Section 118(2) in The Gujarat Municipalities Act, 1963
(2)Levy of fees for unauthorized occupation or projection. - The municipality may charge a higher fee by way of penalty for any erection, or projection, or for the use or occupation of any public street or other land vested in the municipality, by any person without its permission or licence. Such fee shall be leviable irrespective of any other penalty or liability to which the person liable to pay the same may be subject under any other provision of this Act or any other law for the time being in force.The rates of such higher fees shall be determined by rules.