32. Gaon Fund –

(1) There shall be a Gaon Fund for each 2[Gram Panchayat]  and the same shall, subject to the provisions of the annual estimate of income and  expenditure passed under Section 41, be utilized for carrying out the duties or  obligation imposed upon the Gram Sabha or the Gram Panchayat or any committee  thereof by this or any other enactment;  

Provided that such amount up to the total of all sums credited to the Gaon  Fund under the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950,  minus the amount credited to the Consolidated Gaon Fund under Section 125-A of  that Act as may be required by the Bhumi Prabandhak Samiti for being utilized in  carrying out its duties or obligations shall be made available out of the Gaon Fund to  the Bhumi Prabandhak Samiti every year;  

Provided further that in the event of any difference between the Bhumi  Prabandhak Samiti on the one hand and the Gram Panchayat or Gram Sabha on the  other hand about the requirements of funds by the Bhumi Prabandhak Samiti the  matter shall be referred by the Pradhan to the prescribed authority whose decision  shall be binding.  

(2) The following shall be credited to the Gaon Fund.  

(a) The proceeds of any tax imposed under this Act.  

(b) All sums handed over by the State Government to the 3[Gram  Panchayat.]  

(c) The balance, if any, standing to the credit of the village Panchayat  previously in existence under the Village Panchayat Act.  

(d) All sums ordered by a Court [or required under any law] to be placed  to the credit of the Gaon Fund.  

(e) All sums received under Section 104.  

(f) The sale proceeds of all dust, dirt, dung or refuse including the dead  bodies of animals collected by the servants of the Gram Panchayat.  

(g) Such portion of the rent or other proceeds of nazul property as the  State Government may direct to be placed to the credit of the Gaon  Fund. 

(h) Sums contributed to the Gaon Fund by any 1[Zila Panchayat] or other  local authority.  

(i) All sums received by way of loan or gift.  

(j) Such other sums as may be assigned to the Gaon Fund by any special  or general order to the State Government.  

(k) All sums received by the Gram Panchayat from any individual or  corporation or the State Government under Section 24 or any other  law.  

2[(l) All sums received by way of grants-in-aid from the consolidated  fund of the State.  

(3) Nothing in this Act shall affect any obligation of a 3[Gram Panchayat]  arising from a trust legally imposed upon or accepted by it.  

4[(4) All withdrawal of moneys from the Gaon Fund and disbursement thereof  shall be made jointly by the Pradhan and the Secretary of the Gram Panchayat].  

2 Subs. by U.P. Act No. 9 of 1994. 3 Subs. by U.P. Act No. 9 of 1994.

1 Subs. by U.P. Act No. 9 of 1994. 2 Ins. by U.P. Act No. 9 of 1994.

3 Subs. by U.P. Act No. 9 of 1994. 4 Ins. by U.P. Act No. 9 of 1999.

5[32-A. Finance Commission –

(1) The Governor 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 the Gram Panchayat, Kshettra  Panchayat and Zila Panchayat and to make recommendations to the Governor as to –  

(a) the principles which should govern –  

i- the distribution between the State and the Gram Panchayats, Kshettra Panchayats and Zila Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may  be divided between them and the allocation between the Gram  Panchayats, Kshettra Panchayats and Zila Panchayats of their  respective shares of such proceeds;  

ii- the determination of the taxes, duties, tolls and fees which may  be assigned to, or appropriated by the Gram Panchayats, Kshettra Panchayats and Zila Panchayats;  

iii- the grants-in-aid to the Gram Panchayats, Kshettra Panchayats  and Zila Panchayats; 

(b) the measures needed to improve the financial position of the Gram  Panchayats, Kshettra Panchayats and Zila Panchayats;  

(c) any other matter referred to the Financial Commissions by the Govrnor  in the interest of sound finance of the Gram Panchayats, Kshettra  Panchayats and Zila Panchayats;  

(2) The Finance Commission shall consist of Chairman and tow other  members who shall possess such qualifications and shall be selected in such manner  as may be prescribed.  

(3) The Finance Commission shall determine their procedure.  

(4) The Chairman or a member of the Finance Commission may resign his  office by writing under his hand addressed to the Governor but shall continue in his  office till the resignation is accepted.  

(5) A casual vacancy in the office of the Chairman or a member of the Finance  Commission may be filled for the remained of the period of his predecessor.  

(6) The Finance Commission shall have the following powers for the  performance of its functions, namely –  

(a) call for any record from any officer or authority;  

(b) summon any person to give evidence or produce a record; and 

(c) such other powers as may be prescribed;   

(7) The Governor shall cause every recommendation made by the Finance  Commission under this section together with an explanatory memorandum as to the  action, taken thereon to be laid before both the Houses of State Legislature.  

