72. Competency of municipal council to lease, sell and contract.
(1)Subject to the conditions and restrictions contained in sub-sections (2) to (9), and such other restrictions and conditions as the Government may by general or special orders specify, every municipal council shall be competent to lease, sell or otherwise transfer any movable or immovable property which belongs to, or for the purpose of this Act has been acquired by it, and so far as is not inconsistent with the provisions and purposes of this Act, to enter into and perform all such contracts as it may consider necessary or expedient in order to carry into effect the said provisions and purposes.(2)No free grant of immovable property whatever may be its value, no grant for an upset price and no lease for a term exceeding five years, and no sale or other transfer of immovable property exceeding [twenty-five thousand] [Substituted by Act 33 of 1986 w.e.f. 6-6-1986.] rupees in value, shall be valid unless the previous sanction of the Government is obtained.(3)In the case,-(a)of a lease for a period exceeding one year or of a sale or other transfer, or contract for the purchase of any immovable property,(b)of every contract which will involve expenditure not covered by a budget grant,(c)of every contract the performance of which cannot be completed within the official year current at the date of the contract,the sanction of the municipal council by a resolution passed at a general meeting is required.(4)In the case of a contract for the purchase of movable property, or for the sale of any movable property belonging to a municipal council, if the expenditure which the purchase would involve, or the value of the property to be sold, as estimated in the municipal accounts exceeds one thousand rupees in the case of a town municipal council and two thousand rupees in the case of a city municipal council, the sanction of the municipal council is required.(5)Before any contract for the supply of materials or goods or for the execution of any work which will involve an expenditure exceeding [five thousand rupees] [Substituted by Act 83 of 1976 w.e.f. 8-12-1976.] is entered into, tenders shall be publicly invited in such manner as may, from time to time, be determined by the municipal council, from persons willing to enter into such contract and, when the estimated value exceeds such amount as may be prescribed no such contract shall be entered into without the previous approval of the Government or of an officer duly authorised by the Government in this behalf.(6)In the case of every contract not otherwise provided for in the subÂsections (2) to (4), the sanction of such committee, or of such person as under the provisions of this Act or of the rules for the time being in force thereunder, is empowered in this behalf, is required.(7)Every contract entered into by or on behalf of municipal council, other than a contract to which sub-section (6) applies, shall be in writing, and shall be signed by the president or vice-president and two other councillors, and shall be sealed with the common seal of the municipal council. Every contract to which sub-section (6) applies shall be executed by the chairman of such committee or by such other person as is empowered in that behalf, in such manner and form as according to the law for the time being in force, would bind such chairman or person if such contract were executed by him on his own behalf.(8)No contract which is not made in accordance with the requirements of this section shall be valid or binding on the municipal council.(9)The provisions of this section shall be subject to the provisions of section 86 and Chapter XIV.
