(1) If, in the opinion of the State Government, the Council has shown its incompetence, or has persistently made default, in the performance of the functions, or in the discharge of the duties, imposed on it by or under this Act or any other law for the time being in force, or has exceeded or abused its powers, or is unable to function under the provisions of this Act, the State Government may, subject to the provisions of sub-section (2), by an order published in the Official Gazette, and stating the reasons therefor, declare the Council to be incompetent or in default or to have exceeded or abused its powers, as the case may be, and dissolve it for such period, not exceeding six months, and with effect from such date, as may be specified in the order.
(2) Before making any order under sub-section (1) a notice shall be given by the State Government to the Council calling upon it to submit representation, if any, against the proposed order within such period as may be specified in the notice.
(3) The Mayor or Chairperson shall also be given a reasonable opportunity of being heard before making an order under sub-section (1).
(4) Not withstanding anything contained in this Act or in any other law for the time being in force, with effect from the date of the order of dissolution under sub-section (1),
(a) all the Councillors including the members of the Standing Committee and of any committee of the municipality constituted under this Act, and the Mayor or Chairperson and the Deputy Mayor or Vice-Chairperson shall vacate their respective offices, and >kj[k.M xtV ¼vlk/kkj.k½] o`gLifrokj 9 Qjojh] 2012 463
(b) all the powers and duties which, under the provisions of this Act or the rules or the regulations made thereunder or any other law for the time being in force, which are exercised or performed by the members of the Standing Committee or of any committee of the municipality or the Mayor or Chairperson, shall thereafter be exercised or performed, subject to such directions as the State Government may give from time to time, by such person or persons as the State Government may appoint in this behalf:
Provided that when the State Government appoints more than one person to exercise any powers or perform any duties, it may, by order, and in such manner as it thinks fit, allocate such powers and duties among the persons so appointed:
Provided further that the State Government shall fix the remuneration of such person or persons, and may direct that such remuneration shall, in each case, be paid out of the Municipal Fund.
(5) For the avoidance of doubts, it is hereby declared that an order of dissolution under sub-section (1) of section 95 shall not affect or imply in any way the dissolution of the municipality as a body corporate.
PART III FINANCIAL MANAGEMENT OF MUNICIPALITIES Chapter – 11 Finance Commission and Financial Assistance
97. Implementation of recommendations of the State Finance Commission - After taking into the consideration the recommendations of the State Finance Commission constituted under Article 243-Y read with Article 243-I of the Constitution of India, the State Government shall determine-
(a) the devolution of net proceeds of the taxes, duties, tolls and fees to the municipalities,
(b) the assignment of taxes, duties, tolls and fees to the municipalities,
(c) the sanction of grants-in-aid to the municipalities from the Consolidated Fund of the State, and
(d) the other measures required to improve the financial position of the municipalities.
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98. Financial assistance from the State Government
(1) The State Government, may, from time to time, give grants or financial assistance to the municipality with or without conditions under which such grants or financial assistance shall be applied.
(2) The State Government may, for giving such grants or assistance, lay down a scheme which may include the conditions of release of such grants or assistance and may provide for the division of municipalities into different classes for that purpose.
(3) The State Government may give grants to the municipality for implementation, in full or in part, of any scheme included in the annual development plan of the municipality.
(4) The State Government may constitute an authority, as may be prescribed, to institute a Jharkhand Urban Development Fund to finance urban development projects in the state.
Chapter - 12 Municipal Fund
99. Municipal Fund –
(1) There shall be a fund to be called the Municipal Fund which shall be held by the municipality in trust for the purposes of this Act, and all moneys realized or realizable under this Act and all moneys otherwise received by the municipality shall be credited thereto.
(2) Subject to such directions as the State Government may issue in this behalf, and keeping in view the classification of municipal areas under section 7, the income and expenditure of the municipality shall be kept under such heads of accounts, including those for water-supply, drainage and sewerage, solid waste management, road development and maintenance, slum services, commercial projects and other account heads as may be specified and the general account head, in such manner, and in such form, as may be prescribed, so as to facilitate the imposition of user charges and preparation of any subsidy report under this Act.
Explanation.- For the purposes of this section, "commercial projects" shall include municipal markets, market development projects, property development projects, and such other projects of a commercial nature as may be specified by the municipality, from time to time.
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(3) Every head of account specified under sub-section (1) shall be split up into a revenue account and a capital account and all items of income and expenditure shall be kept appropriately under such revenue account or capital account, as the case may be.
100. Application of Municipal Fund-The money credited to the Municipal Fund, from time to time, shall be applied for payment of all sums, charges and costs necessary for carrying out the purposes of this Act and the rules and the regulations made thereunder and for payment of all sums payable out of the Municipal Fund under any other law for the time being in force.