CONSTITUTION OF MUNICIPALITIESState · Manipur

Section 4 of The Manipur Municipalities Act, 1994

(1)When a local area is excluded from a municipality by a notification under sub-section (1) of section 3, and is included in the other local authority the Government shall frame a scheme determining what portion of the balance of the municipal fund and all other property vested in that municipality, shall, on such exclusion, vest--
1. (i)when such area is included within the limits of any other local authority, in such authority; and
2. (ii)in any other case, in the Government and in what manner the liability of the municipality shall be apportioned between the municipality and such local authority or the Government, as the case may be, and on the publication of such a scheme in the Official Gazette, such property and liability shall vest and be apportioned accordingly: Provided that before framing of any such scheme, the Government shall consult the municipality and where the area is included within the limits of any local authority, such authority also.
(2)All money due to the municipality, immediately before the date of such exclusion on account of tax, toll, fee, rate or otherwise may in respect of the areas so excluded be recovered by the municipality as if such area has not been excluded.

Summary

This provision explains what happens to money and property when a specific area is removed from a municipality.
The government must create a scheme to decide how to split the municipal fund and other assets.
If the excluded area is moved to a different local authority, the assets are transferred to that new authority.
If the area is not moved to a new authority, the assets and properties are taken over by the state government.
Before finalizing this split, the government must consult with the affected municipality and the new local authority.
The municipality still has the right to collect any unpaid taxes or fees from the residents of the area that was removed.

Practical examples

1A northern ward is removed from the Imphal Municipal Council to become part of a new neighboring town. Following Section 4, the government consults both towns to decide how many trucks and how much money from the central fund should go to the new town.

2A resident owes 500 rupees in property tax to his municipality. Suddenly, his street is excluded from the municipal limits. Under Section 4, he must still pay that 500 rupees to the original municipality because the debt was already due.

FAQ

1. What happens to municipal property if an area is excluded under The Manipur Municipalities Act, 1994?

Under Section 4, the government frames a scheme to divide properties and funds between the municipality and the state or a new local authority.

2. Does the government have to talk to the municipality before taking its land away?

Yes, Section 4(1) requires the government to consult the municipality and any other involved local authority before framing the asset split scheme.

3. If my area is removed from the municipality, do I still have to pay my old tax bills?

Yes, Section 4(2) says any money due for taxes or fees before the exclusion can still be recovered by the original municipality.

Test yourself

Q1.Under Section 4 of The Manipur Municipalities Act, 1994, what triggers the need for a scheme to divide municipal funds and property?

Q2.According to Section 4 of the 1994 Act, who gets the property if an excluded area is NOT included in another local authority?

Q3.Under Section 4 of the 1994 Manipur municipal law, what right does a municipality keep even after an area is removed from its limits?

Q4.What must the Government do before framing a scheme for asset distribution under Section 4 of The Manipur Municipalities Act, 1994?

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