Village Development Committee Act, 1992

Nepal Press Dig8st (Private) Ltd. Lazimpat, Kathmandu. Telephone: 4-11927 Nr~AL R~CQrl.DER. Year 16, No. 15 Kath~~udu; ~~ ~, 1192 (Not meant for public sale. Reproduction in any form without permission strictly prohibited). Ministry Qf Ia-tl. Justi..£re. and Parliamentary Affairf1 Nepal Rajapatra, Vol. 41, No. 72, Chaitra 26,2048 (April 8, 1992). Preamble: whereas it is desirable to form Village Devplopment Committees (VDC) for developi'1g leadership at the local level itself so as to in.'3ti tut i onaLtze mut ti-party democracy and the d evcl ooien t prQCeS3 f!'('lm tr./3 lowAr level the-reby rtaximizinz t.ie participation of the Locaj, people in self-government and village dGvelopment prof-rams thro~f.h the medium of decentralization, ~ow therefore, t hc Parliament has onac t ed thin law in the 21st year of t ho reign of His j"Iaj esty [ing bir8ndro Bir bikram sba h Dev. Ch~1pt~r..-1 'prelj.mina r.Y 1. Short Title and CQmm~ncer;l~nt ('1) This law may be called the Village Developmeni Q,gmmittee Act. 1992. (2) It shAll come into force at once. 2. Definitions Unless otherwise meant with reference to the subject or context, in this act: (a) Village Development Committee (VDC) means a Village Development Committee formed under Section 5. (b) Chairman means tl'e Chairman of the Voc. (c) Vice-Chairmen means the Vice-Chairman of the VDC. (d) Member means a member of a VDC; the term includes the Chairman and the Vice-Chairman. (e) secretarY means an employee appointed by HMG under Section 40 to function as Secretary of the VDC. 174 (f) Prescribed or 8S prescribed means prescribed or in the manner prescribed in the rules or bye rul~s framed under t his act. Ch~')p i~J=-2 ArG~ ui-:::·C- ,. ::..;~ :.-~ vi3ion--anrl "F<>fr.1a tion ·<)f WarC:;s 3. Y.I£...Areu to be l'resc..ri bed ( 1) HMG may pr escz-Lbo any rural area in the Kingdom of Nepal l:l:J U v:i.llni~8 dov e'Lopmnrrt ar-oo by mentiolling the bOl~nd3ries on four sides. (2) In case it considers it necessarv to make al tera.tions in the boundaries of any village development ar-ea or ward, H~G may do so on t~e recommendation of a'Commission or Committee ~ormed for thi~ purpose with the concerned experts also as members. 4. Division ~Q wards HMG may divide the village development area prescribed under Section 3 into nine wards with equal population as far as possible. 5. Forma.tion of mes (1) VDCs shall be formed in thG village development areas prescribrd under Sect ion (3). (2) A VDCsna11 c onsi.et of the following Chad r-man , Vice Chairman, and member s: (a) One Chairman and one Vice-Chairmun e18cted by Nepali citizens of the village development area who have reached the age of 18 yea.rs and have reSided in such area for at least one year, and (b) J.\1n3 members elect',d l~t tho r-at e of one member from ouch wurd by IJi~p:lli citizuns of tho villflg~ d,:v(:lopnwIlt ar-ea who hnvo reached the age of 18 year-s and have reSided in such w1:;rd for r.t lCf:st one year. 6. Village Deyelopment COmmittee to be a Corporate Body ( 1) Ea.ch VDC shall be an autonomous corpora.t e body wit h perpetual succession. (2) It she.ll have a separate seal, for all of its functions. (3) A VDC may acquire, use, or dispose of movable or immovable property like an individual. (4) A VOC may sue or be sued in its own name like an indiv 1dual. 175 7. Tenure of Members (1) fhe tenure of members of the VDC shall be of five years. (2) The tenure of members of the VDC shall be calculated from Baishakh 1 (April 13) of the year it starts, and shall be deemed to have expired on the last day of the month of Chait:rc. (J.pril 12) in the fifth year. (3) In case elections of members of a VDC cannot be held accor-d Ing to schedule for any reason, and are held at other time, the tenure of members elected shall be calculated as if the elections had been held according to schedule. (4) In case the post of mc.mbp.r of any VDC falls varrmt for any reason, the vacancy shall be filled up through a bye-election as provided for in current law only for the remaining term. Provided that no bye-election shall be hAld for a period of less tha.n six months. 8. Qualificat ions for Membersh1p The following qualifications are recessary for being elected as a member of a VDe: (a) He must be a citizen of Nepal. (b) He must have r-eached the age of 25 years. (c) He must have no personal interest in transactions relating to any movable or immova.ble p rop er-ty or any cent ract with the VDC. (d) He must have resided in the VOC area for at least one y(~ .... r , (e) There is no disq ualificat ion under ot her current law, end (f) Hu is not proved to have misappropriated public property; Provided thut this clause sholl not be applicuble in case eVidence of recovery is furnished. 