provision of that public service shall be deemed to be the standard fixed by a professional body concerned with that service; and

(d)   where standard of provision of a public service is neither regulated bye-law, or fixed by the Government or by a concerned professional body, the standard of provision of that public service shall be that which at the time of provision of the public service could be reasonably expected to be obtained in the respective local area.

(2)               All public services provided by a local government shall meet the quality standards fixed or expected under this section.

(3)               Each public service provided by a local government shall be accessible to all such persons for whom that service is intended.

 

Chapter VII – Joint Authorities

 

30.       Establishment of joint authorities by voluntary action.(1) Subject to the limitations mentioned at section 32 of this Act, the heads of two or more local governments may, through a written agreement, establish a joint authority for the provision of one or more of such public services which relate to a function assigned to them under this Act.

(2)               An agreement referred to in subsection (1) shall, among other things, provide for:-

(a)    the extent of responsibility of the joint authority in relation to the provision of a public service;

(b)   the manner in which the joint authority will discharge its responsibility;

(c)    personnel, facility, amenity, equipment, plant, stores or apparatus required for effective working of the joint authority; and

(d)   arrangements for sharing the expenses of joint authority between constituting local governments.

(3)               A joint authority shall be responsible to each constituting local governments for the provision of public services assigned to it.

(4)               The head of the local government of a constituting local government of a joint authority established under this section may, after due notice of not less than three months to the other constituting local governments, rescind from the agreement referred to in subsection (1).

 

31.       Subsequent joining of a local government.A local government may join a joint authority through a written agreement between its head of the local government of the local government and the heads of the then constituting local governments of that joint authority.

 

32.       Power of the Government to establish joint authority in relation to certain functions.– (1) In the interest of economy of effort and effectiveness, the Government may by an order, establish a joint authority for such local governments as may be mentioned in that order, for the provision of one or more of such public services which relate to their functions listed in Part 1 of the Third, Fourth or, as the case may be, the Fifth Schedule.

(2)               Every order under subsection (1) shall, among other things, provide for:-

(a)    the areas comprising the jurisdiction of the joint authority;

(b)   public services to be provided by the joint authority;

(c)    the manner in which the joint authority will discharge its responsibilities;

(d)   personnel, facility, amenity, equipment, plant, stores or apparatus required for effective working of the joint authority; and

(e)    arrangements for sharing of expenses of the joint authority by the constituting local governments.

(3)               A public service referred to in subsection (1) shall be provided by the joint authority in the respective local area and not the constituting local governments.

(4)               No local government shall establish a joint authority under section 30 of this Act for the provision of any public service for which a joint authority has been established by the Government under this section.

(5)               A joint authority established under this section shall continue unless otherwise ordered by the Government.

 

33.       Operating Officer of a joint authority. (1) Each joint authority shall have an Operating Officer who shall be responsible for proper administration and discharge of responsibilities assigned to that joint authority.

(2)        The Operating Officer of a joint authority established under section 30 of this Act shall be appointed by the constituting local governments from amongst their officers with mutual agreement and in case where no such agreement is reached within thirty days of the establishment of the joint authority, by the Government.

            (3)        The Government shall appoint Operating Officer of a joint authority established under section 32 of this Act.

 

34.       Joint committees to oversee and direct functions of joint authorities.– (1) The constituting local governments may appoint a joint committee to oversee and direct the proper discharge of functions by a joint authority established under section 30 of this Act and may also by mutual agreement determine:-

(a)         the total membership of the joint committee;

(b)         representation of each constituent local government in the joint committee; and

(c)         the term of office of the members of that joint committee.

            (2)        Representation of constituent local governments in a joint committee shall be worked out in the following manner:

(a)         the representation of each constituting local government shall not be less than one member; and

(b)   additional representation of a constituting local government in a joint committee shall be, as nearly as possible, proportional to its share in meeting the expenses of the joint authority.

            (3)        The membership of a joint authority established under section 32 of this Act shall be decided by the Government and may in addition to the representatives of the constituting local governments also include such officers or description of officers and other nominees of the Government as may be mentioned in the order referred to in the said section provided that the total number of officers and other nominees of the Government shall not exceed the accumulative strength of representatives of the constituting local governments in that joint authority.

               (4)     The head of the local government of the constituting local government may appoint members of the joint committee from amongst the head’s cabinet, councillors or officers of the local government.

               (5)     A member of the joint committee, other than the officer and other nominee of the Government referred to in subsection (3), shall hold office during the pleasure of the head of the local government of the respective constituting local government.

               (6)     A member of the joint committee shall upon ceasing to be the member of head’s cabinet, councillor, or as the case may be, the officer of that local government shall also cease to be a member of the joint committee.

 

35.       Expenses of a joint authority how defrayed.– (1) The expenses incurred by a joint authority shall be defrayed in the following manner:-

(a)         in case of a joint authority established under section 30 of this Act, by the constituting local governments in such proportions as agreed by them;

(b)         in case of a joint authority established under section 32 of this Act, by the constituting local governments in such proportions as ordered by the Government.

            (2)        In case of a disagreement on proportions in which the expense are to be shared or the actual value of share paid by a constituting local government during a particular period, the expenses shall be paid by each constituting local government in such amount and in such manner as may be determined by an arbitrator appointed with the agreement of the disputing local governments and where the disputing local governments fail to agree to an arbitrator within thirty days of the arising of the dispute, by an officer authorized by the Government.

            (3)        Every joint authority shall keep its accounts in the prescribed manner.

 

36.       Assets etc. of a joint authority.– (1) In relation to the working of a joint authority, the constituting local governments may make arrangements for:

(a)         temporary transfer of officers and staff to the joint authority;

(b)         use of any facility, amenity, vehicle, equipment, plant, stores or apparatus of a constituent local government by the joint authority in relation to provision of a public service and placement of the services of any person employed in connection with the facility, amenity, equipment, plant, store or apparatus in question with the joint authority; and

(c)         purchase of any facility, amenity, vehicle, equipment, plant, stores or apparatus or employment of any person in relation to the working of the joint authority.

(2)         A constituting local government which provides funds for the purchase of any facility, amenity, equipment, plant, store or apparatus of a joint authority shall be the joint owner of such facility, equipment, plant, store or apparatus to the extent determined by subsection (3).

(3)         The share of a constituting local government in a facility, amenity, equipment, plant, stores or apparatus owned or used by a joint authority shall be proportionate to the capital cost of that facility, equipment, plant, stores or apparatus property shared by that local government.

 

37.       Dissolution of a joint authority.– (1) A joint authority established under section 30 of this Act shall stand dissolved if:

(a)         all constituting local governments of that joint authority, after due notice, agree to such dissolution;

(b)         as a result of rescission of a constituting local government of that joint authority under subsection (4) of section 30 of this Act, the number of remaining constituting governments becomes less than two; or

(c)         the Government orders as such after being satisfied that the performance of the joint authority has remained unsatisfactory consistently or the joint authority has become economically unviable or the constituting local governments are consistently defaulting in defraying their respective share of expenses to the joint authority.

(2)               A joint authority established under section 32 of this Act shall not dissolve unless ordered as such by the Government.

(3)               Subsequent to the dissolution of a joint authority, the public services provided by that joint authority shall be provided by the respective local governments.

 

38.       Succession of a joint authority.– (1) Upon dissolution of a joint authority:-

(a)         all facilities, amenities, vehicles, equipment, plants, stores and apparatus purchased by the joint authority shall be succeeded by each constituting local government, as nearly as possible, proportional to the expenses of the joint authority shared by it during the entire period of its continuation;

(b)         all facilities, amenities, vehicles, equipment, plants, stores and apparatus lent to the joint authority by a constituting local government shall return to that local government;

(c)         all officers and staff transferred or lent to the joint authority by a constituting local government shall return to that local government;

(d)   left over funds, if any, of the joint authority shall be succeeded by each constituting local government in such amounts which are, as nearly as possible, proportional to the expenses of the joint authority shared by it during the entire period of its continuation.

            (2)     Any disagreement amongst the constituting local governments on the issue of succession of a joint authority shall be determined by an arbitrator appointed with the agreement of the disputing local governments and where the disputing local governments fail to agree to an arbitrator within thirty days of the dissolution, by an officer authorized by the Government.

 

Chapter VIII – Authority of Local Governments

 

39.       Extent of authority of local governments.– (1) The authority of every local government shall be limited to the discharge of functions assigned to it under this Act or any other law for the time being in force.

            (2)        Subject to the provisions of section 23 of this Act, the authority of a local government shall extend to the doing of all acts that are necessary for the due discharge of its functions or acts that are likely to facilitate or are conducive or incidental to the discharge of its functions under this Act or any other law for the time being in force.

 

40.       Manner of exercise of authority by a local government.– (1) Subject to the provisions of this Act, the executive authority of a local government shall vest in and be exercised by its head through officers of the local government authorized by him in accordance with this Act.

(2)               The head of the local government, council or any of its committee or sub-committee may direct, guide or supervise but not directly engage in the discharge of a function of the local government.

(3)               The council and its committees and sub-committees shall act through resolutions in accordance with the provisions of section 55 of this Act.

 

41.       All acts and orders to be taken or made in the name of local government.– All acts and orders of a local government shall be expressed to be taken or made in its name and shall be authenticated in the prescribed manner.

 

Chapter IX – Duties of Certain Functionaries

 

42.       Duties and powers of a head of the local government. (1) In addition to any other duty assigned to him under this Act or any other law for the time being in force, a head of the local government shall be responsible for:-

(a)       ensuring that the business of the local government is carried out strictly in accordance with this Act and all other relevant laws for the time being in force;

(b)      efficient, effective and transparent functioning of the local government;

(c)       accomplishment of operational, developmental and fiscal objectives set out by the council or as the case may be the Government under section 23 of this Act;

(d)      presenting not less than two reports on the performance of local government to the council and the Government during each financial year;

(e)       representation of the local government at civic or ceremonial functions;

(f)       any other duty, not being the duty assigned to any other authority under this Act, as the council may, by a general or special resolution direct;

(g)       any other duty as may be assigned to him by the Government; and

(h)      general supervision and control over officers of the local government for the above purposes.

(2)        A head of the local government shall, in relation to the above duties or for the transaction of business of the local government, exercise:-

(a)       such powers as are conferred upon him under this Act or any other law for the time being in force; and

(b)      such powers of the local government, not being the powers of the council or the powers assigned to any officer or authority under this Act, as are delegated upon him by the council through a resolution.

            (3)        Subject to other provisions of this Act, a head of the local government shall, during the performance of his duties or exercise of his powers, observe the general policy or directions of the Government.

            (4)        At the end of each calendar year or at such other appointed interval, the head of the local government shall evaluate the work done and results obtained by the Chief Officer as against his duties and the manner in which he exercised his powers under this Act and submit a report to the Secretary in the prescribed manner.

            (5)        Notwithstanding him being not a councillor, a head of the local government shall have the same right to be present at any meeting of the council, or the meeting or any of its committee or sub-committee and of taking part in the discussion thereat, or to make an address, or any statement or explanation of facts as if he were a councillor or a member of such committee or, as the case may be, the sub-committee, but he shall not vote upon any proposition at such meeting.

 

43.       Duties and powers of a convenor.– (1) In addition to any other duty assigned to him under this Act, a convenor shall:

(a)       convene meetings of the council as required under this Act;

(b)      preside over, and ensure orderly conduct of meetings of the council at which he is present;

(c)       maintain record of meetings of the council; and

(d)      constitute committees of the council under this Act and oversee their working.

(2)               A convenor shall, in relation to the above duties, exercise such powers as are conferred upon him under this Act or any other law for the time being in force.

(3)               Without prejudice to the provisions of subsection (2), a convenor may, in relation to above duties, direct a councillor to abstain from or withdraw immediately from a meeting where in his opinion the attendance of meeting by that councillor would constitute conflict of interest under section 216 of this Act or the conduct of that councillor during the meeting is grossly disorderly.

 

44.       Duties of a councillor.– (1). While acting under this Act, a councillor shall:

(a)    serve the overall interest of the local area which he represents; and

(b)   ensure that there is no conflict, or possible conflict between his private interest and honest performance of his role of serving public interest.

