Amendment status not verified — confirm the current text below against the official source.
(1) Subject to any restriction imposed by or under this Act, a Municipality may transfer by sale, mortgage, gift, exchange or other wise any property vested in the Municipality not being property held by it on any trust the terms of which are inconsistent with the right to so transfer. (2) Notwithstanding anything contained in sub-section (1), the Municipality may with the sanction of the [State Government]1 transfer to Government, any property vested in the Municipality but not so as to affect any trust or public rights to which the property is subject. (3) Provided that every transfer under sub-section (1), other than a lease for a term not exceeding one year, shall be made by instrument in writing sealed with the common seal of the municipality and otherwise complying with all conditions in respect of contracts imposed by or under this Act. Payment of compensation from municipal fund