PUNJAB MUNICIPAL CORPORATION (AMENDMENT) ACT, 1995 (Page 1 of 5) Printed For: 19-11-2025 at 12:09:PM PUNJAB MUNICIPAL CORPORATION (AMENDMENT) ACT, 1995 Preamble - PUNJAB MUNICIPAL CORPORATION (AMENDMENT) ACT, 1995 THE PUNJAB MUNICIPAL CORPORATION (AMENDMENT) ACT, 1995 [Act No. 07 of 1995] [26th April, 1995] PREAMBLE An Act further to amend the Punjab Municipal Corporation Act, 1976.BE it enacted by the Legislature of the State of Punjab in the Forty-sixth Year of the Republic of India as follows: -- Section 1 - Short title and commencement
(1) This Act may be called the Punjab Municipal Corporation (Amendment) Act, 1995.
(2) It shall come into force at once.
Section 2 - Insertion of section 117-A in Punjab Act 42 of 1976 In the Punjab Municipal Corporation Act, 1976 (hereinafter referred to as the Principal Act), after section 117, the following section shall be inserted, namely: -- "117-A. Leasing of octroi or appointment of agent for collection thereof
(1) Notwithstanding anything contained in this Act, it shall be lawful for the Corporation to lease by public auction or by invitation of bids in writing, the collection of octroi for any period not exceeding one year at a time or to appoint an agent for the collection thereof.
(2) Where the collection of octroi has been so leased or where any agent is appointed in terms of sub-section (1), any person employed by the lessee or the agent shall, subject to the conditions of the lease or, as the case may be, with the agreement of agency, exercise the powers and perform the duties conferred and imposed on the officers and the employees of the Corporation authorised to collect octroi under this Act or the rules made thereunder:
Provided that no property seized under the provisions of section 117 may be sold except under the orders of the Commissioner.
(3) Subject to the directions of the State Government by general or special order from time to time, if any, the Corporation shall regulate the collection of octroi either through the lessee PUNJAB MUNICIPAL CORPORATION (AMENDMENT) ACT, 1995 (Page 2 of 5) Printed For: 19-11-2025 at 12:09:PM or agent in such a manner or procedure as it may deem fit having regard to the provisions of this Act.", Section 3 - Amendment of section 243 of Punjab Act 42 of 1976 In the Principal Act, in section 243 in sub-section (1),--
(i) in clause (a), the words "in any way encroach upon and" shall be omitted; and
(ii) in clause (b), the words "or encroach upon" shall be omitted.
Section 4 - Amendment of section 246 of Punjab Act 42 of 1976 In the Principal Act, in section 246,--
(i) in sub-section (1), the words and sign "of an encroachment upon," shall be omitted; and
(ii) in sub-section (2), the words "or encroachment thereon" shall be omitted.
Section 5 - SECTION 5 In the Principal Act, after section 246, the following section shall be inserted, namely: -- "246-A. Prohibition of encroachment upon land, premises or public place
(1) No person shall, in any way encroach upon any land, premises or public place, not being private property, whether such land, premises or public place belongs to or vests in a Corporation or not, by raising a temporary or permanent structure thereon or by occupation thereon, in any manner.
Explanation.-- Parking of Rehri temporarily or setting up steps for providing passage to the houses and shops in a street or a drain, channel, well or tank passing through or by the side of land, premise or public place shall not be construed encroachment within the meaning of this section.
(2) The Commissioner or any officer authorised by him in this behalf shall have power to remove any encroachment within the meaning of sub-section (1), and the expenses of such removal shall be paid by the person who has caused the said encroachment.
(3) Notwithstanding anything contained in the foregoing provisions of this section the Commissioner or the officer authorised by him in this behalf shall, in addition to any other action which may be taken under this section, also have power to seize or attach any property found on the land, premises or public place referred to in this section, or as the case may be, attached to or permanently fastened to anything attached to such land, premises or public PUNJAB MUNICIPAL CORPORATION (AMENDMENT) ACT, 1995 (Page 3 of 5) Printed For: 19-11-2025 at 12:09:PM place.
(4) Where any property is seized or attached in terms of sub-section (3) by an officer authorised by the Commissioner, he shall immediately make a report of such seizure or attachment to the Commissioner.
(5) The Commissioner may make such orders as he may think fit for the proper custody of the property seized or attached, pending the conclusion of confiscation proceedings and if, the property is subject to speedy and natural decay, or it is otherwise expedient so to do, the Commissioner may order it to be sold or otherwise disposed of.
(6) Where any such property is sold as aforesaid, the sale proceeds thereof after deduction of the expenses of any such sale or other incidental expenses relating thereto, shall,--
(a) Where no order of confiscation is passed by the Corporation under sub-section (7); or
(b) Where an order passed in appeal under sub-section (11) so requires, be paid to the owner thereof or the person from whom it is seized.
(7) Where any property is seized or attached under sub section (3), the Corporation may, subject to the provisions of sub-section (8), order confiscation of such property.
(8) No order for confiscating property under sub-section (7) shall be made unless the owner of such property or the person from whom it is seized or attached is given,--
(i) a notice, in writing, informing him of the grounds on which it is proposed to confiscate the property;
(iii) an opportunity of making a representation, in writing, within such reasonable time as may be specified in the notice against the grounds of confiscation; and
(iv) a reasonable opportunity of being heard in the matter.
(9) The order of any confiscation made under sub-section (7) shall not prevent the infliction of any punishment to which the person affected thereby is liable under this Act.
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(10) Any person aggrieved by such confiscation order may, within one month from the date of the communication to him of such order, appeal against it to the District Judge of the District in which such property is seized or attached.
(11) On such appeal, the District Judge may, after giving an opportunity to the appellant and the respondent to be heard direct the order to be stayed pending disposal of the appeal, or may modify, alter or annul the order and make any further order that he may think proper in the matter.
(12) Subject to the provisions of sub-section (5), whenever any property is seized or attached pending confiscation under sub-section (7), the Corporation or the District Judge shall have, and notwithstanding anything to the contrary contained in any other law for the time being in force, and any other court, tribunal or other authority shall not have jurisdiction to make orders with regard to the possession, delivery, disposal, release or distribution of such property.
(13) Where a person is prosecuted of an offence for the contravention of the provisions of subsection (1) under this Act, the burden of proving that he has not committed the said offence shall be on such person.
(14) An employee of the Corporation shall not permit anybody to encroach upon or abet to encroach upon any property specified in sub-section (1)."
(15) No court shall take cognizance of an offence of the contravention of the provisions of subsection (14) except with the previous sanction of the Corporation.
(16) No investigation of an offence for contravention of the provisions of sub-section (1) or sub section (14), as the case may be, shall be made by an officer below the rank of a Deputy Superintendent of Police.".
Section 6 - Amendment of Third Schedule of Punjab Act 42 of 1976 In the principal Act, in the Third Schedule, in the table, after the entries-relating to section 246, subsection (2), the following entries shall be inserted, namely: -- PUNJAB MUNICIPAL CORPORATION (AMENDMENT) ACT, 1995 (Page 5 of 5) Printed For: 19-11-2025 at 12:09:PM Section, Subsection, clause or proviso Subject Fine or imprisonment which may be imposed Daily fine which may be imposed "246-A sub-section
(1) Encroachment.Imprisonment which shall not be less than one month, which may extend to three years and fine which may extend to Rs. 20,000 ..
246-A sub-section
(14) Encroachment Imprisonment which may extend to one month or fine which may extend to Rs. 1,000 or both.".