Section 120(2) in The U.P. Municipalities Act, 1916
(2)Provided that the [Municipality] [Substituted by U.P. Act No. 12 of 1994.] shall not incur any expenditure for acquiring or renting land beyond the limits of the [municipal area] [Substituted by U.P. Act No. 12 of 1994.] or for constructing any work beyond such limits except, -(a)with the sanction of the [State Government] [Substituted by ALO 1950.]; and(b)on such terms and conditions as the [State Government] [Substituted by ALO 1950.] imposes.