Local Self Govern ance Act, 2055 (1999)
An Act made to provide for Local Self Governance

Preamble:
Whereas, it is expedient to:
Make provisions conducive to the enjoyment of the fruits of
democracy through the utmost participation of the sovereign
people in t he process of governance by way of decentralization,
Institutionalize the process of development by enhancing the
participation of all the people including the ethnic communities,
indigenous people and down trodden as well as socially and
economically back ward groups in bringing out social equality in
mobilizing and allocating means for the development of their own
region and in the balanced and equal distribution of the fruits of
development,
Have institutional development of local bodies capable of bearin g
responsibility, by providing such responsibility and power at the
local level as is necessary to formulate and carry out plans, and
Constitute local bodies for the development of the local self
governance system in a manner that they are able to make
dec isions on the matters affecting the day to date needs and lives
of the people, by developing local leadership;
Now, therefore, be it enacted by Parliament in the twenty -sixth
year of the reign of His Majesty’s King Birendra Bir Bikram Shah
Dev.

PART 1 : PRELIMINARY

1 . Short Title and Commencement:

(1) This Act may be called “The Local Self governance Act, 205 5
(1999).”
(2) It shall come into force at once.
2. Definitions:
Unless the subject or context otherwise requires, in this Act,
(a) “Local Body” means the Village Development Committee,
Municipality and District Development Committee.
(b) “Village Counci l” means the Village Council constituted under
Section 8.
(c) “Village Development Committee” means the Village
Development Committee constituted under Section 12.
(d) “Ward Committee” means the Ward Committees constituted
under Section 7 in regard to the Village Development Committee
and under Section 75 in regard to the Municipality.
(e) “Chairman” means the Chairman of the Village Development
Committee.
(f) “Vice chairman” means the Vice chairman of the Village
Development Committee.
(g) “Municipal Counc il” means the Municipal Council constituted
under Section 76.
(h) “Municipality” means the Municipality constituted under Section
80.
(i) “Mayor” means the Mayor of the Municipality.
(j) “Deputy Mayor” means the Deputy Mayor of the Municipality.
(k) “Distr ict Council” means the District Council constituted under
Section 172.
(l) “District Development Committee” means the District
Development Committee constituted under Section 176.
(m) “President” means the President of the District Development
Committee.
(n) “Vice President” means the Vice president of the District
Development Committee.
(o) “Member” means
(1) In the case of the Village Development Committee, any Member
of the Village Development Committee, and this term also includes
the Chairman and Vice Chairman of the Village Development
Committee.
(2) In the case of the Municipality, any Member of the Municipality
and this term also includes the Mayor and Deputy Mayor of the

Municipality.
(3) In the case of the District Development Committee, any
Member of the District Development Committee, and this term also
includes the President and Vice President of the District
Development Committee.
(p) “Secretary” means
(1) In the case of Village Development Committee, any employee
appointed to act as the Secreta ry of the Village Development
Committee, pursuant to Section 253.
(2) In the case of Municipality, any employee appointed to act as
the Secretary of the Municipality, pursuant to Section 253.
(3) In the case of District Development Committee, any employee
appointed to act as the Secretary of the District Development
Committee, pursuant to Section 253.
(q) “Prescribed” or “As Prescribed” means prescribed or as
prescribed in this Act or in the Rules or Bye laws made under this
Act.
3. Principles and Policies of Local Self governance:
His Majesty’s Government shall, in accordance with the guidelines
set forth in the Constitution of the Kingdom of Nepal, 1990, on
decentralization, pursue the following principles and policies for the
development of local self g overnance system:
(a) Devolution of such powers, responsibilities, and means and
resources as are required to make the Local Bodies capable and
efficient in local self governance.
(b) Building and development of institutional mechanism and
functional struc ture in Local Bodies capable of considering for local
people and bearing responsibilities.
(c) Devolution of powers to collect and mobilize such means and
resources as are required to discharge the functions, duties,
responsibility and accountability confe rred to the Local Bodies.
(d) Having the Local Bodies oriented towards establishing the civil
society based on democratic process, transparent practice, public
accountability, and people’s participation, in carrying out the
functions devolved on them.
(e) For the purpose of developing local leadership, arrangement of
effective mechanism to make the Local Body accountable to the
people in its own areas.
(f) Encouraging the private sector to participate in local self
governance in the task of providing basic services for sustainable

development.

PART 2 : PROVISIONS RELATIONG TO VILLAGE
DEVELOPMENT
Chapter 1
Village Development Area. Ward Division and Ward
Committee
4. Specification of Village Development Area and Centre:
(1) His Majesty’s Government may, taking also into account the
geographical situation, population, communal unity or diversity of
inhabitants, specify any rural area in the Kingdom of Nep al, as a
village development area, and set out the four boundary thereof. In
so specifying the village development area, His Majesty’s
Government shall, as required, consult with the District
Development Committee.
(2) His Majesty’s Government may, in cons ultation with the Village
Council, specify a convenient place within a village development
area specified under sub section (1) as the centre of that area.
(3) AD the village level offices shall be located in the centre of the
village development area spec ified under sub section (2).
5. Division of Wards : His Majesty’s Government shall, taking
also into account of the geographical situation, divide the village
development area specified under Section 4 into nine Wards
consisting of equal population to the extent possible.
6. Alteration of Boundary:
(1) In the event of necessity to alter the boundary of any village
development area specified under Section 4 or of any Ward divided
under Section 5, His Majesty’s Government shall form a committee
comprising al so the concerned expert and, on the recommendation
of the committee as well as with the approval of the Election
Commission. shall alter the boundary of such a village development
area or Ward, without affecting the election constituencies
delimited for el ection of members of the House of Representatives.
Provided that in so altering any boundary, it shall have to he made
prior to one year of the year of election.
(2) In case the concerned District Council makes a

recommendation, upon a resolution adopted by a two thirds
majority of the concerned Village Council that it is necessary to
alter the boundary of any village development area, His Majesty’s
Government shall, subject to sub section (1), alter the boundary.
7. Constitution of Ward Committee : A Ward Committee shall
be constituted comprising of the Ward Chairman and Ward
Members as follows elected by the Nepalese citizens who are in
possession of the qualifications to become voters under the
prevailing law, of each Ward of the Village Development
Comm ittee, from amongst the persons having possessed the
required qualifications to become a Member of the Village Council
under Section 10:
(a) one Ward Chairman,
(b) one Woman Ward Member, and
(c) three Ward Members.

Chapter 2
Provisions relating to Village Council
8. Constitution of Village Council :
(1) A Village Council shall be constituted in any village development
area specified under Section 4.
(2) The Village Council shall consist of the Members as follows
(a) Chairman and Vice chairman of the Village Development
Committee,
(b) Ward Chairman, Woman Ward Member and Ward Members of
each Ward Committee,
(c) Six persons including one woman nomin ated by the Village
Council from amongst those social workers, socially and
economically backward tribes and ethnic communities, down
trodden and indigenous people living within the village development
area, belonging to the class whose representation ‘m t he Village
Council does not exist and who are in possession of the required
qualifications to become the Member of the Village Council under
Section 10.
9. Term of Office of Member of Village Council :
(1) The term of office of a Member of the Village Cou ncil shall be of
five years.
(2) In reckoning the term of office of a Member of the Village

Council, it shall be reckoned from the first day of Shrawan of the
year in which the term of office begins, and the term of office shall
be deemed to have been expi red on the last day of Ashadh of every
five years, not exceeding a term of five years.
(3) Notwithstanding anything contained in sub sections (1) and (2),
in case the election to new Members of the Village Council is held
prior to the expiry of the term of office of the Member of the Village
Council under this Section, the term of office of the existing
Member of the Village Council shall be deemed to have been
expired, and the newly elected members of the Village Council shall
have the authority to dischar ge functions.
(4) In reckoning the term of office of such Member even in cases
where, owing to the fact that the election to the office of any
Member of the Village Development Committee or Ward Committee
could not be held or nomination of the Member of th e Village
Council could not be made at. the scheduled time due to any
reason, it is held in. any other time, the term shall be reckoned as
if the elections were held or nomination made at the scheduled
time.
(5) In case the office of any Member of the Vill age Council becomes
vacant due to any reason, the vacant office shall be fulfilled only for
the remainder of the term through a by election under the
prevailing law to the office of an elected Member and through
nomination to the office of a nominated Memb er.
Provided that
(1) By election or nomination shall have to be held or made, as the
case may be, within one year of the date of vacancy of the office.
(2) No by election or nomination shall be held or made for a period
less than one year.

10. Qualifica tions Required for a Member of Village Council :
In order to become a Member of the Village Council, one shall have
to possess the following qualifications
(a) Being a Nepalese citizen,
(b) Having attained twenty one years of age and possessed
qualificatio n to become a voter under the prevailing law,
(c) Having settled up any goods in kind and cash due to the Village
Development Committee,
(d) Having no personal interest in any contract, or in any dealings
on movable, immovable property, with the Village De velopment
Committee,

(e) Having not been held to have misappropriated public property,
Provided that this clause shall not apply, if an evidence showing the
settlement thereof is produced.
(f) In the event of having been punished for any criminal charge
involving moral turpitude, having passed three years after serving
such punishment
(g) Being not disqualified under any law.
11. Termination of Membership of Village Council : The
membership of the Village Council shall cease to continue in the
following cir cumstances:
(a) If he does not possess the qualifications referred to in Section
10,
(b) If the Ward or the part thereof where he has been living is
taken out from the concerned village development area or
amalgamated to any other village development area or Municipal
Area,
(c) If he is elected to the office of President, Vice president or
Member of the District Development Committee or is nominated as
a Member of the District Council,
(d) If he becomes a candidate in the election of the Members of the
Hous e of Representatives or National Assembly or is nominated as
a Member of the National Assembly,
(e) If he absents himself from. three consecutive meetings of the
Village Council, without giving a reasonable notice, Provided that
such a Member shall not be given a notice indicating the
termination of his membership without giving him a reasonable
opportunity to defend himself.
(f) If his term of office as set forth in Section 9 expires,
(g) If he is punished under the prevailing law on a corruption
charge o r a criminal charge involving moral turpitude or a criminal
charge carrying punishment of imprisonment for more than three
years,
(h) If he resigns,
(i) If he dies.

Chapter 3
Provisions relating to Village Development Committee
12. Constitution of Village Development Committee:
(1) A Village Development Committee shall be constituted as an

executive of the Village Council in a village development area
specified under Section 4.
(2) The Village Development Committee shall consist of the
Chairman, Vice chairman and Members as follows
(a) One Chairman and one Vice chairman elected by the Nepalese
citizens within the v illage development area who have possessed
the qualifications to become voters under the prevailing law,
(b) Nine Ward Chairmen, elected by the Nepalese citizens, who
have possessed qualifications to become voters under the
prevailing law, of each Ward of the village development area at the
rate of one each from their respective Wards,
(c) Two Members including one woman nominated by the Village
Development Committee from amongst the Members of the Village
Council as referred to in clause (c) of sub section (2) of Section 8.
13. Village Development Committee to Be Autonomous and
Corporate Body :
(1) Each Village Development Committee shall be an autonomous
and corporate body with perpetual succession.
(2) The Village Development Committee shall have a seal o f its
own.
(3) The Village Development Committee may, like an individual,
acquire, use, sell and dispose of movable and immovable property.
(4) The Village Development Committee may, like an individual,
sue or be sued in its own name.
14. Term of Office o f Member :
(1) The term of office of a Member of the Village Development
Committee shall be of five years.
(2) In reckoning the term of office of a Member of the Village
Development Committee, it shall be reckoned from the first day of
Shrawan of the year in which the term of office begins, and the
term of office shall be deemed to have been expired on the last day
of Ashadh of every five years, not exceeding a term of five years.
(3) Notwithstanding anything contained in sub sections (1) and (2),
in case the election to new Members is held prior to the expiry of
the term of office of the Member under this Section, the term of
office of the existing Member shall be deemed to have been
expired, and the newly elected members shall have the authority to
discha rge functions.
(4) In reckoning the term of office of a Member even in cases
where, owing to the fact that the election or nomination to the

office of any Member of the Village Development Committee could
not be held or made at the scheduled time due to an y reason, it is
held or made in any other time, the term shall be reckoned as if the
election was held or nomination made at the scheduled time.
(5) In case the office of any Member of the Village Development
Committee becomes vacant due to any reason, the vacant office
shall be fulfilled only for the remainder of the term through a by
election under the prevailing law to the office of an elected Member
and through nomination to the office of a nominated Member.
Provided that :
(1) By election or nomination shall have to be held or made, as the
case may be, within one year of the date of vacancy of the Office.
(2) No by election or nomination shall be held or made for a period
less than one year.
15. Oath To Be Taken :
(1) The Chairman shall take an oath bef ore the District Judge, the
Vice chairmarn and Members before the Chairman and, in the
absence of the Chairman, the Vice chairman before the District
Judge, and the Members before the Vice chairman.
(2) The Members of the Village Council other than those r eferred to
in sub section (1) shall take an oath before the Chairman and, in
the absence of the Chairman, before the Vice chairman.
(3) Without taking an oath pursuant to subsection (1) or (2), no
Member of the Village Council and the Village Development
Committee, shall be entitled to assume his office.

16. Office May be Relinquished :
(1) The Chairman may relinquish his office by tendering his
resignation to the Village Development Committee through the
Vice -chairman, and the Vice chairman and Members m ay do so by
tendering it to the Chairman.
(2) The Members of the Village Council other than those referred to
in sub section (1) may relinquish the office by tendering resignation
to the Chairman.
17. Qualifications Required for Member :
One shall have to possess the following qualifications to be elected
or nominated as a Member of the Village Development Committee:
(a) Being a Nepalese citizen,
(b) Having attained twenty one years of age and possessed

qualification to become a voter under the prevailing l aw,
(c) Having settled up any goods in kind and cash due to the Village
Development Committee,
(d) Having no personal interest in any contract, or in any dealings
on movable, immovable property, with the Village Development
Committee,
(e) Having not been h eld to have misappropriated public property,
Provided that this clause shall not apply, if an evidence showing the
settlement thereof is produced.
(f) In the event of having been punished for any criminal charge
involving moral turpitude, having passed th ree years after serving
such punishment.
(g) Being not disqualified under any law.
18. Termination of Membership :
The Members hip of the Village Development Committee shall cease
to continue in the following circumstances :
(a) If he does not possess the qualifications referred to in Section
17,
(b) If the Ward or the part thereof where he has been living is
taken out from the concerned village development area or
amalgamated to any other village development area or municipal
area,
(c) If he is elected to the office of President, Vice president or
Member of the District Development Committee or is nominated as
a Member of the District Council,
(d) If he becomes a candidate in the election of the Members of the
House of Representatives or National Assembly or is nominated as
a Member of the National Assembly,
(e) If he absents himself from three consecutive meetings of the
Village Development Committee without giving a reasonable notice,
Provided that such a Member shall not be given a notice indicating
the termination of his membership without giving him a reasonable
opportunity to defend himself.
(f) If he is punished under the prevailing law on a corruption charge
or a criminal charge involving moral, turpitude or criminal charge
carrying punishment of imp risonment for more than three years,
(g) If his term of office as set forth in Section 14 expires,
(h) If he resigns,
(i) If he dies.
19. The Statement of Property To Be Made Public :

The Member shall, within thirty days of the date of oath taken
under Se ction 15, have to make public the statement of the
movable and immovable property remained in his name and that of
his family member living in some joint family.
Provided, however, that the Chairman and the Vice -chairman shall,
even after they are relieved of the office, make public the
statement of such property within thirty days of their relieving of
the office.
20. Classification of Village Development Committees:
(1) His Majesty’s Government may, as prescribed, classify the
Village Development Committ ees on the basis of population,
geographical diversity and facilities relating to transportation,
communications, education and health, and may make
arrangement for the development of those Village Development
Committees which have low facilities available and are situated m
an undeveloped village development area, by making them affluent
with means and facilities on the recommendation of the concerned
District Development Committee.

Chapter 4
Meetings and Working Procedures
21. Meetings of Ward Committee :
(1) The Ward Committee shall meet at least once in a month.
(2) The Ward Chairman shall convene the meeting of the Ward
Committee, with specifying the date, time and venue of such
meeting.
(3) The Ward Chairman shall preside over the meetings of the
Ward Committee and, in his absence, the Member chosen by the
members of the Ward Committ ee present at the meeting from
amongst themselves shall preside over the meeting of the Ward
Committee.
(4) Decisions of the Meeting may be made by a majority of three
Members including the person presiding over it.
(5) Other matters relating to the meetin gs of the Ward Committee
shall be as determined by the Ward Committee itself.
22. Meeting of Village Council :
(1) The Village Council shall normally meet twice a year.
(2) The Chairman of the Village Development Committee shall

convene the meetings of th e Village Council.
(3) The meetings of the Village Council shall have to be normally
convened within the last day of the month of Shrawan and that of
Poush each year.
(4) The meeting of the Village Council shall be presided over by the
Member chosen by the Members, other than the Members of the
Village Development Committee, present at each meeting of the
Village Council from amongst themselves.
Provided that prior to the selection of the Chairman at the meeting
of the Village Council, the senior most membe r, on account of age,
among the Members of the Village Council present shall preside
over that meeting.
(5) The Secretary of the Village Development Committee shall act
as the Secretary of the Village Council.
(6) The Secretary shall, at the direction of t he Chairman of the
Village Development Committee, have. to send a notice of the date,
time and venue of the meeting of the Village Council to all the
Members of the Village Council in advance of at least fifteen days of
the meeting.
(7) The presence of fif ty percent members of the number of
Members existing for the time being at the meeting of the Village
Council shall be deemed to have constituted a quorum for the
meeting.
(8) In case the meeting of the Village Council could not be held due
to the lack of the quorum, another meeting shall have to be
convened by giving a seven day notice. The quorum for such
meeting shall be one thirds. Even if the quorum be not constituted
there, another meeting shall have to be convened again on the
following day thereof, and that meeting shall be conducted no
matter how many members are present at the meeting.
(9) If one third Members of the Village Council request the
Chairman in writing to convene a meeting to discuss, any particular
matter, the Chairman shall have to co nvene an extra ordinary
meeting of the Village Council within thirty days of the day of such
a request
(10) The Secretary shall authenticate the decisions of the meetings
of the Village Council.
(11) Other procedures relating to the meetings of the Village
Council shall be as prescribed.
23. Meeting of Village Development Committee :
(1) The meeting of the Village Development Committee shall be

held at least once in a month.
(2) The Secretary shall, as ordered by the Chairman, convene the
meetings of the Vi llage Development Committee.
Provided that if the Chairman does not order to convene the
meeting even until three months, the Secretary shall, upon the
request in writing of one third members, convene the meeting of
the Village Development Committee.
(3) T he meeting of the Village Development Committee shall be
presided over by the Chairman or, in the absence of the Chairman
by the Vice chairman and, even if the Vice chairman absents
himself, by a Member chosen by the Members present at the
meeting from amo ngst themselves.
(4) If fifty per cent Members of the total number of the Members
existing for the time being are present at a meeting of the Village
Development Committee, the quorum for the meeting shall be
deemed to have constituted.
(5) The concerned A rea Member of the District Development
Committee shall have to be invited to participate in the meetings of
the Village Development Committee.
(6) The Secretary shall authenticate the decisions of the meetings
of the Village Development Committee.
(7) Othe r procedures relating to the meetings of the Village
Development Committee shall be as prescribed.
24. Decisions of Meeting :
(1) Unless otherwise provided for, in this Act, decisions of te
meetings of the Village Council and the Village Development
Commit tee shall be made on the basis of a majority of the
Members present at the meeting.
Provided that a majority of the number of the total Members shall
be required to decide on a proposal referred to in clauses (b) and
(c) of sub section (1) of Section 26.
(2) In the event of a tie of votes at a meeting of the Village Council
and Village Development Committee, the person presiding over the
meeting shall exercise a casting vote.
25. Functions, Duties and Powers of the Ward Committee :
The functions, duties an d powers of each Ward Committee under
the Village Development Committee shall be as follows
(a) To keep neat and clean the roads, ways, bridges, drainage,
ponds, lakes, wells, deep water, taps, etc. within the Ward.
(b) To arrange for disposal of wastes, d irt and rotten materials and

to make arrangements to encourage the inhabitants of the Ward for
maintaining sanitation.
(c) To assist the. Village Development Committee in keeping
inventory of and in protecting population, houses, land, rest
houses, shelter s, inns, divine places like temples, shrines,
mosques. monasteries, madarasa. (Muslim religious schools) etc.,
barren land, ponds, lakes, wells, deep water, taps etc., and similar
other religious and cultural places of public importance, within the
Ward.
(d) To look after the canals, drills, dams (Paini) etc. within the
Ward.
(e) To assist in afforesting in the barren land and hills, steeps and
steppe places and in conserving the environment, within the Ward.
(f) To assist in management of health centres, h ealth offices etc. in
the Ward.
(g) To assist in the establishment and operation of schools and
libraries in the Ward.
(h) To supervise the projects and programmes completed and
being carried out within the Ward.
(i) To motivate the inhabitants of the Ward to register personal
events.
(j) To assist in the acts relating to the protection and earning of
livelihood of the backward ethnic communities, helpless, disabled
and heirless persons within the Ward.
(k) To carry out such other functions as directed and ordered by
the concerned Village Development Committee.
26. Functions, Duties and Powers of Village Council :
(1) The functions, duties and powers of the Village Council shall be
as follows :
(a) To pass the budgets, plans and programmes submitted by the
Village Development Committee.
(b) To adopt the resolutions relating to the levying and collecting of
taxes, charges, few, levies etc. proposed by the Village
Development committee.
(c) To adopt the resolutions relating to the raising of loans or
selling or disposing or transferring of immovable properties
proposed by the Village Development Committee.
(d) To discuss on the irregularities determined by the audit report
of the Village Development Committee and direct the Village
Development Committee to take necessary action for the clearance
of the irregularities m respect of those irregularities which can not

be regularized under the prevailing law.
(c) To grant approval, as required, on such number of positions,
remuneration, allowance and other facilities of the . employees
proposed by the Village Development Committee as are to be borne
from its own internal source.
(f) To evaluate the administrative functions of the Village
Development Committee and give necessary directions to the
Village Development Com mittee.
(g) To evaluate the development and construction works carried
out within the village development area and give necessary
directions.
(h) To approve the bye laws of the . Village Development
Committee.
(i) To carry out such other functions as presc ribed.
(2) The Village Council shall constitute an accounts committee
under the chairmanship of any Member of the Village Council,
consisting of three members including the Chairman; and the
functions, duties and powers of such a committee shall be as
pres cribed.
(3) The Village Council may form various committees to render
necessary advice and suggestions to the Village Council on various
matters in a manner that the Members of the Village Council other
than the members included in the accounts committee r eferred to
in subsection (2) are included in the subject wise committees as
prescribed.
(4) Other functions, duties and powers of the Village Council shall
be as prescribed.
27. Advisory Committee May Be Formed :
(1) The Village Development Committee may, if’ it deems it
necessary, form an advisory committee comprising of members
ranging from three to nine, including social workers, intellectuals
and persons having technical knowledge and skills to render
assistance in its functions.
(2) Other matters rela ting to the advisory committee shall be as
prescribed.
28. Functions, Duties and Powers of Village Development
Committee :
In addition. to executing or causing to be executed the decisions
and directions of the Village Council, the functions, duties and

powers of the Village Development Committee shall be as follows :
(a) Relating to Agriculture :
(1) To carry out or cause to be carried out agricultural development
programmes within the village development area.
(2) To arrange for agricultura l (weekly temporary bazaar), markets
and fairs or to assist in organizing such fairs within the village
development area.
(3) To operate or cause to be operated veterinary hospitals, as per
necessity, for the prevention and control of animal diseases withi n
the village development area, and to arrange or cause to be
arranged for pasture areas, as required, for cattle grazing.
(b) Relating to Rural Drinking Water:
(1) To prepare drinking water projects for the supply of drinking
water required within the vi llage development area and to
implement and operate the same, and to arrange or cause to be
arranged for their maintenance. ,
(2) To construct, maintain and repair or cause to be constructed,
maintained and repaired wells, deep water, ponds, taps etc. with in
the village development area.
(3) To preserve or cause to be preserved the sources of water
within the village development area.
(c) Relating to Works and Transport:
(1) To prepare projects on tracks and trails, and rural roads
required within the vill age development area and to implement the
same and make arrangement for their maintenance and repair.
(2) To maintain and repair bridges, twines, ghats (embankments)
and culverts handed over by various agencies.
(d) Relating to Education and Sports:
(1) T o establish pre primary schools with own source, to give
permission to establish them and to operate and manage the same.
(2) To supervise and manage the schools being operated within the
village development area.
(3) To assist in providing primary level e ducation in mother tongue
within the village development area.
(4) To make programmes on adult education and informal
education and to carry out or cause to be carried out the same.
(5) To establish and operate or cause to be established or operated
libra ries.

