Section 65 in The Gujarat Municipalities Act, 1963
65. Powers of municipality to sell, lease, and contract.
(1)A municipality shall be competent; subject to the restriction contained in sub-section (2), to lease, sell or otherwise transfer any moveable or immovable property which may, for the purposes of this Act, have become vested in or been acquired by it; and so far as it 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)In the case of every lease or sale of land under sub-section (1) of section 146 and of a lease of immovable property for a term exceeding ten years and of every sale or other transfer of such immovable property, the market value of which exceeds one lakh of rupees, the previous permission of the State Government is required:[Provided that in the case of a lease or sale of land under sub-section (1) of section 146 no such permission shall be granted if such land forms a street or part of a street which has been declared to be a public street under section 148.] [This Proviso was added by Gujarat 3 of 1968, section 5.](3)In the case-(a)Sanction by resolution at general meeting requisite to validity of certain contracts:-Of a lease for a period exceeding one year or of a sale or other transfer of immovable property the market value of which does not exceed one lakh of rupees 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 municipality by a resolution passed at a general meeting is required.(4)Execution of contracts on behalf of municipality. - ln a municipality-(a)every contract under or for any purpose of this Act shall be made on behalf of the municipality by the Chief Officer;(b)no such contract for any purpose which the Chief Officer is not empowered by this Act to carry out without the approval or sanction of some other municipal authority, shall be made by him until or unless such approval or sanction has first of all been duly given;(c)no contract which will involve on expenditure exceeding one thousand rupees shall be made by the Chief Officer unless otherwise authorised in this behalf by the municipality except with the approval or sanction of the committee concerned;(d)every contract made by the Chief Officer involving an expenditure exceeding five hundred rupees and not exceeding one thousand rupees shall be reported by him, within fifteen days after the same has been made, to the committee concerned;(e)the foregoing provisions of this section shall apply to every variation or discharge of a contract to the same extent as to an original contract.(5)No contract shall be binding on a municipality unless the requirements of this section have been complied with.