9. MemRersh~p of Vpc Not to Continue Membership of the VDC shall not continue in the following circumstances: (a) In case the member does not possess the qualificatiom mentioned in Section 8. ( b ) In case th e member is elect ed as Chairma.n, Vic e Chairman, ~r member of a District Development Committee, or as Chairman or Vice-Chairman of a VDC, (c) In case he resigns. 176 (d) 1 n cu s e hu d10S. (e) In case the VDC erea from where he is elected is amaLgemat ed with ariot her VDC. (f) In case he becomes a candidate in elect ions to the House of Rep r-es errtat Lvea or the National Assembly or is nominated a.s q member of the Nat ional Assembly, or (g) In case he remains a.bsent from three consecutive meet ings of the VDC without any sGltisfactory reason. 10. Oath 'rhe ChrJirmtln shall take oath of office in the presence of the District Judge. The Vic e-Chairman and members sh8J.l do so in the presence of the Chairman. In the ubsence of the Chairman, members shall ta.ke oath in the presence of the Vice-Chairman. In case both are absent, they shall do 80 in the presence of too District Judge. 11. Post May Be Relinguished The Chairman may relin-:juish his post by submitting his resignation in writing to the VDC through the Vice-ChGlirmDn. The Vice-Chairman and members may do So by submitting their reaignat ions in vJriting to the Chairman. Chopter 3 Meetings and Working Procedures of the YIl.C. 12. Neet 1ngs of the VDC (1) Meetines of the VDC sholl be hAld at leBst once every month. (2) Meet ings of the VDC shall be convened by the Senretury on the direction of the ChF.lirma.n. (3) J'v1eetings of the VDC shnll be presided over by the Chairman. In hiB absence, the Viee-Cha'irman shall do so. In case bot h the Chairman and the Vice-Chairman are absent, a member chosen by the members present at the meeting from among t hemael.vee shall preside over it. (4) In case 50 percent of the members of the VDC are present, the quoru~ shall be regarded as haVing been fulfilled for meetings of the VOC. (5) The dec isions of meetings of the VOO shell be authenticated by the Secretary. (6) Other procedures relf-lting to meetings of the V~ shall be as prescribed. 177 13. Decis iOIll! of vue r·leet ings (1) Decisions of the meetings of the VDC shall be taken on the basis of a majority of the members present at' the meeting. (2) In the event of a tie at meetings of the VDC, the presiding person ma.y use his casting vote. Chapter 4 ~ctionsl Duties and Powers 14. Functions. Dutips aDd Pow~rs of the ~ The functions, duties, and powers of the VDC shall be as follows in the following areas : (a) EduR5it ion and CuItu~ To undertake programs relating to literacy, to maintain recor-ds of objects and places of intellectual, cultural, relipious, and archaeological importa.nce, as well as of gymnasia, pla.y grounds, roadside shelters and rest houses, gumbas, mosques, and other religious sites, am look after, ma.intain, construct and repair them; to protect a.nd promote different communities, religions, languages and cUltures. (b) Health and Population To undertake environmental a.nd sand.t at ion programs, and preventive healtn education programs in order to avoid communica.ble diseases, maintoin rec.ords of population, register births, deaths and other personal events, make arrangements for crematoria, pla.ces for the disposal of carcasses of cattle, et c , , check epidemic diseases, am make arrangements for the control of rabies. (c) Agricul tU're and Irrigation To make arrangements for improved cultivation, improved animal husbandry,improved horticulture, fish ...:Irming, bee-keeping, and other income-generating occupations; to undertake programs relating ta agriCUlture and pasturage, operate~ and markets, fairs, abattoirs, etc.; construct, repa ir and maintain dams, irrigat ion chs.nnels, \-J ell St tanks, et c , , and check animal diseases. (d) ~orestsl EnvirOnment. and Energv To undertake a.forestat·1on programs for the protection of the environment; to protect public trees in areas under the jurisdiction of the VDC, make arrangements 178 for t he regular supply of firewood, t imber, brano hes , roots, etc. needed by the rural people from Forest Offices, check erosion by strea.ms and rivers, take necessary action to prevent damage in the villago due to fire a.ccidents, plant bamboo and nigalQ in the village in order to check land-slides, and make these materials available for the construction of low-cost houses, and make arrangements for the esta.blishment of gQba.r gas plant. (e) Drinking W~ To make arrangements for pure drinking water in the Village, as well as water for cattle, and construct, rep ..