99. Constitution of the Municipal Fund.—The Municipal Fund
(1) Save as otherwise provided in this Act,—
1. Ins. by Act 67 of 1993, s. 70 (w.e.f. 1-10-1993).
2. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
3. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
4. Subs. by Delhi Act 12 of 2011, s. 2 “The Corporation” (w.e.f. 13-1-2012).
5. Subs. by Act 10 of 2022, s. 2, for “A Corporation” (w.e.f. 22-5-2022).
63
(a) all funds which immediately before the establishment of 1
[
2
[the Corporation]] vested in any
body or local authority specified in the Second Schedule;
(b) all moneys received by or on behalf of 1
[
2
[the Corporation]] under the provisions of this Act or
of any other law for the time being in force, or under any contract;
(c) all proceeds of the disposal of property by, or on behalf of, 1
[
2
[the Corporation]];
(d) all rents accruing from any property of 1
[
2
[the Corporation]];
(e) all moneys raised by any tax, rate or cess levied for the purposes of this Act;
(f) all fees collected and all fines levied under this Act or under any rule, regulation or bye-law
made thereunder;
(g) all moneys received by or on behalf of 1
[
2
[the Corporation]] from the Government or any
individual or association of individuals by way of grant or gift or deposit;
3* * * * *
(i) all interests and profits arising from any investment of, or from any transaction in connection
with, any money belonging to the Corporation, including loans advanced under this Act; and
(j) all moneys received by or on behalf of 1
[
2
[the Corporation]] from any other source whatsoever,
shall form one Fund to be entitled 4
[by the name of the area of 1
[
2
[the Corporation]] as specified by the
Government under sub-section (1A) of section 3 (hereinafter in this Act referred to as the Municipal
Fund”)].
5
[(2) The Municipal Fund shall be held by 1
[
2
[the Corporation]] in trust for the purposes of this Act
subject to the provisions herein contained and a General Account relating to all moneys received by or on
behalf of 1
[
2
[the Corporation]] shall be maintained.]
6
[100. Municipal Fund to be kept in the State Bank of India.—All moneys payable to the credit of
the Municipal Fund in the General Account shall be received by the Commissioner and shall be forthwith
paid into the State Bank of India to the credit of the said Account which shall be entitled "The General
Account of the Municipal Fund of the Corporation”.]
101. Operation of the Accounts.—(1) Save as otherwise provided in this Act no payment shall be
made by the State Bank of India out of the Municipal Fund except on a cheque signed by both—
(a) the Chief Accountant or an officer subordinate to him authorised by the standing Committee in
this behalf; and
7
[(b) the Commissioner or a Deputy Commissioner or an officer subordinate to the Commissioner
authorised by the Standing Committee in this behalf.]
(2) Payment of any sum due by 1
[
2
[the Corporation]] in excess of one hundred rupees shall be made by
means of a cheque signed in accordance with sub-section (1) and not in any other way.
(3) Payments hot covered by sub-section (2) may be made in cash.
102. Payments not to be made unless covered by a budget-grant.—No payment of any sum out of
the Municipal Fund shall be made unless the expenditure of the same is covered by a current budget-grant
1. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
3. Omitted by Act 67 of 1993, s. 72 (w.e.f. 1-10-1993).
4. Subs. by Delhi Act 12 of 2011, s. 13, for “the Municipal Fund of Delhi (hereinafter in this Act referred to as “the Municipal Fund”)” (w.e.f.
13-1-2012).
5. Subs. by Act 67 of 1993, s. 72, for sub-section (2) (w.e.f. 1-10-1993).
6. Subs. by Delhi Act 12 of 2011, s. 14, for section 100 (w.e.f. 13-1-2012).
7. Subs. by Act 67 of 1993, s. 74, for clause (b) (w.e.f. 1-10-1993).
64
and a sufficient balance of such budget grant is still available notwithstanding any reduction or transfer
thereof which may have been made under the provisions of this Act:
Provided that this section shall not apply to payments made in the following classes of cases namely:—
(a) refund of taxes and other moneys which are authorised under this Act;
(b) repayment of moneys belonging to contractors or other persons and held in deposit and of
moneys collected or credited to the Municipal Fund by mistake;
(c) sums payable in any of the following circumstances—
(i) under orders of the Central Government on failure of 1
[
2
[the Corporation]] to take any action
as required by that Government; or
(ii) under any other enactment for the time being in force; or
(iii) under the decree or order of a civil or criminal court passed against the Corporation; or
(iv) under a compromise of any claim, suit or other legal proceedings; or
(v) on account of cost incurred in taking immediate action by 1
[
2
[the Corporation]] or any of
the municipal authorities to avert a sudden threat of danger to the property of 1
[
2
[the Corporation]]
or to human life;
(d) temporary payments for works urgently required by the Central Government in the public
interest;
(e) sums payable as compensation under this Act or under any rules, regulations or bye-laws made
thereunder;
(f) expenses incurred by 1
[
2
[the Corporation]] on special measures taken on the outbreak of
dangerous diseases.
