(2) A Municipality may establish and maintain a provident fund2 and may itself contribute thereto.
(3) A Municipality may grant a gratuity, upon his retirement, to any servant of the Municipality who is excluded from participation in the benefits of the provident fund.
(4) The Municipality may, with the previous sanction of the 3[State Government], grant or arrange for the purchase of an annuity to -
(a) any servant who, at the date of his retirement, has not been contributing to ta provident fund established under sub-section (2) or has contributed thereto for a period of less than 10 years, and
(b) any officer or servant injured, otherwise than by reason of his own default, in the execution of his duty, or, where such injury results in death, the family of such officer or servant.
(5) A Municipality may, with the like sanction, instead of taking action under clause (b) of sub-section (4), grant a compassionate allowance to an officer or servant referred to therein, or to the family of such officer or servant.
Source footnotes
1. See. p. 450 of M. M. 1952 edition.2. For rules-
(i) re. Sanitary Inspects, see nots. no. 574/XI-707-Ed. Feb. 23, 1920, no. 2346/XI-800. d. Oct. 0, 1922, no. 1918-II/XI-16-E, d. Jan. 8, 1923, no. 903/ XI-784-E., d. May 7, 1924, no. 3169/XI-16-E, d. Sep. 5, 1926, no. 1600/XI-784-E, d. June 11, 1928, no. 361/XI-707-E, d. March 22, 1929, no. 2749/XI-784-E, d. Sept. 19, 1930, no. 2074/XI-734-E, d. Aug. 10, 1931, no. 2841/XI-784-E, d. June 7, 1932, no. 435-VII/XI-784-E, d. Apr. 20, 1933, no. 3356 (6)/XI-784-E, d. Dec. 8, 1936, no. 3358, (7) XI-45, d. Feb. 22, 1938, no. 5240(2) XI54, d. Oct. 10, 1938 and no. 3624/XI-559, d. Dec. 8, 1938 and pp. 409-419 of M. M. 1952 edition.
3. Subs. by A. O. 1950 for (Provl. Govt.), which had been Subs. by the A. O. 1937 for (L.G.) Which Subs. by sec. 2 and Sch. I of Act XXXVIII of 1920
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Section 1 · Short title, extent and commencementSection 2 · DefinitionsSection 3 · Declaration and definition of municipalities and cities.Section 3A · Municipality for every transitional area and smaller urban areaSection 3B · Constitution and composition of Ward CommitteeSection 4 · Procedure preliminary to issue notificationSection 5 · Effect of including area in Transitional area or smaller urban areaSection 5-A · Director of Local Bodies.India Code, Government of India. Text fetched 24 Oct 2026. Source metadata reports last modification: 2025-12-02. Check the linked official text and subsequent notifications when applying a provision.