(1) Whoever acts as a councillor of a municipal council knowing that, under this Act or the rules made there under he is not entitled or has ceased to be entitled to hold office as such, shall, be punished with fine of fifty rupees for every day on which he sits and votes as a member.

(2) Whoever acts as the president or vice-president of a municipal council or exercises any of his functions knowing that under this Act or the rules made there under he is not entitled or has ceased to be entitled to hold office as such, or to exercise such functions shall, be punished with fine of two hundred rupees for every day on which he acts or functions as such.

(3) Any person who having been the president or vice-president of a municipal council fails to hand over any documents of, or any moneys or other properties vested in or belonging to the municipal council which are in or have come into his possession or control, to his successor in office or other prescribed authority, --

(a) in every case as soon as his term of office as such president or vice-president expires; and

(b) in the case of a person who was the vice-president also on demand by the president, as the case may be,

shall, be punished with fine which may extend to one thousand rupees.