103. Duty of persons signing cheques.—Before any person signs a cheque in accordance with section
101, he shall satisfy himself that the sum for which the cheque is drawn is either—
(a) required for a purpose or work specifically sanctioned by the proper authority and covered by
a current budget-grant, or
(b) required for any payment referred to, or specified in section 102.
104. Procedure when money not covered by a budget-grant is expended.—Whenever any sum is
expended under 1
[clause (c), (e) or (f)] of the proviso to section 102 the Commissioner, 2
[shall forthwith
communicate the circumstances to the Standing Committee] 3*** which may take, or recommend to the
Corporation to take, such action under the provisions of this Act as shall, in the circumstances appear
possible and expedient for covering the amount of the additional expenditure.
105. Application of Municipal Fund.—(1) The moneys from time to time credited to the Municipal
Fund shall be applied in payment of all sums, charges and costs necessary for carrying out the provisions
of this Act, and of the rules, regulations and bye-laws made thereunder, or of which payment is duly
directed, sanctioned or required by or under any of the provisions of this Act.
(2) Such moneys shall likewise be applied in payment of all sums payable out of the Municipal Fund
under any other enactment for the time being in force.
106. Temporary payments from the Municipal Fund for works urgently required for the public
service.—(1) On the written requisition of a Secretary to the Central Government, 4
[the Commissioner],
may at any time undertake the execution of any work certified by such Secretary to be urgently required in
1. Subs. by Act 71 of 1971, s. 7(b) and the Second Schedule, for “clauses (c), (e) or (f)” (w.e.f. 3-11-1971).
2. Subs. by Act 67 of 1993, s. 75, for certain words and brackets (w.e.f. 1-10-1993).
3. The words “or the Delhi Transport Committee” omitted by Act 71 of 1971, s. 7(b) and the Second Schedule (w.e.f. 3-11-1971).
4. Subs. by Act 67 of 1993, s. 76, for certain words and brackets (w.e.f. 1-10-1993).
65
public interest, and for this purpose may temporarily make payments from the Municipal Fund so far as the
same can be met without unduly interfering with the regular work of the municipal government.
(2) The cost of work so executed and of the establishment engaged in executing the same shall be paid
by the Central Government and credited to the Municipal Fund.
(3) On the receipt of any requisition under sub-section (1) the Commissioner 1*** 2*** shall forthwith
forward a copy thereof to 3
[ 4
[the Corporation]] together with a report of the steps taken by him in pursuance
of the same.
5
[107. Investment of surplus moneys.—(1) Surplus money standing at the credit of General Account
of the Municipal Fund which cannot immediately be applied for the purposes specified in section 105 shall
be deposited in the State Bank of India or in such scheduled bank or banks as 4
[
5
[the Corporation]] may
select or be invested in public securities.
(2) The loss, if any, arising from such deposit of investment shall be debited to the General Accounts
of the Municipal Fund.
107A. Constitution of Finance Commission.—(1) The Administrator shall, as soon as may be, within
one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992 and thereafter
at the expiration of every fifth year constitute a Finance Commission to review the financial position of
4
[
5
[the Corporation]] and to make recommendations to the Administrator as to,—
(a) the principles which should govern,—
(i) the distribution between the National Capital Territory of Delhi and 4
[
5
[the Corporation]] of
the net proceeds of the taxes, duties, tolls and fees leviable by the National Capital Territory of
Delhi which may be divided between them.
(ii) the determination of the taxes, duties, tolls and fees which may be assigned to or
appropriated by 4
[
5
[the Corporation]];
(iii) the grants-in-aid to 4
[
5
[the Corporation]] from the consolidated fund of the National Capital
Territory of Delhi;
(b) the measures needed to improve the financial position of 4
[
5
[the Corporation]];
(c) any other matter referred to the Finance Commission by the Administrator in the interest of
sound finance of 4
[
5
[the Corporation]].
(2) The Legislature of the National Capital Territory of Delhi, may by law provide for the composition
of the Commission, the qualifications which shall be required for appointment of members thereof, and the
manner in which they shall be selected.
(3) The Commission shall determine their procedure and shall have such powers in the performance of
their functions as the Legislature of the National Capital Territory of Delhi, may, by law, confer on them.
(4) The Administrator shall cause every recommendation made by the Commission under this section
together with an explanatory memorandum as to the action taken thereon to be laid before the Legislative
Assembly of the National Capital Territory of Delhi.]
1. The words and brackets “or as the case may be, the General Manager (Electricity)” omitted by Act 67 of 1993, s. 76,
(w.e.f. 1-10-1993).
