Section 408(1) in The New Delhi Municipal Council Act, 1994
(1)Every member, Chairperson, and every municipal officer and other municipal employee shall be liable for the loss, waste, or misapplication of any money or other property owned by or vested in the Council, if such loss, waste or misapplication is a direct consequence of his neglect or misconduct and a suit for compensation may be instituted against him by the Council with the previous sanction of the Central Government or by the Government.
