Section 65(4) in The Gujarat Municipalities Act, 1963
(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.
