State Act

THE ODISHA MUNICIPAL ACT, 1950

381. Penalty on Councillor, officer or servant being interested in contracts made with a municipality :– If any Councillor or any officer or servant, maintained by or employed under a municipality, has directly or indirectly any share or interest in any work done by order of the municipality of which he is a Councillor, or by which he is maintained or under which he is employed, or in any contract with or under such municipality, he shall thereupon be disqualified to continue in office and shall be punishable on conviction with a fine which may extend to five hundred rupees: Provided that the penalty herein prescribed shall not be deemed to apply by reason only of a person– (a) having a share in any registered Joint Stock Company or a Co-operative Society, constituted under the laws for the time being in force which shall contract with or be employed by or on behalf of the municipality; or (b) having a share or interest in any newspaper in which any advertisement relating to the affairs of the municipality may be inserted; or (c) holding a debenture or being otherwise concerned in any loan raised by or on behalf of the municipality: Provided further that it shall not be lawful for a person having any share or interest, such as is described in clauses (a) and (b), to act as a Councillor in any matter relating to a contract or agreements between the municipality and such company or the manager or publisher of such newspaper. Nothing in this section shall apply to the payment of fees to a legal practitioner for services rendered by him in his professional capacity.