(6) To formulate plans on the development of sports and to
implement the same, and to extend support to the development of
sports by constituting village level sports development committee. .
(7) To make arrangements for providing scholarships to the
students of oppressed ethnic communities who are extremely
backward on economic point of view.
(e) Relating to Irrigation and Soil erosion and River Control:
(1) To prepare projects of irrigation, dams, canals, water channel,
water bank (Pani ghat) etc. required within the village development
area and to implement or cause to be implemented the same.
(2) To prepare programmes on soil erosion and river control that
affects the village development area and to implement or cause to
be implemented the same.
(3) To generate and distribute electricity and to cause to be
generated and distributed the same.
(f) Relating to Physical Development :
(1) To build community buildings, rest houses and public toilets.
(2) To prepare criteria for houses, buildings, roads and other
physical infrastructures etc. to be constructed within the village
development area, and to grant approval as prescribed for the
construction of them.
(3) To formulate land utilization plans of the village and to
implement or cause to be implemen ted the same.
(4) To make or cause to be made arrangements for necessary
sewerage and drainage in settlement areas.

(g) Relating to Health Service:
(1) To operate and manage village level health centre, health post
and sub health posts.
(2) To prepare pro grammes on primary health education and
sanitation and disposal of wastes and garbages in the village
development area and to implement the same.
(3) To provide assistance in the development and expansion of
herbs.
(4) To launch programmes on family planni ng and maternity and
child care.
(h) Relating to Forests and Environment:
(1) To afforest or have afforestation in barren land, hills, steppe
and steep land and in public land.
(2) To prepare programmes in respect of forests, vegetation,

biological diversi ty and soil conservation and to carry out or cause
to be carried out the same.
(3) To make various programmes on environment protection and to
carry out or cause to be carried out the same.
(i) Relating to Language and Culture:
(1) To keep records of reli gious places and rest houses, inns,
shelters etc. within the village development area and to look after
and preserve them or cause to be done the same.
(2) To preserve or cause to be preserved various languages,
religions and cultures and assist in their d evelopment.
(j) Relating to Tourism and Cottage Industries :
(1) To preserve, develop and expand tourist areas and to make or
cause to be made arrangements for preventing pollution in such
places.
(2) To act as a motivator for carrying out cottage industri es in the
village development area.
(k) Miscellaneous :
(1) To develop human resources, to make arrangements for
making available employment and self employment opportunities.
(2) To provide assistance for cooperativeness.
(3) To keep records of populatio n, houses, land and livestock within
the village development area.
(4) To carry out or cause to be carried out necessary works , in
respect of controlling natural calamities.
(5) To register birth, death and other personal events in
accordance with the pre vailing law.
(6) To maintain the inventory of the helpless, orphan and disabled
children within the village development area and to make
arrangements for keeping them in appropriate place.
(7) To prepare necessary plans for the upliftment of women within
the village development area and to implement the same.
(8) To carry out activities regarding the protection of orphan
children, helpless women, aged and old, disabled and incapacitated
persons in fine with the national policy and to carry out or cause to
be carried out acts regarding the wiping out of social ill practices
and the protection of girls and women.
(9) To protect movable and immovable properties which are under
ownership and control of the Village Development Committee.
(10) To frame bye laws o f the Village Development Committee and

submit them to the Village Council.
(11) To control immoral activities like sale and distribution of
intoxicating substances and gambling and playing cards within the
village development area.
(12) To encourage or ca use to be encouraged to carry out
cooperative, industrial and commercial activities generating
income . to the Village . Development Committee with the
investment of private sector as well.
(13) To formulate various programmes based on coopertiveness
and t o carry out or cause to be carried out the same.
(14) To evaluate the performance of the Secretary and forward it
with recommendation to the authority.
(15) To carry out such other functions as are prescribed by the
prevailing law.
(2) The Village Developm ent Committee shall encourage consumer
groups and other non governmental organizations for the
development and construction works to be done in the village
development area and it shall have such works done through such
groups or organizations.
(3) The Vil lage Development Committee shall exercise the powers
conferred on it under this Act and the Rules and Bye laws framed
under this Act.
29. Functions, Duties and Powers of the Chairman :
(1) The functions, duties and powers of the Chairman shall be as
follo ws
(a) To convene the meetings of the Village Council and the Village
Development Committee.
(b) To submit and cause to be submitted necessary resolutions and
documents at the meetings of the Village Council and Village
Development Committee.
(c) To safely keep or cause to be safely kept the books of accounts
of income, and expenditure and other documents of the Village
Development Committee.
(d) To make necessary arrangements in respect of preparing
budgets and plans of the Village Development Committee.
(e) To execute or cause to be executed the decisions of the Village
Development Committee.
(f) To supervise and control the day -to day administration of the
Village Development Committee.
(g) To make necessary recommendation under the prevailing law.
(h) To take care of, maintain and repair and require to take care of,

maintain and repair the movable and immovable properties of the
Village Development Committee.
(i) To allocate subject wise functions to the Vice chairman and
Members.
(j) To depute the Vice C hairman, Members and the Secretary, as
required, on duty.
(k) To give in charge to. the Vice -chairman, if he becomes unable
to present in the Village Development Committee for a period
exceeding seven days and, in the absence of even the Vice
chairman, to give in -charge to the senior most Member on. account
of age, or to any other Member.
(1) To perform such other functions as are prescribed.
(2) The Chairman shall not have to leave his Village Development
Committee for a continuous period of more than thir ty days, except
for a reasonable cause.
(3) In case there arises a question whether the cause is reasonable
or not for the purpose of sub section (2), the Village Development
Committee shall make decision thereon.
30. Function, Duties, Powers of the Vice C hairman :
(1) The functions, duties and powers of the Vice Chairman shall be
as follows
(a) To act as acting Chairman in the absence of the Chairman.
(b) To perform such other functions as are prescribed.
(2) The Vice Chairman shall not have to leave his V illage
Development Committee for a continuous period of more than
thirty days, except for a reasonable cause.
(3) In case there arises a question whether the cause is reasonable
or not for the purpose of sub section (2), the Village Development
Committee s hall make decision thereon.
31. Functions, Duties and Powers of Member :
(1) The functions, duties and powers of the Member shall be as
follows :
(a) To prepare plans on development and construction works in
own Ward and submit the same to the Village Dev elopment
Committee.
(b) To arrange for forwarding to the Village Development
Committee the feasible projects from non governmental
organizations by discussing on the undertaking of development and
construction works.
(c) To submit to the Village Developmen t Committee the particulars

relating to the Ward as and when demanded.
(d) To help consumers groups and other non governmental
organizations in the selection of projects and formulation of plans.
(e) To give in charge to the eldest Member among the Ward
Me mbers referred to in clauses (b) and (c) of Section 7 of this Act,
or to any other Members if he becomes unable to present in the
Ward Committee for a period exceeding seven days.
(f) To allocate the functions of the Ward Members.
(g) To carry out such oth er functions as are prescribed.
(2) The Member shall not have to leave his Village Development
Committee for a continuous period of more than thirty days, except
for a reasonable cause.
(3) In case there arises a question whether the cause is reasonable
or not for the purpose of sub section (2), the Village Development
Committee shall make decision thereon.
(4) The Members of the concerned Ward Committee shall assist the
Member in discharging his functions.
32. Functions, Duties and Powers of the Secretary :
The Secretary shall, being under the direct direction of the
Chairman, discharge and exercise the functions, duties and powers
as follows:
(a) To execute the approved village development programme.
(b) To maintain the accounts of expenditure incurred on , the
construction works and to have them cleared.
(c) To keep the up to date records of the projects being carried out
and completed within the village development area.
(d) To maintain the accounts of income and expenditure of the
Village Development Com mittee.
(e) To make expenditures for the execution of the decisions subject
to the limit of the budget approved for this purpose by the Village
Development Committee.
(f) To have the accounts of the Village Development Committee
audited, to get the cleara nce of irregularities of accounts, and to
have recovery under the prevailing law of the irregular amount of
expenditure, if such amount is required to be recovered.
(g) To maintain the records of movable and immovable properties
and properties in kind of t he Village Development Committee.
(h) To be present at Village Council and the meetings of the Village
Development Committee, to minute the decisions of them, to take
the custody of minutes books and to authenticate the decisions.
(i) To take custody of th e case files of the cases filed in the Village

Development Committee.
(j) To keep the records of population of the village development
area up -to date by registering birth, death, and other personal
events.
(k) To have administrative control of the employe es under the
Village Development Committee.
(1) To perform such other functions as are prescribed under the
prevailing law.

Chapter 5
Judicial Power of Village Development Committee.
33. Judicial Powers:
The Village Development Committee shall have the power to hear
and settle at first instance the following cases within such village
development area from such date as may be prescribed by His
Majesty’s Government by publishing a notification in the Nepal
Gazette
(a) Cases on border/boundary of land, public land, Sandhi Sarpan
(inconvenience in respect of
boundary or way outs), Aali Dhur, canals, dams, ditches or
all ocation of water and encroachment on
roads or way outs,
(b) Cases on compensation for damage of crops,
(c) Cases on forced labour (Beth -begar) and cases under the
Chapter on Wages,
(d) Cases under the Chapter on Paupers,
(e) Cases under the Chapter on Miss ing and Finding of Quadrupeds,
(f) Cases under No. 8 and 9 of the Chapter on Construction of
Houses,
(g) Cases under the Chapter on Kalyan Dhan (hidden and
unclaimed properties),
(h) Cases under the Chapter on Deposits except those under No. 5
of that Chap ter,
(i) Cases on providing expenses for fooding and clothing according
to status and income under No. 10 of the Chapter on Partition,
(j) Cases on uses of water bank and security of public property,
(k) Cases under the Chapter on Quadrupeds other than th e killing
of cow,
(1) Cases on pasture land, grass, fuel woods,

(m) Cases on entering into, staying in or attempting to enter in or
stay in other’s house forcefully,
(n) Except those cases referred to in Annex 1 and Annex 2 of the
Government Cases Act, 204 9 (1993), such other cases as assigned
by. , His Majesty’s Government by publishing a notification in the
Nepal Gazette,
34. Formation of Arbitration Board :
(1) The Village Development Committee shall form an arbitration
board to hear and settle the cases filed in the Village Development
Committee under Section 33.
(2) In forming the arbitration board by the Village Development
Committee pursuant to sub section (1), it shall appoint in the
arbitration board three persons as agreed upon between the parties
to a case, from amongst the persons enlisted in the list of
arbitrators referred to in Section 35.
(3) In case the parties to a case fail to reach an agreement in the
appointment of arbitrators under subsection (2) from amongst the
persons enlisted in the list of arbitrators, the parties to the case
shall appoint each arbitrator of their own and provide the name of
such arbitrator to the Village Development Committee.
The Village Development Committee, after having so received the
names of two arbitrators, shall appoint one other arbitrator from
amongst the persons enlisted in the list 6f arbitrators referred to in
Section 35.
(4) In cases where the parties to a case fail to reach an agreement
on appointment of arbitrators pursuant to sub section (2) or the
parties to the case do not send the name of one arbitrator each
appointed by them under subsection (3), the Village Development
Committee shall appoint the three persons from amongst the
persons enlisted in the list of arbitrators referred to in Section 35 ,
as arbitrators.
(5) The Village Development Committee shall designate one
arbitrator as the chairman of the arbitration board from amongst
the arbitrators appointed as arbitrators under sub sections (2), (3)
or (4).

35. List of Arbitrators :
(1) For the purpose of bearing and settling the cases filed under
this Act at first instance, the Village Development Committee shall
prepare a list of arbitrators, setting out their names, surnames and
addresses as well, comprising such persons from among the local

persons and social workers, as are deemed appropriate, with the
consent of such persons, and shall publish it in the Office of the
Village Development Committee for public information.
(2) The Village Development Committee shall have to include the
women a nd back ward class as well, to the extent possible, in the
list of arbitrators referred to in sub section (1).
36. Exercise of Jurisdiction :
(1) The three arbitrators shall collectively exercise die jurisdiction
of arbitrators and the opinion of majority shall be deemed the
decision of the arbitrators.
(2) In case the majority of the arbitrators could not be formed
under sub section (1) and they hold different opinions’, such
opinions shall be submitted to the Village Development Committee
and the opinion supported by the Village Development Committee
shall prevail on that matter.
37. Process of Decision Making :
(1) The arbitrators shall, to the extent possible, cause the
concerned parties to negotiate with each other on the case
submitted to them and hav e the case compromised.
(2) In case the arbitrators fail to have compromise pursuant to sub
section (1), they shall
exercise their jurisdiction under Section 36 on such case and decide
it.
38. Crossing off the Case List :
In case a compromise or decision i s made under Section 37, the
Village Development Committee shall put its seal on the
compromise or decision, mention it in its records and cross off the
list of that case filed in the Village Development Committee.
39. Procedures on Cases:
The process of filing the cases to be initially heard and settled by
the Village Development Committee under this Act, the method of
examination and proceedings on such cases, the process of the
service of summons, the process of getting the parties appeared,
provision o n time limit, period for disposal of cases, the procedures
on making compromise or decision shall be as prescribed.
40. Right to Appeal :
Any party not satisfied with a decision made pursuant to sub
section (2) of Section 37 may appeal to the concerned Di strict

Court within thirty five days of the hearing or knowledge of the
decision.
41. Enforcement of Decisions :
(1) In cases where the parties agree to fulfil any obligation of
making payment or handing over things according to a compromise
or decision ma de in regard to a case under the jurisdiction of the
Village Development Committee, the Village Development
Committee shall at once execute or cause to execute the
compromise or decision.
(2) In cases any party fails to fulfil obligation of making payment or
handing over things under the compromise or decision, the Village
Development Committee shall forward a list along with the details
of the obligation to be so paid or fulfilled to the concerned Land
Revenue Office.
(3) The Land Revenue Office shall, upo n being so requested under
sub section (2), have to execute the compromise or decision by
fulfilling the procedures under the prevailing law.
42. Transfer of Cases :
The cases or complaints lying before the Village Development
Committee constituted under the Village Development Committee
Act, 2048 (1991) shall be transferred to the Village Development
Committee constituted under this Act.

Chapter 6
Formulation of Plans of Village Development Committee and
Process of Implementation
43. Formulation of Plans of Village Development Committee :
(1) Each Village Development Committee shall formulate periodical
and ann ual plans for the development of the village development
area.
(2) In formulating the plans of the Village Development Committee
pursuant to sub section, (1), the Village Development Committee
may, as per necessity, obtain external consultancy service.
(3) In formulating the plans, the Village Development Committee
shall have to give priority to the following projects:
(a) Projects which are production oriented and from which
consideration may be obtained sooner.
(b) Projects raising living standard, income and employment of,

and giving direct benefits to, the rural people, and contributing to
the alleviation of poverty.
(c) Projects which can be operated with low cost and larger
people’s participation.
(d) Projects to be operated through local means, resour ces and
skills.
(e) Projects providing direct benefits to the women as well as
backward class and children.
(f) Projects that can contribute to protect and promote the
environment.
(5) To formulate the plans to be launched in the forth coming year,
it shal l be required to do as follows in the current year:
(a) The Village Development Committee shall be required to obtain
the guidance and prior estimation of the resources and means from
the District Development Committee and other concerned agencies
for the forth coming fiscal year until the month of Marg of each
year. Even the Village Development Committee itself shall have to
provide guidance on selection of projects and formulation of plans
to the different Ward Committees for the formulation of service an d
development programmes for the forth coming fiscal year.
(b) Projects shall have to be invited from the Ward Committees,
consumers’ committees and non governmental organizations in the
village development area, and plans shall have to be formulated on
th e basis thereof.
(6) In formulating periodical plans, the following matters shall have
to be included:
(a) Geographical, economic and natural heritages of the village and
present uses thereof.
(b) Possibilities of production in various sectors on account o f
comparative cost benefit.
(c) Areas comprising backward castes, tribes and poor people and
various development works done or required to be done in such
areas.
(d) Income generating and skills oriented development works for
women and children.
(e) Descr iption of the completed projects under various subjects
and sectors and provision on the operation and maintenance
thereof
(f) Various sectoral short term and long term development works
on the basis of development possibility and pollution controlling
wo rks.
(g) Plans on human resources development in various subject areas

to be formulated by the local people themselves.
(7) In formulating annual plans, the following manners shall have
to be taken as the basis:
(a) Directives received from the District De velopment Committee
on national development policy.
(b) Overall necessities indicated by periodical plans.
44. Preparation of Resource Map :
Each Village Development Committee shall, for the development of
the village development area, have to collect vil lage level objective
data and prepare a resource map reflecting the situation of the
village.
45. Feasibility Study of the Project to Be Carried Out :
In the course of implementation of its projects, the Village
Development Committee shall have to undertak e or cause to be
undertaken feasibility study of the project with also setting out the
matters as follows :
(a) Objectives of the project,
(b) The number of population to be benefited from the project and
the type of benefit,
(c) Whether the project to be selected is new or incomplete one,
(d) Whether the needs can be fulfilled or problem be solved
through any other means without carrying out the project,
(e) The estimate of the expenditures and cost of the materials that
may be required in completing the p roject and the required amount
of time therefor,
(f) The cash, labour in kind and similar contribution that may be
received from the users,
(g) Charge or maintenance and repair expenses which nay be
collected from the users or operational system, and
(h) A ny other matter, if any, required to be set out.
46. Selection of the Project :
(1) In selecting a project, it shall have to be selected on the basis
of the resource map as referred to in Section 44 and the report of
project feasibility study referred to in Section 45.
(2) In selecting a project, it shall have to be selected so as to
protect and promote the environment.
(3) In selecting projects, those projects, which shall have utmost
participation and labour of the local inhabitants, shall have to be
sel ected.

(4) After receiving the estimate of the grant to be made available
to the Village Development Committee, the project shall have to be
selected on the basis of priority.
(5) The information on the selected projects shall have to be made
public among the inhabitants of the village.
47. Coordination among Village Development Committee and
Governmental and Non governmental Agencies :
In formulating its plans and service programmes, the Village
Development Committee shall have to maintain coordination wi th
governmental, non governmental and donor agencies implementing
different services and development programmes in the village
development area in the following matters
(a) ‘To remove duplication between the Village Development
Committee and the concerned agency on investment to be made in
any service sector.
(b) To maintain complementary coordination among the investors.
(c) To chiefly maintain the role of consumers on procedures of the
both.
(d) To follow the method whereby the inhabitants of the villag e can
have maximum benefit from the investment.
(e) To determine time table for the implementation of various
programmes.
48. Qperation of the Project of Village Development
Committee :
(1) The projects of the Village Development Committee shall be
operat ed as follows :
(a) Through own resources of the Village Development Committee,
(b) Through the grants of the District Development Committee,
(c) Through the grants of His Majesty’s Government,
(d) Through various non governmental organizations and agencie s.
(2) After the selection of the projects, the Village Development
Committee shall have to prepare a calendar of operation and
implement or cause to be implemented such projects.
(3) The programmes to be operated by the non governmental
organization shall have to be operated by entering into an
agreement with the Village Developmont Committee.
(4) The projects which are to be included in the District Plan shall
have to be passed by the Village Council and sent to the District
Development Commmittee.
(5) In cases where the programmes to be operated by the Village

Development Committee carry the investment of non governmental
organizations too, such programmes shall have to be operated in
accordance with the agreement entered into between the two
organization s.
(6) Special projects to be operated with the grants of His Majesty’s
Government shall be operated in accordance with the process
prescribed by His Majesty’s Government.
(7) In formulating plans by the Town Development Board situated
in the village devel opment area, it shall formulate them in
consultation with the Village Development Committee.
49. Implementation and Management of Projects :
(1) The village level projects shall be carried out through
consumers’ committees.
(2) In case trainings are requi red to the members of the
consumers’ committee for operation of the project, such trainings
shall have to be provided to them.
(3) The consumers’ comrnittee may collect service charges from
the consumers who receive service from such project.
(4) Amounts o f service charges received pursuant to sub section
(3) shall have to be expended for the repair, maintenance and
protection of the project concerned.
(5) The consumers’ committee shall have to up date the details of
the incomes and expenditures referred to in sub sections (3) and
(4) and submit it to the Village Development Committee.
50. Directives to be Abided by :
The Village Development Committee shall have to abide by dig
directives given, from time to time, by the National Planning
Commission and the District Development Committee in respect of
the formulation and operation of its plan.
51. Non Governmental Orgnizations to be Encouraged :
(1) The Village Development Committee shall have to encourage
the non governmental organizations for the acts of id entification,
formulation, approval, operation, supervision, evaluation, repair
and maintenance of the village development programmes within
each village development area.
(2) The projects to be operated by a non -governmental
organization shall be operated through its own resources and the
resources obtained from the Village Development Committee as
well as the District Development Committee.

(3) The organization concerned shall have to submit a full
description of the project to the Village Development Com mittee.
(4) The non governmental organization shall have to operate
projects by keeping coordination with the Village Development
Committee.
(5) The Village Development Committee may implement and
operate plans through non governmental organizations.
52. A ppraisal of Projects :
The Village Development Committee shall have to evaluate all the
projects being operated within the village development area
quarterly.

53. Examination, Release and Clearance of Projects :
(1) After the completion of the project, it shall have to be
examined, released and cleared as prescribed.
(2) After receiving the information of the completion of a project
from the project operating agency, the Village Development
Committee shall examine, release and clear the project on the
ba sis of the work completion report and the evaluation submitted
by the technician.
(3) In case the technical assistance that may be required for the
purpose of sub section (2) is not available in the Village
Development Committee, the District Development C ommittee shall
have to make available such assistance.
(4) The Village Development Committee shall have to inform the
District Development Committee in respect of the project
completed by, it, and the District Development Committee shall
have the technical examination and evaluation of such project
carried out and shall approve, release and clear such project.
54. Repair, Maintenance, Expansion and Management of the
Examined and Released Project :
(1) The Village Development Committee may, after the completion
of a project, impose service charge on the beneficiaries of the
project for the repair, maintenance and expansion of the project.
(2) The repair, maintenance, expansion and management of the
project shall hav e to be done with the amount of the service charge
collected pursuant to sub section (1).
(3) The Village Development Committee shall have to prepare and
maintain an up to date account of incomes and expenditures as

referred to in sub sections (1) and (2).

Chapter 7
Financial Provisions
55. Taxes the Village Development Committee is Entitled to
Levy :
The Village Development Committee may levy the taxes as follows
in its area at the rate approved by the Village Council, not
exceeding the prescribed rate :
(a) House and Land Tax : Annual house and land tax on each house
and land on the basis also of size, type, desi gn and structure of the
houses within the Village Development Committee.
(b) Land Revenue or Land Tax : Land revenue or land tax on the
land within the village development area.
Provided that the twenty five per cent amount of revenue raised
from land reve nue or land tax shall have to be handed over to the
District Development Committee.
(c) Haat (temporary weekly bazaar) Market Shop Tax : Haat
market shop tax for shops kept in livestock Haat and regular Haat
market, fair, fete etc. organized within the vil lage development
area.
(d) Vehicle Tax : Vehicle registration and annual vehicle tax on the
prescribed vehicles within the village development area and
occasional vehicle tax on all kinds of vehicles entering into its area.
Provided that, on the prescribed vehicles entered into the Kingdom
of Nepal, the Village Development Committee of such village
development area, through which area such vehicle enters into at
first from any foreign country, may levy tax as prescribed and after
payment of tax within one v illage development area, such tax shall
not be levied again in other places.
(e) Entertainment Tax : Entertainment tax may be levied as
prescribed on the places of entertainment such as permitted
cinema hall, video hall, cultural show hall located within t he village
development area.
(f) Rent and Tenancy (Bitauri) Tax : Rent and tenancy tax on the
temporary shops given on rent at the market places constructed,
supervised or operated by itself or at unregistered (Ailani) land or
road sides, within the villag e development area.
(g) Advertisement Tax : Advertisement tax on sign boards placed

within the village development area.
(h) Business Tax : Business tax on the prescribed industry, trade,
profession or occupation within the village development area.
(i) Co mmercial Video Tax : Commercial video tax within the village
development area.
(j) Natural Resources Utilization Tax : Tax to be levied for
commercial exploitation of natural resources and heritage within
the village development area.
(k) To levy other tax es as prescribed.
56. Service Charges :
(1) The Village Development Committee may impose the service
charges as follows at the rate approved by the Village Council, for
the services made available by it within its area :
(a) Service charge on sanitation, drainage and sewerage.
(b) Tourist places entrance charge.
(c) Entrance charge on parks, garden, picnic places and view
towers etc.
(d) Charge for performing entertainment activities like magic and
circus.
(2) The Village Development Committee may impose a nd collect
service charge on the amount realized by it for somebody else, if it
realizes and recovers an other’s amount and goods.
57. Fees :
The Village Development Committee may charge fees as follows
within its area at the rate approved by the Village Council, not
exceeding the prescribed rate :
(a) Licensing and renewal fee for television, video and other
equipment.
(b) Approval (Baksauni) fee.
(c) Recommendation fee.
58. Income May Be Generated Through Selling :
The Village Development Committee may sell the following objects
situated within its area:
(a) Soil of governmental barren land.
(b) Products of public ponds or gardens.
(c) Assets of the Village Development Committee.
(d) Among the forest products situated within the village
development area, dried timber, fire woods, branches, splints,
twigs, roots etc.