            (2)        A councillor shall not direct or attempt to direct an officer or servant of a local government, or direct or attempt to direct on the manner in which the duties of an officer or servant of the local government shall be performed.

 

45.       Duties and powers of Chief Officer.– (1) A Chief Officer shall be the principal officer of the local government and all other officers and servants of that local government shall be subordinate to him.

(2)        In addition to any other duty assigned to him under this Act or any other law for the time being in force, a Chief Officer shall:-

(a)    work as the principal accounting officer of the local government;

(b)   assist and advise the head of the local government, convenor, committees and sub-committees of the council in proper discharge of their duties under this Act;

(c)    ensure timely, effective and efficient implementation of local government policy and decisions;

(d)   supervise and control officers and servants of the local government and coordinate and synergize the work of all offices of the local government;

(e)    maintain financial and administrative discipline and ensure that the business of the local government is carried out strictly in accordance with the provisions of this Act and other laws for the time being in force;

(f)    enter into and manage all contracts on behalf of the local government;

(g)    undertake all procurements on behalf of the local government;

(h)   maintain records pertaining to the functions of the local government;

(i)     act for and on the behalf of the local government in every action or other legal proceedings whether instituted by or against the local government;

(j)     assist relevant authorities in the circumstances of emergency; and

(k)   perform such other duties as are assigned to him by the Government, head of the local government, council or a committee or sub-committee of the council.

(3)        A Chief Officer shall, in relation to the above duties, exercise:-

(a)    such powers as are conferred upon him under this Act or any other law for the time being in force;

(b)   such powers of the local government as are delegated upon him by the council through a resolution; and

(c)    such powers of the head of the local government as are delegated upon him by the head of the local government.

(4)        Subject to other provisions of this Act, the Chief Officer shall, during the performance of his duties or exercise of his powers, observe the general policy and any specific direction of the Government.

 

46.       Attendance of council meetings etc. by Chief Officer.– (1) The Chief Officer shall have the same right to being present at any meeting at the council, or a committee or a sub-committee of the council and of taking part in the discussions thereat as if he were a councillor or a member of such committee or, as the case may be, the sub-committee, and may at any time make a statement or explanation of facts, but he shall not vote upon, or move, any proposition at such meeting.

            (2)        In so far as it is not inconsistent with or does not interfere with the due discharge of his duties, a Chief Officer shall, when required upon by the convenor attend a meeting of the council or a committee or sub-committee of the council and render such advice or provide such assistance as may reasonably be required of him.

 

47.       Duty of Chief Officer etc. in case of an illegal order or instruction.– (1) Where in the opinion of the Chief Officer or any other officer or servant of the local government, any resolution of the council or any of its committees or sub-committee, or any decision, order, instruction or act of the head of the local government, convenor, or a councillor is not in accordance with this Act or any other law for the time being in force, or is motivated, or is likely to lead to wasteful or improper expenditure, or is likely to lead to the breach of peace or cause injury or annoyance to the public or any class or body of persons or is otherwise prejudicial to the public interest, he shall:

(a)    in case of him being the Chief Officer, refer every such resolution, decision, order, instruction or act in writing, along with the grounds of his opinion, to the Government for decision;

(b)   in case of him being any other officer, send every such resolution, decision, order, instruction or act in writing, along with the grounds of his opinion, to the Chief Officer who shall, after recording his own opinion in the matter, forward the same to the Government.

            (2)        The Government shall, after due notice and inquiry, decide every reference of the Chief Officer received under this section and such decision shall be final as regards to the validity of the resolution, decision, order, instruction or act.

 

48.       Personal responsibility for acts done and expenditure incurred without lawful authority.– Every person exercising any authority for the purposes of this Act, shall be personally responsible for any act done by him personally or done under his direction; any loss, financial or otherwise, suffered by a local government due to a decision made by him personally or under his direction; or any expenditure incurred by him personally or incurred under his direction without lawful authority or in violation of any provision of this Act or any other law for the time being in force.

 

Chapter X – Contracts

 

49.       Principles governing contracts.– (1) Without prejudice to the provisions of any other law for the time being in force governing contracts and public procurements, all contracts for the carrying out of a work, or the purchase of goods or services of any description, shall be made by a local government having regards to the following principles, namely:-

(a)    open and effective competition;

(b)   value for money; and

(c)    ethical behaviour and fair dealing.

            (2)        All contracts shall be made, varied or discharged by a local government in the prescribed manner.

 

50.       Form of contract.– All contracts made, varied or discharged on behalf of a local government shall be in writing and expressed to be made in the name of that local government.

 

51.       Power to make contract.– (1) Subject to the provisions of this Act, all contracts shall be made, varied or discharged on behalf of a local government by its Chief Officer.

            (2)        The Government may, by an order specify that contracts for carrying out of a work or the purchase of goods or services of a particular nature or exceeding a particular pecuniary value shall not be made, varied or discharged by the Chief Officer without the prior approval of the council.

            (3)        The Government may likewise, by an order specify that contracts for carrying out of a work or the purchase of goods or services of a particular nature or exceeding a particular pecuniary value shall not be made, varied or discharged without prior approval of the council and confirmation of such approval by an officer authorized by the Government.

            (4)        All contracts made by the Chief Officer on his own authority shall be reported to the head of the local government immediately and the council at the meeting next following the making of the contract.

 

52.       Validity of a contract.– (1) No contract executed otherwise than in conformity with the provisions of this chapter shall be binding on the local government.

(2)        No contract made by a local government for the provision of a service shall be valid unless it is in conformity with the limitation prescribed under subsection (2) of section 24 of this Act.

 

Chapter XI – Meetings of the Council

 

53.       Disposal of business of a local government.– All business of a local government shall, to the extent provided under this Act, be disposed of at the meetings of its council, or by the head of the local government, or by the officers of the local government in the prescribed manner.

 

54.       Business of the council to be disposed of at meetings.– Every matter required by any provision of this Act or the rules or bye-laws to be decided by the council or its committee or sub-committee shall be decided at a meeting of the council, committee or, as the case may be, sub-committee, held in the prescribed manner.

 

55.       Decisions at the meetings how made.– (1) Save as otherwise provided under this Act, all matters or questions which come before the council, a committee or a sub-committee shall be decided by a simple majority of votes of the councillors or, as the case may be, the members present at the meeting and voting.

            (2)        The convenor shall not vote on any matter or question pending decision before the council except in case of equality of votes.

            (3)        In the like manner, a councillor presiding over a meeting of the committee or sub-committee of the council shall not vote on any matter or question pending decision before it except in case of equality of votes.

 

56.       Ordinary, special and emergency meetings.– (1) Every matter required by any provision of this Act or the rules or bye-law to be decided by the council shall be transacted at an ordinary meeting unless required by this Act or the rules or bye-law to be transacted at a special meeting.

            (2)        Any matter to be decided by the council in relation to the circumstances of emergency may be transacted at an emergency meeting.

 

57.       Presiding over of council meetings.– (1). All meetings of a council, shall ordinarily be presided over by the convenor.

(2).       Notwithstanding the provisions of subsection (1), first meetings of the council shall be presided over by the convenor of the council immediately preceding that council and in case there was no council immediately preceding that council, by an officer to be authorized in this behalf by the Government.

 

58.       Quorum of council meetings.– (1) Unless otherwise provided under this Act, or the rules, the quorum necessary for transaction of business at an ordinary or special meeting of the council shall be one-half of the councillors holding office at the time.

            (2)        The quorum necessary for transaction of business at an emergency meeting shall be one-third of the councillors holding office at that time.

            (3)        If at any ordinary, special or emergency meeting of a council, the number of councillors present does not constitute a quorum, the convenor shall adjourn the meeting to such other day as he may think fit, and the business which would have been brought before the original meeting, if there had been a quorum present, shall be brought before and transacted at the adjourned meeting in the usual manner.

            (4)        If at any of the subsequent meeting called under subsection (2) the number of councillors present is again insufficient to constitute a quorum, the convenor shall adjourn the meeting to such other day as he may think fit, and the business which would have been brought before the original meeting, if there had been a quorum present, shall be brought before and transacted at this meeting whether there be a quorum present thereat or not.

 

59.       Frequency of council meetings.– Every council shall meet at least once in every calendar month and shall be in session for at least fifty accumulated days in a calendar year.

 

60.       Councillors, members and certain other persons to abstain from meetings on account of personal interest.– (1) Notwithstanding anything to the contrary in this Act, a convenor shall not preside over or take part, in any manner, in the consideration or discussion, or to vote on any question with respect to a matter which is to be discussed, considered or decided by the council if he has an interest in that matter as defined in section 216 of this Act.

(2)        In the like manner, a councillor shall not take part, in any manner, in the consideration or discussion, or to vote on any question with respect to a matter which is to be discussed, considered or decided by the council, a committee or sub-committee of whom he is a member if he has an interest in that matter as defined in section 216 of this Act.

(3)        A person not being a councillor, who is otherwise authorized to participate in a meeting of the council or is a member of a committee or sub-committee under this Act, shall not take part, in any manner, in the consideration or discussion, with respect to a matter which is to be discussed, considered or decided by the council or a committee or sub-committee of whom he is a member if he has an interest in that matter as defined in section 216 of this Act.

 

61.       Vacancy or defect in membership not to effect power of a council to act.– (1) A council shall have the power to act notwithstanding any vacancy in its membership.

(2)        No proceedings of a council shall be invalid merely by the reason that a person who was, for the time being, not entitled to do so, sat and voted or otherwise took part in its proceedings.

 

62.       Right of public to attend council and committee meetings.– (1) Subject to the provisions of subsections (2) and (3) below, every meeting of the council, committee and sub-committee shall be open to the public.

            (2)        The convenor presiding over a meeting referred to in subsection (1), may exclude public from whole or part of the proceedings of a meeting if majority of the councillors present there at consider that public information of the proceedings of the meeting shall be prejudicial to public interest by reason of confidential nature of business to be transacted at the meeting.

            (3)        Nothing in subsection (1) shall affect or derogate the power of the convenor to exclude a person from the meeting for the purpose of suppressing or preventing disorderly conduct or other misbehaviour at, or disturbance of, the meeting.

 

63.       Preservation of order at council meetings.– (1) The convenor shall be responsible for orderly conduct of the meeting of the council and for this purpose may direct a councillor or a person witnessing the meeting whose conduct, in his opinion, is grossly disorderly to withdraw immediately from the meeting.

            (2)        The councillor or person ordered to withdraw from a meeting under subsection (1) above shall withdraw from the meeting forthwith and shall also absent himself during the remainder of day’s proceedings.

            (3)        If a councillor is ordered to withdraw from two meetings consecutively, the convenor may while making such order also suspend the councillor from attending the meetings for any period not exceeding thirty days and the councillor shall absent himself from the meetings accordingly.

            (4)        Where the councillor referred to in subsection (1) tenders an apology to his satisfaction, the convenor may remit the period of suspension of the councillor.

            (5)        If the councillor or the person ordered to withdraw from the meeting under subsection (1) above, unlawfully remains in the meeting, the convenor may take such steps as he deems fit to cause him to be removed.

 

64.       Record of proceedings of meetings.– (1) The names of councillors present and minutes of the proceedings at each meeting of the council shall be drawn up and recorded in the prescribed manner in a book to be kept for the purpose.

            (2)        The minutes of a meeting recorded under subsection (1) shall be signed by the convenor and shall at all reasonable time and without charge be open to inspection by all councillors and the public.

            (3)        No councillor shall be entitled to object to the minutes of a meeting in which he was not present.

            (4)        The minutes of a meeting to which public is excluded under subsection (2) of section 62 of this Act shall not be open to inspection by public unless otherwise ordered by the Government or the respective council.

 

65.       Indemnity of councillors in relation to anything said in proceedings of a meeting.– (1) No head of the local government, convenor, councillor or other person shall be liable to any proceedings in any Court in respect of anything said by him or any vote cast by him in the meeting of a council, committee or sub-committee so long as such action does not:

(a)    undermine the ideology, integrity or solidarity of Pakistan; or

(b)   seek to create or excite feelings of enmity, ill will, or hatred between different communities, sects, classes or sections of citizens of Pakistan; or

(c)    contains any indecent, obscene, scurrilous or ironical expressions or remarks to defame any person.

