Section 317(1) in The M.P. Municipalities Act, 1961
(1)The Council or, with the authorisation of the Council, its President, Vice-President, Chief Municipal Officer or Health Officer or any committee thereof, may accept from any person against whom a reasonable suspicion exists that he has committed an offence against this Act or any rule or bye-law made thereunder, a sum of money by way of compensation for such offence.