(e) Straw, grass etc.
59. Loan May Be Raised :
The Village Development Committee may raise loan or borrow
money as approved by the Village Council, with or without pledging
any movable and im movable property under the ownership and
possession of Village Development Committee or under the
guarantee of His Majesty’s Government, from a bank or any other
organization or institution.
60. Funds of the Village Development Committee :
(1) The Village Development Committee shall have a fund.
(2) The fund referred to in sub section (1) shall consist of the
amounts as follows
(a) Amount received from His Majesty’s Government or District
Development Committee.
(b) Amount received from fees, charges, levie s, rents.
(c) Amount obtained from the sale of movable and immovable
properties and other objects of the Village Development
Committee.
(d) Amount received from the use, other than public use, of water
of public rivers and streams.
(e) Amount received from donations, grants, assistance or gifts.
(f) Amount to be obtained for extending cooperation in the acts of
preventing smuggling and theft of forests products located within
the village development area.
(g) Amount received from the income generating progr ammes.
(h) Amount of loan and borrowing obtained from bank or any
organization or agency.
(i) Amount received from fines and penalties.
(j) Amount obtained from authorization sanctioned by His Majesty’s
Government or available under other prevailing law. ,
(3) Amounts collected in the fund shall have to be deposited in a
bank.
61. Mode of Making Expenditure of Amount from the Fund :
(1) The fund shall be operated through joint signatures of the
Chairman or a Member designated by him and of the Secretary.
(2) No amount may be spent from the fund without getting
approved the annual budget and programmes from the Village
Council.
(3) The Secretary may spend amount from the fund for executing

the decisions of the Village Development Committee, subject to the
bu dget and programmes approved by the Village Council.
(4) In spending the amount from the fund, it shall have to be spent
as prescribed.
(5) The financial report of the amount spent from the fund shall
have to be submitted to the meetings of the Village Cou ncil, and
the Village Development Committee shall have to publicly inform on
its incomes and expenditures in all of its Wards within one month of
the date of each meeting of the Village Council.
62. Transfer in Budget Heads :
The Village Development Commi ttee may transfer the budget
allocation amount from one head to another not exceeding ten
percent of the amount of the head in the annual budget approved
by the Village Council.
Provided that no transfer of budget head may be made on the
heads of contingen cy and financial assistance.
62. Construction and other Contract :
(1) In getting a construction work done, the Village Development
Committee shall have to do, and cause to be done, as follows
(a) Contracts and other transactions be as prescribed.
(b) The accounts and books of the Village level plans be maintained
by the concerned bodies.
(2) The Village Development Committee may execute the
development and construction works either by itself or through the
non governmental organizations, consumers’ groups, contracts or
direct hiring, as prescribed.
(3) All contract documents to be entered into by the Village
Development Committee shall bear the signature of the Chairman
or a Member designated by him and the Secretary.
64. Provision of Auction Sale :
The process of auctioning or selling the goods and properties not
required for any work for the Village Development Committee shall
be as prescribed, as per the policy approved by the Village Council.
65. Remaining Amount of Budget :
Any unspent amount of budget in one fiscal year shall have to be
included in the budget of the next fiscal year for the purpose of
carrying out the projects or programme remained incomplete in the
current fiscal year.

66. Maintenance of Accounts :
(1) The Village Developmen t Committee shall have to maintain the
records of books and accounts of its income and expenditure, as
prescribed.

67. Remuneration and Meeting Allowances :
(1) The Chairman and Vice chairman shall receive remuneration as
prescribed.
(2) The meeting allow ance as prescribed may be provided to the
Members for taking part in the meeting of the Village Development
Committee.
68. Assets of Village Development Committee :
(1) The Village Development Committee shall have the full title
over the following properti es situated within the village
development area, and the Village Development Committee shall
have to supervise, repair, maintain and manage such properties :
(a) Properties constructed and purchased from the fund of the
Village Development Committee or gra nted to it by His Majesty’s
Government District Development Committee or any organization
or individual,
(b) Public properties not subject to any proprietary right of any
individual and not within the ownership of His Majesty’s
Government or District Devel opment Committee, such as public
drainage, sewerage, bridges, ponds, temples, public rest houses,
inns, houses, water spouts, taps, wells, grazing fields, water bank
(ghat), outlets and roads,
(c) Forests according to the existing forest laws or handed ove r by
His Majesty’s Government,
(d) Natural heritages
(2) The Village Development Committee shall not be allowed to sell
and dispose of or otherwise relinquish its title and possession on
the properties as referred to in sub section (1) without the approval
of His Majesty’s Government. Any such sale, disposal or
relinquishment of the title and possession to any person without
approval shall, ipso facto, be null and void in any circumstance
whatsoever.
67. Audit :
(1) The internal audit of incomes and expend itures of the Village
Development Committee shall be carried out by the District
Development Committee within four months from the date of

completion of a fiscal year.
(2) The final audit of the Village Development Committee shall have
to be carried out by an auditor approved by the District
Development Committee on the recommendation of the accounts
committee constituted by the Village Council.
(3) The Chairman shall have to take necessary actions on the
issues referred to in the audit report and submit su ch report along
with the details of actions taken to the accounts committee.
(4) The accounts committee shall have to study the report
submitted by the Chairman under subsection (3), and furnish it to
the Village Council along with its opinion and suggesti ons.
(5) The Village Council shall discuss on the report received with the
suggestions and opinion of the account committee and if the
irregularities shown and determined by the audit can not be
regularized, it shall give directions to the Village Developm ent
Committee for the clearance and settlement of such irregularities.

Chapter 8
Punishment
70. Punishment and Penalty May Be Imposed :
(1) In cases any person does any of the following acts within the
village development area, the Village Development Committee may
punish him as follows :
(a) If any one does such acts as to plant trees, erect a wall, or
construct house, shed etc. with an intention of causing obstacles to
others, the Village Development Committee may order to remove
such tree, or construction and, if the concerned person does not
remove these objects as per such order, the Village Development
Commit tee may remove the same. The expenses incurred while so
removing may be recovered from the concerned person being
reluctant to carry out the order and such person may be punished
with a fine of up to one thousand rupees.
(b) If any one constructs or places drainage, toilet, safety tank etc.
or does similar acts creating obstacles and barriers with an
intention of causing trouble to others, the Village Development
Committee may order to stop such act or demolish or remove such
construction. If any one disagr ees to stop, demolish or remove
according to such order, the Village Development Committee may
depute persons to, stop, demolish or remove the same. The

expenses incurred while so demolishing or removing shall be
recovered from the concerned person who has not obeyed the
order and such person may be punished with a fine of up to one
thousand rupees.
(c) If any one dumps solid wastes at places other than those
designated within the village development area, such person may
be punished with a fine of up to on e hundred rupees, and the
expenses to be incurred on removal of such solid waste may also
be recovered from the concerned person.
(d) If any person without permission of the Village Development
Committee erects fences or enclosures on or stops any public r oad,
tracks and trails or place, and causes obstruction to the movement,
the Wage Development Committee shall require him to remove
such fences or enclosures or things of obstruction and may punish
him with a fine of one hundred to five hundred rupees.
(e) If any person damages or causes loss to, or encroaches on, or
misappropriates any public property or destroy any public structure
within. the village development area, such person shag be liable to
punishment if any, prescribed under the prevailing law, a nd, if no
such punishment is provided for, the Village Development
Committee may punish such person with a fine of up to five
thousand rupees, and may recover the amount of such loss or
damage from the concerned person or require such person to
render them into original condition.
(f) If any person constructs a building, shed etc. without
authorization on public land or does such construction works by
encroaching public land situated within the village development
area, the Village Development Committee may punish the person
carrying out such construction works with a fine of up to five
thousand rupees and ‘may order’ to demolish the budding, sheds
etc. s ‘ o constructed. In case any person does not obey such an
order, it may depute persons to demolish such buildings, sheds,
etc. The Village Development Committee may realise and collect
the expenses incurred for such demolition from the concerned
person.
(g) If any person dumps solid wastes at the house, courtyard, or
yard of any neighbour or does any act fou ling the environment, the
Village Development Committee may punish such person with a
fine under clause (c) and require such person to remove such solid
wastes.
(h) If any person carries out such activity as to disturb peace in the
neighbouring place or so ciety by way of installing any type of

instrument. or through any equipment or means of entertainment
within the village development area the Village Development
Committee may order not to do such act or to remove the
equipment if it is so required; and If the concerned person does not
carry out such order, the concerned person may be punished with a
fine of up to five hundred rupees.
(i) The Village Development Committee may order to place a price
index on the shops, and it may fine the concerned shop owne r with
an amount of up to five hundred rupees, in case such shop does
not place the price index accordingly.
(j) It shall arrange for pinfolds in the, Village Development
Committee and the Wards to control strayed quadrupeds and may
realise and recover the claimed amount or crops in accordance with
the law.
(2) In case any person does not pay the taxes, fees, charges, fares
imposed or levied by the Village Development Committee or any
other amounts due and payable to it, the Village Development
Committee ma y punish such person with a fine of upto five hundred
rupees and may stop the service made available by the Village
Development Committee, in regard to such person.
(3) In case any person commits any act in contravention of this
Act, or the Rules, Bye laws or Orders made under this Act, such
person shall be prescribed with punishment, if any, prescribed
elsewhere in this Act, and if punishment is not so prescribed, the
Village Development Committee may punish such person with a
fine of upto five hundred rup ees.
(4) If any person who has already been punished under this
Section, commits the same offence again the Village Development
Committee may punish such person with two fold punishment for
each instance.
(5) Any party who is not satisfied with the punishm ent imposed by
the Village Development Committee under this Section may appeal
to the concerned District Court within thirty five days of the date of
knowledge of such decision.
71 . Recovery of Punishment and fine :
The punishment and fine imposed by the Village Development
Committee under Section 70 shall be recovered by following the
process as referred to in Section 260.

PART 3 : PROVISIONS RELATING TO MUNICIPALITY
Chapter 1
Municipal Area, Ward Division and Ward Committee
72. Specification of Municipal Area and Centre :
(1) His Majesty’s Government may specify any area within the
Kingdom of Nepal, having a popu lation of at least twenty thousand
and with electricity, roads, drinking water and communications
facilities, as a municipal area and set out the four boundary
thereof.
(2) Notwithstanding anything contained in sub section (1), His
Majesty’s Government may specify any area in the hilly and
mountainous area, having a population of at least ten thousand and
with, electricity, transportation, drinking water and communication
facilities, as a municipal area and set out the four boundary
thereof.
(3) His Majesty ‘s Government may, in consultation with the
Municipal Council, specify a convenient place within a municipal
area specified under sub sections (1) and (2) as the centre of that
area.
(4) All the municipal level offices shall be located in the centre of
the municipal area specified under sub section (3).
73. Division of Wards :
His Majesty’s Government shall taking also into account of the
geographical situation, divide the municipal am specified under
Section 72 into at least nine Wards consisting of equal population
to the extent possible.
74. Alteration of Boundary :
(1) In the event of necessity to alter the boundary of any municipal
area specified under Section 72 or of any Ward divided pursuant to
Section 73, His Majesty’s Government shall for m a committee
comprising also the concerned expert and, on the recommendation
of the committee as well as with the approval of the Election
Commission, shall alter the boundary of such a municipal area or
Ward, without affecting the election constituencies delimited for
election of members of the House of Representatives.
Provided that in so altering any boundary, it shall have to be made
prior to one year of the year of election.
(2) In case the concerned District Council makes a

recommendation, upon a res olution adopted by a two thirds
majority of the concerned Municipal Council that it is necessary to
alter the boundary of any municipal am His Majesty’s Government
sha1l, subject to subsection (1), alter the boundary.
75. Constitution of Ward Committee :
A Ward Committee shall be constituted comprising of the Ward
Chairman and Ward Members as follows elected by the Nepalese
citizens, who are in possession of the qualifications to become
voters under the prevailing law, of each Ward of the Municipality,
fro m amongst the persons having possessed the required
qualifications to become a Member of the Municipal Council under
Section 78:
(d) one Ward Chairman,
(e) one Woman Ward Member, and
(f) three Ward Members.

Chapter 2
Provisions relating to Municipal Council
76. Constitution of Municipal Council :
(1) A Municipal Council shall be constituted in any municipal area
specified under Section 72.
(2) The Municipal Council shall consist of the Members, as follows:
(a) Mayor and Deputy Mayor of the Municipality,
(b) Ward Chairman, Woman Ward Member and Ward Members of
each Ward Committee,
(c) No less than 6 persons and no more than 20 persons including
woman nominated by the Municipal Council from amongst those
social workers, socially and economically backward tribes and
ethnic communities, down trodden and indigenous people living
within the area of the Municipality, belo nging to the class whose
representation in the Municipal Council does not exist and who are
in possession of the required qualifications to become the Member
of the Municipal Council under Section 78.
Provided, however, that out of the persons to be so’ n ominated, at
least forty per cent persons shall have to be women.
77. Term o Office of Member of Municipal Council :
(1) The term of office of a Member of the Municipal Council shall be

of five years.
(2) In reckoning the term of office of a Member of the Municipal
Council, it shall be reckoned from the first day of Shrawan of the
year in which the term of office begins, and the term of office shall
be deemed to have been expired on the last day of Ashadh of every
five years, not exceeding a term of five ye ars.
(3) Notwithstanding anything, contained in sub sections (1) and,
(2), in case the election to new Members of the, Municipal Council
is held ‘prior to the expiry of the term of office of the Member of
the Municipal Council under this Section, the term of office of the
existing Member of the Municipal Council shall be deemed to have
been expired, and the newly elected Members of the Municipal
Council shall have the authority to discharge functions.
(4) In reckoning the term of office of such Member even in cases
where, owing to the fact that the election to the office of any
Member of the Municipality or Ward Committee. could not be held
or nomination of the Member of the Municipal Council could not be
made at the scheduled time due to any reason, it is h eld in any
other time, the term shall be reckoned as if the elections were held
or nomination made at the scheduled time.
(5) In case the office of any Member of the Municipal Council
becomes, vacant due to any reason, the vacant office shall be
fulfilled only for the remainder of the term through a by election
under the prevailing law to the office of an elected Member and
through nomination to the office of a nominated Member.
Provided that –
(1) By election or nomination shall have to be held or made,’ a s the
case may be, within one year of the date of vacancy of the office.
(2) No by election or nomination shall be held or made for a period
less than one year.
78. Qualification Required for a Member of Municipal
Council :
In order to become a Member of the Municipal Council, one shall
have to possess the following qualifications:
(a) Being a Nepalese citizen,
(b) Having attained twenty one years of age and possessed
qualification to become a voter under the prevailing law,
(c) Having settled up any goods in kind and cash due to the
Municipality.
(d) Having no personal interest in any contract, or in any dealings
on movable, immovable with the Municipality,

(c) Having not been held to have misappropriated public property,
Provided that this clause shall no t apply, if an evidence showing the
settlement thereof is produced.
(f) In the event of having been punished for any criminal charge
involving moral turpitude, having passed three years after serving
such punishment.
(g) Being not disqualified under any la w.
79. Termination of Membership of Municipal Council :
The membership of the Municipal Council shall cease to continue in
the following circumstances :
(a) If he does not possess the qualifications referred to in Section
78,
(b) If the Ward or the part t hereof where he has been living is
taken out from the concerned municipal area or amalgamated to
any other village development area or Municipality,
(c) If he is elected to the office of President, Vice president or
Member of the District Development Commi ttee or is nominated as
a Member of the District Council,
(d) If he becomes a candidate in the election. of the Members of
the House of Representatives or National Assembly or is nominated
as a member of the National Assembly,
(e) If he absents himself fr om three consecutive meetings of the
Municipal Council without giving a reasonable notice,
Provided that such a Member shall not be given a notice indicating
the termination of his membership without giving him a reasonable
opportunity to defend himself.
(f) If his term of office under Section 77 expires,
(g) If he is punished under the prevailing law on a corruption
charge or a criminal charge involving moral turpitude or criminal
charge carrying punishment of imprisonment for more than three
years,
(h) If he resigns,
(i) If he dies.

Chapter 3
Provisions relating to Municipality
80. Constitution of Municipality:
(1) A Municipality shall be constituted as an executive of the
Municipal Council in a municipal area specified under Section 72.

(2) The Municipality shall consist of the Mayor, Deputy Mayor and
Members as follows:
(a) One Mayor and one Deputy Mayor elect ed by the Nepalese
citizens within the municipal area who have possessed the
qualifications to become voters under the prevailing law,
(b) Ward Chairmen, elected by the Nepalese citizens, who have
possessed qualifications to become voters under the prevail ing law,
of each Ward of the municipal area at the rate of one each from
their respective Wards.
(d) Two Members including one woman nominated by the
Municipality from amongst the Members of the Municipal Council as
referred to in clause (c) of subsection (2) of Section 76.
81. Municipality to Be Autonomous and Corporate Body :
(1) Each Municipality shall be an autonomous and corporate body
with perpetual succession.
(2) The Municipality shall have a seal of, its own.
(3) The Municipality may, like an indi vidual, acquire, use, sell and
dispose of movable and immovable property.
(4) The Municipality may, like an individual, sue or be sued in its
own name.
82. Term of Office of Member :
(1) The term of office of a Member of the Municipality shall be of
five years.
(2) In reckoning the term of office of a Member of the Municipality,
it shall be reckoned from the first day of Shrawan of the year in
which the term of office begins, and the term of o ffice shall be
deemed to have been expired on the last day of Ashadh of every
five years, not exceeding a term of five years.
(3) Notwithstanding anything contained in sub sections (1) and (2),
in case the election to new Members is held prior to the expir y of
the term of office of the Member under this Section, the term of
office of the existing Member shall be deemed to have been
expired, and the newly elected Members shall have the authority to
discharge functions.
(4) In reckoning the term of office of a Member even in cases
where, owing to the fact that the election or nomination to the
office of any Member of the Municipality could not be held or made
at the scheduled time due to any reason, it is held or made in any
other time, the term shall be recko ned as if the elections was held
or nomination made at the scheduled time.

(5) In case the office of any Member of the Municipality becomes
vacant due to any reason, the vacant office, shall be fulfilled only
for the. remainder of the term through a by ele ction under the
prevailing law to the office of an elected Member and through
nomination to the office of a nominated Member.
Provided that
(1) By election or nomination shall have to be held or made, as the
case may be, within one year of the date of vac ancy of the office.
(2) No by election or nomination shall be held or made for a period
less than one year.
83. Oath To Be Taken :
(1) The Mayor shall take an oath before the District Judge, the
Deputy Mayor and Members before the Mayor and, in the absence
of the Mayor, the Deputy Mayor before the District Judge and the
Members before the Deputy Mayor.
(2) The Members of the Municipal Council other than those referred
to in sub section (1) shall take an oath before the Mayor and, in the
absence of the Mayor , before the Deputy Mayor.
(3) Without taking an oath pursuant to subsection (1) or (2), no
Member of the Municipal Council and the Municipality shall be
entitled to assume his office.
84. Office May be Relinquished :
(1) The mayor may relinquish his offi ce by tendering his resignation
to the Municipality through the Deputy Mayor, and the Deputy
Mayor and Members may do so by tendering it to the Mayor.
(2) The Members of the Municipal Council other than those referred
to in sub section (1) may relinquish t he office by tendering
resignation to the Mayor.
85. Qualifications Required for Member :
One shall have to possess the following qualifications to be elected
or nominated as a Member of the Municipality :
(a) Being a Nepalese citizen,
(b) Having attained twenty one years of age and possessed
qualification to become a voter under the prevailing law,
(c) Having settled up any goods in kind and cash due to the
Municipality,
(d) Having no personal interest in any contract, or m any dealings
on movable, immova ble property, with the Municipality,
(c) Having not been held to have misappropriated public property,

Provided that this clause shall not apply, if an evidence showing the
settlement thereof is produced.
(f) In the event of having been punished for any cr iminal charge
involving moral turpitude, having passed three years after serving
such punishment.
(g) Being not disqualified under any law.
86. Termination of Membership :
The Membership of the Municipality shall cease to continue in the
following circums tances :
(a) If he does not possess the qualifications referred to in Section
85,
(b) If the Ward or the part thereof where, he has been living is
taken out from the concerned municipal area or amalgamated to
any other village development area or municipal area,
(c) If he is elected to 6e office of President, Vice president or
Member of the District Development Committee or is nominated as
a Member of the District Council,
(d) If he becomes a candidate in the election of the Members of the
House of Represen tatives or National Assembly or is nominated as
a Member of the National Assembly,
(e) If he absents himself from three consecutive meetings of the
Municipality, without giving a notice indicating a reasonable cause,
Provided that such a Member shall not b e given a notice indicating
the termination of his membership without giving him an
reasonable opportunity to defend himself.
(f) If he is punished under the prevailing law on a corruption charge
or a criminal charge involving moral . turpitude or criminal charge .
carrying punishment of imprisonment for more than three years,
(g) If his term of office under Section 82 expires,
(h) If he resigns,
(i) If he dies.
87. The Statement of Property To Be Made Public :
Each Member shall, within thirty days of the date of oath taken
under Section 83, make public the statement of the movable and
immovable property remained in his name and that of his family
member living in his joint family.
Provided, however, that the Mayor and Deputy Mayor shall, even
after they ar e relieved of the office, make public the statement of
such property within thirty days of their relieving of the office.

88. Classification of Municipality :
(1) His Majesty’s Government may classify the Municipalities
constituted under Section 80, on th e basis of population, sources of
income and other urban facilities, as follows:
(a) Municipal Corporation,
(b) Sub municipal Corporation,
(c) Municipality.
(2) The following Municipalities classified under sub section (1)
shall have the population and urb an facilities as follows
(a) Municipal Corporation : With the population of at least three
hundred thousand and annual income source of minimum four
hundred million rupees, having the facilities of electricity, drinking
water and communications, having the road and accessory roads of
the town pitched, availability of highly sophisticated nature of
service in respect of health services, having the necessary
infrastructures as required for international sports programmes,
availability of adequate opportunitie s for higher education in
different subjects and having at least one university established
and other similar adequate urban facilities and having already been
existed as a Sub municipal Corporation.
(b) Sub municipal Corporation : With the population of a t least one
hundred thousand and annual income source of minimum one
hundred million rupees, having the facilities of electricity, drinking
water and communications, having the main roads of the town
already pitched, having, the facilities of higher level education and
health services, ordinary facilities for national as well, as
international level sports programmes, having the provisions of
public gardens and city halls and other similar necessary urban
facilities and having already been existed as a Muni cipality.
(c) Municipality : A semi urban area with a population of at least
twenty thousand, and annual source of income of minimum five
million rupees and with electricity, roads, drinking water,
communications and similar other minimum urban facilities.
Provided that in the cases of mountainous and hilly areas, a
population of at least ten thousand and annual source of income of
minimum five hundred thousand rupees shall be sufficient even if
there is no road facility.
(3) Notwithstanding anything contai ned in sub section (1) and (2),
this provision shall have no effect on the Municipalities already
existing herebefore.
(4) His Majesty’s Government may also declare as a cultural town
on the prescribed basis in order to preserve historical and

archaeologic al objects and art and culture of a town.

