Local Self Governmenance 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 the 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 backward 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 bearing 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 decisions 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, 2055 (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 Council" 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 Council" 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) "District 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 Secretary 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 governance 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 structure 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 conferred 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.

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 Nepal, 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 consultation 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 specified 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 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 village development 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 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 Committee, 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 nominated 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 the 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 Council 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 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 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 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 Village Development Committee or Ward Committee could not be held or nomination of the Member of the 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 Village 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, 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. Qualifications 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 qualification 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 Development 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 circumstances:
(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 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 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 or 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 village 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 of 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 of 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 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 Village Development Committee 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 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 before 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 referred 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 may 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 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 Development 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.

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 imprisonment 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 Section 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 Committees 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 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 majority 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.

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 the 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 member, 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 the 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 fifty 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 convene 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 Village 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) The 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 amongst 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 Area 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) Other 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 Committee 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 and 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, dirt 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, shelters, 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, health 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 Committee.
(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 prescribed.
(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 prescribed.
(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 referred 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 relating 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 agricultural (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 within 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 village 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. within 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 village 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) To 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 education 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 libraries.
(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 implemented 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 programmes 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 planning 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 diversity 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 religious 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 development.

(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 industries 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 population, 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 prevailing 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 of 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 cause 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 to 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 Development 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 Village 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 follows
(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 Chairman, 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 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.

30. Function, Duties, Powers of the Vice Chairman :
(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 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.

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 Development 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 Development 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 Members 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 other 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 Committee.
(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 clearance 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 the 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 the 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 employees 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 allocation 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 Missing 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 Chapter,
(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 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 and 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 have 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 is 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 on 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 District 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 made 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, upon 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.

43. Formulation of Plans of Village Development Committee :
(1) Each Village Development Committee shall formulate periodical and annual 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, resources 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 shall 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 and 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 the 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 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 development works for women and children.
(e) Description 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 works.
(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 Development 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 village 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 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 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 project 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) Any 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 selected.
(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 with 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 village 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 operated 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 agencies.
(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 organizations.
(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 development 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 required 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 of 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 identification, 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 Committee.
(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. Appraisal 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 basis 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 Committee 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 have 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, design 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 revenue 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 village 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 village 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 the 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 village 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) Commercial 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 taxes 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 and 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 immovable 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, levies, 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 programmes.
(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 budget 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 Council, 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 Committee 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 contingency 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 Development 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 allowance 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 properties 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 granted 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 Development 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 over 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 expenditures 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 such 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 suggestions.
(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 Development 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 Committee 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 disagrees 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 one 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 road, 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, and, 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 fouling 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 society 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 owner 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 may 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 rupees.
(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 punishment 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 population 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