(1)Whoever acts as a Councillor of a Municipality knowing that under this Act or the Rules made thereunder he is not entitled or has ceased to be entitled to hold such office shall, on conviction, be punished with fine not exceeding [ten thousand rupees] [Substituted 'two thousand rupees' by Act 14 of 1999, w.e.f. 24-3-1999.] for such offence.