Chapter 4
Meetings and Working Procedures
89. Meetings of Ward Committ ee :
(1) The Meeting of a Ward Committee shall be held at least once in
a month.
(2) The Ward Chairman shall convene the meeting of the Ward
Committee, with specifying the date, time and venue of such
meeting.
(3) The Ward Chairman, shall preside over the meetings of the
Ward Committee, and in his absence, the Member chosen by the
Members of the Ward Committee present at the meeting from
amongst themselves shall preside over the meeting of the Ward
Committee.
(4) Decisions of the Meeting may be made by a m ajority of three
Members including the person presiding over it.
(5) Other matters relating to the meetings of the Ward Committee
shall be as determined by the Ward Committee itself.
90. Meeting of Municipal Council :
(1) The Municipal Council shall norma lly meet twice a year.
(2) The Mayor of the Municipality shall convene the meetings of the
Municipal. Council.
(3) The meetings of the Municipal Council shall have to be normally
convened within the last day of the month of Shrawan and, that of
Poush each year.
(4) The meeting of the Municipal Council shall be presided over by
the Member chosen by the Members, other than the Members of
the Municipality, present at each meeting of the Municipal Council
from amongst themselves.
Provided that prior to the sele ction of the Chairman at the meeting
of the Municipal Council, the senior most member, on account of
age, among the Members of the Municipal Council present shall
preside over that meeting.
(5) The Secretary of the Municipality shall act as the Secretary o f
the Municipal Council.
(6) The Secretary shall, at the direction of the Mayor of the
Municipality, have to send a notice of the date, time and venue and
agenda of the meeting of the Municipal Council to all the Members

of the Municipal Council in advance of at least fifteen days of the
meeting.
(7) The presence of fifty percent members of the number of
Members existing for the time being at a meeting of the Municipal
Council shall be deemed to have constituted a quorum for the
meeting.
(8) In case the mee ting of the Municipal Council could not be held
due to the lack of the quorum, another meeting shall have to be
convened by giving a seven days notice. The quorum for such
meeting shall be one thirds. Even if the quorum be not constituted
there, another me eting shall have to be convened again on the
following day thereof, and that meeting shall be conducted no
matter how many Members are present at the meeting.
(9) If one third Members of the Municipal Council request the Mayor
in writing to convene a meeti ng to discuss any particular matter,
the Mayor shall have to convene an extra ordinary:, meeting of the
Municipal Council within thirty days of the day of such request.
(10) The Secretary shall authenticate the decisions of the meetings
of the Municipal Co uncil.
(11) Other procedures relating to the meetings of die Municipal
Council shall be as prescribed.
91. Meeting of Municipality :
(1) The meeting of the Municipality shall be held at least once in a
month.
(2) The Secretary shall, as ordered by the May or, convene the
meetings of the Municipality.
Provided that if the Mayor does not order to convene the meeting
even until three months, the Secretary shall, upon the request in
writing of one, third Members, convene the meeting of the
Municipality.
(3) The meeting of the Municipality shall be presided over by the
Mayor or, m the absence of the Mayor, by the Deputy Mayor and,
even if the Deputy Mayor absents himself, by a Member chosen by
the Members present at the meeting from amongst themselves.
(4) If fif ty per cent Members of the total number of the Members
existing for the time being are present at a meeting of the
Municipality, the quorum, for the meeting shall be deemed to have
constituted.
(5) The concerned Are Member of the District Development
Commi ttee. shall have to be invited to participate in the meetings
of the Municipality.

(6) Secretary shall authenticate the decisions of the meetings of
the Municipality.
(7) Other procedures relating to the meetings of the Municipality
shall be as prescribed.
92. Decisions of Meeting :
(1) Unless otherwise provided for in this Act, decisions of the
meetings of the Municipal Council and the Municipality shall be
made on the basis of a majority.
Provided that a majority of the number of the total Members shall
be required to decide on a proposal referred to in clauses (b) and
(c) of Sub section (1) of Section 94.
(2) In the event of a tie of votes at a meeting of the Municipal
Council and Municipality, the person presiding over the meeting
shall exercise a casti ng vote.
93. Functions, Duties and Powers of the Ward Committee :
The functions, duties and powers of each Ward Committee under
the Municipality shall be as follows :
(a) To assist the . Municipality in keeping inventory of, and in
protecting, population, houses, land, rest houses, shelters, inns,
temples, shrines, hermitages, monasteries, mosques, madarasa,
divine places, barren land, ponds, wells, lakes, deep water, canals,
taps, stone water taps etc, within the Ward.
(b) To keep neat and clean the roads , ways, bridges, drainage,
ponds, lakes, wells, deep water, stone water taps, temples, shrines,
monasteries, public place etc. within the Ward.
(c) To arrange for disposal of wastes, dirt, ‘rotten materials and for
keeping the streets and corners within th e Ward clean, and make
arrangements to encourage the inhabitants of the Ward for
maintaining sanitation.
(d) To look after the canals, drills, water spouts (Paini) etc. within
the Ward.
(e) To assist in afforesting in the barren land and hills, steeps and
steppe places and in conserving the environment within the Ward.
(f) To assist in management of health centres, health posts etc. in
the Ward.
(g) To assist in the establishment and operation of schools and
libraries in the Ward.
(h) To catch the strayed q uadrupeds and hand over them to the
concerned agency.
(i) To arrange for electricity lamps on the roads and streets within

the Ward.
(j) To keep safely the accounts of incomes and expenditures and
other documents of the Ward Committee.
(k) To assist the Mu nicipality in the selling of food grains and other
necessary goods at reasonable price within the Ward.
(1) To distribute the goods of sports for the development of sports
and help to organize art, dramas and cultural programmes for the
development of lang uage and culture.
(m) To take any unclaimed, or helpless person being seriously ill in
the Ward to nearby hospital or health center and have such, person
treated.
(n) In case any helpless or unclaimed person dies in the Ward, to
arrange for cremation of su ch person.
(o) To arrange for B. C. G., polio vaccination for, the children in the
Ward and to arrange for the prevention of infectious diseases.
(p) To motivate the inhabitants of the Ward to register personal
events.
(q) To assist in carrying out various activities to raise the level of
consciousness of the inhabitants of the Municipality.
(r) To help in protecting the barren land.
(s) To help in preserving ancient monuments within the Ward.
(t) To help in preserving the temples of historical, archaeologi cal,
cultural and religious importance, within the Ward.
(u) To help the Municipality in having continuity to the cultural
dance, songs as well as hymns reflecting originality.
(v) To assist in the acts relating to the protection and earning of
livelihood of the backward ethnic communities, helpless, disabled
and heirless persons within the Ward.
(w) To carry out such other functions as directed and ordered by
the concerned Municipality.
94. Functions, Duties and Powers of Municipal Council :
(1) The funct ions, duties and powers of the Municipal Council shall
be as follows :
(a) To pass the budgets, plans and programmes sub by the
Municipality.
(b) To adopt the resolutions relating to the levying and collecting of
taxes, charges, fees, levies etc. proposed by the Municipality.
(c) To adopt the resolutions relating to the raising of loans or
selling or disposing or transferring of immovable properties
proposed by the Municipality.
(d) To discuss on the irregularities determined by the audit report

of the Muni cipality and direct the Municipality to take necessary
action for the clearance of the irregularities in respect of those
irregularities which can not be regularized under the prevailing law.
(e) To grant approval, as required, on such number of positions,
remuneration, allowance and other facilities of the employees
proposed by the Municipality as are to be borne from its own
internal source.
(f) To evaluate the administrative functions of the Municipality and
give necessary directions to the Municipality.
(g) To evaluate the development and construction works carried
out within the municipal area and give necessary directions.
(h) To approve the bye laws of the Municipality.
(i) To carry out such other functions as prescribed.
(2) The Municipal Council sha ll constitute one accounts committee
under the chairmanship of ‘ any Member of the Municipal Council,
comprising in maximum of five members including the Chairman;
and the functions, duties and powers of such a committee shall be
as prescribed.
(3) The Mun icipal Council may constitute various committee to
render necessary advice and suggestions to the Municipal Council
on various matters in a manner that members of the Municipal
Council other than the members included in the accounts
committee referred to i n sub section (2) are included in the
subject -wise committees as prescribed.
(4) Other functions, duties and powers of the Municipal Council
shall be as prescribed.
95. Advisory Committee May Be Formed :
(1) The Municipality may, if it deems it necessary, form an advisory
committee comprising of members ranging from three to nine,
including social workers, intellectuals and persons having technical
knowledge and skills, to render assistance in its functions.
(2) Other matters relating to the advisory commi ttee shall be as
prescribed.
96. Functions, Duties and Power of Municipality :
(1) In addition to executing or causing to be executed the decisions
and directions of the Municipal Council, the functions and duties to
be performed by the Municipality manda torily in the municipal area
shall be as follows :
(a) Relating to Finance:

(1) To prepare annual budgets, plans and programmes of the
Municipality and submit them to the Municipal Council.
(2) To keep the accounts of incomes and expenditures, and other
documents pertaining thereto in an up dated manner.
(3) To expend the money to execute the decisions of the
Municipality, subject to the limits of the approved budget
(4) To raise. taxes, charges and fees etc. approved by the
Municipal Council.
(b) Relatin g to Physical Development:
(1) To frame land use map of the Municipality area and specify and
implement or cause to be implemented, the industrial, residential,
agricultural, recreational areas etc.
(2) To prepare housing plan in the area of Municipality a nd
implement or cause to be implemented the same.
(3) To carryout plans on drinking water and drainage in the areas
of Municipality and operate, maintain and repair or cause to be
operated, maintained and repaired the same.
(4) To develop, or cause to be d eveloped, green zones, parks and
recreational areas in various places in the Municipality area.
(5) To arrange for, or cause to be arranged for, public toilets in
various places in the Municipality area.
(6) To approve or cause to be approved designs of h ouses,
buildings etc. to be constructed in the areas of the Municipality.
(7) To build community building and rest houses.
(c) Relating to Water resources, Environment and Sanitation:
(1) To preserve rivers, streams, ponds, deep water, wells, lakes,
stone water taps etc. and utilize, or cause to be utilized them
properly.
(2) In the event of necessity to carry out irrigation plans in the
Municipality area, to make plans thereof and implement and cause
to be implemented the same.
(3) To control and prevent, or cause to be controlled and prevented
the possible river cuttings, floods and soil erosion in the
Municipality area.
(4) To assist, or cause to be assisted, in environment protection
acts by controlling water, air and noise pollution to be generated in
the Municipality area.
(5) To protect or cause to be protected the forests, vegetation and
other natural resources within the Municipality area.
(6) To carry out or cause to be carried out sanitation programmes

in the Municipality area.
(7) To carry out an d manage or cause to be carried out and
managed the acts of collection, transportation and disposal of
garbages and solid wastes.
(8) To generate and distribute or cause to be generated and
distributed electricity in the Municipality area.
(d) Relating t o Education and Sports Development :
(1) To establish, operate and manage pre primary schools with own
source in the Municipality area and give permission to establish the
same.
(2) To extend supports in the operation and management of
schools being operat ed within the Municipality area and to make
recommendations for the establishment and dissolution of such
schools.
(3) To assist in providing primary level education in mother tongue
within the Municipality area.
(4) To make arrangements for providing scho larships to the
students of oppressed ethnic communities who are extremely
backward on economic point of view.
(5) To prepare and implement or cause to be implemented
programmes on Municipality level adult education and informal
education.
(6) To open, ope rate and manage or cause to be opened, operated
and managed, libraries and reading halls in the Municipality area.
(7) To prepare and implement or cause to be implemented, sports
development programmes.
(8) To develop or cause to be developed sports by con stituting
Municipality level sports development committee.
(e) Relating to Culture:
(a) To prepare an inventory of the culturally and religiously
important places within the Municipality area and maintain, repair,
protect and promote, or cause to be maint ained, repaired,
protected and promoted, them.
(b) To protect, promote and use or cause to be protected,
promoted and used. archaeological objects, languages, religion and
culture within the Municipality area.
(f) Relating to Works and Transport:
(1) To p repare plans of unpitched and pitched roads, bridges and
culverts as needed within the Municipality area, except those roads

which are under the responsibility and control of His Majesty’s
Government, and construct, maintain and repair or cause to be
const ructed, maintained and repaired, the same.
(2) To arrange or cause to be arranged for bus parks and parking
places of rickshaws (three wheelers), horse carts, trucks etc. within
the Municipality area.
(3) To prescribe the upper limit of push carts, ricksha ws, horse
carts etc. in consideration of transport requirement of the
Municipality and register and provide number to them.
(g) Relating to Health Service:
(1) To operate and manage, or cause to be operated and managed,
municipal level hospitals, Ayurvedi c dispensaries and health
centers.
(2) To open, operate and manage, or cause to be operated and
managed health posts and sub health posts within the Municipality
area.
(3) To formulate programmes relating to family planning, mother
and child welfare, exten sive vaccination, nutrition, population
education and public health, and to implement or cause to be
implemented the same.
(4) To arrange, or cause to be arranged, for prevention of
epidemics and infectious diseases.
(5) To ban the public use of such thing s and objects in the
Municipality area as are harmful to the public health or remove the
same.
(6) To ban the sale, distribution and consumption of such type of
consumer goods which may cause adverse effects on public health.
(h) Relating to Social Welfar e:
(1) To arrange, or cause to be arranged, for cremation of heirless
dead person, and to make arrangements for orphanages for
helpless people, orphans and children bereaved of parents.
(2) To carryout, or cause to be carried out, programmes relating to
th e interests and welfare of the women and children and acts
relating to the control of immoral profession and trade.
(i) Relating Industry and Tourism:
(1) To act or cause to act as a motivator to the promotion of
cottage, small and medium industries in th e Municipality area.
(2) To protect, promote, expand and utilize or cause to be
protected, promoted, expanded and utilized, natural, cultural and

tourists heritage within the Municipality area.
(j) Miscellaneous:
(1) To do plantation on either side of th e roads and other necessary
places in the Municipality area.
(2) To determine and manage places for keeping pinfolds and
animal slaughter house.
(3) To protect barren and governmental unregistered (Ailani) land
in the Municipality area.
(4) To determine an d manage crematoriums.
(5) To act for the development of trade and commerce.
(6) To frame bye laws of the Municipality and submit it to the
Municipal Council.
(7) To carry out necessary functions on the controlling of natural
calamities.
(8) To maintain in ventory of population and houses and land within
the Municipality area.
(9) To register birth, deaths and other personal events pursuant to
the prevailing law.
(10) To maintain inventory of the helpless, orphan and disabled
children within the Municipality area and arrange to keep them in
appropriate place.
(11) To secure public interest by killing rabid and strayed dogs and
specify the places to bury dead animals and birds into.
(12) To have such trees cut and houses, walls etc. creating
hazardous results demolished.
(13) To up date the block numbers of the houses in the Municipality
area.
(14) To arrange for ‘animal slaughter houses.’
(15) To impound and auction strayed animals.
(16) To arrange for lighting on the roads and alleys.
(17) To grant approval t o open cinema halls in the Municipality
area.
(18) To arrange or cause to be arranged for Haat bazaar , markets,
fairs and exhibitions etc.
(19) To operate and manage or cause to be operated and managed
fire brigades.
(20) To confer the honour of distingui shed person of the town on
any distinguished person.
(21) To carry out or cause to be carried out other acts relating to
the development of the Municipality area.
(22) To render assistance for the development of cooperative.

(23) To evaluate the performanc e of the Secretary and forward it
with recommendation to the authority.
(24) To encourage or cause to be encouraged to carry out
cooperative, industrial and commercial activities generating income
to the Municipality with the investment of private sector a s well.
(25) To formulate various programmes based on cooperativeness
and to carry out or cause to be carried out the same.
(26) To carry out such other functions as are prescribed under the
prevailing law.
(2) In addition to die functions, and duties refe rred to in sub
section (1), the Municipality may also perform the following
optional functions in the Municipality area:
(a) To make necessary arrangement for providing standard school
education in the Municipality area.
(b) To launch literacy programmes t o eradicate illiteracy from the
Municipality area.
(c) To open and operate libraries and reading halls in various places
within the Municipality area.
(d) To control unplanned settlement within the Municipality area.
(e) To make the structure and developm ent of the town well
planned through the functions such as guided land development
and land use.
(f) To arrange for the aged rest houses and orphanages.
(g) To arrange for the supply of electricity and communications
facilities.
(h) To arrange for recreati onal parks, playing grounds, museums,
zoos, parks etc. in the Municipality area.
(i) In order to reduce unemployment, to collect the data of
unemployed persons and launch employment generating
programmes.
(j) To launch programmes to control river pollution .
(k) To provide ambulance service in the Municipality area.
(1) To arrange for dead body carriers in the Municipality area.
(m) To carry out preventive and relief works to lessen the loss of
life and property caused from natural calamity.
(3) Consumer gro ups and other non -governmental organizations
shall have to be encouraged for the development and construction
works to be done in the Municipality area and such works shall
have to be done through such groups or organizations as far as
possible.
(4) The Mu nicipality shall exercise the powers conferred on it under

this Act and the Rules and Bye laws framed under this Act.
97. Functions, Duties and Powers of the Mayor :
(1) The functions, duties and powers of the Mayor shall be as
follows:
(a) To convene the meetings of the Municipal Council and the
Municipality.
(b) To submit and cause to be submitted necessary resolutions and
documents at the meetings of the Municipal Council and
Municipality.
(c) To safely keep or cause to be safely kept the books of accou nts
of income and expenditure and other documents of the
Municipality.
(d) To execute or cause to be executed the decisions of the
Municipality.
(e) To supervise and control or cause to supervised and controlled
the day to day administration , of the Munic ipality.
(f) To make necessary recommendation under the prevailing law.
(g) To take care of, maintain and repair and require to take care of,
maintain and repair the movable and immovable properties of the
Municipality.
(h) To make necessary arrangements i n respect of preparing
budget and plans of the Municipality.
(i) To allocate subject wise functions to the Deputy Mayor and
Members and depute the Deputy Mayor, Members and the
Secretary on duty.
(j) To give in charge to the Deputy Mayor, if he becomes una ble to
present in the Municipality for a period exceeding seven days and,
in the absence of even the Deputy Mayor, to give in charge to the
senior most Member on account of age, or to any other Member.
(k) To allocate functions of the Ward Members.
(1) To perform such other functions as are prescribed.
(2) The Mayor shall not have to leave, his area for a continuous
period of more than thirty days, except for a reasonable cause.
(3) In case there arises a question whether the cause is reasonable
or not for the purpose of sub section (2), the Municipality shall
make decision thereon.
98. Function, Duties and Powers of Deputy Mayor :
(1) The functions, duties, and powers of the Deputy Mayor shall be
as follows:
(a) To act as acting Mayor in the absence of the Mayor.

(b) To perform such other functions as are prescribed.
(2) The Deputy Mayor, shall not have to leave his area for a
continuous period of more than thirty days, except for. a
reasonable cause.
(3) In c ase there arises a question whether the cause is reasonable
or not for the purpose of sub section (2), the Municipality shall
make decision thereon.

99. Function, Duties and Powers of Member and Ward
Member:
(1) The functions, duties and powers of the Mem ber shall be as
follows :
(a) To prepare plans on development and construction works in
own Ward and, submit the same to, the Municipality.
(b) To arrange for forwarding to the Municipality, the feasible
projects from consumers groups and non -governmental
organizations by discussing on the undertaking of development and
construction works.
(c) To submit to the Municipality the particulars relating to the
Ward as and when demanded.
(d) To help consumers groups and other non governmental
organizations in the selection of projects and formulation of plans.
(e) To make necessary recommendations under the prevailing law.
(f) To help in arranging the supply system.
(g) To give in charge to the eldest Member among the Members
referred to in clauses (b) and (c) of s ection 75 of this Act, if he
becomes unable to present in the Ward Committee for a period
exceeding seven days.
(h) To carry out such other functions as are prescribed.
(2) The Member shall not leave his area for a continuous period of
more than thirty day s, except for a reasonable cause.
(3) In case there arises a question whether the cause is reasonable
or not for tile purpose of sub section (2), the Municipality shall
make decision thereon.
(4) The functions, duties and powers of the Ward Member shall be
as follows:
(a) To assist the Ward Committee in the acts of preparing resource
maps of public objects, things and places of religious, natural and
cultural importance, such as population, houses and land, public
rest houses, inns, shelters, shrines, templ es, mosques,
monasteries, divine places, Madarasa, barren land, ponds, lakes,
wells, deep water, taps, stone water taps etc. and similar other

objects situated within the Ward,
(b) To assist the Ward Committee in the preparation of annual
programme and ac tion plan of the Ward Committee and in the
implementation of prepared programmes and action plans,
(c) To provide information to the Ward Committee regarding
whether the construction works are being carried out within the
Ward in accordance with the stand ard and criteria,
(d) To supervise and monitor the works relating to development
and construction being carried out on contract or by the
Consumers’ Committee or by direct hiring, and to provide the
information thereof to the Ward Committee,
(e) To assist in the acts of realizing and recovery of taxes, fees,
charges, levies and service charge imposed by the Municipality as
approved by the Municipal Council,
(f) To assist the Ward Committee in the acts of cleaning the places
of public importance and keeping the public roads, courtyards and
alleys neat and clean,
(g) To assist the Ward Committee in controlling strayed quadrupeds
and rabies disease and other similar contagious diseases, and
(h) To perform other functions as are prescribed.
100. Function, Duties and Powers of Secretary :
The functions, duties and powers of the Secretary shall be as
follows:
(a) To perform all administrative functions of the Municipality under
the direction of the Mayor.
(b) To execute the approved town development programme unde r
the direction of the Mayor.
(c) To maintain the accounts of expenses incurred on the
construction works performed within the Municipality and to submit
the accounts of such construction for clearance.
(d) To keep accurately the records of the projects co mpleted by
consumers’ groups, non governmental organizations or other
entities.
(e) To maintain the accounts of income and expenditure of the
Municipality.
(f) To make expenditures for the execution of the decisions of the
Municipality, subject to the limi t of the budget approved for this
purpose.
(g) To have the accounts of the Municipality audited, to get the
clearance of irregularities of accounts, and to recover or cause to
be recovered the amount of irregular expenditures , under the

prevailing law.
(h ) To maintain the records of movable and immovable properties
of the Municipality and to protect such property.
(i) To supervise and control all the employees of the Municipality
and those deputed on duty by His Majesty’s Government.
(j) To be present at t he meetings of the Municipality and to perform
and cause to be performed the functions which are required.
(k) To make necessary arrangements for taking custody of the case
files of the cases filed in the, Municipality.
(1) To keep or cause to be kept the records of population of the
Municipality area up to date by registering births, death, and other
personal events.
(m) To be present at the meetings of the Municipal Council and the
Municipality, minute the decisions, take the custody of minutes
book and a uthenticate the decisions.
(n) To have administrative control of the employees under the
Municipality.
(o) To perform such other functions as prescribed under the
prevailing law

Chapter 5
Judicial Power of Municipality
101. Judicial Powers:
The Municipality shall have power to hear and settle at first
instance the following cases within such Municipality area from such
date as may be prescribed by His Majesty’s Government by
publishing a notification in the Nepal Gazette:
(a) Cases on border/boundary of land, Sandhi Sarpan
(inconvenience in respect of boundary or way outs), Aali Dhur,
canals, dams, ditches or alloca tion of water and encroachment on
roads or way outs,
(b) Cases on compensation for damage of crops,
(c) Cases on forced labour (Beth -Begar) and cases under the
Chapter on Wages,
(d) Cases under the Chapter on Paupers,
(e) Cases under the Chapter on Missin g and Finding of Quadrupeds,
(1) Cases under No. 8 and 9 of the Chapter on Construction of
Houses.
(g) Cases under the Chapter on Kalyan Dhan. (hidden and

unclaimed properties).
(h) Cases under the Chapter on Deposits except those under No. 5
of that Chapt er,
(i) Cases on providing expenses for fooding and clothing according
to status and income under No. 10 of the Chapter on Partition,
(j) Cases on uses of water bank and security of public property,
(k) Cases under the Chapter on Quadrupeds other than the killing
of cow,
(1) Cases on pasture land, grass, fuel woods,
(m) Cases on entering into, staying in or attempting to enter in or
stay in other’s house forcefully,
(n) Except those cases referred to in Annex 1 and Annex 2 of the
Government Cases Act, 2049 (1993), such other cases as assigned
to the Municipality by His Majesty’s Government by publishing a
notification in the Nepal Gazette.
102. Formation of Arbitration Board :
(1) The Municipality shall form an arbitration board to hear and
settle the case s fled in the Municipality under Section 101.
(2) In forming the arbitration board by the Municipality under sub
section (1), it shall appoint three persons as agreed upon between
the parties to a case from amongst the persons enlisted in the list
of arbit rators referred to in Section 103, as arbitrators.
(3) In case the parties to a case fail to reach an agreement in the
appointment of arbitrators under sub -section (2) from amongst the
persons enlisted in the list of arbitrators, the parties to the case
sh all appoint each arbitrator of their own and provide the name of
such arbitrator to the Municipality. The Municipality, after having so
received the names of two arbitrators, shall appoint one other
arbitrator from amongst the persons enlisted in the list of
arbitrators referred to in Section 103.
(4) In cases where the parties to a case fail to reach an agreement
on appointment of arbitrators pursuant to sub section (2) or the
parties to the case do not send the name of one arbitrator each
appointed by the m under subsection (3), the Municipality shall
appoint the three persons of the concerned Ward, to the extent
possible, from amongst the persons enlisted in the list of arbitrators
referred to in Section 103, as arbitrators.
(5) The Mayor shall designate o ne arbitrator as the chairman of the
arbitration board from amongst the arbitrators appointed as
arbitrators under sub sections (2),(3) or (4).

