(1) The Government may by notification¹[and after previous publication] make rules for carrying out all or any of the purposes of this Act and prescribe by such rules, forms for any proceeding for which it considers that a form should be prescribed.

(2) In particular and without prejudice to the generality of the foregoing power, rules may be made, --

(a) for regulating the conduct of business and delegation of any of the powers or duties and the appointment and constitution of the committees of a municipal council;

(b) (i) for determining the executive functions to be performed by the president, vice-president, the chairman of any committee, or the Municipal Commissioner and the Chief Officer and the delegation of any of the powers or duties of a municipal council to such persons;

(ii) for determining the staff of officers and servants to be employed by municipal council, their respective designations, and duties, and the powers and duties to be delegated to them under section 70;

(c) for the guidance of the officers and servants of a municipal council in all matters relating to its administration;

(d) as to the amount and nature of the security to be furnished by anyofficer or servant from whom it may be deemed expedient to require security;

(e) prescribing the assessment, levy and collections of taxes in the²[municipal area], the circumstances in which exemption will be allowed, the conditions on which and extent to which remissions will be granted and the system on which refunds will be allowed and paid, in respect of such taxes; the limits of the charges or payments to be fixed in lieu of any tax under section 139, the fees for notices demanding payments due on account of any tax and for the issue and execution of warrants of distress and the rates to be charged for maintaining any live-stock distrained and the time at which and the mode in which such taxes, charges, payments, fees or rates shall be levied or recovered or be payable and the persons authorised to receive payment of the same and the manner in which auctions of movable and immoveable property under section 144 shall be held;

(f) prescribing the conditions subject to which sums due on account of any tax or of costs in recovering any tax or on any other account may be written off as irrecoverable, and the conditions subject to which the whole or any part of any fee chargeable for distress may be remitted;

(g) for regulating the recruitment and conditions of service of officers and servants, and determining the conditions under which such officers and servants, or any of them, shall receive pensions, gratuities, or compassionate allowances on retirement, or on their becoming disabled through the execution of their duty, and the amount of such pensions, gratuities, or compassionate allowances; and for prescribing the conditions under which any gratuities, or compassionate allowance may be paid to the surviving relations on the death of any such officers or servants;

(h) as to the conditions under which rate-payers may appear before the Government auditor, inspect books and vouchers and take exception to items entered in the account or omitted there from;

(i) the powers and duties of the auditors and the procedure to be followed by them for conducting an audit and the times at which such audit may be conducted;

(j) as to preparation of plans and estimates for works which are to be partly or wholly constructed out of the municipal fund and the authority by whom, and the conditions subject to which, such plans and estimates for works may be sanctioned;

(k) as to the transfer to municipal councils of the management of any institution not otherwise provided for by this Act;

(l) as to the intermediate offices, if any, through which correspondence between municipal council and the Government or Government officers shall pass;

(m) in regard to the incurring of expenditure from the municipal fund and the mode of payments from the municipal fund;

(n) for the levy of interest on arrears of municipal taxes;

(o) for submission of returns, statements, and reports and the preparation, submission and sanction of the annual estimates of receipts and expenditure and the administration reports;

(p) for the regulation of all matters connected with the grant of licences and permissions under this Act;

(q) any other matters for which there is no provision or insufficient provision in this Act (including prescribing appellate authorities, periods within which appeals or revision petitions have to be filed, fees or charges payable in respect of any matter) and for which provision is, in the opinion of the Government, necessary for giving effect to the purposes of this Act.

(3) In making a rule under this section the Government may provide that a person guilty of contravention thereof shall be punished with fine which may extend to five hundred rupees and where the contravention is a continuing one with further fine which may extend to twenty-five rupees for every day after the first on which the contravention continues.

(4) A rule may be general for all²[municipal areas], or for all²[municipal areas] not expressly exempted from its operation, or may be special for the whole or any part of any one or more²[municipal areas], as the Government may direct.

(5) A rule under this Act may be made with retrospective effect and whensuch a rule is made the reasons for making the rule shall be specified in a statement laid before both Houses of the State Legislature. Subject to any modification made under sub-section (6), every rule made under this Act shall have effect as if enacted in this Act.

(6) Every rule made under this Act shall be laid as soon as may be after it is made before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the session in which it is so laid or the sessions immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

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1. Omitted by Act 12 of 1983 w.e.f. 24.2.1983 & inserted by the same Act w.e.f. 1.3.1983.

2. Substituted by Act 36 of 1994 w.e.f. 1.6.1994.