Section 392(3) in The Punjab Municipal Corporation Act, 1976
(3)The Government may relieve any Corporation of the whole or part of the cost of the police establishment, and may enter into a contract with the Corporation on such terms as may be agreed on, that, in consideration of such relief, the corporation shall pay periodically a sum not exceeding the amount thereof, or undertake any services within the City to which the Corporation fund can properly be applied, and which are estimated to cost not more than the amount of the relief.