103. List of Arbitrators:
(1) For the purpose of hearing and settling the cases filed under
this Act at first i nstance, the Municipality shall, immediately after
the constitution of the Municipality, prepare a list of arbitrators,
setting out their names, surnames and addresses as well,
comprising such persons from among the local persons. social
workers and legal experts, as are deemed appropriate, with the
consent of such persons, and shall publish it in the Municipality
office for public information.
(2) In preparing the list of arbitrators under sub section (1), it shall
have to be so prepared that all the Wards of the Municipality can be
represented, to the extent possible.
(3) The women and back ward class as well, to the extent possible,
shall be included in the list of arbitrators referred to in sub section
( 1).
104. Exercise of Jurisdiction:
(1) The three arbitrators shall collectively exercise the jurisdiction
of arbitrators and the opinion of majority shall be deemed the
decision of the arbitrators.
(2) In case the majority of the arbitrators could not be formed
under sub section (1) and they hold differe nt opinions, such
opinions shall be submitted to the Municipality and the opinion
supported by the Municipality shall prevail on that matter.
105. Process of Decision Making:
(1) The arbitrators shall, to the extent possible, cause the
concerned parties t o negotiate with each other on the case
submitted to them and have the case compromised.
(2) In case the arbitrators fail to have compromise pursuant to sub
section (1), they shall exercise their powers under Section 104 and
decide the case.
106. Crossing off the Case List :
In case a compromise or decision is under Section 105, the
Municipality shall put its seal on the compromise or decision,
mention it in its records and cross off the list. of that case filed in
the Municipality.
107. Procedures on Case s :
The process of filing the cases to be initially heard and settled by
the Municipality under this Act, the method of examination and

proceedings on such cases, the process of the service of summons,
the process of getting the parties appeared, provisio n on time limit,
period for disposal of cases, the procedures on making compromise
or decision shall be as prescribed.
108. Right to Appeal :
Any party not satisfied with a decision made pursuant to sub
section (2) of Section 105 may appeal to the concerne d District
Court within thirty five days of the hearing or knowledge of the
decision.
109. Enforcement of Decisions :
(1) In cases where the parties agree to fulfil any obligation of
making payment or handing over things according to a compromise
or decisi on made in regard to a case under the jurisdiction of the
Municipality, the Municipality shall at once execute or cause to
execute the compromise or decision.
(2) In cases any party fails to fulfil obligation of making payment or
handing over things under the compromise or decision, the
Municipality shall forward a list along with the details of the
obligation to be so paid or fulfilled to die concerned Land Revenue
Office.
(3) The Land Revenue Office shall, upon being so requested under
sub section (2), ha ve to execute the compromise or decision by
fulfilling the procedures under the prevailing law.
110. Transfer of Cases :
The cases or complaints 1ying before the Municipality constituted
under the Municipality Act, 2048 (1991) shall be transferred to the
Municipality constituted under this Act.

Chapter 6
Formulation of Plans of Municipality and Process of
Impleme ntation
111. Formulation of Plans of Municipality :
(1) Each Municipality shall have to formulate periodical and annual
development plans for the development of the municipal area.
(2) In formulating the plans, the Municipality shall, as per
necessity, ha ve to launch plans such as land -use, land pulling. and

guided land development for making the development of the
municipal area balanced and planned.
(3) In formulating plans pursuant to sub sections (1) and (2), the
Municipality may, as per necessity, obt ain external consultancy
service.
(4) In formulating the plans, Municipality shall have to give priority
to the following projects :
(a) Projects which are income generating and from which
consideration may be obtained sooner.
(b) Projects raising living s tandard, income and employment of,
and giving direct benefits to, the people of the Municipality, and
contributing to poverty alleviation.
(c) Projects which can be operated with low cost and larger
people’s participation.
(d) Projects to be operated throu gh local means, resources and
skills.
(c) Projects providing direct benefits to the women as well as
backward class and children.
(f) Projects that can contribute to protect and promote the
environment.
(5) To formulate the plans to be launched in the fort h coming year,
it shall be required to do as follows in the current year:
(a) The Municipality shall have to obtain guidance and prior
estimation of the resources and means from His Majesty’s
Government, District Development Committee and other concerned
bodies for the coming Fiscal Year until the month of Marg of each
year. Even the Municipality itself shall have to provide guidance on
selection of projects and formulation of plans to the different Ward
Committees for the formulation of service and develop ment
programmes for the forth coming fiscal year.
(b) Projects have to be invited from the Ward Committees,
consumers’ committees, and non governmental organizations in the
municipal area, and plans have to be formulated on the basis
thereof.
(6) In formul ating periodical plans, the following matters shall have
to be included :
(a) Geographical, economic and natural heritages of the town and
present uses thereof.
(b) Possibilities of production in various sectors on account of
comparative cost benefit.
(c) Areas comprising backward castes, tribes and poor people and
various development works done or required to be done in such

areas.
(d) Income generating and skills oriented works for the women and
children.
(e) Description of the completed projects under v arious sectors and
provision on the operation and maintenance thereof.
(f) Various sectoral short term and long term development works
on the basis of development possibility.
(g) Plans on human resources development in various subject areas
to be formula ted by the local people themselves.
(7) In formulating annual plans, the following matters have to be
taken as the basis.
(a) Directives received from the National Planning Commission and
the District Development Committee on national development
policy.
(b) Overall necessities indicated by periodical plans.
(c) Suggestions received from the Ward Committee.
112. Preparation of Resource Map :
Each Municipality shall, for the development of the municipal area,
have to collect municipal level objective data a nd prepare a
resource map reflecting the situation of the municipal area.
113. Feasibility Study of the Projects To Be Carried Out :
In the course of implementation of municipal projects, the
Municipality shall have to undertake or cause to be undertaken
feasibility study of the project with also setting out the matters as
follows :
(a) Objectives of the project,
(b) The number of people to be benefited from the project and the
type of benefit,
(c) Whether the project to be selected is new or incomplete one ,
(d) Whether the problem can be solved through any other means
without operating the project,
(e) The estimate of the’ expenditures and cost of the materials that
may be required in completing the project and the required amount
of time therefor,
(f) The cash, labour in kind and similar other contribution may be
received from the users,
(g) Charge or maintenance expenditures which may be collected
from the users, or operational system, and
(h) Any other matter, if any, required to be set out.

114. Selectio n of the Project :
(1) In selecting a project, it shall have to be selected on the basis
of the resource map as
referred to in Section 112 and the report of project feasibility study
referred to in Section 113.
(2) In selecting a project, it shall have to be selected so as to
protect and promote the environment.
(3) In selecting projects, such projects as may have utmost
participation of the local people and labour shall have to be
selected.
(4) After receiving the estimate of the grant to be made availabl e
to the Municipality, the project shall have to be selected on the
basis of priority.
(5) The information on the selected projects shall have to be made
public among the inhabitants of the Municipality.
115. Coordination among Municipality, Governmental a nd
Non governmental Agencies :
In formulating plans and service programmes of the Municipality,
the Municipality shall have to maintain coordination with
governmental, non governmental and donor agencies implementing
different services and development prog rammes in the municipal
area in the following matters:
(a) To remove duplication between the Municipality and the
concerned agency on investment to be made in any service sector.
(b) To maintain complementary coordination among the investors.
(c) To chiefl y maintain the role of consumers on procedures of the
both.
(d) To follow the method whereby the inhabitants of the
Municipality can have maximum benefit from the investment.
(e) To determine time table for the implementation of various
programmes.
116. Op eration of Municipal level Project :
(1) Municipal level projects may be operated as follows :
(a) Through resources of the Municipality,
(b) Through the grants of the District Development Committee,
(c) Through the grants of His Majesty’s Government,
(d) Through amounts obtained from various native and foreign non
governmental organizations.
(e) Through financial mobilization within the municipal area.
(2) After the selection of the projects, the Municipality shall have to

prepare a calendar of operation a nd implement or cause to be
implemented such projects.
(3) Me programmes to be operated by a non -governmental
organization shall have to be operated by entering into an
agreement with the Municipality.
(4) The projects which are to be included in the Distr ict plan shall
have to be passed by the Municipality and sent to the District
Development Committee.
(5) In cases where the programmes to be operated by the
Municipality carry the investment of non -governmental
organizations too, such programmes, shall hav e to be operated as
per the agreement entered into between the two organizations.
(6) Special projects which are to be operated with the grant of His
Majesty’s Government shall have to be operated in accordance with
the process prescribed by His Majesty’s Government.
(7) In formulating plans by the Town Development Board situated
in the municipal area, it shall formulate them in consultation with
the Municipality.
117. Implementation and Management of Projects :
(1) The Secretary shall have to prepare ‘a c alendar of projects
operation to operate the projects approved by the Municipal
Council.
(2) The Secretary shall implement or cause to be implemented the
projects as per the calendar referred to m sub section (1) in
coordination with the concerned Ward Com mittee.
Provided that the projects which have direct concern with the
people at the municipal level shall be operated through consumers’
committee.
(3) In case trainings are required to the members of the
consumers’ committee for operation of the project, the Municipality
shall make arrangements therefor.
(4) The consumers’ committee may collect service charges from the
consumers who receive service from such project.
(5) Amounts of service charges received pursuant to sub section
(4) shall have to be expen ded for the repair, maintenance and
protection of the project concerned.
(6) The consumers’ committee shall have to update the details of
the incomes and expenditures referred to in sub sections (4) and
(5) and submit it to the Municipality.
118. Appraisal and Evaluation of Projects :

(1) After any municipal level project has been completed, a
technical examination and clearance as well as evaluation of the
project shall have to be done.
(2) All the municipal level projects being operated by the
Municipali ty shall. have to be examined quarterly.
(3) The aspects to be covered in carrying out impact assessment
and appraisal of the projects shall be as prescribed.
119. Consumers’ Group May Be Formed :
(1) In implementing the municipal level project, the Munic ipality
may form consumers’ groups through the concerned agency from
amongst the persons who receive direct benefit from the project.
(2) The functions, duties and powers of the consumers’ group shall
be as prescribed.
120. Operation of Projects by Consume rs’ Group and No –
ngovernmental Organization :
(1) In implementing and operating projects, consumers’ groups and
non -governmental organizations shall have to do so in coordination
with the Municipality.
(2) The cost estimate of the projects shall be done a s prescribed.
(3) The consumers’ groups and non -governmental organizations
shall have to up date accounts of their transactions, get them
audited and submit the same to the concerned Municipality.
121. Non Governmental Organizations to be Encouraged :
(1) The Municipality shall have to encourage the non -governmental
organizations for the acts of identification, formulation, operation,
evaluation, repair and maintenance of the town development
programmes within the am of each Municipality.
(2) The projects to be operated by any non -governmental
organization shall be operated through its own resources and the
resources obtained from the Municipality.
(3) The non governmental organization operating a project shall
have to submit a full description of the proje ct to the Municipality.
(4) The Municipality may implement and operate plans through non
governmental organizations.
122. Directives to be Abided by :
The Municipality. shall have to abide by the directives given by the
National Planning Commission, His Majesty’s Government and the
District Development Committee in respect of the formulation and

operation of the town development plan.
123. Examination Release d Clearance of Project :
(1) After the completion of a project, it shall have to be examined,
released and cleared as prescribed.
(2) After receiving the information of the completion of a project
from the project operating agency, the Municipality shall examine,
release did clear the project on the basis of the work completion
report and the evaluation submitted by the technician.
(3) The examination, release and clearance of a completed project
shall be approved by the Municipal Council.
124. Repair, Maintenance and Management of the Project :
(1) The Municipality may collect service charge from the
beneficiaries of a project for the repair and maintenance of the
project.
(2) The repair, maintenance and necessary management of the
project shall be done with the amount of the servi ce charge
collected pursuant to sub section (1).
(3) The Municipality shall have to maintain an up to date account of
incomes and expenditures as referred to in sub sections (1) and
(2).

Chapter 7
Financial Provision
125. Fund of the Municipality :
(1) The Municipality shall have a separate fund of its own.
(2) The fund referred to in sub section (1) shall consi st of the
following amounts
(a) Grants received from His Majesty’s Government.
(b) Grants received from the District Development Committee.
(c) Amounts received from revenue allocation.
(d) Donations, gifts, contributions, assistance and other amounts
rece ived from any person, organization and institution.
(c) Amount obtained from the sale of movable and immovable
properties.
(f) Amount received from taxes, fees, service, charges, duties,
tariffs, fares cc.
(g) Amount received from loan investments.
(h) Amo unt received from mobilization of the resources.

(i) Amount received from fines and penalties.
(j) Amount received from auction sale of goods.
(k) Amount received from contracts.
(1) Amount received under the prescribed percentage of the land
tax.
(m) Depo sits and borrowing amounts.
(n) Amounts to be received from any other sources.
(o) Amount sanctioned by His Majesty’s Government for the
specified programme.
(3) Any amounts collected in the fund of the Municipality shall have
to be deposited in a bank.
12 6. Mode of Making Expenditure of Amount from the of the
Municipality:
(1) The fund of the Municipality shall be operated through the joint
signature of the Secretary and the Accounts Chief.
(2) The Mayor may expend the amount as referred to in the
financ ial assistance, subject to the limitation of the approved
budget.
(3) The Secretary may expend the amount for executing the
decisions of the Municipality, subject to the budget approved by the
Municipal Council.
(4) Amount from the fund of the Municipality may be expended as
prescribed, subject to the budget approved by the Municipal
Council.
(5) Statements of expenditures made from the fund of the
Municipality shall have to be submitted to the meeting of the
Municipality, and the Municipality shall have, t o publicly inform on
its incomes and expenditures in all of its Wards within one month of
the meeting of each Municipal Council.
(6) Administrative expenditures of the Municipality shall be as
prescribed.
127. Provisions Relating to Approval of Constructio n,
Procurement and other Contract :
(1) In getting a construction work done, the Municipality shall have
to do, and cause to be done, as follows:
(a) Contracts and other transactions shall be as prescribed.
(b) The concerned bodies shall have to maintain t he accounts and
books of the municipal level plans.
(2) The Municipality may execute the development and
construction works either itself or through the non governmental

organizations, consumers’ groups, contracts or direct hiring, as
prescribed.
(3) The S ecretary shall sign all contract documents to be entered
into by the Municipality.
128. Transfer in Budget Heads :
The Municipality may transfer the budget allocation amount from
one head to another not exceeding twenty percent of the amount of
the head i n the annual budget approved by the Municipal Council.
Provided that no transfer in budget head shall be made on the
heads of contingency and financial assistance.
129. Provision of Auction Sale :
The process of auctioning or selling the goods and proper ties not
required for any work for the Municipality shall be as prescribed as
per the, policy approved by the Municipal Council.
130. Preparation of Budget of Municipality :
(1) The Secretary shall, at the direction of the Mayor, prepare the
annual budget of income and expenditure of the Municipality prior
to the beginning of each fiscal year and submit it to the Municipality
for approval.
(2) The actual details of its income and expenditure of the previous
fiscal year, the amount of income and expenditure already made as
per the approved budget of the current fiscal year, and the
estimate of income and expenditure to be made possibly by the end
of the current fiscal year, together with the proposed plans and
programmes and estimates of income and expenditu re for the forth
coming fiscal year shall have to be included in the annual budget.
(3) The Mayor shall have to submit the budget submitted pursuant
to sub section (1) to the Municipal Council for its approval.
131. Remaining Amount of Budget :
Any unspen t amount of the budget in one fiscal year shall have to
be included in the budget of the next fiscal year for the purpose of
carrying out the projects or programmes remained incomplete in
the current fiscal year.
131. Maintenance of Records :
(1) The Munic ipality shall have to maintain the records of books
and accounts of its income and expenditure, as prescribed.
(2) The Municipality shall not be allowed to make administrative

expenditures beyond the limit set by the Municipal Council.
132. Remuneration an d Meeting Allowances :
(1) The Mayor and Deputy Mayor shall receive remuneration as
prescribed.
(2) The Members shall receive meeting allowances as prescribed by
the Municipal Council for taking part in the meeting of the
Municipality.
134. Assets of the Municipality :
(1) The Municipality shall have title over the following properties
situated within the area of the Municipality, and the Municipality
shall have to supervise, repair, maintain and manage such
properties
(a) Properties constructed and purcha sed from the fund of the
Municipality or granted to it by His Majesty’s Government or any
organization or individual.
(b) Public properties not subject to any proprietary right of any
individual and not within the control of His Majesty’s Government or
Dis trict Development Committee, such as public drainage,
sewerage, bridges, ponds, temples, public rest houses, inns,
houses, water springs, water spouts, wells, grazing fields, outlets,
courtyards, alleys, roads, paths and trees on either side of the
roads.
(c) The houses, land, parks, gardens, bus parks etc. under the
ownership of the Municipality.
(d) Forests according to the prevailing forest laws or handed over
by. His Majesty’s Government.
(e) Natural heritages.
(2) The Municipality shall riot be allowed to sell and dispose of or
otherwise relinquish its title and possession on the properties as
referred to in sub section (1) without the approval of His Majesty’s
Government. Any such sale or disposal or relinquishment of the
tide to any person without the approval shall, ipso facto, be null
and void in any circumstance whatsoever.
135. Audit :
(1) The Municipality shall itself do the internal audit of its income
and expenditure.
(2) The final audit of income and expenditure of the Municipality
shall have t o be carried out by a registered auditor appointed by
the Municipal Council on the recommendation of the accounts

committee.
(3) The Mayor shall have to submit to the accounts committee the
final audit report together with the financial statement prepared in
carrying out the final audit.
(4) The accounts committee shall have to discuss on the final audit
report submitted by the Mayor and furnish it to the Municipal
Council along with its opinion and suggestions.
(5) The Municipality Council may regularize a ny irregular amount
shown in the audit report received along with the suggestions and
opinion of the accounts committee. The Municipal Council shall
forward to the Municipality to take necessary action, pursuant to
the prevailing law, for the purpose of se ttlement and realization in
respect of those irregular amounts which can not be regularized by
it. Upon receipt of such writing, the Municipality shall have to
realize and recover as government dues.

Chapter – 8
Taxes, Fees, Service Charges and Fares
136. Land Revenue and House d Land Tax :
(1) The Municipality may levy house and land tax, as prescribed, on
each hou se and land within its jurisdiction on the basis of the size,
type, design, construction and structure of the house and
compound and area covered by the house, as approved by the
Municipal Council.
(2) The Municipality may impose land revenue and land tax as
prescribed on the land within the municipal area.
137. Rent Tax :
(1) The Municipality may collect rent tax, as prescribed, on the
amount of rent in cases where any house, shop, garage, godown,
stall, shed, factory, land or pond within its jurisdiction is rented
wholly or partly.
(2) The Municipality may impose rent or tenancy charges, as
prescribed, on temporary shops permitted to be kept at the market
places, public places, unregistered land or road sides constructed,
supervised or operated by it withi n its jurisdiction.
Provided that no permanent shop shall be allowed to be
constructed in a manner to obstruct the public movement and
sanitation.

138. Enterprise Tax :
The Municipality may levy and collect enterprise tax, as prescribed,
on trade, profess ion or occupation within its jurisdiction on the
basis of capital investment and financial transactions.
139. Vehicle Tax :
The Municipality may levy vehicle registration and annual vehicle
tax on the prescribed vehicles within its jurisdiction and occasi onal
vehicle tax, as prescribed, on all kinds of vehicles entering into its
area.
140. Property Tax :
The Municipality may levy an integrated property tax, within its
jurisdiction at the prescribed rate.
141. Entertainment Tax :
The Municipality may levy entertainment tax, as prescribed, on the
means of entertainment such as cinema halls, video halls, cultural
show halls permitted within the municipal area.
142. Commercial Video Tax :
The Municipality may levy tax as prescribed on the video, projector,
cable etc. used by any person or organization for commercial
purpose.
143. Advertisement Tax :
The Municipality may levy tax on signboards, globoards, stalls etc.
permitted to be placed on roads, junctions,. public places in its area
for advertisement, pub licity etc.
144. Parking Charge :
The Municipality may impose parking charge, as prescribed, at
vehicles parking places managed by it.
145. Service Charge :
(1) Any Municipality may impose service charge for making
available the facilities such as drinking water, electricity, water tap,
public telephone and similar other facilities.
(2) The Municipality may impose service charges for solid wastes
management. sanitation, sewerage/drainage etc. facilities provided
by it in the municipal area.
(3) T he Municipality may collect service charges from the persons
using facilities such as public toilets, parks, bathrooms, swimming

pools, gymnasiums, guest houses, tourist places, hostels, market
places, slaughter houses, crematorium, laundry ghat (bank of a
river) and similar other facilities, for making available such
facilities.
(4) The Municipality may, with the prior approval of His Majesty’s
Government, carry out the act of providing the facilities referred to
in sub sections (1), (2) or (3) and collect ing the service charges
therefor through the private sector or by making the private sector
as well participate therein.
(5) The Municipality may determine the expenditures required to
repair and maintain the roads, sewerage, bridges, pavements,
courtyards , alleys, drainage, electricity etc. constructed by it and
collect the same from the concerned consumers annually,
(6) The Municipality may collect service charge as prescribed in
valuating the immovable property of any person.
(7) The Municipality may imp ose fees for approval (Baksauni) and
recommendation fees in its area, at the rate approved by the
Municipal Council, not exceeding the prescribed rate.
146. Exemption from Taxes, Fees. Charges, Duties etc. :
(1) Notwithstanding anything contained in this A ct, the Municipality
shall not be entitled to impose taxes, charges, fees, duties etc.
except the services charges .chargeable for the service provided by
the Municipality to His Majesty’s Government, foreign diplomatic
missions or agencies, and non profit making organizations.
Provided that no such exemption shall be granted to the
commercial transactions. of any corporation or organization wholly
or partly owned by His Majesty’s Government.
(2) The Municipality shall. not be entitled to impose any taxes,
charges, fees, duties on the goods imported by His Majesty’s
Government or any development board for the projects operated
through foreign loans or aids.
147. Prohibition to Levy Taxes, Fees, Charges or
Duties/Tariff Contrary to Act, Rules :
The Municipal ity shall not be entitled to collect any kinds of taxes,
fees, charges or duties/tariffs contrary to this Act or the Rules
made hereunder; and if so collected, His Majesty’s Government
may order to stop that act and to refund the amount of taxes, fees,
cha rges or duties so collected to the concerned person.
148. Right to Raise Loan :

The Municipality may raise loans, with or without pledging any
property under its ownership and possession or under guarantee
given by His Majesty’s Government, from a bank or any other
organization, according to the policy approved by the Municipal
Council.