            (2)        A head of the local government, convenor or councillor who acts in contravention of the provisions of sub-section (1) may, without prejudice to any other action against him, be disqualified and removed from his office by the Government after due notice and inquiry in the prescribed manner.

 

66.       Defraying of expenses in relation to meetings.– A local government may, in the prescribed manner, make payments to defray any expenditure reasonably incurred by its head of the local government, convenor, councillor or officer, or any other member of its committee or sub-committee in respect of attendance of a meeting of the council, committee or, as the case may be, a sub-committee.

 

67.       Bye-laws for meetings.– (1). Having regards to the provisions of this Act and the rules, every local government shall, within three months of the assumption of office, frame bye-laws for the conduct of its meetings.

(2).             Where a local government fails to timely meet the requirements of subsection (1), the Government may prescribe bye-laws for that local government which shall be valid as if framed by that local government.

 

Chapter XII – Committees and Sub-committees of the Council

 

68.       Appointment of committees and sub-committees.– (1) A council may appoint a committee for any general or special purpose and may also delegate to such committee, with or without restrictions or conditions, any of its business except the power with respect to approval of receipts and expenditure, rates and taxes, bye-laws, or the powers with respect to acquiring, holding or disposing of local government properties.

            (2)        Without any prejudice to the provisions of subsection (1), every council shall constitute the following committees:

(a)    A committee to oversee financial matters of the local government including its receipts and expenditure;

(b)    A committee to oversee the formulation and delivery of local development plan and annual development plans;

(c)    A committee to oversee maintenance of accounts and conduct of audits and implementation of the recommendations of the audit reports; and

(d)    A committee to oversee provision of infrastructure and public services in the local area.

            (3)        A committee appointed under this section may, subject to any direction of the council, appoint a sub-committee, and may delegate to such sub-committee with or without restrictions any business delegated to the committee by the council under subsection (1).

 

69.       Membership of a committee or a sub-committee.– (1) The number of members of a committee and their respective term of office shall be such as may be determined by the council.

            (2)        Subject to any restrictions imposed by the council, the number of members of a sub-committee and their respective term of office shall be such as may be determined by the committee constituting it.

            (3)        While constituting a committee or a sub-committee, the council or, as the case may be, the committee may appoint a person as member of the committee or sub-committee who is not a councillor.

            (4)        A person, not being a person in the service of Pakistan or in the service of a local government, shall not be appointed as a member of a committee or sub-committee unless he is otherwise qualified for being elected as a member of a council under this Act.

 

70.       Requirement of political balancing in the committees.– (1) Every political party and electoral group represented in the council shall be represented in every committee of that council in such a manner that:

(a)    the number of seats allocated to a political party or electoral group in a committee shall bear, as nearly as may be, the same proportion to the number of total seats in that committee as to the number of councillors of that political party or electoral group in the council to the total number of councillors of that council; and

(b)   the number of total seats allocated to a political party or electoral group in all the committees shall bear, as nearly as may be, the same proportion as to the number of total seats in all the committees as to the number of councillors of that political party or electoral group in the council to the total number of councillors of that council.

(2)        If, in calculating a ratio for the purposes of sub-section (1), the number of seats reserved for a political party or electoral group does not come to be a whole number and such number is less than one-half, the number shall be rounded down to the next lower number; or one-half or more, the number shall be rounded up to the next higher level.

 

71.       Cessation of a committee or sub-committee.– (1) A council which appoints a committee or a committee which appoints a sub-committee, may, at any time, revoke any such appointment and may also revoke or vary anything delegated, or any restrictions or conditions imposed or any matter fixed under section 68 of this Act.

(2)        A council shall have a similar power with respect to revocation of appointment or revoking or varying anything delegated, or any restriction or conditions imposed or any matter fixed in relation to a sub-committee as that of a committee.

 

72.       Cessation of membership of a committee or sub-committee on loss of membership of council.– Every member of a committee or sub-committee who was, at the time of his appointment, a councillor shall, upon ceasing to be such councillor, also cease to be a member of the committee or sub-committee.

 

73.       Exemption from personal liability of a member who is not a member of local government.– A member of a committee or sub-committee who is not a councillor shall have the same exemption from personal liability as if he were a councillor.

 

74.       Bye-laws for committees and sub-committees.– (1) Having regards to the provisions of this Act and the rules, every local government shall, within three months of the assumption of office, frame bye-laws for the constitution and conduct of its committees and sub-committees.

(2)        Where a local government fails to timely meet the requirements of subsection (1), the Government may prescribe bye-laws for that local government which shall be valid as if framed by that local government.

 

75.       Certain provisions of Chapter XI to apply to committees and sub-committees.– The provisions of sections 58, 61, 62, 63 and 64 of this Act relating to the meeting of the council shall, mutatis mutandis, apply to the meetings of the committees and sub-committees.

 

PART 3

ELECTIONS, TERM OF OFFICES AND RELATED MATTERS

 

Chapter XIII – Authority for Local Government Elections

 

76.       Election Commission to conduct local government elections.– (1) All elections under this Act shall be conducted by the Election Commission.

(2)        The Election Commission shall undertake such measures and make such arrangements as are necessary for the conduct of elections in accordance with the law and in a just, fair and transparent manner.

(3)        All record indicating the number of votes secured by a contesting political party, electoral group and, as the case may be, any other candidate to an election under this Act shall be safely kept by the Election Commission for not less than five years commencing from the date on which it is held.

 

77.       Duty of Election Commission to consider certain matters brought to its notice.– (1) Any political party, electoral group or a candidate may, at any time, make a representation, objection or suggestion to the Election Commission or bring any information to their notice on any matter of general importance relating to an election under this Act.

(2)        The Election Commission shall consider every representation, objection, suggestion made and information brought before it under subsection (1) and decide whether and to what extent they shall act on it.

(3)        The Election Commission shall convey all decisions under subsection (2) to the political party, electoral group or a candidate referred to in subsection (1).

 

78.       Election Commission to report on elections and certain other matters.– (1) The Election Commission shall, soon after the completion of every election under this Act, prepare and publish, in such manner as it may consider appropriate, a report on the administration and results of the election.

(2)        The Election Commission shall keep under review, and from time to time submit reports to the Government on such matters which it considers important in relation to elections under this Act.

 

79.       General powers of the Election Commission.– Without prejudice to any other specific power vested in it under this Act or any other law for the time being in force, the Election Commission shall have the power to issue such directions or orders including the powers to review an order passed under this Act and to make such consequential order as may be necessary for the performance of its duties under this Act.

 

80.       All authorities and persons to assist the Election Commission.– (1) The Election Commission may require any person or authority in the Punjab to perform such function or render such assistance as may be required for the purposes of this Act.

(2)        It shall be the duty of all persons and authorities required to perform a function or render any assistance under subsection (1) to perform such function or render such assistance, in as much as may be reasonably possible.

(3)        The Government shall make available to the Election Commission the services of such of its officers and servants as the Election Commission may require for the purposes of this Act.

Explanation: For the purpose of this section, any reference to authority shall include an authority which is not owned or controlled by the Government.

 

81.       Delegation of powers etc.– The Election Commission may delegate any of its functions or powers in relation to elections under this Act upon such officers of the Government as it consider fit.

 

82.       Election Commission to regulate its own procedure.– The Election Commission shall, subject to this Act and the rules, regulate its own procedure.

 

Chapter XIV – Election Method, Franchise and Related Matters

 

83.       Election method in general.– (1) Subject to the provisions of subsection (12) and (13), an election under this Act shall be held on the basis of adult franchise through secret ballot in the prescribed manner and involve:

(a)    the return of the head of the local government;

(b)   the return of the councillors.

(2)        The head of the local government shall be elected on the basis of simple majority in terms of section 97 of this Act.

(3)        The councillors shall be elected on closed list proportional representation basis in terms of section 97 of this Act.

(4)        The head of the local government and all councillors, except the councillors to the seats reserved for religious minorities, shall be elected by all eligible voters of the respective electoral unit.

(5)        The councillors to the seats reserved for religious minorities shall be elected by eligible voters belonging to all religious minorities of the respective electoral unit.

(6)        In addition to the candidate for the office of the head of the local government, a political party or an electoral group may also appoint one or more candidates for election to the seats of general councillors and seats reserved for women, religious minorities, peasants and, as the case may be, workers.

(7)        Where a political party or an electoral group appoints two or more candidates for an election under this Act, all such persons including the candidates for the office of the head of the local government, shall contest on the same ballot.

(8)        Where a political party or an electoral group appoints more than one candidates for election to a seat of the councillor, it shall do so on a list indicating the ranking order in which such candidates will be elected on the basis of votes obtained by that political party or electoral group.

(9)        After expiry of the date fixed for submission of nomination papers for an election under this Act, the list referred to in subsection (8) shall not be varied by any political party or, as the case may be, any electoral group in terms of ranking order of the candidates or the name of the candidates by way of addition of a fresh name or omission of an existing name in the list.

(10)      Nothing in this section shall prevent a political party or an electoral group from:

(a)    nominating not more than two additional candidates for the election of a head of the local government to provide for rejection of the appointed candidate under section 92 of this Act, or his inability to contest election for any other reason; and

(b)   appointing as many candidates to the seats of various description of councillors in excess of the number of such seats provided for the respective council under section 20 of this Act as it may deem necessary to provide for rejection of the candidates under section 92 of this Act, or for filling casual vacancies during the term of the council for any reason under section 119 of this Act.

(11)      Nothing contained in this section shall preclude the right of any person who is not on the list of a political party or an electoral group to contest an election for any office under this Act.

(12)      The convenor shall be elected by the councillors from amongst themselves in the prescribed manner through simple majority of votes.

(13)      Where the office of the head of the local government or, as the case may be, the convenor falls vacant during their term of office, they shall be elected in terms of section 118 and 119 of this Act receptively.

 

84.       Electoral units.– (1) The entire local area shall constitute one multi-member at large electoral unit for elections to the respective council.

(2)        The Election Commission shall, not less than sixty days prior to the date fixed for the election, notify electoral units in the official gazette.

(3)        The electoral units constituted under this section shall remain valid for every subsequent election under this Act unless altered or rescinded by the Election Commission subsequent to a review under section 85 of this Act.

 

85.       Review and reconstitution of electoral units.– (1) The Election Commission shall reconstitute one or more electoral units, existing for the time being, when as a result of an order by the Government under section 14 or, as the case may be, section 17 of this Act:

(a)    the limits of a local area to which the electoral units relate are extended, curtailed or otherwise altered;

(b)   where a new local area is created or an existing local area to which the electoral units relate is abolished; or

(c)    a local area to which the electoral units relate is re-classified.

(2)        The Election Commission shall consider every request of the Government, the Commission or a candidate to the relevant election for the review of an existing electoral unit and depending upon its determination on the existence of such need, may reconstitute that electoral unit.

(3)        The provisions of section 86 of this Act shall, mutatis mutandis, apply to the re-constitution of electoral units under this section.

 

86.       Procedure for constitution of electoral units.– (1) The limits of an electoral unit shall be determined by a delimitation officer, appointed by the Election Commission from amongst its officers or officers in the service of Pakistan.

(2)        For the purpose of this section, the delimitation officer shall:

(a)    make public notice of the proposal to carry out delimitation;

(b)   take such steps, as he thinks fit, to ensure that all such persons who may be interested in the delimitation are informed of any draft recommendation or any interim decision or any other such order and of the place and places where those recommendations, decisions or orders can be inspected;

(c)    consider and decide every objection, representation or suggestion made to him in relation to the delimitation within the period specified for this purpose

(3)        The delimitation of an electoral unit made by the delimitation officer shall be finalized by the Election Commission after hearing any objections or suggestions made to it within the period specified for this purpose.

(4)        For the purpose of this section the delimitation officers shall work under the superintendence, control and direction of the Election Commission.

 

87.       Electoral rolls.– (1) At least thirty days prior to the date fixed for an election under this Act, the Election Commission shall, in the prescribed manner, prepare a roll of all eligible voters for every electoral unit, hereinafter called the electoral roll.

(2)        A separate electoral roll shall be prepared for voters belonging to the religious minorities in every electoral unit.