5 Ins. by U.P. Act No. 9 of 1994.

33. Power to acquire land –

Where a Gram Panchayat or a number of Gram  Panchayats which have combined under the provisions of Section 20 or 30 require  any land to carry out any purposes of this Act, it or they shall first try to have the land  by private negotiation and if the parties concerned fail to arrive at an agreement, such  Gram Panchayat or Gram Panchayats may make any application in the prescribed  form to the Collector to acquire land and the Collector may acquire such land for such  Gram Panchayat nf Gram Panchayats.  

Explanation –

In this chapter the expression ‘land’ includes benefits to arise  out of land and things attached to the earth or permanently fastened to anything  attached to the earth. 

34. Property vested in the 1[Gram Panchayat] –

(1) Subject to any special  reservation made by the State Government, all public property situated within the  jurisdiction of Gram Panchayat shall vest in and belong to the Gram Panchayat and  shall, with all other property which may become vested in the Gram Panchayat, be  under its direction, management and control.  

(2) All markets and fairs or such portion thereof as are held upon public land  shall be managed and regulated by the Gram Panchayat and the Gram Panchayat shall  receive to the credit of the Gaon Fund all dues levied or imposed in respect thereof.  

1 Subs. by U.P. Act No. 9 of 1994.

35. Disposal of claims –

Where any dispute arises as regards the ownership of  any property mentioned in Section 34 between a Gram Panchayat and any person, the  Gram Panchayat shall give such person a reasonable opportunity of being heard and  then decide whether to treat the said property as the property of the Gram Panchayat.   

36. Power to borrow –

A 2[Gram Panchayat] may borrow money from the  State Government or with the prior sanction of the prescribed Authority and subject to  such conditions as may be prescribed from any financial corporation established by  law or any scheduled bank or the Uttar Pradesh Co-operative Bank or a District Cooperative Bank [or from any other Gram Panchayat] to carry out any of the purposes  of this Act.  

2 Subs. by U.P. Act No. 9 of 1994.

37. Imposition of taxes and fees –

(1) A 2[Gram Panchayat] shall levy the  taxes described in clauses (a) and (b) and may levy all or any of the taxes, fees and  rates described in clauses (c), (d), (e), (f), (g), (h), (i), (j), and (k), hereinafter  appearing namely :  

(a) in areas where the right, title and interest of intermediaries have been  acquired under the Zamindari Abolition and Land Reforms Act, 1950  (U.P. Act No. 1 of 1952), the Jaunsar Bawar Zamindari Abolition and  Land Reforms Act, 1956 (U.P. Act XI of 1956) or the Kumaun and  Uttarakhand Zamindari Abolition and Land Reforms Act, 1960 (U.P.  Act XVII of 1960) a tax on land 1[not less than twenty-five paise by  not exceeding fifty paise] in a rupee on the amount of land revenue  payable or deemed to be payable therefor;  

Provided that where the land is in the actual cultivation of a  person other than the person by whom the land revenue therefore is  payable or deemed to be payable the tax shall be payable by the person  in actual cultivation.  

(b) in areas other than those referred to in clause (a), a tax on land revenue  [not less than twenty five paise but not exceeding fifty paise] in a rupee on the amount of land revenue payable by a tenant, by whatever name  called, under the law in force relating to land tenures;  

Provided that where the land is in the actual cultivation of the  person other than the person liable to pay land revenue therefore, the  tax shall be payable by the person in actual cultivation of such land.]  

2[(c) a tax on theater, cinema or similar entertainment temporarily stationed  in the area of the [Gram Panchayat] not exceeding five rupees per  diem;  

(d) a tax payable by the owner thereof on animals and vehicles other than  mechanically propelled vehicles kept within the area of the 3[Gram  Panchayat] and plied for hire, at there rate –  

i- in the case of animals, not exceeding three rupees per animal per  annum;  

ii- in the case vehicles, not exceeding six rupees per vehicle per  annum;  

(e) a tax on person, not being persons assessed to tax under clause (C) exposing goods for sale in markets, hats, or melas belonging to or  under the control of the Gram Panchayat concerned;  

(f) fees on the registration of animals sold in any market or place  belonging to or under the control of the Gram Panchayat;  

(g) fees for the use of slaughter-houses and encamping grounds;  

(h) a water rate where water for domestic consumption is supplied by the  Gram Panchayat;  

(i) a tax for cleaning private latrines and drains payable by the owners or  occupiers of the houses to which the private latrine or drain is attached,  where such cleaning is done through the agency of the Gram  Panchayat;  

1[(j) a tax for cleaning and lighting of streets and sanitation;]  

(k) an irrigation rate where water for irrigation purposes is supplied by the  Gram Panchayat from any small irrigation project constructed or  maintained by it, and 

2[(l) any other tax which the State Legislature has the power under the  Constitution, including Article 277 thereof, to impose in the State and  of which imposition by the Gram Panchayat has been authorized by the  State Government.]  