Chapter 9
Provisions relating to the Construction of Building
149. Prohibition on Construction of Building without
Obtaining Approval :
No person shall, without obtaining construction approval from the
Mayor, do constru ction of a building in the municipal area.
Explanation: In this Chapter, “construction of building” means the
act to construct a new building, to reconstruct by demolishing the
old building, to add a storey or to alter the facade, or to construct a
window, door, verandah, attic, porch, shed, stable or garage or
erecting a compound wall in alternation of the existing design.
150. Application for Approval :
(1) Any person or governmental office desiring to construct a
building shall have to make an applicati on, in the prescribed
format, along with the design of the building, to the Municipality for
the approval to construct the building.
Explanation : In this Chapter, “governmental office” means and
includes all governmental offices and courts as well includi ng the
offices of the Supreme Court, Parliament, Raj Parishad (Royal
Council), Commission for the Investigation of the Abuse of
Authority, Auditor General, Public Service ,Commission and other
constitutional bodies, and Royal Nepal Army as well as Nepal Po lice.
(2) Notwithstanding anything contained in sub section (1), in
making application for approval to construct a building, if any public
body is not allowed to submit the design of the building on account
of national security, it may mention only the len gth, breadth,
height and storey of the building and its. total area in the
application.
Explanation : In this Chapter “design” means a graphic map,
description and other documents relating to the construction of a
building.
151. Matters to be Set Out in De sign:

A design of the construction of a new building shall, inter alia, out a
separate toilet and soakpit of the building, and if such a budding is
to be built adjacent to other budding, die design shall have to set
out the separate column walls of the bu ilding.
152. Submission of Document of Ownership and Possessiom
or Deed of Consent :
In making application pursuant to Section 150 for approval to
construct a building, if construction is to be done in the land of
one’s own ownership and possession, the d ocument showing the
ownership and possession of the. land, and if the construction is to
be done in the land of any other person’s ownership and
possession, the document showing the ownership and possession of
such person as well as a deed of consent shall have to be
submitted.
153. To Hold Inquiry :
After an application has been made for approval to construct a
building pursuant to Section 150, the Municipality shall have to
enquire as to whether the application meets the requirements, and
if it is found not to meet any requirements, get it to meet the
requirement and then do as follows within seven days of the filing
of an application meeting the requirements:
(a) To affix a notice on its office, the house door of the neighbour
and the place of constructi on of the building in a manner
conspicuous to all, asking the neighbour to file a complaint
containing the details of grievance, if any, to be caused to him from
the construction of such a building, within fifteen days.
(b) Within three days after the expi ry of the time specified in the
notice referred to in clause (a), to depute jointly an engineer or
overseer and other employee to enquire as to whether the building
can be allowed to be constructed as mentioned in the design or not.
154. Submission of Repo rt :
The employees deputed pursuant to clause (b) of Section 153 shall
have to submit to the Municipality a report, along with a deed of
public inquiry also setting out the statements made by the persons
present at the time of holding the inquiry as to wh ether the
construction of the building can be allowed or not, and setting out
the matter whether the construction of the building as mentioned in
the application can be allowed or not, within fifteen days of the

date of deputation for such inquiry.
155. To Give Approval :
(1) The Mayor shall have to give the approval to construct the
building within seven days of the receipt of a report referred to in
Section 154 if no complaint is filed under clause (a) of Section 153.
(2) In cases where a complaint has be en filed pursuant to clause
(a) of Section 153, the Mayor shall have to give approval to
construct the building within thirty days from, the date of receipt of
the report pursuant to Section 154, except in cases where a
decision has to be made on the entit lement upon finding out fact by
inquiring into the concerned parties.
(3) If it appears from the complaint filed pursuant to clause (a) of
Section 153 that the entitlement to the land in which the building is
to be constructed has to be settled, an order s hall be issued by
creating an annotation sheet (Parcha) and the concerned parties
shall have to be informed to file a case in the court within thirty five
days of the date of filing of such a complaint.
Provided that in cases whether there is a dispute onl y in respect of
some portions of such land, and the applicant makes an
application, along with another design, consenting to construct the
building in the rest land subject to the title to such disputed portion
of the land being as decided by the court, th e Mayor may give
approval within fifteen days of receipt of such an application.
(4) The Municipality shall have to collect fees as prescribed, in
granting the approval to construct a building, pursuant to this
Section.
156. Approval of Design :
(1) In giv ing the approval to construct any building pursuant to
Section 155, the Mayor shall also have to approve the design of
such a building.
(2) In approving the design of any building pursuant to sub section
(1), the Mayor may approve it by making necessary al teration in
the design in a manner to be in conformity with the physical
development plan and the standards set pursuant to the prevailing
law.
157. Alteration in Design :
If any alternation has to be made subsequently in the design
approved pursuant to S ection 155, the Mayor may shall for such
alteration in the design, without being prejudicial to the standards

set under the prevailing law, to do other acts excepting the addition
of storey, change of facade or increasing its length, breadth.
158. To Give Notice : Notwithstanding anything contained in
Section 157, in case the approval to construct any building can not
be granted in accordance with the report received pursuant to
Section 154 or for any other reason, the Mayor shall have to give a
notice sett ing out the reasons therefor to the person or public body
who has made an application for approval to construct a building
pursuant to Section 150, within seven days of the receipt of such a
report.
159. Complaint May Be Filed :
(1) In case the Mayor does not give approval within the time limit
under Section 155, within thirty five days of the expiry of such time
limit and in the case of dissatisfaction with the notice given
pursuant to Section 158, within thirty five days of the receipt of
such a notice, t he person or body who has made an application for
approval to construct a building pursuant to Section 150 may file a
complaint in the Municipality.
(2) In cases where any complaint is filed pursuant to sub section
(1), the Municipality shall have to direc t the Mayor to give approval
forthwith if it appears upon inquiring into the facts and matters that
the approval has to be given.
160. Period for Construction of Building :
(1) If the approval to construct a building has been given according
to this Act, s uch a building shall have to be constructed within two
years from the date of such approval.
(2) In the event of failure to construct the building within the time
limit specified under sub section (1), an application shall have to be
made to the Municipali ty for extension of the time limit.
(3) If any application is made pursuant to subsection (2), the
Mayor may extend the time limit for upto two years by collecting an
additional fee at the rate of five percent of the previously paid fee.
161. Inquiry and P roceedings :
(1) The Mayor may depute any engineer, overseer or employee to
inquire into the following matters in respect to any building
constructed or being constructed by any one m the municipal area:
(a) Whether or not approval has been obtained pursu ant to this Act
to construct such a building,

(b) Whether or not such a building has been constructed or is being
constructed in accordance with the design approved pursuant to
this Act, and
(c) Whether or not any public land, road, temple, courtyard,
sewe rage, canal, pond etc. is encroached upon from such a
building.
(2) The person deputed to inquire into the matters pursuant to sub
section (1) shall have to inquire into the matter according to the
prevailing law and submit a report along with his suggesti ons, to
the Mayor within fifteen days of his deputation.
(3) The person constructing the building and all the persons
concerned with the act of construction of the building shall answer
the questions asked by, and give or show ‘the documents required
by, a nd provide necessary assistance to, the person deputed
pursuant to sub section (1) for holding inquiry.
(4) In case it is held, as per the report submitted pursuant to sub
section (2), that anyone has constructed or is constructing a
building without obtai ning approval pursuant to this Act or by
encroaching upon any public land, road, temple, courtyard
sewerage, canal, pond, etc., the Mayor shall have to order to
demolish the building or any portion thereof.
(5) In case it is held, as per the report submitt ed pursuant to sub
section (2), that any person has constructed or is constructing a
building by altering the design approved pursuant to this Act
without obtaining approval of the Mayor, the Mayor may order to
punish such a person with a fine of upto one hundred thousand
rupees or to demolish the building or any portion thereof
(6) Prior to issuing order pursuant to subsection (4) or (5), the
Mayor shall have to provide the person constructing such a building
with a reasonable opportunity to defend himself .
162. Appeal :
Any person, who is not satisfied with an order issued by the Mayor
pursuant to sub section (4) or (5) of Section 161, may file an
appeal in the Appellate Court within thirty five days of receipt of
such an order; and the decision made by t he Appellate Court in
regard to such appeal shall be final.

163. Demolition of Building and Recovery of Expenditures
Incurred :
(1) In cases where an order has been issued pursuant to sub
section (4) or (5) of Section 161 to demolish any building or any

portion thereof, the concerned person shall have to demolish such a
building or any portion thereof according to the order of the Mayor
or the decision of the Appellate Court within thirty five days of the
decision made by the Appellate Court requiring the demolition of
such a building or any portion thereof, if an appeal has been filed
against such order pursuant to Section 162, and within thirty five
days of the date of expiry of the time limit for appeal where no
appeal has been filed.
(2) If the concerne d person does not demolish such a building or
any portion thereof within the time -limit referred to in sub section
(1), the Municipality itself may demolish such a building or any
portion thereof,. and the expenditures incurred for so demolishing
shall be realised from the concerned person.
164. Delegation of Power :
The Mayor may delegate the powers conferred on him under this
Act to the Deputy Mayor or any other Member.

Chapter 10
Punishment
165. Power of Municipality to Punish :
(1) The Municipality may punish as follows on the following
matters :
(a) If any one constructs or places drainage, toilet, safety tan k etc.
or does similar acts creating obstacles and barriers with an
intention of causing trouble to others, the Municipality may order to
stop such act, or demolish or remove such construction. If any one
disagrees to stop, demolish or remove according to that order, the
Municipality may depute persons to stop, demolish or remove the
same. It may realise the expenditures incurred for so demolishing
or removing from the concerned person who has not obeyed the
order, and punish such person with a fine of upto fifteen thousand
rupees.
(b) If any one does such acts within the municipal area as to plant
a tree, erect a wall of construct a building, shed with an intention of
causing obstacles to others, the Municipality may order to remove
such a tree, wall or bui lding, shed, and if the concerned person
does not remove it as per the order, the Municipality may depute
persons to remove the same. It may realise the expenditures
incurred for so removing from the concerned person who has not

obeyed the order, and punis h such person with a fine of upto
fifteen thousand rupees.
(c) If any one dumps solid wastes at any places other than those
designated within the municipal area, it may punish such person
with a fine of upto fifteen thousand rupees, and realise from such
person the expenditures to be incurred to on removal of such solid
wastes.
(d) If any person, without permission of the Municipality, erects
fences or enclosures on or stops any public road or place and
causes obstruction to the movement, it may require him to remove
such fences or enclosures or the things of obstruction, and punish
him with a fine of upto fifteen thousand rupees.
(e) If any one damages, or causes loss to, or encroaches on, or
misappropriates, any public property or destroy any public
struct ure within the municipal area, such person shall be liable to
punishment, if any, prescribed under the prevailing law; and if no
such punishment is provided for, the Municipality may punish such
person with a fine of upto fifteen thousand rupees, and may
recover the amount of such loss from the concerned person or
require such person to render it into original condition.
(f) If any one dumps solid wastes at one’s own house, the
neighbour’s house, courtyard, Junction, or does any act fouling the
environment, the Municipality may punish such person with a fine
of upto fifteen thousand rupees, and may recover the amount of
such loss or damage from the concerned person or require such
person to render them into original condition.
(g) If any one carries out such activity as to disturb peace in the
neighbouring place or society by installing any type of instrument,
or by any equipment or means of entertainment within the area of
Municipality, the Municipality may order not to do such act or to
remove the equipment , if it is so required; and if the concerned
person does not carry out such order, it may punish such person
with a fine of upto fifteen thousand rupees.
(h) The Municipality may order to place a price index on the shops
within its jurisdiction, and it may fine the concerned shop owner
with a fine of upto fifteen thousand rupees, in case such shop does
not place the price index accordingly.
(2) If any one does not pay the taxes, fees, charges, tariffs
contracted or imposed by the Municipality and any other amount
due and payable to it, the Municipality may take action as follows
(a) If any one does not pay the taxes, fees, charges, which may be
collected under this Act and other amounts due and payable to the

Municipality, it may write to the concerned body to stop the
transfer of ownership of the movable, immovable property of such
person, may seal or lock up the trade, profession, and withhold the
transactions including export and import.
(b) If the amount which the Municipality is entitled to collect unde r
this Act could not be covered up even from the stoppage of the
house, land, transaction or assets of the concerned person
pursuant to clause (a), the Municipality may recover it by
auctioning his house, land or other assets, if any.
(c) In cases where an y contractor has furnished any deposit or
guarantee in the course of any act or transaction under this Act but
has failed to carry out such act accordingly, the Municipality may
realise by forfeiting such deposit or auctioning off such guarantee.
Provided that in case the proceeds of amount received from the
forfeiture or auction sale exceed the amount payable by such
person to the Municipality, the excess amount shall have to be
returned to the concerned person.
(3) In auctioning by the Municipality pursu ant to clause (b) or (c) of
sub section (2), it shall do it according to the prevailing law.
(4) If any one does not pay any taxes, fees, charges, duties, tariffs
and any other amount due and payable under this Act, the
Municipality may stop the service pr ovided by it, in regard to such
person.
(5) If any one commits any act in contravention of this Act or the
Rules, Bye laws or Orders made under this Act, such person shall
be punished with punishment, if any, prescribed elsewhere in this
Act, and if punish ment is not so prescribed, the Municipality may
punish such a person with a fine of upto one thousand rupees.
(6) If any one who has already been punished under this Section
commits the same offence again, the Municipality may punish such
person with two f old punishment for each instance.
(7) Any party who is not satisfied with the punishment imposed by
the Municipality under this Section may appeal to the concerned
District Court within thirty five days of the date of knowledge of
such a decision.
166. Rec overy of Punishment and Fine :
The punishment and fine imposed by the Municipality pursuant to
this Act shall be recovered by following the process as referred to in
Section 260.

Chapter 11
Complaint and Provisions Pertaining Thereto
167. Complaint :
(1) Any person. who is not satisfied with any order issued or any
task ordered by Member or any employee of the Municipality may,
except as otherwise provided for in this Act, file a complaint with
the Mayor within thirty five days.
(2) In cases where a complaint has been filed pursuant to sub
section (1), the Mayor shall have to decide it within nin ety days of
the filing of such complaint. If no decision is made by the Mayor
within that time limit, the concerned person may file a complaint
with His Majesty’s Government.
(3) After a complaint has been filed pursuant to sub section (1) or
(2), the Mayo r or His Majesty’s Government may hold necessary
enquiry and uphold, quash or alter such an order.
(4) The decision made by the Mayor or His Majesty’s Government
pursuant to sub section (3) shall be final.
(5) After anyone has filed a complaint pursuant to sub section (1)
or (2), the concerned acts and proceedings may be deferred by an
order of the authority making decision on such a complaint.
168. Limitation for Institution of Cases :
No case shall be instituted against the Municipality, Mayor, Deputy
Ma yor, Member or employee or person assigned to work by the
Municipality in respect of any act performed in exercise of the
powers conferred by this Act or by the Rules or Bye -laws made
under this Act or by the prevailing laws, unless the matters
mentioned b elow are followed :
(a) After the expiry of one month of the service of notice in writing,
indicating the reasons for institution of the case and the name and
address of the plaintiff or his attorney, if any, in person or sent by
registered office 0 the Mu nicipality or the Mayor, Deputy Mayor, or
the Member or employee or the person assigned to work by the
Municipality, and
(b) Unless the case is filed within three months of the cause of
action.
169. Saving of Action Carried out in Good Faith while
Performi ng Duty or Exercising Power :
The Mayor, Deputy Mayor or the person assigned to work by the

Municipality shall not be liable to punishment for any action carried
out by him in good faith while performing the duty required to be
performed pursuant to, or e xercising the power conferred by, this
Act or the Rules or the Bye laws framed under this Act.

PART 4 : PROVISIONS RELATING TO DISTRICT
DEVELOPMENT COMMITTEE
Chapter – 1
District Development Area and Delimitation of Area
170. Specification of District Development Area :
His Majesty’ s Government may specify each. District maintained
under the Local Administration Act, 2028 (1971) as the district
development area.
171. Delimitation of District Development Area :
(1) His Majesty’ s Government may delimitate each district
development area into nine areas in minimum and seventeen areas
in maximum in a manner not to be lower than the number of areas
fixed at the time of the commencement of this Act.
(2) If the boundary of the areas of the district development am
delimited pursuant to sub -section (1) has to be altered, His
Majesty’s Government shall form a committee comprising the
concerned expert as well and may alter the boundary on the
recommendation of the committee, in consultation with the District,
Council and with the approval of the Election Commission.
Provided that in so altering the boundary, it shall have to be made
prior to one year of the year of election.

Chapter 2
Provisions relating to District Council
172. Constitution of District Council :
(1) A District Council shall be constituted in the district
development area specified pursuant to Section 170.
(2) The District Council shall consist of the Members as follo ws:
(a) Chairman and Deputy chairman of each Village Development
Committee in the District,

(b) Mayor and Deputy Mayor of each Municipality in the District,
(c) Members of the District Development Committee,
(d) Members of the House of Representatives and the National
Assembly within the District, ex -officio Member,
(e) Six persons including one woman nominated by the District
Council from amongst those social workers, socially and
economically backward tribes and ethnic communities, down
trodden and indig enous people within the District, belonging to the
class, whose representation in the District Council does not exist
and who are in possession of the required qualifications to become
the Member of the District Council pursuant to Section 174.
173. Term o f Office of Member of District Council :
(1) The term of off of a Member of the District Council shall be of
five years.
(2) In reckoning the term of office of a Member of the District
Council, it shall be reckoned from the first day of Shrawan of the
year in which the term of office begins, and the term of office shall
be deemed to have been expired on the last day of Ashadh of every
five years, not exceeding a term of five years.
(3) Notwithstanding anything contained in sub sections (1) and (2),
in case the election to new Members is held prior to the expiry of
the term of office of the. Member pursuant to this Section, the term
of office of the existing Member shall be deemed to have been
expired, and the newly elected Members shall have the authority to
discharge functions.
(4) In reckoning the term of office of the Member, even in cases
where, owing to the fact that the election to the office of any
Member of the District Council could not be held or nomination of
the Member could not be made, at the sc heduled time due to any
reason, it is held in any other time, the term shall be reckoned as if
the election were held or nomination made at the scheduled time.
(5) In case the office of any Member of the District Council
becomes vacant due to any reason, t he vacant office shall be
fulfilled only for the remainder of the term through a by election
under the prevailing law to the office of an elected Member and
through nomination to the office of a nominated Member.
Provided that:
(1) By election or nominatio n shall have to be held or made within
one year of the date of vacancy of the office.
(2) No by election or nomination shall be held or made for a period

less than one year.
174. Qualification required for Member of District Council :
In order to become a Member of the District Council, one shall have
to possess the following qualifications:
(a) Being a Nepalese citizen,
(b) Having attained twenty one years of age and possessed
qualification to become a voter under the prevailing law,
(c) Having settled up any goods in kind and cash due to the District
Development Committee,
(d) Having no personal interest in any contract, or in any dealings
on movable, immovable property, with the District Development
Committee,
(e) Having not been held to have misappropri ated public property,
Provided that this clause shall not apply if an, evidence showing the
settlement thereof is produced.
(f) In the event of having been punished for any criminal charge
involving moral turpitude, having passed three years after serving
such punishment,
(g) Being not disqualified under any law.
175. Termination of Membership of District Council :
The membership of the District Council shall cease to continue in
the following circumstances :
(a) If he does not possess the qualifications referred to in Section
174,
(b) If the area where he has been living is taken out from the
concerned district development area or amalgamated to any other
area,
(c) If he becomes a candidate in the election of the Members of the
House of Representatives o r National Assembly or is nominated as
a Member of the National Assembly,
(d) If he absents himself from three consecutive meetings of the
District Council without giving a reasonable notice,
Provided that such a Member shall not be given a notice indicati ng
the termination of his membership without giving him a reasonable
opportunity to defend himself,
(e) If his term of office under Section 173 expires,
(f) If he is and punished under the prevailing law on corruption
charge or criminal charge involving mo ral turpitude or a criminal
charge carrying punishment of imprisonment for more than three
years,

(g) If he resigns,
(h) If he dies.

Chapter – 3
Provision relating to District Development Committee
176. Formation of District Development Committee :
(1) A District Development Committee shall be constituted as an
executive body of the District Council in the distric t development
area specified under Section 170.
(2) The District Development Committee shall consist of the
Members as follows:
(a) Members elected by the elected Members of the Village Council
and Municipal Council in each area of the district from amongs t
themselves at the rate of one Member from each area,
(b) President and Vice president elected by the elected Members of
each Village Council and Municipal Council in the district from
amongst themselves,
(c) Members of the House of Representatives and th e National
Assembly within the District, ex -officio Member,
(d) Two Members including one woman nominated by the District
Development Committee from amongst the Members of the District
Council as referred to in clause (e) of sub section (2) of Section
172 .
177. District Development Committee to be Autonomous and
Corporate Body :
(1) Each District Development Committee shall be an autonomous
and corporate body with perpetual succession.
(2) The District Development Committee shall have a seal of its
own.
(3) The District Development Committee may like an individual,
acquire, use, sell and dispose of movable and immovable property.
(4) The District Development Committee may, like an individual,
sue or be sued in its own name.
177. Term of Office of Member of District Council :
(1) The term of office of a Member of the District Council shall be of
five years.
(2) In reckoning the term of office of a Member of the District
Council, it shall be reckoned from the first day of Shrawan of the

year in which the term of office begins, and the term of office shall
be deemed to have been expired on the last day of Ashadh of
every. five years, not exceeding a term of five years.
(3) Notwithstanding anything contained in sub sections (1) and (2),
in case the election to n ew Members is held prior to the expiry of
the term of office of the Member pursuant to this Section, the term
of office of the existing Member shall be deemed to have been
expired, and the newly elected Members shall have the authority to
discharge functio ns.
(4) In reckoning the term of office of the Member, even in cases
where, owing to the fact that the election to the office of any
Member of the District Council could not be held or nomination of
the Member could not be made at the scheduled time due to any
reason, it is held in any other time, the term shall be reckoned as if
the election were held or nomination made at the scheduled time.
(5) In case the office of any Member of the District Council
becomes vacant due to any reason, the vacant office sh all be
fulfilled only for the remainder of the term through a by election
under the prevailing law to the office of an elected Member and
through nomination to the office of a nominated Member.
Provided that:
(1) By election or nomination shall have to be held or made within
one year of the date of vacancy of the office.
(2) No by election or nomination shall be held or made for a period
less than one year.
178. Oath To Be Taken:
(1) The President shall have to take an oath bef6re the District
Judge, the V ice President and Members before the President, and in
the absence of the President, the Vice president before the District
Judge, and the Members before the Vice president.
(2) The Members of the District C6uncil other than those referred
to in sub sectio n (1) shall have to take an oath before the
President, and in the absence of the President, before the Vice
President.
(3) Without taking an oath pursuant to subsection (1) or (2), no
Member of the District Council and the District Development
Committee sh all assume his office.
179. Office May be Relinquished :
(1) The President may relinquish his office by tendering his
resignation to the District Development Committee through the

Vice -president and the Vice president and Members may do so by
tendering re signation to the President.
(2) The nominated Members of the District Council may relinquish
the office by tendering resignation to the President and in the
absence of the President, to the Vice president.
181. Qualifications Required for Member :
One sha ll have to possess the following qualifications to be elected
or nominated as a Member of the District Development Committee:
(a) Being a Nepalese citizen,
(b) Having attained twenty one years of age and possessed
qualifications to become a voter under the prevailing law,
(c) Having settled up any goods in kind and cash due to the District
Development Committee,
(d) Having no personal interest in any contract or m any dealings
on movable, immovable property, with the District Development
Committee,
(e) Havi ng not been held to have misappropriated public property,
Provided that this clause shall not apply if an evidence showing the
settlement thereof is produced.
(f) In the event of having been punished for any criminal charge
involving moral turpitude, havin g passed three years after serving
such punishment,
(g) Being not disqualified under any law.
182. Termination of Membership :
The membership of the District Development Committee shall cease
to continue m the following circumstances:
(a) If he does not p ossess the qualifications referred to in Section
181,
(b) If the area where he has been living is taken out from the
concerned area or amalgamated to other area,
(c) If he becomes a candidate for the Member of the House of
Representatives or National Assem bly or is nominated as a Member
of the National Assembly,
(d) If he absents himself from three consecutive meetings of the
District Council without giving a notice indicating a reasonable
cause,
Provided that such a Member shall not be given a notice indic ating
the termination of his membership without providing him with a
reasonable opportunity to defend himself.
(c) If his term of office under Section 178 expires,

(f) If he is punished under the prevailing law on corruption charge
or for a criminal charge involving moral turpitude or a criminal
charge carrying punishment of imprisonment for more than three
years,
(g) If he resigns,
(h) If he dies.
183. The Statement of Property To Be Made Public :
The Member shall, within thirty days of the date of oath t aken
under Section 179, have to make public the statement of the
movable and immovable property remained in his name and that of
his family member living in the same joint family.
Provided, however, that the President and Vice -president shall,
even after t hey are relieved of the office, have to make public the
statement of such property within thirty days of their relieving of
the office.
184. Classification of District Development Committees :
His Majesty’s Government may classify, as prescribed, the Dist rict
Development Committees on the basis of geographical diversity
and transportation, communications, education and health facilities
and make arrangement for the development of those District
Development Committees which have low facilities available and
are situated in an undeveloped district development area by
making them affluent with means and facilities.
185. Meeting of District Council :
(1) The District Council shall normally meet once a year.
(2) The President of the District Development Committ ee shall
convene the meetings of the District Council.
(3) The meeting of the District Council shall normally be convened
not later than the last day of the month of Falgun each year.
(4) The meeting of the District Council shall be presided over by the
Member chosen by the Members, other than the. Members of the
District Development Committee present at each meeting of the
District Council from amongst themselves,
Provided that prior to the selection of the Chairman at the meeting
of the District Council, the seniormost Member, on account of age,
among the Members of the District Council present shall preside
over that meeting.
(5) The Secretary of the District Development, Committee shall act
as the, Secretary of the District Council.

