PropertyState · Delhi

Section 200 of The Delhi Municipal Corporation Act, 1957

With respect to the disposal of property belonging to 1[2[the Corporation]], the following provisions shall have effect, namely:---

(a)the Commissioner may, in his discretion, dispose of, by sale or otherwise, any movable property belonging to 1[2[the Corporation]] not exceeding in value in each instance one thousand rupees, or such higher amount as 1[2[the Corporation]] may prescribe, or let out or hire any movable property or grant a lease of any immovable property belonging to 1[2[the Corporation]], including any right of gathering and taking fruits and the like, for a period not exceeding one year at a time;
(b)the Commissioner may, with the sanction of the Standing Committee,---
1. (i)dispose of, by sale or otherwise, any movable property belonging to 1[2[the Corporation]] the value of which does not exceed five thousand rupees;
2. (ii)grant a lease (other than a lease in perpetuity) of any immovable property belonging to 1[2[the Corporation]]; or
3. (iii)sell or grant a lease in perpetuity of any immovable property belonging to 1[2[the Corporation]] the value of which does not exceed fifty thousand rupees or the annual rent of which does not exceed three thousand rupees;
(c)in cases not covered by clause (a) or clause (b), the Commissioner may, with the sanction of 1[2[the Corporation]], lease, sell, let out on hire or otherwise transfer any property, movable or immovable, belonging to 1[2[the Corporation]];
(d)the consideration for which any immovable property may be sold, leased or otherwise transferred shall not be less than the value at which such immovable property could be sold, leased or otherwise transferred in normal and fair competition;
(e)the sanction of the Standing Committee or of 1[2[the Corporation]] under the aforesaid clauses may be given either generally for any class of cases or specially for any particular case;
(f)subject to any conditions or limitations that may be specified in any other provisions of this Act, the foregoing provisions of this section shall apply to every disposal of property belonging to 1[2[the Corporation]] made under, or for any purpose of, this Act;
(g)every case of disposal of property under clause (a) and clause (b) shall be reported by the Commissioner without delay to the Standing Committee and 1[2[the Corporation]] respectively.

Summary

This provision establishes the financial limits and approval rules for the Commissioner to sell, lease, or hire out municipal property.
Any property transaction exceeding these specified limits requires the direct sanction of the full Corporation.
Immovable property must never be transferred for less than its normal and fair market value.
The Commissioner must immediately report his independent transactions and those approved by the Standing Committee to higher municipal authorities.

Practical examples

1On 5 May 2026, Commissioner Singh wants to sell old office chairs worth 800 rupees. Under Section 200, she can do this independently because the value is under 1,000 rupees. She must then report this sale to the Standing Committee.

2A local business wants to buy a small municipal plot valued at 45,000 rupees on 12 June 2026. Under Section 200, the Commissioner needs the Standing Committee's sanction to sell this plot, as its value is under the 50,000 rupee limit.

3The municipality plans to lease out a large commercial building for an annual rent of 10,000 rupees. Because this rent exceeds the 3,000 rupee limit for Standing Committee approval under Section 200, the Commissioner must get sanction from the full Corporation before granting the lease.

FAQ

1. What is the maximum value of movable property the Commissioner can sell without special approval under Section 200 of the DMC Act?

Under Section 200 of the Delhi Municipal Corporation Act, 1957, the Commissioner can independently dispose of movable property with a value not exceeding one thousand rupees.

2. Does the Corporation have to sell property at market value according to Section 200 of the Delhi Municipal Corporation Act?

Yes, Section 200 of the Delhi Municipal Corporation Act, 1957 strictly requires that immovable property must be sold or leased for not less than the value it would fetch in normal and fair competition.

3. Can the Commissioner lease out land for 10 years without anyone else's permission under Section 200 of the Municipal Corporation law?

No. Under Section 200 of the Delhi Municipal Corporation Act, 1957, the Commissioner can only grant leases independently for a period not exceeding one year at a time.

4. Who approves the sale of a municipal building worth 25,000 rupees under Section 200 of the Delhi Municipal Corporation Act?

Under Section 200 of the Delhi Municipal Corporation Act, 1957, the Standing Committee can sanction the sale of immovable property if its value does not exceed fifty thousand rupees.

Test yourself

Q1.Under Section 200 of the Delhi Municipal Corporation Act, 1957, what is the maximum annual rent for a lease in perpetuity that the Standing Committee can sanction?

Q2.According to Section 200 of the Delhi Municipal Corporation Act, 1957, who must the Commissioner report to after independently disposing of movable property worth 500 rupees?

Q3.Under Section 200 of the Delhi Municipal Corporation Act, 1957, what condition applies to the consideration amount for transferring immovable property?

Q4.If the Commissioner wishes to sell movable property worth 4,000 rupees under Section 200 of the Delhi Municipal Corporation Act, 1957, whose sanction is required?

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