(3)        An electoral roll prepared under this section shall not be invalid merely by reason of any erroneous description in the electoral roll of any person enrolled or registered thereon or of omission of the name of any person entitled to be so enrolled or registered or inclusion of the name of any person not so entitled.

 

88.       Electoral rolls to be open to inspection and purchase.– Copies of every electoral roll shall be open to inspection by public and shall also be available for purchase at a reasonable price at such place and during such timings as the Election Commission may direct.

 

89.       Right to enrolment as a voter.– (1) A person shall be entitled to be enrolled as a voter in an electoral unit if he is:-

(a)    for the time being, a citizen of Pakistan

(b)   not less than eighteen years of age on the first day of January in the year in which the preparation of electoral roll commences under this Act.

(c)    not declared by a competent court to be of unsound mind; and

(d)   a resident in that electoral unit.

(2)        For the purposes of this section, a person shall be deemed to be resident in an electoral unit if he ordinarily resides, or owns or is in possession of a dwelling house or other immovable property in that area.

(3)        Where a person owns or possesses dwelling houses or other immovable property in more than one electoral units, he may, at his option, be enrolled in any one of such area.

(4)        Where a person is detained in a prison or held in other custody at any place in Pakistan, he shall be deemed to be resident in the electoral unit in which he, at his option, would have been resident if he had not been so detained or held in such custody.

 

90.       Right to vote.– (1) No person shall be eligible to vote in an electoral unit unless his name, for the time being, appears in the electoral roll of that electoral unit.

(2)        Subject to the provisions of subsection (3), a person eligible to cast a vote under subsection (1), shall have the right to cast only one vote for the election to the offices of the head of the local government and councillors to the general seats and seats reserved for women, peasants and workers whether his name appears on the electoral roll of the same electoral unit for more than once, or his name appears on electoral rolls of two or more electoral units.

(3)        A person whose name, for the time being, appears on electoral roll of religious minorities in an electoral unit, shall in addition to the right to cast a vote under subsection (2), have the right to cast a second vote for the election to the office of councillor or councillors reserved for religious minorities.

 

Chapter XV – Conduct of Elections

91.       Notification of election date and call up for election.– (1) Through an order published in the official gazette, the Election Commission shall, after having consulted the Government on this matter, fix a date or several dates for elections to one or more electoral units under this Act and thereby call upon:

(a)    the voters of the electoral unit to elect the head of the local government and councillors; and thereafter

(b)   the councillors to elect the convenor.

            (2)        Subject to the provisions of section 118 of this Act, the date or dates fixed for an election under sub-section (1) shall be no earlier than one hundred and twenty days from the date of publication of the order in the official gazette.

 

92.       Only nominated and eligible persons allowed to contest elections.– (1) No persons shall be nominated for an election under this Act unless he is otherwise eligible for an election in terms of section 109 of this Act.

            (2)        Every person contesting an election under this Act shall be nominated by:

(a)    in case he is contesting on the slate of a political party or an electoral group, by that political party or, as the case may be, electoral group;

(b)   in case he is contesting as an independent candidate, by not less than three voters of the relevant electoral unit.

            (3)        All nominations under this section shall be made in the prescribed form and shall be accompanied by such deposits as the Election Commission may from time to time order.

(4)        The Election Commission shall, after public notice and hearing the person nominated as a candidate or a person authorized by him in this behalf, satisfy itself that each nomination has been properly made and the person nominated as a candidate is eligible to be a candidate for the relevant election under this Act.

(5)        No person nominated as a candidate shall contest elections unless, he is, in the opinion of the Election Commission, properly nominated and eligible for being a candidate for the relevant election.

 

93.       Polling stations and appointment of electoral officers.– The Election Commission shall, in the prescribed manner, set up such number of polling stations and polling booths as may be required for an election under this Act and also appoint, from amongst the persons in the service of Pakistan, such number of electoral officers as it consider appropriate for such election.

 

94.       All political parties, electoral groups and candidates allowed to appoint election and polling agents.– (1) Every political party, electoral group and independent candidate to an election under this Act shall have the right to appoint one election agent for the entire electoral unit and one polling agent for each polling booth at every polling station in the electoral unit from where that political party, electoral group or independent candidate is contesting.

(2)        No person shall be appointed as an election agent or a polling agent under this section unless he is otherwise qualified to be elected as a councillor under this Act.

 

95.       Rights and power of an election agent or polling agent.– (1) Subject to other provisions of this Act, every election agent or a polling agent appointed under section 94 of this Act shall have the right to be present at the polling station and other places or premises which are used for issuance and distribution of ballot papers or examination and counting of votes:

(a)    at all times during the issuance, distribution of ballot papers;

(b)   before and at all times when the votes are cast; and

(c)    at all times during the examination or counting of votes.

(2)        Subject to other provisions of this Act, an election agent or a polling agent may, among other things object to the decision of an electoral officer at the polling station with respect to entitlement of a person to vote, object to the acceptance or rejection of a ballot paper, and make record of the details of persons voting and remove this record from the polling station.

 

96.       Code of Conduct for elections.– (1) The Election Commission shall by an order published in the official gazette, prescribe a Code of Conduct for candidates, election agents, polling agents and other relevant persons for every election under this Act.

(2)        The Code of Conduct prescribed under subsection (1) shall, among other things, define the consequences of violation of its provisions and the authority responsible for taking cognizance of such violations and their powers for such purpose.

 

97.       Returned candidates.– (1) The candidates to the office of the head of the local government appointed by the political party or, as the case may be, the electoral group, securing highest number of votes in the respective electoral unit shall stand elected.

(2)        The candidates to the office of a councillor shall be elected in the ranking order given by the political party or the electoral group on whose list they are contesting under section 83 of this Act, in proportion to the votes secured by that political party or, as the case may be, electoral group in the respective electoral unit in the prescribed manner.

(3)        Where, two or more political parties or electoral groups in an electoral unit secure equal number of votes, fresh elections may be called.

(4)        The councillor securing highest number of votes of the councillors in a special meeting of the council shall stand elected as the convenor.

(5)        Immediately after the counting of votes, the results of every election under this Act shall be announced through a public notice by an electoral officer appointed in this behalf by the Election Commission which shall be followed by a notification in the official gazette by the Election Commission.

 

98.       Election to be called in question only before Election Tribunal within forty-five days of declaration of results.– (1) No election under this Act shall be called in question except through an election petition made to the Election Tribunal constituted under section 99 of this Act by a candidate to that election.

(2)        No election petition under this section shall be admitted for hearing by an Election Tribunal unless it is made within forty-five days of publication in the official gazette of the name of a candidate returned under section 97 of this Act.

 

99.       Election Tribunal.– (1) Not less than thirty days prior to the date fixed for an election under section 91 of this Act, the Election Commission shall, through an order published in the official gazette, appoint an Election Tribunal for one or more electoral units as may be specified in that order, for the hearing of election petition made under section 98 of this Act.

(2)        Every Election Tribunal shall consist of three or five members appointed by the Election Commission from amongst the persons in the service of Pakistan out of whom not less than one shall be, for the time being, a Judge or a retired Judge of the High Court.

 

100.     Powers of the Election Tribunal.– An Election Tribunal shall, for the purpose of this Act, have all the powers of a civil court trying a suit under the Code of Civil Procedure, 1908 (Act V of 1908) and shall be deemed to be a Court within the meaning of sections 480 and 482 of the Code of Criminal Procedure, 1898 (Act V of 1898).

 

101.     Procedure for hearing of an election petition.– Subject to the provisions of this Act, every election petition shall be made, heard and decided in the prescribed manner.

 

102.     Decision of Election Tribunal and right of appeal.– (1) An Election Tribunal may, after having considered all relevant matters appertaining to an election petition, make any one of the following order, namely:-

(a)    dismissing that petition;

(b)   declaring the election of returned candidate to be void in terms of section 103 of this Act;

(c)    declaring the election of returned candidate to be void and the petitioner or any other contesting candidate to have been duly elected; or

(d)   declaring the election as a whole to be void in terms of section 105 of this Act.

(2)        Every decision of an Election Tribunal under subsection (1) shall:

(a)  take effect from the date on which it is made; and

(b)  be forthwith communicated to the Election Commission.

(3)        All decisions of an Election Tribunal shall be expressed in terms of the opinion of the majority of its members.

(4)        An Election Tribunal shall decide every election petition made before it in not more than one hundred and twenty days from the date of its making.

(5)        Any person aggrieved with the final decision of an Election Tribunal may, within thirty days of the decision appeal to the High Court and the decision of the High Court in this respect shall be final and shall not be called in question before any court or before any other authority on any ground whatsoever.

 

 

103.     Ground for declaring the election of a returned candidate void.– (1) The Election Tribunal shall declare the election of a returned candidate to be void if it is satisfied that:-

(a)    the nomination of the returned candidate was invalid; or

(b)   the returned candidate was not, on the nomination day, eligible for being elected as a member; or

(c)    the election of the returned candidate has been procured or induced by any corrupt or illegal practice or a corrupt or illegal practice has been committed by the returned candidate or his election agent or by any other person with the connivance of the candidate or his election agent.

(2)        The election of a returned candidate shall not be declared void merely on the ground that:-

(a)    any corrupt or illegal practice has been committed, if the Election Tribunal is satisfied that it was not committed by, or with the consent or connivance of that candidate or his election agent and that the candidate and the election agent took all reasonable precaution to prevent its commission; or

(b)   that any of the other contesting candidates was, on the nomination day, not qualified for being elected as a member.

Explanation: For the purpose of this section, the terms corrupt or illegal practice shall mean to include the breach of one or more of the prohibitions specified under sections 261, 262, 263, 264, 267 and 268 of this of this Act.

 

104.     Declaration of a person other than a returned candidate as elected.– The Election Tribunal may in such cases where it after hearing a petition under section 98 of this Act determines that an election of a returned candidate is void, declare the petitioner or any other contesting candidate to have been duly elected if it is so claimed by the petitioner or any of the respondents and the Election Tribunal is satisfied that the petitioner or such contesting candidate was entitled to be declared elected.

 

105.     Declaration of an election as a whole void.– The Election Tribunal shall declare an election as a whole to be void if it is satisfied that the result of the election has been materially affected by reason of a gross failure of any person to comply with the provisions of this Act or the rules, or the prevalence of extensive corrupt or illegal practice at that election.

Explanation: For the purpose of this section, the terms corrupt or illegal practice shall mean to include the breach of one or more of the prohibitions specified under sections 261, 262, 263, 264, 267 and 268 of this Act.

 

106.     Notification of election, resignation and removal of the head of the local government, convenor and councillors.– Every election, resignation or removal of a head of the local government, convenor and councillor, or the vacation of office by him shall be notified by the Government in the official gazette.

 

107.     Limit of election expenses and consequences of exceeding such limit.– (1) Election expenses of a candidate to an election under this Act, his agent or any other person on his behalf, shall accumulatively not exceed such amount as the Election Commission may from time to time specify.

(2)        Without any prejudice to the provisions of section 273 of this Act, where election expenses of an elected candidate exceed the limit specified under subsection (1), he shall be disqualified by the Election Commission from holding his office. 

 

108.     Duty to declare election expenditure and consequences of failure.– (1) Every candidate shall, in not more than thirty days from the date of an election under this Act, submit a return on expenditures incurred by him, his agent or by some other person on his behalf on that election.

(2)        Without any prejudice to the provisions of section 274 of this Act, an elected candidate who fails to submit a return under subsection (1), or submits a return that contains particulars that to the knowledge of the candidate are false or misleading in a material particular, shall be disqualified by the Election Commission from holding his office.

 

Chapter XVI – Qualifications and Term of Office of Councillors

 

109.     Qualification for being a candidate and to hold the office of head of the local government, convenor or councillor.– (1) A person shall be eligible to be a candidate for the office of a head of the local government, convenor or councillor if:

(a)    he, on the last day fixed for the filing of nomination papers for that election, is not less than twenty-five years of age; and

(b)   his name appears for the time being in the electoral roll of the electoral unit from where he is a candidate.

