Sec 197 to 203 Chapter X (Property and Contracts)The Delhi Municipal Corporation Act, 1957

197. Acquisition of property.—

The Corporation shall, for the purpose of this Act, have power to acquire and hold movable and immovable property, or any interest therein.

198. Acquisition of immovable property by agreement.—

Whenever the Corporation decides to acquire any immovable property for the purpose of this Act, the Commissioner shall acquire such property on behalf of the Corporation by agreement on such terms and at such price as may be approved by the Standing Committee.

199. Procedure when immovable property cannot be acquired by agreement.—

Whenever the Commissioner is unable to acquire any immovable property under section 198 by agreement, the Central Government may at the request of the Commissioner procure the acquisition thereof under the provisions of the Land Acquisition Act, 1894 (1 of 1894), and on payment by the Corporation of the compensation awarded under that Act and of the charges incurred by the Government in connection with the proceedings, the land shall vest in the Corporation.

200. Disposal of property.—

With respect to the disposal of property belonging to the Corporation, the following provisions shall have effect, namely:—

(a) the Commissioner may, in his discretion, dispose of, by sale or otherwise, any movable property belonging to the Corporation not exceeding in value in each instance one thousand rupees, or such higher amount as the Corporation may prescribe, or let out or hire any movable property or grant a lease of any immovable property belonging to the Corporation, including any right of gathering and taking fruits and the like, for a period not exceeding one year at a time;

(b) the Commissioner may, with the sanction of the Standing Committee,—

(i) dispose of, by sale or otherwise, any movable property belonging to the Corporation the value of which does not exceed five thousand rupees;

(ii) grant a lease (other than a lease in perpetuity) of any immovable property belonging to the Corporation; or 

(iii) sell or grant a lease in perpetuity of any immovable property belonging to the Corporation the value of which does not exceed fifty thousand rupees or the annual rent of which does not exceed three thousand rupees;

(c) in cases not covered by clause (a) or clause (b), the Commissioner may, with the sanction of the Corporation, lease, sell, let out on hire or otherwise transfer any property, movable or immovable, belonging to the Corporation;

(d) the consideration for which any immovable property may be sold, leased or otherwise transferred shall not be less than the value at which such immovable property could be sold, leased or otherwise transferred in normal and fair competition;

(e) the sanction of the Standing Committee or of the Corporation under the aforesaid clauses may be given either generally for any class of cases or specially for any particular case;

(f) subject to any conditions or limitations that may be specified in any other provisions of this Act, the foregoing provisions of this section shall apply to every disposal of property belonging to the Corporation made under, or for any purpose of, this Act;

(g) every case of disposal of property under clause (a) and clause (b) shall be reported by the Commissioner without delay to the Standing Committee and the Corporation respectively.

Contracts

201. Contracts by the Corporation.—

Subject to the provisions of sections 202 and 203, the Corporation shall be competent to enter into and perform any contract necessary for the purposes of this Act.

202. Procedure for making contracts.—

With respect to the making of contracts, the following provisions shall have effect, namely:--

(a) every such contract shall be made on behalf of the Corporation by the Commissioner;

(b) no such contract, for any purpose which in accordance with any provision of this Act the Commissioner may not carry out without the approval or sanction of the Corporation or some other municipal authority shall be made by him until and unless such approval or sanction has been duly obtained;

1[(c) no contract which will involve an expenditure exceeding ten lakh rupees or such higher amount as the Central Government may from time to time, fix, shall be made by the Commissioner unless the same is previously approved by the Standing Committee; and

(d) every contract made by the Commissioner involving an expenditure exceeding one lakh rupees but not exceeding ten lakh rupees or such higher amount as may be fixed under clause (c) shall be reported by him, within one month after the same has been made to the Standing Committee.]

2 * * * * *

1. Subs. by Act 67 of 1993, s. 91, for clauses (c) and (d) (w.e.f. 1-10-1993).

2. Omitted by s. 91, ibid. (w.e.f. 1-10-1993). 

203. Mode of executing contracts.—

(1) The mode of executing contracts under this Act shall be prescribed by bye-laws made in this behalf. (2) No contract which is not made in accordance with the provisions of this Act and the bye-laws made thereunder shall be binding on the Corporation.