2. The words “or the General Manager” omitted by Act 71 of 1971, s. 7(b) and the Second Schedule (w.e.f. 3-11-1971).
4. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
5. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
5. Subs. by Act 67 of 1993, s. 77, for section 107 (w.e.f. 1-10-1993).
66
Special funds
108. Constitution of special funds.—(1) 1
[
2
[The Corporation]] shall constitute such special fund or
funds as may be prescribed by regulations and such other funds necessary for the purposes of this Act as
may be so prescribed.
(2) The constitution and disposal of such funds shall be effected in the manner laid down by regulations.
Budget estimates
109. Adoption of budget estimates.—3
[(1) 1
[
2
[The Corporation]] shall, on or before the 31st day of
March of every year, adopt for the ensuing year the budget estimate which shall be an estimate of the
income and expenditure of 4
[
5
[the Corporation]] to be received and incurred on account of the municipal
government of 6
[
7
[Delhi]].]
(2) On or before the 15th day of February of each year 4
[
5
[the Corporation]] shall determine the rates
at which various municipal taxes, rates and cesses shall be levied in the next following year and save as
otherwise provided in this Act the rates so fixed shall not be subsequently altered for the year for which
they have been fixed.
(3) Budget estimates shall be prepared in such form as may be approved by the Standing Committee
and presented and adopted in such manner and shall provide for all such matters as are prescribed by
regulations made in this behalf.
110. Power of Corporation to alter budget estimates.—8
[(1) On the recommendation of the Standing
Committee in respect of the budget estimate, 4
[
5
[the Corporation]] may from time to time, during the year,—
(i) increase the amount of budget grant under any head;
(ii) make an additional budget grant for the purpose of meeting any special or unforeseen
requirement arising during the said year; or
(iii) reduce the amount of the budget grant under any head:
Provided that due regard shall be had to all the requirements of this act and in making any increase or
any additional budget grant the estimated cash balance at the close of the year shall not be reduced below
the sum of one lakh rupees or such higher sum as 4
[
5
[the Corporation]] may determine in respect of the
budget estimate.]
(2) Every increase in a budget-grant and every additional budget-grant made in any year under subsection (1) shall be deemed to be included in the budget estimates finally adopted for that year.
(3) The Standing Committee may from time to time during the year—
(a) reduce the amount of a budget-grant; or
(b) Sanction the transfer of any amount within a budget-grant:
Provided that every reduction if it exceeds five hundred rupees shall be reported forthwith by Standing
Committee to 4
[
5
[the Corporation]] and the Standing Committee and the Commissioner shall give effect to
any order that may be passed by 4
[
5
[the Corporation]] in relation thereto.
(4) The Commissioner may from time to time during the year, sanction the transfer of any amount not
exceeding five thousand rupees within a minor head if such transfer does not involve a recurring liability:
1. Subs. by Delhi Act 12 of 2011, s. 2, for “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “Every Corporation” (w.e.f. 22-5-2022).
3. Subs. by Act 67 of 1993, s. 78, for sub-section (1) (w.e.f. 1-10-1993).
4. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
5. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
6. Subs. by Delhi Act 12 of 2011, s. 2, for “the area of the Corporation” (w.e.f. 13-1-2012).
7. Subs. by Act 10 of 2011, s. 2, for “Delhi” (w.e.f. 22-5-2022).
8. Subs. by Act 67 of 1993, s. 79, for sub-section (1) (w.e.f. 1-10-1993).
67
Provided that every such transfer, if it exceeds five hundred rupees, shall be reported forthwith by the
Commissioner to the Standing Committee and the Commissioner shall give effect to any order that may be
passed by that Committee in relation thereto,
1* * * * *
111. Power of Corporation to re-adjust income and expenditure during the year.—(1) If at any
time during the year it appears to 2
[
3
[the Corporation]] that, notwithstanding any reduction of budget-grant
that has been made under section 110 the income of the Municipal Fund during the same year will not
suffice to meet the expenditure sanctioned in the budget estimates of that year and to leave at the close of
the year the cash balance specified in or determined under the proviso to sub-section (1) of section 110,
then, it shall be incumbent on 2
[
3
[the Corporation]] to sanction forthwith any measures which it may
consider necessary for adjusting the year's income to the expenditure.
(2) For the purposes of sub-section (1), 2
[
3
[the Corporation]] may either diminish the sanctioned
expenditure of the year so far as it may be possible so to do with regard to all the requirements of this Act,
or have recourse to supplementary taxation under section 151 or to an increase of the rates of cesses, fees,
fares and other charges leviable under this Act, or to adopt all or any of those methods.
112. Provisions as to unexpended budget-grant.—If the whole or arty part of any budget-grant
included in the budget estimates for a year remains unexpended at the close of that year, and the amount
thereof has not been taken into account in the opening balance entered in the budget estimates of any
of the next two following years, the Standing Committee 4*** may sanction the expenditure of such budgetgrant or the unexpended portion thereof during the next two following years for the completion of the
purpose or object for which the budget-grant was originally made and not for any other purpose or object.