(2)        Without any prejudice to the provisions of subsection (1), no person shall be eligible to be a candidate for the office of a head of the local government, convenor or councillor or to hold the office of a head of the local government, convenor or councillor if:-

(a)    he is not eligible or becomes ineligible to be enrolled as a voter under section 89 of this Act;

(b)   he has been convicted by a court of competent jurisdiction on a charge of corrupt practice, moral turpitude or misuse of power or authority under any law for the time being in force;

(c)    he is under contract for work to be done or goods to be supplied to that local government or has otherwise any pecuniary interest in its affairs;

(d)   he is in or enters into the service of Pakistan, or any statutory body or other body which is set up, or owned or controlled by the Government, or a local government in Pakistan, or in which the Government or a local government has controlling share or interest or he is or becomes a salaried official of a public or statutory corporation;

(e)    he holds an office of profit in the service of Pakistan other than an office which is not whole-time office remunerated either by salary or by fee, or the office of Lumbardar, whether called by this or any other title, or the office of Qaumi Razakar;

(f)    he has been dismissed, discharged or compulsorily retired from the service of Pakistan, or the service of a local government or a public or statutory corporation on the charge of misconduct or a corrupt practice;

(g)    he has obtained a loan for an amount of ten hundred thousand rupees or more, from any bank, financial institution, cooperative society or cooperative body in his own name or in the name of his spouse or any of his dependents, which stands unpaid for more than one year from the due date, or has had such loan written off unlawfully;

(h)   he, his spouse or any of his dependents has not paid any tax, fee or any other charge payable to the government or a local government, or any amount exceeding ten thousand rupees due upon him, his spouse or any of his dependant for the use of any service such as telephone, electricity, gas and water for over six months;

(i)     he is declared a defector from his political party or, as the case may be, electoral group under section 110 of this Act; and

(j)     he is or becomes disqualified for membership of the Parliament or a Provincial Assembly under any law for the time being in force.

(3)        Where a person contesting an election to any office in the local government claims to be a Muslim, he shall submit to the Returning Officer a declaration given in the Sixth Schedule along with his nomination papers for the election.

 

110.     Defection from a political party or electoral group.(1) The head of a political party or an electoral group may, after giving him an opportunity to show cause, declare a head of the local government, convenor or councilor to have defected his political party or, as the case may be, the electoral group who, after having been elected on its list:

(a)    joins another political party or an electoral group; or

(b)   votes or abstains from voting in the council contrary to any direction of the political party or, as the case may be, electoral group in relation to the election of the convenor under section 83 of this Act, or a vote for removal of the head of the local government or convenor under section 202 of this Act. 

(2)        After having declared a councilor defector, the head of the political party or, as the case may be, electoral group shall forthwith forward a copy of the declaration to the Election Commission.

(3)        Where the declaration is confirmed by the Election Commission after due notice and inquiry, the head of the local government, convenor or councilor referred to in subsection (1) shall cease to hold office.

Explanation: For the purpose of this section, the head of a political party or electoral group shall mean any person by whatever name called, declared as such by the political party or, as the case may be, electoral group.

 

111.     Effect of being found to be disqualified to be candidate, head of the local government, convenor or councillor.– (1) A person, on being found by the Election Commission to have filed nomination papers for a local government election or having held the office of a head of the local government, convenor or councillor while knowing that he is not eligible to file such nomination papers or to hold such office under section 109 of this Act; or have made election expenses in excess of the limit given under section 107 of this Act; or to have failed to file a return on election expenses under section 108 of this Act; or filed a return that contains particulars that to his knowledge are false or misleading,  shall:-

(a)                                                                                                                                                                                                                                                   in case he is a candidate to a local government election, stand disqualified from being a candidate for the office of the head of the local government, convenor or a councillor for the following five years.

(b)                                                                                                                                                                                                                                                   in case he is a head of the local government, convenor or councillor, cease forthwith to be such head of the local government, convenor or councillor and stand disqualified from being a candidate for the office of the head of the local government, convenor or a councillor for the following five years.

(2)        The Government, or any resident of the relevant local area may make a written complaint to the Election Commission to seek disqualification of a candidate from contesting local government election or a head of the local government, convenor or councillor from holding office on any ground mentioned in this section.

(3)        Every order of the Election Commission under this section shall be in writing and made after due inquiry into circumstances of the case.

 

112.     Bar against double membership and requirement to tender resignation to contest for certain other political offices.– (1) No person shall at the same time be a head of the local government or a councillor of more than one local governments.

(2)        Without any prejudice to the provision of subsection (1), no person shall at the same time be a head of the local government or a councillor and a member of a Provincial Assembly or the Parliament.

(3)        No head of the local government or convenor shall contest elections for any other political office without first resigning from and vacating his office.

(4)        Where a councillor is elected to any other political office, immediately upon notification of such election, his seat as councillor shall become vacant.

 

113.     Term of office of the council, head of the local government, convenor and councillors.– (1) Every council shall, unless it is dissolved earlier under section 233 of this Act, continue for a period of four years from the date of its first meeting.

(2)        As soon as may be after the notification of the results of an election by the Election Commission, the Government shall fix a date or several dates of the first meeting of the councils.

(3)        Where for any reason, no date is fixed under subsection (2) despite the lapse of forty-five days after the notification of the results of an election, the elected head of the local government may call first meeting of the council.

(4)        The term of office of every head of the local government, convenor and councillor shall, unless removed earlier under this Act, be the same as that of the council.

 

114.     Oath of office and submission of declaration etc.– (1) A person elected as a head of the local government, convenor or councillor shall, before assuming his office, make and subscribe to an oath, appropriate to his office, in the form set out in the Seventh Schedule.

(2)        A head of the local government, convenor or councillor shall, after taking an oath under subsection (1), make and submit a declaration as to his immediate relatives and assets to the Government through the respective Chief Officer, respectively in the form set out in the Eighth and Ninth Schedule or such other form as the Government may from time to time prescribe.

(3)        The Government shall notify the fact of assumption of office by every head of the local government, convenor and councillor in the official gazette after having satisfied itself that the declarations referred to in subsection (2) above have been appropriately made.

 

115.     Every head of the local government, convenor and councillor to declare assets annually.– In the like manner, every head of the local government, convenor and councillor shall declare his assets to the Government through the respective Chief Officer in the form set out in the Ninth Schedule or such other form as the Government may from time to time prescribe each subsequent year of his office by the appointed date.

 

116.     Effect of failure to take oath or submit declaration.– (1) The Election Commission shall, after giving him an opportunity to show cause, disqualify an elected head of the local government, convenor or councillor from holding office, who fails to make or submit a declaration under section 114 of this Act within thirty days from the date of his election.

(2)        In the like manner, the Election Commission shall, after giving him an opportunity to show cause, remove a head of the local government, convenor or councillor from office who fails to make or submit a declaration under section 115 of this Act within thirty days from the appointed date.

(3)        The Government, respective Chief Officer or any resident of the relevant local area may make a written complaint to the Election Commission for disqualification of a head of the local government, convenor or councillor under this section.

 

117.     Resignation by a head of the local government, convenor or councillor.– (1) Any head of the local government, convenor and councillor may, at any time, resign from his office by writing under his hand to the respective Chief Officer whereupon his resignation shall be deemed to have been accepted and effective forthwith.

(2)        The Chief Officer receiving a resignation under subsection (1) shall forward it to the Government immediately.

(3)        On receipt of his resignation, the Government shall by an order declare the office of the resigning head of the local government, convenor or, as the case may be, councillor to be vacant from the date of receipt of resignation by the Chief Officer.

(4)        Notwithstanding the resignation of a head of the local government, convenor or councillor under subsection (1), any proceedings for his removal under section 116, 230 or 232 of this Act, if already initiated, shall not abate.

 

118.     Fresh elections in case of vacancy in the office of the head of the local government.– (1) If the office of the head of the local government falls vacant during the term of the council due to his removal under section 202 of this Act, the Election Commission shall hold a fresh election to the offices of the head of the local government, the convenor and all councillors under section 91 of this Act.

(2)        If the office of the head of the local government falls vacant during the term of the council for any reason other than the reason referred to at subsection (1), the Election Commission shall hold a fresh election to the office of the head of the local government under section 91 of this Act.

(3)        The head of the local government, convenor and councillors elected through an election under this section shall, unless removed earlier under this Act, hold office for the residual term of the council.

(4)        Notwithstanding the provisions of subsection (1) and (2), if the office of a head of the local government falls vacant within one hundred and twenty days before the expiry of the term of the council, no fresh elections shall be called.

 

119.     Filling of casual vacancies of convenor and councillors.– (1) Subject to the provisions of subsection (4), if, for any reason, the office of a councillor falls vacant during the term of a council, the candidate immediately below the last elected candidate in the ranking order declared under section 83 of this Act by the political party or the electoral group to which the councillor vacating the office belonged, shall be elected to that office.

(2)        If, for any reason, the office of the convenor falls vacant during the term of a council, the council shall elect a convenor through fresh election under section 91 of this Act.

(3)        A convenor or councillor elected under this section shall, unless removed earlier under this Act, hold office for the residual term of the council.

(4)        If a vacancy referred to in subsection (1) or subsection (2) occurs within one hundred and twenty days before the expiry of the term of the council, the vacancy shall not be filled.

 

120.     Temporary accession to the office of a head of the local government and convenor.– (1) The convenor shall accede to the office of the head of the local government during his temporary absence.

(2)        The convenor may nominate one of the councillor to accede to his office during his temporary absence and where no such nomination is made, the councillors may choose any one of them to accede to the office of the convenor during his temporary absence.

Explanation: For the purpose of this section, absence shall mean temporary absence from office for reasons such as leave, travel and illness for a period of not more than sixty days.

 

121.     Power of the Government to appoint an administrator.– On the dissolution of a local government under section 3 of this Act, or expiry of the term of a council in accordance with section 113 of this Act, or occurrence of a vacancy in the office of the head of the local government and pending the constitution of a new local government or a council, or appointment of a new head of the local government by way of elections under this Act, the Government shall, by an order published in the official gazette, appoint any of its officers to perform such functions and exercise such powers and authority of the respective local government as may be specified in that order.

 

PART 4

LOCAL GOVERNMENT FINANCE AND PROPERTIES

 

Chapter XVII – Local Government Funds

 

122.     Funds of a local government.– (1) Every local government shall establish and maintain the following funds, namely:

(a)    a local fund for the credit of such moneys and for such purposes as respectively specified in sections 123 and 124 of this Act; and

(b)   a public fund for the credit of such moneys and for such purposes as respectively specified in sections 125 and 126 of this Act.

(2)        A local government may:

(a)    establish a sinking fund under section 145 of this Act for repayment of any money borrowed by the local government under this Act;

(b)   with the prior permission of the Government, establish a special fund for any purpose other than the purposes mentioned in sections 124, 126 and 145 of this Act.

(3)        All funds of a local government shall be held in trust for the purposes of this Act.

All moneys payable to any fund of a local government shall be received by or on behalf of that local government and shall be forthwith consigned to custody as per the provisions of section 127 of this Act.

(4)        All funds of a local government shall be administered in such manner as may be prescribed.

 

123.     Credit of moneys to a local fund.– (1) There shall be credited to the local fund of a local government:-

(a)    such moneys as the local government may, on coming into force of this Act, succeed from the balance funds of a defunct local government under section 4 of this Act;

(b)   proceeds of all taxes, fees, rates, tolls, rents and other charges levied by or on behalf of the local government under this Act;

(c)    all moneys received as rents and profits payable or accruing to the local government from property vested in or controlled or managed by it;

(d)   all moneys received as proceeds of the disposal of local government properties by, or on behalf of the local government under this Act;

(e)    all fines imposed under this Act and any such fine or part thereof which shall stand transferred to the local government under any other law for the time being in force;

(f)    all moneys received by way of any administrative penalty, compensation or compounding of offences under this Act;

(g)    all moneys transferred to the local government by the Government or by any other local government under this Act;

(h)   all moneys received as gifts, grants or contributions made to the local government by any person, organization, institution or the Government;

(i)     all moneys received by the local government in connection with the performance of its functions under this Act or any other law for the time being in force;

(j)     all interests and profits arising from any investment of, or from any transaction in connection with, any money belonging to the local government;

(k)   all loans raised by the local government under this Act; and

(l)     all proceeds from such other sources of income as the Government may, from time to time, direct to be placed at the disposal of the local government.