(2) The taxes, rates and fees under sub-section (1) shall be imposed, assessed  and realised in such manner and at such times as may be prescribed.  

2 Subs. by U.P. Act No. 9 of 1994. 1 Subs. by U.P. Act No. 9 of 1994.

2 Subs. by U.P. Act No. 9 of 1994. 3 Subs. by U.P. Act No. 9 of 1994.

1 Subs. by U.P. Act No. 9 of 1994.

2 Ins. by U.P. Act No. 9 of 1994.

37-A Appeal against levy of tax, rates or fee –

(1) An appeal against the levy  of a tax, rate or fee by the 3[Gram Panchayat] shall lie to the prescribed authority.  

(2) Where it is brought to the notice of the prescribed authority, that a tax, rate  or fee has not been imposed on any person on whom it should have been imposed, it  may direct the [Gram Panchayat] to impose it on that person or persons and th [Gram  Panchayat] shall thereupon act accordingly.  

3 Subs. by U.P. Act No. 9 of 1994.

37-B Taxes and dues recoverable as arrears of land revenue –

All dues on  account of the taxes imposed and other sums payable to a [Gram Panchayat] under  this Act shall be recorded as arrears of land revenue if the [Gram Panchayat]  concerned passes a resolution to that effect within three months from the date of  assessment;  

Provided that where a Gram Panchayat fails to pass such a resolution within  the said period of three months the prescribed authority shall authorise the recovery of  the arrears of taxes as arrears of land revenue.  

37-C Revision of tax, rate or fee –

(1) The State Government may remit the  whole or part of any tax, rate or fee levied by a [Gram Panchayat] in respect of a  period whether or after the commencement of U.P. Panchayat Raj (Amendment) Act,  1954.  

(2) The power exercisable by the State Government under sub-section (1) shall  also be exercisable either generally or in any specified area by the prescribed  authority under such circumstances as the State Government may prescribe.  

(3) A Gram Panchayat also may be resolution and under such circumstances as  may be prescribed remit the whole or part of any such tax, rate or fee imposed or  levied by it, provided that no such resolution shall take effect unless it is approved by  the prescribed authority.  

(4) Where any tax, rate or fee has been remitted under sub-section (1 to (3),  any sum realized from the assessee on account of the tax, rate or fee so remitted shall  be refunded to him by the [Gram Panchayat]. 

38. Realisation of dues, custody of funds and accounts –

The Gram  Panchayat shall, as prescribed, arrange for the realization of Panchayat taxes and  dues, custody of its funds and maintenance of accounts.  

39. Expenses of Nayaya Panchayat to be a charge on Gaon Fund –

(1) The  expenses of Nyaya Panchayat shall be charged to the Gaon Fund or Gaon Funds of  the Gram Panchayat comprised in the circle in such proportion as may be determined  by the prescribed authority.  

(2) All sums realised by way of court-fees or fines in a case tribal under this  Act shall be credited to the State Government, but the State Government shall out of  the sums so realized pay by way of grant such portion not exceeding fifty per centum  as it may fix to the 1[Gram Panchayat] concerned for defraying the exepenses of the  Nyaya Panchayat.

1 Subs. by U.P. Act No. 9 of 1994.   

40. Audit –

The accounts of every Gram Panchayat and Nyayaa Panchayat  shall be audited 2[every year] in such manner, 3[and on payment of such fee] as may  be prescribed.  

2 Ins. by U.P. Act No. 37 of 1978, dated 30th December, 1978.

3 Ins. by U.P. Act No. 9 of 1994.

4[41. Budget of Gram Panchayat –

Every Gram Panchayat shall within such  period and in such manner as may be prescribed, prepare a statement of the estimated  receipts and expenditure of the Gram Panchayat for the financial year commencing on  the first day of April next following which shall be passed by the Gram Panchayat by  a simple majority of the members present and voting at a meeting of the Gram  Panchayat and the quorum for such a meeting shall be more than half of the total  number of the members of the Gram Panchayat.

4 Ins. by U.P. Act No. 9 of 1994.