Chapter – XIX
Local Government Properties
93. Local government properties.– (1) Subject to any conditions imposed by the Government, all properties whether movable or immovable specified hereunder, and all interests of whatsoever nature or kind therein, shall vest in a local government:
(a) all lands, buildings or other properties which were vested in any defunct local government of which the local government is the successor under section 4 of this Act;
(b) all lands or other properties transferred to the local government or acquired by gift, purchase or otherwise for the purposes of this Act;
(c) all public and other buildings of every description and all works, materials and things appertaining thereto which are maintained by the local government in relation to its functions under this Act;
(d) all lands, open spaces, play grounds, gardens, parks and other places of public resort transferred to the local government with the title, by gift, purchase or otherwise for the purposes of this Act;
(e) all public streets, roads, bridges and other means of public communication which are transferred to the local government and the pavements, stone and other material thereof and trees growing on, and erections, materials, implements and things provided with them;
(f) all public sewers and drains except those owned and maintained under the Canal and Drainage Act, 1873 (VIII of 1873) or any other law on the subject of the Act ibid, and all sewers, culverts and other channels for sullage in or under any public street, or constructed by or for the local government in the respective local area and all works, materials and things appertaining thereto;
(g) all works for the disposal of refuse and night soil maintained by the local government;
(h) all public lamps, lamp posts and other appliances for street lighting maintained by the local government;
(i) all public streams, springs and works for supply, storage and distribution of drinking water for public purposes maintained by the local government and all buildings, machines, materials and things or land, not being privately owned land, appertaining thereto;
(j) all trees, plants and flowers on roadsides and other places maintained by the local government; and
(k) any other property which may vest in the local government under any law for the time being in force or under an order of the Government.
(2) Every local government shall maintain a register of all properties along with a map of all immovable properties of which it is the proprietor or which vests in it or which it holds in trust for the Government or any other authority or person.
Explanation: For the purpose of this section, a building map shall include any location maps as well as a map indicating the layout of the building.
(3) The Government shall not, except with the prior consent of the local government concerned, reallocate or in any other manner divest title of properties vested in that local government under this Act.
94. Use and disposal of properties of local governments.– (1) The properties of local governments shall be used only for public purposes.
(2) The immovable properties of local governments shall not be sold or permanently alienated without prior approval of the Government:
provided that in case title of an immoveable property is transferred to a Government department, authority, or agency, the price of property not less than the amount assessed by District Price Assessment Committee shall be transferred to such local government.
(3) The properties of the local government may be given on lease through competitive bidding by public auction.
(4) The local government may through a written agreement, lease a property to a Government department, authority or agency, without public auction on a rent approved by the Council.
(5) The local government may constitute a Committee headed by the Head of the local government to identify encroached or redundant properties that may be sold in the prescribed manner with the approval of the Government, and the funds generated from the sale of such properties shall be kept in a separate head of account and be used only for development purposes.
(6) Where a lease of immoveable property of a local government under a valid lease agreement has expired or is about to expire and it does not contain any condition for extension of lease period, the period of lease may be extended upto ten years after fresh assessment by Rent Assessment Committee on a rate not below the rate assessed by it with an annual increase of ten percent, consisting of following members:
(a) Head of the local government as convenor;
(b) Assistant Commissioner concerned or his nominee;
(c) Chief Officer of the local government;
(d) Incharge of Finance Wing of the local government as Secretary of Committee;
(e) Incharge of Regulation Wing of the local government; and
(f) District Excise and Taxation Officer or his nominee not below the rank of BS-16.
(7) Where no written lease agreement is available but the occupant of immoveable property has been paying rent to the local government for at least last five years, the local government may enter into written agreement with the occupant for a period of five years after fresh assessment by Rent Assessment Committee on a rate not below the rate assessed by it with an annual increase of ten percent.
(8) In case of failure to enter into written agreement under subsection (6) or (7), the local government shall, within one month, take over the possession of the immoveable property and shall proceed in accordance with subsection (3).
(9) The movable property of a local government including all articles declared unserviceable which are required to be disposed of, shall be sold through competitive bidding by public auction.
(10) A local government shall inspect, manage, maintain and whenever so required develop or improve any property which is owned by or vested in it or which is otherwise placed under its charge.
95. Acquisition of immovable property.– Whenever any local government considers it necessary or expedient, it may acquire or purchase any immovable property for public purposes, with the prior permission of the Government:
provided that in case of purchase of property, the agreement of purchase shall be in writing:
provided further that the development authorities entrusted to local governments, may acquire land for development purposes and may sell or dispose of thereafter in accordance with the existing laws and the rules made thereunder.
96. Loss of property of local government.– In case of any loss of property of the local government, the responsibility for such loss shall be fixed by the concerned local government and the amount of the loss shall be recovered from the defaulting person and a report to this effect shall forthwith be submitted to the concerned Council in the meeting next following.
97. Annual stock of local government properties.– Every local government shall, in the prescribed manner, at least once in every financial year, take the physical stock of movable and immovable properties of the concerned local government, submit a report to the concerned Council and shall publish the same.
98. Insurance of certain local government properties.– A local government may, subject to the rules and any other relevant law for the time being in force, insure any property, whether moveable or immoveable in which it has an insurable interest, against any contingency which may result in the imposition of any liability or loss to the local government.
Source: Punjab Local Government Act 2022, Chapter XIX, Sections 93 to 98