(2)        All moneys, for the time being, in a local fund shall form part of the composite cash balance of the Punjab but shall be used exclusively for the purpose of and in accordance with the provisions of this Act.

 

124.     Application of local fund.– (1) The moneys credited to the local fund shall be applied to various purposes in the following order of preference:-

(a)    Firstly, in making due provisions for the repayment of loan payable by the local government under Chapter XIX of this Act;

(b)   Secondly, in making due provisions for the satisfaction of any judgement, decree or award against the local government;

(c)    Thirdly, in making payments for the conduct of election under this Act and in meeting any other expenditure declared by the government to be an appropriate charge on the local government;

(d)   Fourthly, in discharging all liabilities imposed upon the local government under section 4 of this Act;

(e)    Fifthly, in the payment of salaries, allowances and other remunerations of the officers and servants of the local government and, in so far as practicable, making due provisions for their pensions and similar other expenses;

(f)    Sixthly, in the payment of all other sums, charges and costs necessary for effective discharge of functions of the local government under section 21 of this Act and for otherwise carrying into effect this Act, or of which the payment shall be duly or directly sanctioned under any of the provisions of this Act.

(2)        A local government shall not, directly or indirectly, apply any part of its local fund, or any money under its control, for any purpose not authorised specifically or generally under this Act or any other law for the time being in force.

(3)        During every financial year in which local government elections are to be held, the expenditure or commitment of expenditure of a local government prior to the convening of elections shall not exceed eight per centum per mensem of the relevant approved estimate of receipts and expenditure.

 

125.     Credit of monies to public fund.– (1) There shall be credited to the public fund of a local government:-

(a)    all receipts accruing from a trust administered or managed by the local government;

(b)   refundable deposits received by the local government from one or more other local governments;

(c)    all deferred liabilities of the local government; and

(d)   an amount paid to the local government in trust for a person.

(2)        The moneys in a public fund shall not form part of the composite cash balance of the Punjab.

 

126.     Application of public fund.– (1) The moneys from time to time credited to the public fund of a local government shall be applied in the following manner, namely:-

(a)    all payments accruing from a trust administered or managed by the local government shall be applied for the purposes of that trust;

(b)   all refundable deposits received by the local government from another local government shall be applied for the refund of the deposited amount to that local government;

(c)    all moneys received as a deferred liability shall be applied towards retiring that liability; and

(d)   an amount paid to local government in trust for a person shall be applied for making payment to that person.

(2)        The moneys from time to time credited to the public fund of a local government shall not be applied to any purpose other than the purposes specified in this section.

 

127.     Custody of funds.– (1) All moneys credited to a local fund, public fund or any other fund established under section 122 of this Act shall, if not otherwise invested in accordance with section 128 of this Act, be kept in the State Bank, or such other bank or banks as may be appointed by the Government for this purpose.

(2)        All interests, profits, dividends or other sums received in respect of such custody of a fund shall, as soon as may be, after receipt or becoming due, accrue to that fund.

 

128.     Investment of surplus funds.– (1) A local government may, from time to time, invest for profitable purposes any sums in its local fund, public fund or any other fund which cannot immediately or at an early date be applied to the purposes of this Act or of any loan raised under this Act –

(a)    in government securities;

(b)   with a bank authorized by the Government;

(c)    with a deposit-taking institution authorized by the Government; or

(d)   in any other manner prescribed by the Government either generally or specifically to be an authorized manner of investment for the purpose of this section.

(2)        All incomes, profits, dividends or other sums resulting from an investment made under subsection (1) shall, as soon as may be, after receipt or becoming due, accrue to the relevant fund.

 

129.     Cognizance of wrongful application of moneys.– Where, in the opinion of the Government, a local government has applied or is applying money in the local fund to a purpose not specified, or in disregard of the order of preference given under subsection (1) of section 124 of this Act, or to a purpose without first applying sufficient amount to a purpose carrying higher order of precedence, or moneys in the public fund to a purpose not specified in section 126 of this Act, the Government may, in addition to proceeding against the head of the local government under any other provision of this Act, direct the person having custody of that local fund to pay such amount or so much thereof as may be possible from time to time, from the balance of the local fund to the purpose which has been disregarded or to which insufficient amounts have been applied.

 

Chapter XVIII – Local Government Budget

 

130.     Legal basis for local government expenditure.– (1) Subject to other provisions of this Act, a local government shall have the power to spend such sums from its funds as are necessary for the purposes of this Act.

(2)        No expenditure shall be incurred by or on behalf of a local government from its local fund unless it is:

(a)    previously authorized in the estimates of receipts and expenditure approved under sections 131 of this Act;

(b)   previously authorized in the estimates of receipts and expenditure certified by the Government under section 132 or 137 of this Act;

(c)    previously authorized in the estimates of receipts and expenditure revised or readjusted under section 133 or 134 of this Act;

(d)   made under an order of the Government under section 124 of this Act; or

(e)    necessarily incurred in circumstances of emergency in relation to a function of the local government.

(3)        All expenditures incurred by or on behalf of a local government in the circumstances of an emergency shall, as soon as may reasonably be possible, brought to the notice of the council and if such expenditure was made by a Chief Officer or any other authority, also to the notice of the head of the local government.

(4)        A consolidated account of all expenditures incurred during each financial year shall be presented to the council when an estimate of receipts and expenditure for the next following financial year is presented under section 131 of this Act.

 

131.     Submission of estimates of receipt and expenditure by head of the local government and its approval.– (1) Every financial year, during the third week of March, the head of the local government shall:

(a)    cause to be prepared a draft estimate of receipts and expenditure of the respective local government for the next following financial year;

(b)   publish the draft estimate of receipts and expenditure for public information in such manner as may appear appropriate to him to solicit suggestions and objections;

(c)    consider any suggestion and objections received; and

(d)   not less than fifteen days after the publication of draft estimate of receipts and expenditure, present it before the council.

(2)        The council may, at a public meeting and with a simple majority of vote of all councillors holding office:

(a)    revise the draft estimate of receipts and expenditure in such manner as the council considers appropriate;

(b)   having regards to the provisions of sections 134, 135 and 136 of this Act, approve the estimate of receipt and expenditure.

(3)        Where in the view of the head of the local government, revision of estimate of receipts and expenditure under clause (a) of subsection (2) above is not in accordance with the provisions of this Act or is otherwise inappropriate, he may, again present the estimate of receipt and expenditure, with or without any revision, before the council.

(4)        The council may, at a public meeting, consider the estimate of receipt and expenditure presented before it under subsection (3) and:

(a)  having regards to the provisions of sections 134, 135 and 136 of this Act, approve it with a simple majority of vote of all councillors holding office; or

(b)  revise or reject it with a two-third majority of vote of all councillors holding office.

(5)        Following shall be the approved estimate of receipt and expenditure of the local government for the following financial year:

(a)    the estimate approved under clause (b) of subsection (2);

(b)   the estimate approved or revised under subsection (4);

(c)    the estimate presented by the head of the local government which is not revised or rejected by two-third majority of vote of the council under subsection (4).

(6)        If, for any reason, the estimate of receipt and expenditure is not approved before the commencement of the financial year to which it pertains, the local government expenditures, on various categories of expense, for that financial year shall be made in accordance with the approved estimates for the preceding financial year on pro rata basis till such time the estimate is approved under this section or an order for this purpose is issued by the Government under section 132 of this Act, whichever is earlier.

 

132.     Government to certify estimates if not approved by a local government.– (1) In case the estimate of receipts and expenditures of a local government is not approved under section 131 of this Act within thirty days of the commencement of the financial year to which it pertains, the Government may, after due notice to the relevant head of the local government and having regards to the needs of that local area and the provisions of sections 134, 135 and 136 of this Act, cause such estimate to be prepared on its own and may also certify it.

(2)        The estimate of receipts and expenditure certified under subsection (1) shall be deemed to be the approved estimate of receipts and expenditure of the local government for that financial year.

 

133.     Revision of the approved estimates.– (1) At any time before the expiry of the financial year to which an approved estimate of receipts and expenditure relates, the head of the local government or the council may reduce, add or transfer the amount or a portion thereof from one category of expense in the estimate to another category or authorize an additional category of expenditure, if the same is considered necessary for the purpose of this Act,

(2)        The revision of an approved estimate of receipts and expenditure under this section shall, so far as may be, subject to the provisions of section 131 of this Act.

 

134.     Duty of a local government to readjust income and expenditure in certain cases.– (1) If at any time during a financial year, it appears to the head of the local government or the council that the receipts of local fund of the local government during the same financial year will not suffice to meet the expenditure sanctioned under the approved estimate for that year, the head of the local government or, as the case may be, the council shall sanction forthwith any measures which they consider necessary for proportionating the year’s receipt to expenditure.

(2)        For the purposes of subsection (1), in addition to any other measure authorized under this Act, a head of the local government or, as the case may be, the council may either diminish the sanctioned expenditure for relevant financial year so far as it may be possible with due regards to all the requirements of this Act, or have recourse, subject to other provisions of this Act, to supplementary taxation or to an increase of rates or charges, or adopt all or any of those methods.

(3)        The readjustment of an approved estimate under this section shall, so far as may be, subject to the provisions of section 131 of this Act.

(4)        Where in the opinion of the Government, sufficient circumstances exist for an action under subsection (1) and both the head of the local government and the council are not taking such action or a sufficient action, it may, after affording an opportunity of hearing to the head of the local government, make one or more provisions as given under subsection (2) and such provisions shall be deemed to be authorized by the local government under this section.

 

135.     Receipts to always exceed the expenditure of local governments.– An estimate of receipts and expenditures shall not be approved unless the estimated receipts for the relevant financial year exceed the sums required to meet estimated expenditure of a local government for that year.

 

136.     Ring fencing of expenditure of local governments.– The Government may, in consultation with the Finance Commission, fix minimum expenditure requirements which shall be met by a local government during any financial year towards one or more public services provided by it which, in its opinion, is necessary to maintain minimum service standards pertaining to that public service.

 

137.     Authority of the Government to review approved estimates.– (1) Every Chief Officer shall forthwith submit every estimate of receipt and expenditure approved or revised by the respective local government to the Government for review.

(2)        If during a review under subsection (1), it is determined that the approved or revised estimate of receipts and expenditure is contrary to any provision of this Act or the rules, the Government may after offering an opportunity of hearing to the head of the local government, direct the local government to suitably amend the estimate within a prescribed period.

(3)        If the local government fails to amend the estimate of receipts and expenditure pursuant to a direction under subsection (2), the Government may amend the estimates itself and certify them.

(4)        The estimate of receipts and expenditure certified under subsection (3) shall be deemed to be the approved estimate of receipts and expenditure of the local government for the relevant financial year.

 

138.     Advance notification of provisional amounts by Finance Commission.– (1) The Finance Commission shall, by the first of March of each financial year, notify the provisional amounts which may be credited to the local fund of each local government from provincial allocable amount during the following financial year under section 185 of this Act.

(2)        If provisional amounts to be transferred to the local fund of a local government are not notified as required under subsection (1), the local government may proceed with the preparation and approval of estimate of receipts and expenditure based on the amount of funds credited to it by the Government during the preceding financial year.

(3)        The estimate of receipts and expenditure approved under subsection (2) may be revised by the local government after the notification of amounts to be credited to its local fund in, so far as may be, accordance with the provisions of section 131 of this Act.

 

Chapter XIX – Borrowing by Local Governments

 

139.     Power of a local government to borrow money for certain purposes.– (1) Having regards to other provisions of this Act, a local government may with the previous sanction of the Government, raise a loan of any sums of money for one or more of the following purposes, namely:-

(a)    undertaking a work of permanent nature;

(b)   purchase of any facility, amenity, equipment, plant, or apparatus the cost of which, in the opinion of the council, be spread over a term of two or more years;

(c)    acquisition of land for the purposes of this Act; and

(d)   repayment of a loan raised by the local government under this Act or any other loan or debt for the payment of which the local government is liable.

(2)        A local government shall not raise a loan under subsection (1) except in pursuance of a resolution of the council in a special meeting.