(6) The Secretary sh all, at the direction of the President of the
District Development Committee, have to send a notice indicating
the date, time and venue and agenda of the meeting of the District
Council to all Members of the District Council in advance of at least
fifteen days of the meeting.
(7) The presence of fifty percent Members of the number of the
Members existing for the time being at the meeting of the District
Council shall be deemed to have constituted a quorum for the
meeting.
(8) In case the meeting of the Dist rict Council could not be held
due to the lack of the quorum another meeting shall have to be
convened by giving a seven day notice. The quorum for such a
meeting shall be one -thirds. If even that quorum be not
constituted, another meeting shall have to be convened again on
the following day thereof, and that meeting shall be conducted no
matter how many Members are present at the meeting.
(9) If one thirds Members of the District Council make a request in
writing to the President to convene a meeting to di scuss any
particular matter, the President shall have to convene a special
meeting of the District Council within thirty days of such a request.
(10) The Secretary shall authenticate the decisions of the meetings
of the District Council.
(11) Other procedu res relating to the meeting of the District
Council shall be as prescribed.
186. Meeting of the District Development Committee:
(1) The meeting of the District Development Committee shall be
held at least once in a month.
(2) The Secretary shall, as order ed by the President, convene the
meetings of the District Development Committee.
Provided that if the President does not order to convene the
meeting even until three ‘months, the Secretary shall, upon the
request in writing of one third Members, convene t he meeting of
the District Development Committee.
(3) The meeting of the District Development Committee shall be.
presided over by the President, and by the Vice president, in the
absence of the President, and even if the Vice president absents
himself, by the Member chosen by the Members present at the
meeting from amongst themselves.
(4) If fifty percent Members of the total number of Members
existing for the time being are present at the meeting of the
District Development Committee, the quorum for the m eeting shall

be deemed to have constituted.
(5) The Secretary shall authenticate the decisions of the meetings
of the District Development Committee.
(6) Other procedures relating to the meetings of the District
Development Committee shall be as prescribed .
187. Decisions of Meeting :
(1) Unless otherwise provided for in this Act, any decisions of the
meeting of the District Council and the District Development
Committee shall be made on the basis of a majority of the
Members present at the meeting.
(2) I n the event of a tie of votes at a meeting of the District Council
and the District Development Committee, the person presiding over
the meeting shall exercise the casting vote.
(3) Ex officio Members shall not be entitled to take part in the
voting.

Chapter 4
Functions, Duties and Power of the District Development
Committee
188. Functions, Duties and Powers of District Council :
(1) The functions and duties of the District Council shall be as
follows
(a) To pass th e budgets, plans and programme submitted by the
District Development Committee.
(b) To adopt the resolution relating to taxes, charges, fees, tariff,
loans or borrowings and internal resources submitted by the
District Development Committee.
(c) To evaluat e the programmes relating to the District plan
operated by the District Development Committee and give
necessary directions.
(d) To hold discussions on the audit reports of the District
Development Committee and give necessary directions to the.
District D evelopment Committee for settlement of irregular
amounts.
(e) To approve the District level to be subject wise programmes to
be operated in the District.
(f) To approve the bye laws of the District Development
Committee.
(g) To evaluate the administrative functions of the District

Development Committee and give necessary directions to the
District Development Committee.
(h) To grant approval, as required, on the remuneration. number of
positions, allowances and other facilities of the employees proposed
by the District Development Committee.
(i) To decide on the sale and disposal, transfer of or letting on hire,
the property of the District Development committee.
(j) To delegate some of the powers conferred on it to the District
Development Committee.
(2) Th e District Development Committee shall not be entitled to
carry out the following functions unless a resolution is passed by a
majority of the total number of Members of the District Council:
(a) To sell and dispose of, or transfer the property of the Dist rict
Development Committee.
(b) To raise loans.
(c) To impose taxes, fees, charges, duties.
(d) Any other matter as prescribed.
(3) The District Council shall exercise the power conferred on it
under this Act and Rules and bye -laws made under this Act.
(4) The District Council shall form an accounts committee under the
chairmanship of any Member of the District Council, comprising in
maximum of five members including him, and the functions, duties
and powers of such a committee shall be as prescribed.
(5) T he District Council may form different committees in a manner
that the other Members of the District Council, except those who
are the members of the accounts committee referred to in sub
section (4), are included in subject wise committees as prescribed
to render necessary advice and suggestions to the District Council.
(6) The other functions, duties and powers of the District Council
shall be as prescribed.
189. Functions, Duties and Powers of the District
Development Committee :
(1) In addition to impl ement and cause to be implemented, the
decisions and directions of the District Council, the functions and
duties of the District Development Committee shall be as follows:
(a) Relating to Agriculture:
(1) To make District level policy on agriculture and livestock
development, and formulate and operate programmes in
consonance therewith, and inspect and monitor, and cause to be
inspected and monitored, the programmes operated.

(2) To arrange for, and cause to be arranged for, the seeds,
fertilizers and oth er agricultural inputs required in the District
(3) To provide, and cause to be provided, the services relating to
agriculture extension in the district development area
(4) To promote, and cause to be promoted, the agricultural Haat
markets and fairs.
(5) To manages and cause to be managed, the markets for
agricultural products.
(b) Relating to rural drinking and Habitation Development :
(1) To formulate and implement, and cause to be implemented,
such drinking water plans as are to benefit the people in more than
one village development area in rural areas of the district
development area.
(2) To formulate plans on habitation and market development in
rural areas of the district development area, and implement and
cause to be implemented them.
(c) Relati ng to Hydropower :
To formulate, implement, operate, distribute and maintain and
repair projects on mini and micro hydropower and other energy,
and cause to be done the same.
(d) Relating to Works and Transport:
(1) To prepare a master plan of district l evel roads in the district
development area and get it approved by the District Council.
(2) To build, operate, monitor, evaluate and maintain and repair
the approved District level roads, and cause to be done the same.
(3) To formulate, build and maintain and repair the plans of
suspension bridges required in the district development area, and
cause to be done the same.
(4) To make necessary arrangements on the means of transport to
be operated within the district development area.
(5) To give licence to ” D” class contractors and cancel and renew it
pursuant to the prevailing law.
(6) To develop and promote the water ways and ropeways.
(e) Relating to Land Reforms and Land Management :
To protect and promote the (unregistered) land and government
barren l and situated within the district development area.
(f) Relating to Development of Women and Helpless People :
(1) To prepare and implement a plan required for the upliftment of

the women in the district development area.
(2) To carry out acts on the prote ction of the orphans, helpless
women, the aged, disabled and incapacitated persons as per the
national policy, and to carry out or cause to be carried out acts on
the wiping out of social ill -practices and the protection of the girls
and women.
(g) Relati ng to Forest Environment :
(1) To prepare plans on forests, vegetation, biological diversity and
soil conservation, and implement and cause to be implemented the
same.
(2) To protect and promote, and cause to be protected and
promoted, the environment.
(h ) Relating to Education and Sports :
(1) To set priority for establishing schools in the district
development area and make recommendation therefor.
(2) To make recommendation, setting out rationale and reasons,
for the approval and dissolution of the scho ols in the district
development area.
(3) To supervise and monitor the schools in the district
development area and assist in their operation and management.
(4) To formulate policies and programmes on the District level adult
education as well as informal education.
(5) To set programmes relating to sports and physical
development, and implement and cause to be implemented them.
(6) To form a District level sports development committee.
(i) Relating to Wages for Labour:
(1) To determine rate of wages for labour and rate of workmanship
at the district level.
(2) To set and operate programmes on abolition of child labour and
rescue of the children,
(j) Relating to Irrigation and Soil -erosion and River Control:
(1) To formulate, implement, operate and mainta in and repair
programmes on irrigation, ditch, embankment and small ditch
providing facility to more than one village development area in the
district development area, and cause to be done the same.
(2) To formulate plans on prevention of soil erosion, ri ver cutting
etc. in the areas affected from such acts, and implement and cause
to be implemented the same.

(k) Relating to Information and Communications :
(1) To give approval to set up cinema halls in the district
development area except the Municipali ty area.
(2) To open district level libraries, reading rooms and information
centers, in other rural areas except the Municipality area in the
district development area.
(1) Relating to Language and Culture :
(1) To keep records of culturally and religiou sly important places
located within the district development area and to preserve and
promote them by having them repaired and maintained.
(2) To promote, and cause to be promoted, various languages,
religions and cultures,
(3) To preserve, promote and use , and cause to be preserved,
promoted and used, the archaeological objects, languages, religion,
art and culture within the district development area.
(m) Relating to Cottage Industry :
(4) To maintain records of the cottage industries to be establish
wit hin the district development area.
(5) To identify and develop an industrial zone in the district.
(n) Relating to Health Service:
(1) To operate and manage, and cause to be operated and
managed, the district level health posts, hospitals, Ayurvedic
dispen saries, health centres, health offices etc.
(2) To formulate and implement the programmes such as family
planning, mother child welfare, extensive vaccination, nutrition and
population education and public health.
(3) To give approval to open sub health po sts in the village
development areas under the district development area and inspect
and monitor them.
(4) To make arrangements for the supply of such medicines and
materials and equipment relating to treatment as required for the
district development area , and inspect and monitor the quality
standards thereof.
(5) To prohibit or remove the public use of the things injurious to
the public health in the district development area.
(6) To prohibit the sale, distribution and consumption of such
consumable goods as may cause adverse impacts on the public
health.
(o) Relating to Tourism : To protect, promote, expand and utilize
the natural, cultural, historical and touristic: heritages in the district

development area, and cause to be done so.
(p) Miscellaneous:
(1) To maintain data of the district development area.
(2) To carry out necessary acts in respect of controlling natural
calamities.
(3) To protect the movable and immovable properties remained
under the ownership and control of the District Development
Committee.
(4) To draft the bye laws of the District Development Committee
and submit it to the District Council.
(5) To carry out such other functions as prescribed under the
prevailing law.
(2) The District Development Committee may give grants for the
ap proved programme to any organization, association or body,
being subject to the approved budget.
(3) The District Development Committee may, subject to this Act,
carry out the development and construction works by entering into
agreement as prescribed with any individual, governmental or non –
governmental organization or person. Information on the
agreement so entered into shall have to be given to His Majesty’s
Government.
Provided that without prior approval of His Majesty’s Government
no such agreement sh all be entered with any international non
governmental organization or foreigner.
(4) If it is received information that any project or programme of
national level operated in the district development area has not
been operated effectively or any kind of i rregularity has been done
there, the District Development Committee my give necessary
suggestions in that regard or make recommendation to the
concerned body for action.
(5) In addition to those as mentioned in this Act, other functions,
duties and powers of the District Development Committee shall be
as prescribed.
190. Power to Form Sub committee :
(1) The District Development Committee may, as per necessity,
form a sub committee to render assistance in its functions.
(2) The sub committee to be formed pu rsuant to sub section (1)
may consist of the representative of the consumers’ group, the
representative 6f non -governmental organizations, women,
backward class, intellectuals, social worker and experts.

(3) The functions, duties, powers and procedures of the sub
committee to be formed pursuant to sub section (1) shall be as
prescribed by the District Development Committee.
191. Functions, Duties and Powers of President :
(1) The functions, duties and powers of the President shall be as
follows:
(a) To dir ect the Secretary to convene the meeting of the District
Development Committee.
(b) To submit, or cause to be submitted, reports and proposals at
the meeting of the District Council and the District Development
Committee.
(c) To make necessary arrangement to prepare budgets and
programmes of the District Development Committee.
(d) To get progress report prepared by having the decisions of the
District Council and the District Development Committee
implemented.
(e) To allocate the subject wise function to th e Vice President and
Member, and monitor and coordinate the district level subject wise
programmes, and cause to be done so.
(f) To make necessary recommendations on behalf of the District
Development Committee.
(g) If he becomes unable to be present in th e District Development
Committee for more than seven days being out of the District, to
give in charge to the Vice -President; and in the absence of even the
Vice President, to give incharge to the seniormost Member on
account of age or if he too be unable to assume the charge owing
to any reason, to give information thereof to the Secretary.
(h) To depute the Member and the Secretary in connection with any
district level programme.
(i) To inspect and coordinate the Village Development Committees
under the d istrict development area.
(j) To carry out such other functions as prescribed.
(2) The President shall not have to leave his District for more than
thirty consecutive days except for reasonable cause.
(3) The President may himself approve his deputation fo r upto
seven days in the course of development works in the district.
Provided that if he has to go out of his district, he may go on
deputation by getting it approved by the District Development
Committee.
192. Functions, Duties and Powers of the Vice Pre sident :

(1) The functions, duties and powers of the Vice President shall be
as follows :
(a To act as the acting President in the absence of the President,
and
(b) To carry out, and cause to be carried out, such other functions
as prescribed.
(2) The Vic e President shall not have to leave his District for more
than thirty consecutive days except for reasonable cause.
193. Functions, Duties and Powers of Member :
(1) The functions, duties and. powers of the Member shall be as
follows:
(a) To have included in the district development plan the plan
prepared by the District Development Committee on the matter
related with the subject assigned to him.
(b) To inspect, from time to time, the acts and actions carried out
by the District Development Committee on t he matter related with
the subject assigned to him.
(c) To arrange for coordination among the District Development
Committee and different governmental and non governmental
social organizations and consumers’ groups on the subject assigned
to him,
(d) To s ubmit to the District Development Committee information
in writing along with his suggestions on the progress made in
carrying out the development and construction works on die matter
related with the subject assigned to him.
(e) To encourage the local peo ple to form consumers group and
non -governmental organizations in the subject assigned to and
mobilize them in the development programme.
(f) To take part in the meeting of the concerned Village
Development Committee or municipality, and submit to the Dist rict
Development Committee a report on the acts and proceedings of
the meeting.
(g) To carry out such other functions as prescribed.
(2) The Member shall not have to leave his district for more than
thirty consecutive days except for reasonable cause.
194 . Functions, Duties and Powers of Secretary : The functions,
duties and powers of the Secretary shall be as follows, subject to
being directly under the direction of the President :
(a) To act as the Secretary of the District Council and the District
Devel opment Committee.

(b) To implement, and cause to be implemented, the decisions of
the District Development Committee, under the general supervision
of the President.
(c) To inspect the implementation of the district plan and do and
cause to be done progres s evaluation thereof.
(d) To inspect, and cause to be inspected, administrative, accounts
management and development programmes.
(c) To inspect the progress of the District level programmes and
appraise, and cause to be appraised, the same.
(f) If the ele ction is to be held owing to being vacant the office of a
Member of the District Council or the District Development
Committee, to inform the concerned body.
(g) To act, and cause to act, as the administrative head of the
office of the District Development Committee.
(h) To prepare an inventory of, protect, repair and maintain, the
movable, immovable and in kind property of the District
Development Committee, and cause to be done the same.
(i) To be present at ‘ the meeting of the District Council and the
District Development Committee, minute the decisions, take the
minutes book in the custody and authenticate the decisions.
(j) To take, and cause to be taken, necessary action on having
audit and settlement of irregular amounts.
(k) To have administrative c ontrol of the employees under the
District Development Committee.
(1) To carry out, and cause to be carried out, the functions
specified by the prevailing law.
(m) To carry out such other functions as may be assigned or
specified under this Act or the Rule s or bye -laws made under this
Act.

Chapter 5
Formation of Plans of District Development Committee and
Process o f Implementation
195. Formulation of Plans of District Development
Committee:
(1) Each, District Development Committee shall have to formulate
periodical and annual development plans for the development of its
District.
(2) The National Planning Commission and His Majesty’s

Government shall, on the basis of the plans formulated pursuant to
sub section (1), have to provide grants and necessary policies and
guidelines to the District Development Committee within the month
of Kartik.
(3) In formulating the pla ns pursuant to subsections (1) and (2),
the District Development Committee may, as per necessity, obtain
external consultancy service.
(4) In formulating periodical plans, the following matters shall have
to be included :
(a) Geographical, economic and nat ural heritages of the District
and present uses thereof.
(b) Possibilities of production in various sectors on account of
comparative cost benefit.
(c) Areas comprising backward castes, tribes and poorer people
and various development works done or require d to be done in
such areas.
(d) Income generating and skills oriented development works for
the women and children.
(e) Description of the completed projects under various sectors and
provision on the operation and maintenance thereof.
(f) Various sectoral short term and long term development works
on the basis of development possibility.
(g) Plans on human resource development in various sectors to be
formulated by the local people themselves.
(5) In formulating the annual plan, the following matters shall have
to be taken as the basis :
(a) Directives received from the National Planning Commission and
the concerned Ministry on national development policy.
(b) District level policies and goals set on the basis of national goal
and policy.
(c) Overall necess ities indicated by periodical plans.
(d) Plans received from the Village Council and the Municipal
Council.
196. Estimation of Resources :
Prior to formulating the annual plan, the District Development
Committee shall have to prepare the estimation of the following
sources and means
(a) Own labour, resources and means of the District Development
Committee.
(b) Lump sum grants obtained from His Majesty’s Government.
(c) Lump sum means obtained from different sectoral Ministries of

His Majesty’s Government f or sectoral investment.
(d) Assistance obtained from other organizations.
197. Process of Formulation of Plan :
(1) In formulating the district development plan, the District
Development Committee shall have to follow the process of
participatory planning formulation.
(2) In following the process referred to in subsection (1), the
projects and programmes obtained from the District Development
Committee shall have to be taken as the main basis.
(3) In formulating the district development plan, the act of
for mulating the plan shall be carried out after holding necessary
discussion on it in the service centre, subject wise plan formulation
committee, the integrated plan formulation committee, District
Development Committee and the District Council.
(4) Other pr ocess of formulation of the plan shall be as prescribed.
198. Integrated Plan Formulation Committee :
(1) There shall be an integrated plan formulation committee at the
district level.
(2) The committee referred to in sub section (1) shall comprise the
fol lowing members :
(a) President of the District Development Committee Chairman
(b) Parliamentarians within the concerned district development
area Ex officio Member
(c) Coordinators of the subject wise plan formulation committees
Member
(d) Other persons, a s prescribed Member
(3) The committee as referred to in sub section (1) shall coordinate
and set the priority of, the projects obtained from the subject wise
plan formulation committees and give them a form of the
integrated district development plan.
(4) The procedures of the meeting of the committee referred to in
sub section (1) shall be as prescribed.
199. Preparation of Resource Map :
Each District Development Committee shall, for the development of
the district, have to collect the objective data of the district and
prepare a resource map reflecting the situation of the district.
200. Feasibility Study of the Project :
In the course of implementation of the district development plan,

the District Development Committee shall have to undertake or
cause to be undertaken a feasibility study of the project also setting
out the following matters:
(a) Objectives of the project.
(b) The number of people to be benefited from the project and the
type of benefit.
(c) Whether the project to be selected is new or incomplete.
(d) Whether the necessity or the problem can be fulfilled or solved
through any other means without operating the project.
(e) The estimate of the expenditures and cost of the materials, and
amount of time requi red to complete the project.
(f) The cash, labour in kind and similar other contribution which can
be made by the users.
(g) Charge or maintenance and repair expenditures which can be
collected from the users later on, or operational system.
(h) Any other matter, if any, required to be set out.
201. Fixation of Priority:
(1) In formulating the district development plan, the following
projects shall be given priority :
(a) Programmes which give direct benefit to the general public and
are employment and inco me generating ones.
(b) Programmes which can contribute to increase agricultural
products.
(c) Projects which can be operated through local means, resources
and skills and capacity.
(d) Programmes which can contribute to protect and promote the
environmen t.
(e) Income generating and skill oriented programmes for the
backward and down trodden tribes, communities and the women
and children.
202. Selection of the Project :
(1) In selecting a project, it shall have to be selected on the. basis
of the followin gs in addition to the report of feasibility study
referred to in Section 200 :
(a) Which can contribute to the protection and promotion of the
environment,
(b) Which may have utmost participation of the local people and
labour.
(2) Inhabitants of the distr ict shall have to be informed about the

projects selected pursuant to subsection (1).
203. Obligation of the National Planning Commission and His
Majesty’s Government on district development plan :
(1) An estimation of the means to be made available to di fferent
Districts in respective sector for the forth coming Fiscal Year and
national development policy related therewith and the priority and
other guidelines, if any, shall have to be provided for the
formulation of the district development plan. The Nat ional Planning
Commission shall have to determine the estimation of the means
and the guidelines to be so provided on the basis of the goals of the
periodical plan of each District and give direction to the sectoral
Ministries.
(2) In formulating the distr ict development plan, the District
Development Committee shall have to render necessary
contribution to the annual development programme to be prepared
by the Village Council and the Municipal Council.
204. Coordination among District Development Committee .
Governmental and Non governmental Bodies :
(1) In formulating the integrated district development plan, there
shall be held a meeting of governmental and non -governmental
organizations implementing different services and development
programmes within th e District and coordination shall be
maintained between annual development plans.
(2) The District Development Committee shall invite the
representative of the concerned office and hold a meeting to
maintain coordination referred to in sub section (1).
(3) There shall have to be maintained coordination on the following
matters at the coordinating meeting organized pursuant to sub
section (2) :
(a) To remove duplication in investment to be made in any service
sector.
(b) To maintain complementary coordinatio n among , the
organizations making investment.
(c) To follow the method whereby the inhabitants of the District can
have maximum benefit.
205. Implementation of Plan :
(1) His Majesty’s Government shall have to sanction the budget
along with necessary gui delines to implement the district
development plan, after the annual programme and budget have

been approved.
(2) The programme approved by the District Development
Committee shall have to be implemented, or cause to be
implemented, at the direction of the District Development
Committee.
(3) The Village Development Committee or consumers’ group shall
have the responsibility for the implementation of the plan.
(4) The projects under the district level plan may be implemented
and operated through consumers’ g roup. The District Development
Committee may, as per necessity, contribute to the implementation
by obtaining external consultancy service.
206. Transfer of Project :
(1) The governmental or semi -governmental bodies engaged in
different service and develop mental works in the district shall, upon
the completion of the project started by them, have to transfer it to
the concerned District Development Committee. The operation of
the project so transferred shall be as agreed between the District
Development Com mittee and the concerned body.
(2) The body which transfers the project pursuant to sub section
(1) shall have to provide technical and consultancy service to the
District Development Committee and get the capability of the
District Development Committee d eveloped.
207. Directives to be Abided by :
(1) The National Planning Commission and the concerned Ministry
of His Majesty’s Government may, from time to time, give
necessary directions to the District Development Committees in
respect of the formulation a nd operation of the district development
plan.
(2) The District Development Committee shall have to abide by the
directions given pursuant to subsection (1).
208. Formation of Consumers’ Group :
(1) The District Development Committee shall have to form
con sumers’ group through the concerned body from amongst the
persons who receive direct ‘ benefit from the project while
implementing the projects under the district development plan.
(2) The functions, duties and powers of the consumers’ group shall
be as pr escribed.
209. Operation of Projects by Consumers’ Group and Non –

governmental Organization :
(1) In implementing and operating a project, consumers’ group and
non -governmental organization shall have to do so in coordination
with the District Development Committee.
(2) The District Development Committee may get any plan
implemented and operated through a consumers’ group and non
governmental organization.
(3) The consumers’ group and non -governmental organization
implementing the project shall have to main tain and up date the
records of accounts of their financial transactions.
(4) The consumers’ group and non -governmental organization
implementing the project shall have to give a report of the accounts
of their transactions to the District Development Comm ittee and
the body implementing the project and the District Development
Committee shall have the responsibility for getting the accounts
audited.
(5) The cost estimate of the project shall be done as prescribed.
(6) The consumers’ group and non -government al organization may,
after the examination and release of the project, take necessary
charges form the consumers receiving service, for the repair,
maintenance and operation of the project.
210. Supervision and Monitoring :
(1) There shall be formed one su pervision and monitoring
committee, according to the alphabetical order, for each year,
under the chairmanship of the Parliamentarian of the concerned
District to determine whether the resources and means estimated
in formulating the plan or programme by t he District Development
Committee have been mobilized as per the goals and whether the
project has been implemented as per the calendar of
implementation, and to give necessary directions for the solution to
the obstructions or hindrances that may occur in the
implementation of the project. The committee shall consist of the
President of the District Development Committee, the Member of
the District Development Committee designated by him, and the
concerned employees.
(2) The meeting of the committee as ref erred to in sub section (1)
shall normally be held once in every four months, and the
concerned Member of the District Development Committee shall
have to take part in the meeting.
(3) The means estimated, the means available and the actions
required for t he project shall have to be assessed at the meeting of

the committee referred to in sub section (1).
(4) The meeting of the committee referred to in sub section (1)
may warn the concerned party that works have not been carried
out according to the calendar of operations and goals.
211. Appraisal and Evaluation :
(1) The District Development Committee shall have to appraise and
evaluate the district development plan as follows :
(a) To evaluate the effect of each project completed, after one
year.
(b) To car ry out subject wise description and progress evaluation of
the projects being operated, in every six months.
(c) To evaluate the provisions on the repair and maintenance of the
project completed, each year.
(d) To identify the type of community benefited f rom the project
and the result thereof.
(e) To identify the increase in production. and employment
opportunities resulted from the Project.
(f) To identity the effects caused on the ecology from the project.
(2) The District Development Committee shall hav e to appraise the
district development plan as follows:
(a) To appraise it at the regular meeting of the District
Development Committee after the evaluation has been done
pursuant to sub section (1).
(b) To invite the representatives of governmental, non
governmental and donor agencies as well to appraise it, along with
the progress report of the District level programmes operated by
them respectively, at the appraisal meeting referred to in clause
(a).
(c) To forward the report, accompanied by the suggesti ons
obtained at the appraisal meeting, to the body operating the
concerned project and present such report at the regular meeting
of the District Council.
(3) If in carrying out the appraisal and evaluation of the district
development plan pursuant to sub -sections (1) and (2), it is
received information that any type of irregularity has been
committed in any project or programme operated in the district
development area, the District Development committee shall make
recommendation to the concerned body for necessary action.
212. Information and Records Centre :
There shall be one information and records centre in each District

Development Committee to identify the real situation of the district
and enhance the planned development process. Such information
and records centre shall have to collect information and records as
follows :
(a) Updated objective report of each Village Development
Committee, Municipality situated in the District and the District
Development Committee.
(b) The annual evaluation report of the district.
(c) Each village and municipal level periodical plan.
(d) Periodical plan of the district.
(e) Annual audit report of the District Development Committee.
(f) Annual programme of each Village Development Committee and
the Municipality.
(g) Overall annual programme of the District Development
Committee.
(h) Description and progress of programmes of the non –
governmental and private sector being operated in the District.
(i) Reports on study and research done in the District,

213. Examination and Release of Projects :
(1) After the completion of the project, it has to be examined and
cleared as prescribed.
(2) After receiving by the District Development Committee
information of the completion of a project from the project
operating body, the D istrict Development Committee, shall examine
and release the project on the basis of the work completion report
and the evaluation submitted by the technician.
214. Operation and Repair and Maintenance of Projects :
(1) The District Development Committee may transfer the
completed projects to the concerned body or consumers’ group for
their operation and get them operated, repaired and maintained.
(2) If a decision is made that the concerned bodies carry out the
act of operation and repair and maintenance of big projects as per
the allocation, the act of repair and maintenance may be done
jointly also taking into account of the technical and financial
sources of the District Development Committee.
(3) The project operating and repairing and maintaining body shall
be responsible for collecting necessary charges from the project.
(4) The service charges and maintenance and repair expenditures
to be collected by the District Development Committee from the
consumers shall be as decided by the District Developmen t

Committee. Necessary technical and other assistance may be
obtained from the concerned bodies to determine such charges.