(3)        The amount of loan to be raised, the period within which it shall be repaid and terms and conditions and method by which the loan is to be raised and repaid by a local government, shall be such as approved by the Government.

 

140.     Conditions precedent for approval of a loan and methods of borrowing.– (1) No approval for a loan under section 139 of this Act shall be granted unless the Government is satisfied that:

(a)    the loan is meant for one or more purposes mentioned in section 143 of this Act;

(b)   by reason of the nature of expenditure incurred or to be incurred by a local government, the expenditure shall be met by borrowing; and

(c)    the financial position of the local government is such that the repayment of loan is likely.

(2)               Subject to approval of the Government, a local government may raise a loan by any one or more of the following methods:-

(a)    on the security of all or any immovable property vested in the local government; or

(b)   on the security of all or any of the incomes likely to accrue to the local government from taxes, fees, rates, tolls, rent and other charges under this Act; or

(c)    by the issue of bills or promissory notes payable within any period not exceeding twenty-four months; or

(d)   by an overdraft from a bank; or

(e)    by means of an agreement with the Government for borrowing moneys out of the Local Development Fund established under section 141 of this Act; or

(f)    by any other specified method.

 

141.     Local Development Fund.– (1) The Government shall establish and maintain a fund to be called the Local Development Fund for the purposes of section 139 of this Act.

(2)        The Government may require every local government to contribute money to the Local Development Fund in such amounts and, in such manner as may be prescribed.

(3)        Without any prejudice to the provisions of subsection (2), the Government may endow the Local Development Fund with such sum as it may consider appropriate. 

 

142.     Limits on authority of local government to borrow moneys.– The authority of a local government to borrow money shall be limited so that the total sums payable by the local government shall not, at any time, exceed together with the balances of all outstanding loans and debts due by the local government, in the whole, double the average annual value of the taxes, fees, rates, tolls, rent and other charges raised by that local government under this Act for the three consecutive preceding financial years.

 

143.     Application of sums raised by borrowing.– (1) When any sum of money has been borrowed by a local government under section 139 of this Act:-

(a)    no portion thereof shall, without the previous sanction of the Government, be applied to any purpose other than that for which it was borrowed;

(b)   no portion thereof shall be applied to the payment of salary, pension, any allowance or other remuneration to any officer or servant of the local government; and

(c)    no portion thereof shall be applied to the payment of any day to day expenditure of the local government.

(2)        Nothing in clause (b) of subsection (1) above may be construed to bar payment from the borrowed money any sums on account of salary, pension or allowance or other remuneration to such officers or staff of the local government who are exclusively employed upon works for the construction of work for which the money was borrowed.

 

144.     Repayment of borrowed moneys.– (1) Every loan raised by a local government shall be repaid within the time approved under section 139 of this Act and by such of the following methods as may be approved, namely:-

(a)    by payment from a sinking fund established under section 145 of this Act in respect of the loan;

(b)   by equal or agreed payments of principal and interest;

(c)    by equal or agreed payments of principal;

(d)   from any sums borrowed for the purpose under section 139 of this Act; or

(e)    partly from the sinking fund in respect of the loan and partly from money borrowed for the purpose under section 139 of this Act.

(2)        A local government may, with the prior sanction of the Government and after securing an agreement with the lender, resettle the period and the terms by which a loan raised by it is to be repaid.

 

145.     Sinking fund.– (1) Where payment from a sinking fund has been approved as a method for the repayment of a loan under section 144 of this Act, the respective local government shall establish a fund to be called the sinking fund for that loan and pay into this fund on such dates as may have been approved, such sums as will, with the accumulation of compound interest or any other profit, be sufficient, after payment of all expenses, to pay off the loan at the approved time.

            (2)        If at any time the sum standing to the credit of a sinking fund is of such amount that if allowed to accumulate at compound interest together with any other profit, it will be sufficient to repay the loan at the time approved, further payments by the local government into such fund may be discontinued with the previous permission of the Government.

            (3)        A local government shall not apply sums standing to the credit of a sinking fund to any purpose, other than repayment of loan or investment under section 144 of this Act, unless the loan for the repayment of which it was established is wholly repaid.

 

146.     Investment of sinking fund.– (1) All moneys paid into a sinking fund shall, as soon as possible, be invested by the local government in one or more of the following methods, namely:-

(a)    in government securities;

(b)   in a deposit-taking institution nominated by the Government from time to time; or

(c)    any other manner prescribed by the Government either generally or specifically to be an authorized manner of investment for the purpose of this section.

            (2)        All profits, interests, dividends or other sums received in respect of any investment under subsection (1) shall, as soon as possible after receipt, be paid into the appropriate sinking fund and invested in the aforesaid manner.

            (3)        Any investment made under this section may, from time to time, be varied or transposed.

 

147.     Inspection of sinking funds and payment of any deficient amounts by local government.– (1) A sinking fund established under this Act shall be subject to annual inspection by the Auditor General.

            (2)        A local government shall forthwith pay into a sinking fund any such amount which the Auditor General may certify to be deficient as a result of an inspection under subsection (1) unless the Government by general or special order permits a gradual readjustment.

            (3)        In case of a dispute as to the accuracy of any certificate made by the Auditor General under subsection (2), the relevant local government may, after making the payment, refer the matter to the Government and the decision of the Government with respect to that matter shall be final.

 

148.     Attachment of local fund in default of repayment of loan.– (1) If any money borrowed by a local government or any interest or cost due in respect thereof is not repaid according to the conditions of the loan, the Government may if it has itself given the loan and in other cases shall, on the application of the lender, attach local fund or a portion thereof as it considers appropriate.

            (2)        After such attachment, no person except an officer appointed in this behalf by the Government shall, in any way, deal with the attached local fund or a portion thereof.

            (3)        An officer appointed under subsection (2) may do all acts in respect of attached local fund or portion thereof which any local government, authority or officer may have done if such attachment had not taken place, and may apply the proceeds in satisfaction of the arrears and of all interest and cost due in respect thereof and subsequent proceedings.

            (4)        No attachment under subsection (1) shall defeat or prejudice any debt for which the fund or portion thereof is attached was previously pledged in accordance with law, but all such prior charges shall be paid out of the proceeds of the fund, or portion thereof, before any part of the proceeds is applied to the satisfaction of the debt in respect of which such attachment is made.

 

149.     Annual statement of moneys borrowed.– (1) The Chief Officer of a local government shall at the end of each financial year, prepare a statement showing:-

(a)    the loans borrowed by the local government during the financial year with particulars as to the amount and date of borrowing and the annual loan charges;

(b)   in the case of every loan for which a sinking fund has been established under section 145 of this Act, the amount of accumulation in the sinking fund during the financial year showing separately the amount paid to the credit of the sinking fund;

(c)    the loan repaid during the financial year and in the case of loans repaid in instalments or by annual drawings, the amounts repaid and the balance due at the close of the financial year; and

(d)   the particulars of investments to which the sinking fund has been applied.

            (2)        Every statement prepared under subsection (1) shall be laid before the council and a copy of such statement shall be submitted to the Government and to the Auditor General on such date as the Government may, from time to time, appoint.

 

Chapter XX – Local Government Properties

150.     Local government properties.– (1) Subject to any conditions imposed by the Government, all properties whether movable or immovable specified hereunder, and all interests of whatsoever nature or kind therein, shall vest in a local government:-

(a)    all lands, buildings or other properties which were vested in any defunct local government of which the local government is the successor under section 4 of this Act;

(b)    all lands or other properties transferred to the local government or acquired by gift, purchase or otherwise for the purposes of this Act;

(c)    all public and other buildings of every description and all works, materials and things appertaining thereto which are maintained by the local government in relation to its functions under this Act;

(d)    all lands, open spaces, play grounds, gardens, parks and other places of public resort transferred to the local government by gift, purchase or otherwise for the purposes of this Act;

(e)    all public streets, roads, bridges and other means of public communication which are transferred to the local government and the pavements, stone and other material thereof and also trees growing on, and erections, materials, implements and things provided with them;

(f)     all public sewers and drains except those owned and maintained under the Canal and Drainage Act, 1873 (Act VIII of 1873), and all sewers, culverts and other channels for sullage in or under any public street, or constructed by or for the local government in the respective local area and all works, materials and things appertaining thereto;

(g)    all works for the disposal of refuse and night soil maintained by the local government;

(h)    all public lamps, lamp posts and other appliances for street lighting maintained by the local government;

(i)      all public streams, springs and works for supply, storage and distribution of drinking water for public purposes maintained by the local government and all buildings, machines, materials and things or land, not being privately owned land, appertaining thereto;

(j)      all trees, plants and flowers on roadsides and other places maintained by the local government; and

(k)    all other property which may vest in the local government under any law for the time being in force or under an order of the Government

            (2)        Every local government shall maintain a register of all properties along with a map of all immovable properties of which it is the proprietor or which vests in it or which it holds in trust for the Government or any other authority or person.

Explanation: For the purpose of this section, a building map shall include any location maps as well as a map indicating the layout of the building.

 

151.     Application of local government properties.– (1) The properties of a local government shall not be applied for any purpose other than for the purposes of this Act or any other law for the time being in force.

            (2)        A local government shall inspect, manage, maintain and whenever so required develop or improve any property which is owned by or vested in it or which is otherwise placed under its charge.

 

152.     Disposal of local government properties.– (1) Immovable properties of a local government shall not be sold or permanently alienated except with the prior permission of the Government.

            (2)        Such moveable properties of a local government which, in the opinion of the council, may be disposed of as being no more required or having become unserviceable, shall be sold through competitive bidding in a public auction.

 

153.     Resumption of a property by the Government.– (1) The Government may resume any immovable property transferred to a local government where such property is required for a public purpose.

(2)             The Government shall not be liable to pay any compensation for resumption of an immovable property under subsection (1) other than the amount paid by the local government for transfer of that property and the market value at the date of resumption of any building or works erected or executed thereon by the local government subsequent to the aforesaid transfer.

(3)             Nothing in this section shall be construed to allow the Government a right to assume any immovable property which the local government has acquired through purchase from its funds, or as a transfer or gift from a person or entity not being the Government.

 

154.     Annual stock take of local government properties.– Once in every financial year, every local government shall take a physical stock of all properties vested in it in the prescribed manner and publish a report on the results for general information.

 

155.     Insurance of certain local government properties.– A local government may, subject to the rules and any other relevant law for the time being in force, insure any property, whether moveable or immoveable in which it has an insurable interest, against any contingency which may result in the imposition of any liability or loss to the local government.

 

 

Chapter XXI – Local Government Taxes, Fees, Rates and Tolls

 

156.     Authority of a local government to levy taxes etc.– (1) A local government may, through a notification published in the official gazette, levy all or any of the taxes, fees, rates, tolls, rent and other charges given in the Tenth Schedule.

(2)        For the purpose of subsection (1), every local government shall, among other things, abide by the directions of the Finance Commission under clause (f) and (g) of subsection (1) of section 180 of this Act.

 

157.     Procedure for imposition, revision or abolishment of a local tax etc.– (1) A head of the local government may make proposal with respect to:-

(a)    levy of a new tax, fee, rate, toll or other charge under this Act; or

(b)   increase or reduction in the incidence of a tax, fee, rate, toll or other charge or otherwise revision of a tax, fee, toll or other charge which is for the time being in force under this Act; or

(c)    suspension or abolishment of a tax, fee, rate, toll or other charge which is for the time being in force under this Act; or

(d)   exemption of any person or class of persons, or property or goods or class of property or goods, or services or other things from the levy of a tax, fee, rate, toll or other charge which is for the time being in force under this Act.

(2)        Every proposal for levy of a new tax, fee, rate, toll or other charge under subsection (1) shall, among other things, mention:

(a)    the class of persons, or description of property or goods, or services or other things on which the proposed tax, fee, rate, toll or other charge shall apply;

(b)   the method of assessment of the proposed tax, fee, rate, toll or other charge;

(c)    the incidence at which the tax, fee, rate, toll or other charge is to be levied.

(3)        As soon as may be after making of a proposal under subsection (1) above, the head of the local government shall, through a public notice, invite suggestions and objections on the proposal mentioning therein, among other things, the date and time by which the suggestions and objections shall be submitted.

(4)        The last date of submission of objections under subsection (3) above shall be fixed in such manner as to allow not less than thirty clear days commencing from the date of publication of the notice.

(5)        Any resident of the relevant local area or a person affected by the proposal referred to in subsection (1) above, may submit his suggestions or objections or both in writing to the Chief Officer by the date and time appointed under subsection (3) above.

(6)        After having considered all suggestions and, as the case may be, objections received under subsection (5), the head of the local government may:

(a)    accept suggestions and objections in as much as he deems appropriate and present a revise proposal before the council in a public meeting; or

(b)   reject the suggestions and objections and present his original proposal before the council in a public meeting.

(7)        The council may with a simple majority of vote of all councillors, for the time being holding office:

(a)    revise or further revise the proposal in such manner as the council considers appropriate; or

(b)   having regards to other provisions of this Act, approve the proposal;

(8)        Where in view of the head of the local government, the revision or further revision of the proposal under clause (a) of subsection (7) above is not in accordance with the provisions of this Act or is otherwise inappropriate, he may, present the proposal, with or without any further revision, before the council again.

(9)        The council may, at a public meeting:

(a)  approve the proposal presented before it with simple majority of vote of all councillors holding office; or

(b)  revise or reject it with a two-third majority of vote of all councillors holding office.

 

(10)      Without any prejudice to other provisions of this section, a proposal presented by a head of the local government under subsection (8) which is not rejected or revised by the council with two-third majority, should be deemed to have been approved.

 

158.     Date on which local taxes etc. become effective. Where a proposal for the levy of a tax, fee, rate, toll or other charge; or for the suspension or abolishment; or increase or decrease in the incidence or otherwise revision of a tax, fee, rate, toll or other charge which is, for the time being, in force is approved under section 157 of this Act, the council or, as the case may be, the head of the local government shall specify, in the official gazette referred in that section, a date for the enforcement of the proposal and such tax, fee, rate, toll or other charge, or the suspension or abolishment; or increase or decrease of the incidence or any other revision shall take effect from that date.

 

159.     Rating areas and property tax.– (1) On the commencement of this Act, a rating area in which tax has been imposed under the Punjab Local Government Act, 2013 (Act XVIII of 2013) shall continue to be the rating area within the meaning of the Punjab Immovable Property Tax Act, 1958 (Act V of 1958).

(2)        Notwithstanding anything contained in the Punjab Immovable Property Tax Act, 1958 (Act V of 1958) a local government to which urban immovable property tax relates to, may determine the rate of this tax in accordance with section 157 of this Act.

(3)        If no determination under subsection (2) is made, the rate of urban immovable property tax shall be determined under the Punjab Immovable Property Tax Act, 1958 (Act V of 1958).

 

160.     Power of the Finance Commission in case of unfair local taxes etc.– (1) If at any time, on a representation made to it for this purpose or otherwise, it appears to the Finance Commission that the incidence of a tax, fee, rate, toll rent or other charge imposed under this Act is unfair or excessive or that levy of a tax, fee, rate, toll, rent or other charge or of any part thereof is injurious to the interests of the general public, the Finance Commission may through an order require the concerned local government to take, within a prescribed period, measures to remove the objection.

(2)               If a local government fails to comply with the order of the Finance Commission under subsection (1) to their satisfaction within the prescribed period, the Government may suspend the levy of the objectionable tax, fee, rate, toll or other charge or of such part thereof until the objection is removed.

(3)               Any resident of the relevant local area or a person or entity affected by the imposition or levy of a tax, fee, rate, toll or other charge may make a representation to the Finance Commission under subsection (1).

 

161.     Duty to furnish information on liability to local tax etc.– Every resident of the relevant local area and every other person subject to any tax, fee, rate, toll or other charge imposed under this Act, shall on demand of the Chief Officer or an officer authorized by him in this behalf,  furnish such information, produce such record or accounts, or present such goods, vehicles, animals or other things which are liable to the tax, fee, rate, toll, or other charge, as may be necessary for the purpose of determining their liability to the tax, fee, rate, toll, or other charge as the case may be or the assessment thereof.

 

162.     Power of entry for the purpose of valuation of local taxes etc.– The Chief Officer or an officer authorized by him in this behalf, may after giving due notice to the occupier, or, if there is no occupier, to the owner of a building or premises, at any time between sunrise and sunset, enter upon any building or premises for the purpose of assessing the liability of that building or premises to any tax or inspecting any goods, vehicles, animals or other things therein liable to any tax, fee, rate, toll or other charge under this Act.

 

163.     Presentation of bill for local taxes and rates.– (1) When any sums become due for payment on account of any tax, fee, rate, toll or other charge under this Act, the Chief Officer or any other officer authorized by him shall, cause to be presented to any person liable for payment thereof a bill for the sum claimed as due.

            (2)        Every such bill shall specify the period for which and the property, occupation, services or things in respect of which the sum is claimed and shall also give notice of the time by which the sums shall be paid and liability incurred in default of payment and the time within which an objection may be preferred against such claim under this Act.

 

164.     Notice of demand to be issued on non-payment of bill.– (1) If the sum for which a bill has been presented under section 163 of this Act is not paid within the time specified therein, the Chief Officer or any other officer authorized by him may cause to be served upon the person to whom such bill has been presented a notice of demand in the prescribed form.

            (2)        For every such notice of demand, a fee of such amount, not exceeding fifteen per centum of the sums due, shall be payable by the said person, and the said amount shall be included in the cost of recovery.

 

165.     Payment of local tax etc. subsequent to receipt of bill or notice of demand and consequences of default.– (1) A person upon whom a bill or notice of demand has been served under section 163 or 164 of this Act, may:-

(a)    pay the sum demanded in the bill or notice of demand to the local government concerned as directed in the bill or notice; or

(b)   within fifteen days from the service of such bill or notice of demand make an objection in writing to the Chief Officer and show cause to his satisfaction as to why he should not pay the sum indicated in the notice; or

(c)    prefer an appeal in accordance with the provisions of section 167 of this Act against the determination of a Chief Officer under clause (b) above.

            (2)        Where such person does not pay the sum demanded, or show cause or prefer an appeal under subsection (1), the Chief Officer may refer a case for the recovery of such sums as an arrear of land revenue to the respective Collector.

 

166.     Investigation of objections by Chief Officer.– (1) The Chief Officer shall cause all objections made before him under section 165 of this Act to be entered in a register to be maintained for this purpose and shall give a notice in writing to the objector of a time and place at which his objection shall be investigated.

(2)               At the time and place fixed under subsection (1), the Chief Officer or any other officer authorized by him for this purpose, shall hear the objection, in the presence of the objector or his authorized agent if he appears; or may, for reasonable cause, adjourn the investigation.

(3)               When the objection has been determined, the order passed on such objection shall be recorded in the register mentioned in subsection (1) and if necessary, the bill or demand notice shall be amended or withdrawn in accordance with the result of investigation.

(4)               The Chief Officer shall cause to be immediately delivered to the objector, free of any charge, a certified copy of the order made by him under subsection (3).

 

167.     Opportunity to make appeal against the determination of Chief Officer.– (1) A person aggrieved with the determination of a Chief Officer under section 166 of this Act, may, within thirty days of the receipt of such order, file an appeal before the respective Collector.

(2)               No appeal shall be heard or determined by the Collector unless it is made in writing and is accompanied by an order of the Chief Officer appealed against.

(3)               It shall be the duty of every local government to give effect to the decisions of the Collector in relation to an appeal made under this section.

(4)               The Collector shall, for the purpose of this section, have all the powers of a civil court trying a suit under the Code of Civil Procedure, 1908 (Act V of 1908) and shall be deemed to be a Court within the meaning of sections 480 and 482 of the Code of Criminal Procedure, 1898 (Act V of 1898).

 

168.     Liability for local tax etc. to be called in question only under this Act.– No assessment of a tax, fee, rate, toll or other charge under this Act or the liability of a person for such tax, fee, rate or toll shall be called in question except in accordance with the provisions of this Act.

 

169.     Payments to be made in authorized banks against receipts.– (1) All sums on account of a tax, fee, rate, rent and any other charges under this Act shall paid to the local government through an authorized bank unless a permission for any other method of payment is obtained from the Government.

(2)        For all sums paid to a local government on account of any tax, fee, rate, rent, toll or other charge under this Act, a receipt, stating among other things the amount and the tax, fee, rate, toll or other charge on account of which it has been paid, shall be tendered by the person receiving such payment on behalf of the local government.

 

170.     Writing off of irrecoverable taxes etc.– (1) At the close of each financial year, every Chief Officer shall prepare a statement of all such sums due to the respective local government on account of any tax, fee, rate, toll or other charge which, in his opinion, are irrecoverable.

(2)               The Chief Officer shall present the statement prepared under subsection (1) to the council and after due consideration, the council may order that such sums or any part thereof shall be struck off the relevant books kept under section 172 of this Act.

(3)               The Chief Officer shall cause an authenticated copy of the statement prepared under subsection (1) along with an authenticated copy of the statement of struck off dues to be displayed at a conspicuous place in the office of the local government for public inspection and shall, on application of any person, also cause to be furnished to him a copy thereof or any extract thereof on payment of such reasonable fee as may, from time to time, be fixed by the council.

 

171.     Tax etc. not to become invalid for defect in form.– (1) No assessment of value, or charge or demand of any tax, fee, rate, toll or other levy made under this Act, shall be called in question or in any way be effected by reason of:-

(a)    any mistake in the name, residence, place of business or occupation of any person liable to pay such tax, fee, rate, toll or other charge; or

(b)   any mistake in the description of any property, service or thing liable to such tax, fee, rate, toll or other charge; or

(c)    any mistake in the amount of assessment of such tax, fee, rate, toll or other charge; or

(d)   any clerical error; or

(e)    any other defect of form.

            (2)        It shall suffice for any assessment of value, or levy or demand of a tax, fee, rate, toll or other charge that the person, property, service or any other thing subject thereof is so described as to be sufficiently identifiable.

 

172.     Records pertaining to valuation, assessment and collection of local tax etc.– (1) Every Chief Officer shall prepare and maintain records pertaining to valuation, assessment and collection of all taxes, fees, rates, tolls, rents and other charges levied by the local government in the prescribed manner.

(2)               All records prepared and maintained by the Chief Officer under subsection (1) above shall be authenticated by the respective head of the local government.

(3)               The Chief Officer shall cause to be displayed at a conspicuous place in the office of the local government a copy of all records authenticated under subsection (2) above for public inspection and shall, on application of any person, also cause to be furnished to him a copy thereof or any extract thereof on payment of such reasonable fee as may, from time to time, be fixed by the council.

 

173.     Authority of the Government to appoint any of its agency or officer for local tax collection.– (1) In the interest of economy, efficiency and effectiveness, the Government may by a notification in the official gazette, direct that an agency or an officer of the Government engaged in collection of its tax, fee, rate, toll, or other charge shall also collect one or more taxes, fees, rates, tolls, rents or other charges on the behalf of one or more local governments or constitute a separate agency for this purpose and provisions relating to the authority of the Chief Officer in relation to collection of local tax, fee, rate, toll or other charge under this Act shall mutatis mutandis apply on that agency or officer.

(2)        Agency or officer referred to in subsection (1) above shall, to the extent of collection of a local tax, fee, rate, toll or other charge be responsible to the respective local government.

 

Chapter XXII – Local Government Finance Commission

 

174.     Establishment of Local Government Finance Commission.– (1) As soon as may be, but not later than one hundred and twenty days of commencement of this Act, the Government shall appoint a commission to be called the Punjab Local Government Finance Commission, hereinafter referred to as the Finance Commission, to perform such functions as are mentioned in this Act.

(2)        The Finance Commission shall comprise of thirteen members including the Chairperson as under:

(a)    The Minister in charge of Finance Department, who shall also be the Chairperson of the Finance Commission;

(b)   The Minister in charge of Local Government Department, who shall be the co-Chairperson of the Finance Commission;

(c)    Four members of the Provincial Assembly, out of whom two shall be appointed by the leader of the house and the other two by the leader of the opposition in the Punjab;

(d)   The Secretary in charge of Finance Department, who shall also be the Secretary of the Finance Commission;

(e)    The Secretary in charge of Local Government and Community Development Department;