Chapter – 6
Financial Provisions
215. Taxes the District Development Committee is Entitled
to Impose :
(1) The District Development Committee may impose tax on roads,
paths, bridges, irrigation, ditches, ponds etc. built by or transferred
to it, at the rate approved by the District Council not exceeding the
rate as prescribed in the district development area.
(2) The District Development Committee may impose tax on wool,
turpentine, herbs, worn and tom goods, stones, slates, san d and
bone, horn, wing, leather etc. of the animal except those
prohibited, pursuant to the prevailing law and on other goods as
prescribed at the rate approved by the District Council not
exceeding the rate specified in the district development area.
(3) Upto 35 50% of the amount obtained from the. tax referred to
in sub section (2) shall have to be provided to the concerned
Village Development Committee and the Municipality.
216. Service Charge :
The District Development Committee may impose the followin g
service charge at the rate approved by the District Council not
exceeding the rate as prescribed in its area :
(a) The service charge of the guest house, library clinic, hermitage,
city hall etc. built by it or under its custody.
(b) The service charge of the ditch, small ditch, embankment etc.
built by it.
(c) Local development fees.
(d) Other service charge as prescribed.
217. Fee :
The District Development Committee may impose the following fees
at the rate approved by the District Council not exceed ing, the rate
as prescribed in its area:
(a) Fees for licence and renewal thereof, for carrying out water
course, conducting boats and tunings and fishing.
(b) Fees for registration of Panighat and renewal thereof.
(c) Fees for recommendation.

(d) Other fe es as prescribed.
218. Sale :
The District Development Committee may sell, as prescribed the
sand in the rivers and canals, roda, stones, soil, wood swept by
river, etc. lying in its area. Out of the proceeds of such sale of
goods, upto 35 50% amount shal l have to be provided to the
concerned Village Development Committee and the Municipality.
219. Power to Raise Loan :
The’ District Development Committee may raise loans, or receive
borrowings with or without pledging any of its movable ‘and
immovable pro perty owned and possessed by it or under guarantee
given by His Majesty’s Government, from a bank or any other
organization, according to the policy adopted by the District
Council.
220. Provision relating to Revenue Allocation :
The concerned District De velopment Committee shall be entitled to
the amount as prescribed out of the following amounts :
(a) Registration fees to be obtained by His Majesty’s Government
for the purchase and sale of house and land.
(b) Amount to be obtained by His Majesty’s Govern ment for royalty
of mines, petroleum products, forests, water resources, and other
natural resources.
(c) Entrance fee to be obtained by His Majesty’s Government for
entry of tourists into the district development area.
221. Fund of the District Developmen t Committee :
(1) The District Development Committee shall have a fund of its
own.
(2) The fund referred to in sub section (1) shall consist of the
following amounts :
(a) Amounts received from His Majesty’s Government,
(b) Amounts received from taxes, fee s, duties and tariffs,
(c) Twenty five per cent of the land revenue collected by the Village
Development Committee and the Municipality,
(d) Amounts obtained from the sale, rent, fare, interest of movable
and immovable properties, or other goods of the Dis trict
Development Committee,
(e) Donations, gifts, grants or assistance obtained from any person
or organization,

(f) Amounts obtained from any foreign government or international
organization,
(g) Amounts received from revenue allocation and fines and
pen alties,
(h) Amounts obtained from income -generating programme
operated by the District Development Committee,
(i) Amounts of loans and borrowings taken by the District
Development Committee from any bank or any other organization,
Amounts obtained from oth er sources.
(3) Prior to obtaining the amount referred to m clause (f),’the
District Development Committee shall have to obtain approval of
His Majesty’s Government
(4) Any amounts collected in the fund shall have to be deposited in
a bank.
222. Mode of Ma king Expenditure from the Fund :
(1) The fund shall be operated through joint signature of the
Secretary and the Accounts Chief of the District Development
Committee.
(2) The President may expend the amount as referred to in the
financial assistance, subje ct, to the limitation of the approved
budget.
(3) The Secretary may expend the amount for implementing the
decisions of the District Development Committee, subject to the
budget approved by the District Development Council.
(4) Amounts of the fund, of the District Development Committee
may be expended as prescribed subject to the budget approved by
the District Development Council, pursuant to the prevailing law.
(5) In operating development programme, the amounts obtained
for subject wise programme shall h ave to be expended for that
very programme and shall not have to be expended for other
programme and under other head.
(6) The Accounts Chief shall have to maintain the accounts of
incomes and expenditures of the District Development Committee
and get the same audited.
(7) Administrative expenditures of the District Development
Committee shall be as prescribed.
223. Provisions relating to Approval of Construction, Purchase and
other Contraction :
The process relating to construction, purchase, contraction or other

financial transaction shall be as prescribed:
224. Transfer in Budget Heads :
(1) The District Development Committee may transfer the amount
from one budget head to another not exceeding twenty percent of
the head in the annual budget approved by the District Council.
Provided that no transfer in budget head shall be made on the
heads of contingency and financial assistance.
(2) The expenditures of the contingent amount shall be as
prescribed.
225. Provision of Auction Sale :
The process of aucti oning or selling the goods and properties not
required for the District Development Committee, shall be as
prescribed, as per the policy approved by die District Council.
226. Remaining Amount of Budget :
Any unspent amount of the budget in one fiscal year shall have to
be transferred to the budget of the next fiscal year for the purpose
of using it to complete the incomplete projects and programmes m
the current fiscal year.
227. Description of Incomes and Exp enditures of the District
Development Committee :
(1) The District Development Committee shall have to maintain the
records reflecting severally the amounts to be obtained in the
district from the internal source, means, land revenue, local
development fe e, donation, gift, aid, other tax, fee, charge, tariff
and property or means, resources, sale, loan and grant.
(2) The heads and records of the accounts of incomes and
expenditures shall be as prescribed.
228. Limitation of Administrative Expenses : Except as
permitted by His Majesty’s Government to make expenditures on
the subject specifically specified, the grant amount provided by His
Majesty’s Government shall not be expended in the administrative
function in excess of the percentage as prescribed.
229. Meeting Allowance and Other Facilities of Members :
The meeting allowances and other facilities of the Members shall be
as prescribed.
230. The District Development Committee to Provide

Grants :
(1) The District Development Committee shall have to provide
some amounts, out of the amounts to be made available to it, to
the Village Development Committee as a grant to be expended in
the village level programmes as prescribed.
(2) In providing the grant pursuant to subsection (1), demand for
the programme, pop ulation, geographical remoteness, limitation of
internal resources etc. shall have to be taken into account
231. Property of the District Development Committee :
(1) The District Development Committee shall have the title over
the property constructed or p urchased from the fund or conveyed
to it by His Majesty’s Government or any person or organization,
and the District Development Committee shall have to look after
and manage such property.
(2) The District Development Committee shall not be entitled to se ll
and dispose of, or otherwise relinquish its title to, the immovable
property as referred to in sub section (1) without the approval of
His Majesty’s Government. Any such sale or disposal or
relinquishment of the title to any person without the approval shall
be null and void m any circumstance whatsoever.
232. Audit:
(1) The internal audit section shall do internal audit of the District
Development Committee.
(2) The final audit of incomes and expenditures of the District
Development Committee shall be done by the Auditor General.
(3) The District Council shall discuss the audit report received along
with the suggestion of the accounts committee, and give direction
to the District Development Committee for settlement of irregular
amounts if the irregular ities indicated in, the audit can not be
regularized.

Chapter 7
Punishment
233. Power to Impose Punishment :
(1 ) If anyone carries out any act in contravention of this Act or the
Rules or bye -laws made under this Act the District Development
Committee may punish him with a fine of upto one thousand
rupees. If he repeats the same offence, it may impose the fine by

adding hundred per cent thereto for each instance.
(2) If anyone intentionally or recklessly alters the property under
the custody of the District Development Committee without the
permission of the competent authority or misappropriates or
damages, or caus es to be misappropriated or damaged, such
property, the District Development Committee may recover such
loss and damage as well from that person.

PART 5 : GENERAL PROVISION RELATING TO LOCAL BODY
Chapter 1
Relations between His Majesty’s Government and Local Body
234. Power of His Majesty’s Government to Give Direction :
(1) His Majesty’s Government may regularly monitor as to whether
the Local Body has carried out the functions entrusted to it
pursuant to the prevailing law, whether it has accorded necessary
priority to the backward communities, women and children,
whether such matter as the ecological balance has been
encouraged, and may give necessary directions.
(2) It shall be the duty of the concerned Local Body to abide by the
directions given by His Majesty’s Government pursuant to sub
section (1).
235. Power to Introduce Special Programme:
His Majesty’s Go vernment may, in order to consolidate and
enhance the capacity of the Local Bodies’. formulate and introduce
a special programme.
234. His Majesty’s Government to Provide Grants :
(1) His Majesty’s Government shall have to provide the Local Body
each year with minimum grant prescribed and also with additional
grants on such basis as population, level of development, possibility
and capability of mobilizing revenues, necessity of financial
resources, regular record keeping of incomes and expenditures,
situat ion of auditing and financial discipline of the concerned Local
Body.
(2) His Majesty’s Government may prescribe the, process of, and
procedures for, the expenditure of the grant amounts to be
obtained under sub section (1).

237. Powers to Form Fiscal Comm ission :
His Majesty’s Government may form a fiscal commission also
comprising the representative of the concerned federation of the
Local Bodies to study and investigate as to the taxes to be imposed
by the Local Bodies and the revenue to be allocated be tween His
Majesty’s Government and the Local Bodies and to make
suggestions on the policy to be adopted to make tax system and
accounting method timely.
238. Power to Suspend and Dissolve :
(1) If His Majesty’s Government has adequate ground of the fact
th at any Local Body has committed any of the following acts, it
may, by stating such reasons in the notice published in the Nepal
Gazette, suspend such Local Body:
(a) If it commits, any act jeopardizing the sovereignty, integrity,
nationality or communal ha rmony of the Kingdom of Nepal in a
manner to be contrary to the Constitution of the Kingdom of Nepal,
2047 (1990).
(b) If it misappropriates any property or income of the Local Body.
(c) If it obstructs the discharging of functions of the Local Body by
not holding the meeting of the Local Body for upto one year, except
in cases of existence of any circumstance beyond control.
(2) Unless there exists an exceptionally grave situation, the
concerned Local Body shall not be deprived of the opportunity, prior
to suspension pursuant to sub section (1), to submit reasons, if
any, for not doing such suspension.
(3) His Majesty’s Government may make necessary arrangements
to carry out the functions of the Local Body if such Local Body is
suspended pursuant to sub sec tion (1).
(4) His Majesty’s Government shall have to furnish information on
the suspension pursuant to subsection (1) to both Houses of
Parliament held after the suspension.
(5) In respect of the Local Body suspended pursuant to sub section
(1), investigat ion shall be carried out and the matter settled within
three months of the date of such suspension. If the proceedings are
not completed within that period, such suspension shall ipso facto
be inoperative.
(6) If, upon investigation made pursuant to sub se ction (5), there
exist sufficient grounds for dissolution, His Majesty’s Government
may, by publishing a notice in the Nepal Gazette, dissolve such
Local Body.
(7) If any Local Body is dissolved pursuant to sub section (6), the

particulars together with th e reasons therefor shall. have to be
presented by His Majesty’s Government to both the Houses of
Parliament.
(8) The election of the Members to the Local Body dissolved
pursuant to sub section (6) shall have to be held within one year
from the date of such dissolution. His Majesty’s Government shall
make arrangements to carry out the functions of such Local Body
pending its election.
239. Power to Extend Time Limit :
If the election of the Members to the Local Body cannot be held due
to natural calamity, e conomic disarray or similar other special
circumstances, His Majesty’s Government may make arrangements
for the performance of the function by either extending the time
limit for upto one year or in any other manner.
240. Liaison with His Majesty’s Governm ent :
(1) In making contact with His Majesty’s Government, the Local
Body shall do so through the Ministry of Local Development.
(2) Notwithstanding anything contained in sub section (1), the
Local Body may have direct contact with other Ministries in res pect
of the budget and programme.
241. Formation of Monitoring Committee :
(1) There shall be formed a decentralization implementation and
monitoring committee as follows to monitor whether or not the acts
have been done in accordance with the objectives, policies and
provisions of this Act and to get the acts done in harmony with the
norms relating to local self -governance:
(a) Prime Minister Chairman
(b) Minister for Local Development Vice chairman
(c) Leader of Opposition Party in – Member
the House of Representatives
(d) Ministers of His Majesty’s Government – Member
(e) Chairman of the concerned Committee of – Member
the House of Representatives
(f) Vice chairman, National Planning Commission – Member
(g) Members, National Planning Commission – Member
(h) Chief Secretary of His Majesty’s Government – Member
(i) Secretaries at the Ministries of His Majesty’s – Member
Government
(j) One representative of each political party Member

representing in the House of Representatives
(k) Chairman of the Associati ons, Federations Member
relating to the Local Body
(1) Coordinator of the committee formed Member
under sub section (5)
(m) Secretary at the Ministry of Local – Member Secretary
Development
(2) The procedures of the committee formed pursuant to sub
section (1) shall be as prescribed by the committee itself.
(3) The committee formed pursuant to subsection (1) shall have to
furnish the report of its business with the concerned committee of
the, House of Representatives each year.
(4) The direction received fr om such committee on the report
furnished pursuant to sub section (3) shall have to be
implemented, and cause to be implemented.
(5) There shall be formed a working committee under the
committee formed pursuant to subsection (1) to carry out act
under the direction of such committee.
(6) The working committee formed pursuant to sub section (5)
shall comprise the members as follows:
(a) Minister or Minister of State for Local Coordinator Development
(b) Secretary at the Ministry of Local Development Member
(c) Six persons designated by His Majesty’s – Member Government
from amongst those persons who
have experience of at least 10 years in the field
of decentralization, revenue, accounts, rural
development, administration and law
(d) A person of at least G azetted First Class, Member Secretary
designated by His Majesty’s Government
(7) The tenure of the members designated by His Majesty’s
Government in the working committee formed pursuant to sub
section (6) shall be three years.
(8) His Majesty’s Government may extend, the tenure of the
members appointed pursuant to sub section (6) for another period
of two years.
(9) The service, facilities and remuneration of the members
appointed pursuant to sub section (6) shall be as prescribed by His
Majesty’s Governme nt.
242. Delegation of Power :
(1) His Majesty’s Government may delegate any or all of the
powers conferred on it by this Act to any committee, organization

or official, by publishing a notification in the Nepal Gazette.
(2) The powers delegated pursuant t o subsection (1) may be
withdrawn by His Majesty’s Government at any time.
243. Matters to be Abided by the Concerned Ministry :
(1) The concerned Ministry shall have to prescribe the development
and construction works as the local level, village level, municipal
level and district level programmes.
(2) The concerned Ministry shall have to send the Local Body the
estimate of the grants to be provided for the programmes of the
forthcomin g years of the Local Body within the month of Kartik.
(3) The concerned Ministry shall have to provide necessary
assistance to make the Local Body technically capable of carrying
out the programmes of the Local Body.
(4) The Ministry of Local Development s hall have to send annual
grants to be sent to the Local Body without indicating any subject.
244. Formation. of Co ordination Committee :
(1) The District Development Committee may form a coordination
committee comprising the chief of the subject wise unit s of its
secretariat related with development, Mayor and coordinators of
service centres.
(2) The committee formed under sub section (1) shall render
assistance to coordinate the discharge of development and
construction works within the District.
(3) Othe r functions, duties and powers of the committee formed
pursuant to sub section (1) shall be as prescribed.
245. District level Officer to Assist :
The concerned district level office shall, if it is requested by the
Local Bodies to assist in performing de velopment and construction
works within their areas, render necessary assistance to such Local
Bodies.
246. Political Parties to Assist :
If the Local Body requests the political parties to assist in
discharging the functions required to be performed by it under this
Act and the Rules framed under this Act, such political parties shall
have to provide necessary assistance.
247. Police to Assist :
If the Local Body requests the local police to render assistance to
carry out the order or decision made by the Local Body under the

limit of the law, the local police shall have to render necessary
assistance.

Chapter 2
Administrative, Organization and Employees
248. Establishment of Office :
Each Local Body shall have an office of its own.
249. Creation of Positions of Employees :
(1) The Local Body shall, on the basis of work load, have to set
positions of employees, along with full description of the works to
be done by each body and get the same approved from the
co ncerned Council.
(2) The concerned Council shall, in approving the positions of
employees, have to make provisions for the expenditures required
for remuneration, allowances, provident fund, gratuity and pension
etc. of the employees.
250. Remuneration and other Facilities of Employees :
(1) The Council of the concerned Local Body shall determine the
remuneration of the employees.
(2) The pay scale of the employees shall be determined on the
basis of the pay scale of the employees of civil service of His
Ma jesty’s Government.
(3) The Local Body may, subject to its sources, means and
administrative budget, provide local allowances and other
additional facilities to its employees.
251. Arrangement of Additional. Employees for Project :
The concerned council m ay grant permission to appoint employees
in a manner that the administrative expenditures required for the
employees needed for a project to be completed over any specific
period are allocated to the concerned Project and that such
employees are ipso facto removed upon completion of the project.
252. To Obtain Technical Service and Employees on
Contract :
The concerned Council may hire any person or organization or
employee providing consultancy on contract for any work of any

particular nature with a fixe d duration.
253. Provision of Secretary :
His Majesty’s Government shall appoint a Secretary to carry out the
day to -day functions of the Local Body.
254. Provision on Transfer :
In case any employee of His Majesty’s Government desires to be
transferred to the service of the Local Body, His Majesty’s
Government may transfer such employee upon fulfilling the process
as prescribed.
255. Terms of Service of Employee :
(1) The local service shall be formed by an Act for the discharge of
the functions of the Local Bodies. The operation of that service and
terms of service shall be as set by that Act.
(2) Pending the provision referred to in subsection (1), the Local
Bodies may appoint employees except the secretary.
(3) The provision referred to in Section 253 shall prevail pending
the making of provision referred to in sub section (1).
256. Deputation of Employees :
(1) His Majesty’s Government may, at the request of the concerned
Local Body, depute any employee of His Majesty’s Government or
the bodies run wi th the grants of His Majesty’s Government to the
Local Body to carry out the functions to be carried out by the Local
Body under this Act.
(2) The employee deputed pursuant to subsection (1) shall be
responsible to the concerned Local Body.
(3) The Local B ody may make recommendation to the concerned
body for reward or departmental action on the basis of the
evaluation of the job performance of the employee deputed to the
Local Body pursuant to sub section (1).
257. Establishment of Subject wise Section :
(1 ) The District Development Committee may, for development and
construction works to be carried out in the district development
area, set up subject wise sections in office on the basis of the
prescribed criteria.
(2) Pending the establishment of the subjec t-wise section pursuant
to sub section (1), the district level development offices of His
Majesty’s Government shall act as per the direction of the District
Development Committee for the district level development and

construction works.
(3) After the Dis trict Development Committee has established the
subject wise sections. His Majesty’s Government shall not have
subject wise offices for the same function. Upon the termination of
the subject wise offices, the office building, physical facilities
relating t o operation of office of those offices shall be transferred to
the District Development Committee.
(4) The Municipalities may also open subject -wise sections in their
office on the basis of the prescribed criteria.
(5) His Majesty’s Government may depute e mployees required for
subject wise sections of the Municipality and the District
Development Committee.
(6) The District Development Committee shall render assistance to
the Municipality in development and construction works.

Chapter 3
Miscellaneous
258. Acquisition of Land :
In case the Local body has to acquire land to carry out any
development and construction w orks within its area, it may acquire
the land required for that work by following the requirements of the
prevailing law and providing compensation to the concerned land
owner for the land.
259. Certification of Relation :
(1) In case any person applies to the Village Development
Committee or the Municipality for a certificate of his relation with
any person, the Chairman or Mayor may, if he finds the matter true
upon examination, give a certificate of relation certification upon
receipt of the prescribed f ees.
(2) The procedures to be followed in giving a certificate certifying
the relation by the Chairman or Mayor under sub section (1) shall
be as prescribed.
260. Recovery of Arrears as Government Dues :
If any person does not pay any tax, duty or charge levied or
contracted or any other amount due and payable to the Local Body,
it shall be recovered by the District Administration Office as
government dues.

261. Local Body to Operate Programme in Harmony with its
Capacity :
(1) In operating programmes by t he Local Body in exercise of the
powers conferred on it by this Act it shall do so in harmony with its
sources, means and capacity.
(2) Where its sources, means. and capacity are not sufficient under
sub section (1), it shall operate such programmes only i n case
assistance is to be received from His Majesty’s Government.
262. Exercise of Powers of Local Body :
The powers conferred on the Village Development Committee,
Municipality and the District Development Committee under this Act
shall, except otherwis e provided in this Act, be exercised by the
Village Development Committee, Municipality and District
Development Committee.
263. Foreign Contact :
The Local Bodies shall, in making contact with any foreign
governments, international organizations, diploma tic missions and
international non -governmental organizations, have to obtain prior
approval of His Majesty’s Government
264. Delegation of Powers :
The Local Bodies may delegate any of the powers conferred on
them under this Act to any committee, sub com mittee and
Members under them.
265. Powers to Frame Rules and bye laws :
(1) His Majesty’s Government may frame Rules required to
implement the objectives of this Act.
(2) Subject to this Act and the Rules framed hereunder, the Local
Body may frame bye law s in order to operate its functions.
266. Transfer of Assets and Liabilities :
After the commencement of this Act; all the assets and liabilities of
the Village Development Committee, Municipality and District
Development Committee formed under the Villag e Development
Committee Act, 2048 (1991), the Municipality Act, 2048 (1991) and
the District Development Committee Act, 2048 (1991) shall be
transferred to the Village Development Committee, Municipality and
District Development Committee formed under this Act.
267. Validity of Actions :

Notwithstanding anything contained in this Act, no act and action
undertaken by the Local Body shall become invalid merely on
grounds of some irregularities in the formation of or due to vacancy
in any office of Members of the Local Body.
268 . Repeal and Saying :
(1) The Village Development Committee Act, 2048 (1991), the
Municipality Act, 2048 (1991), the District Development Committee
Act, 2048 (1991) and the Decentralization Act, 2039 (1982) are
hereby repealed.
(2) Th e acts done and actions taken under the Village Development
Committee Act; 2048 (1991), the Municipality Act, 2048 (1991)
and the District Development Committee Act, 2048 (1991) shall be
deemed to have been done and taken under this Act.
(3) The Village De velopment Committees, Municipalities and
District Development Committees existing at the time of
commencement of this Act shall be existing pending the formation
of the Village Development Committees, Municipalities and District
Development Committees refe rred to in this Act.