··ir a nd protect tanks, wells, wa.ter spouts, reservoirs, etc. (f) m,nsport end Construct·i.Q.D. To construct, repair, maintain, and protect mule tracks,trails, dirt motor-roads, smell Lridges, culvHrts, p~rks, gardens, etc., as well as buildinps of the VDC, primory school bUildings, and community buildings. (g) lridustry and Tourism To function as motivator in the promotion of cottage and small industries, make recommendations for necaesary facilities, and undertake such programs. To make arrangements for ~remating unclaimed dead bodies, and for crphanages for helpless orphans; to underta.ke programs for the welfare of women and children to operate relief camps with the cooperation of the District Development Committee apd HMG in the event of natural disasters, check or make arran~~ments for checkinp; the une of narootics, gambling, and other ~ocial vices and offenses, establi:lh T{anji house, and make rieceasar-y a.rrant':e:lent~ for-the nontral nr strary cattle and for the oboerva~ion of national and local festivals, fairs, etc. (i) fiiscellaneous Tn prO"tect, (":' rr;'lke R.rr!lnge~Dnts for nro t(~~~ ti. rl?, the movable and ir.L'!I~vab::'p pr"perty owned by or- undo!' t>") ouet.ody of the ·v·lJC, renew televiSion and vic.?o set s accol"dlrlg to curr-ent law, operate, or make tlrr~u:'9':lents for O;>S~.~3.tine: • health, educa t Lon , and en tertain .~e!l·G pl'\)gl'C1U.!1 wtich co not have 1n adverse i~Dact on the ch~r~c~er of the common ~eople, demolish dangerous structures an~ fill up ditches and make them safe,"name rnads, buildin 8, and structu.res constr-uctad by the VDC, look afteT ul1c2aimed movab l a and immovable property, and use public t'-:L:lkS in the vill~ge for increasing income, mobilise publi~ p~rt±cipation in development-and construction projects, extend cooperation in checking the smugcling of 179 forest prcduc-ta, approve development plans, budgets, p r-og rume , p r-opo eo La regCJrding foos one cha rg oa , and contracts of the VDC,forward the monthly statement of account s of t he Vrx:; to the Dds t r-Lc t Development Oommf.tt ee , protect government -owned uncut tivat e d Land s within its vrea, maintain accurate accounts of the cash nnd property received by the VDC and have such accounts audited, enccurage the formation of non go vernment a L organiz~tio~, users' groups, etc.,£llld provide nr ceasnry cooperat ion tot hem. 15. FormatioJl-of~visorvCommiitee and Ward CO~IIII~tte~ The Chairman may form an Advisory Committee consisting of not more t han 11 members in consul. tat ion with the Vice-Chairmon ~f the VDC for enlisting cooperation in the ac t Lvdt fe s of the VDC with the participation as far as p os s LbLn of rGprp.~p.nt[It ives of user's commd.t t ocs , non-governmental oz-ganf eo t Io ne , and women, intellectuals, sociol workers, and backward cl aases which have failed to get ruprO~Anta t ion in the VDC. The VDC shaL'l form WArd Committee headed by the VDC member of the ward and consisting of five persons, including the ChairmtJn, on his recommenda.tion, in such a manner as to ensure the represent at ion of different areas of the wn.rd from among voters of thot wErd. (3 ) A j oint meeting comprising members of the Advif'lory Commf.t t ee and tho 'ward Committees fanned under Sub-Section (1) and Sub-Section (2) shall function as the Advisory Council of the VOC. The OhaLrman shall call two meetings of the Advisory Council formed under Sub-Section (3) before the last date of the month of Pauah (ending January 13) every year. Such meetings shall be presided over by the Chairman, and in hi~ pbsence, by the Vice-Chairman. The meeting collr-:d under S~b-Section (4) sha.ll discuss the budget and the pr~ram and give its opinion and adVice. The VDC sholl give the final form to such budget and p rogram-, 1'. Functions. Dutiesrand Powers of the Chairman The functions, duti~s, and powers of the Chairman shall be as follows: (a) Toconvene meo t Lnge of the VDC. (b) To p~esent necessary resolutions and documents, or make arrangements to QO so. (c) To k~Ap the accounts of the inoome and expenditure of the VDC and ot hez- do cumen t s safely, or muk e l.lrrangcmunts to do so. (d) (e) (f) (g) (h) (i) ( . ,J I 180 To hDve the decisions of the VDC implemented. To supervise the employees of the VIC, or m8ke arrangements to do so. To maze neceesary recommendations. To look after the movable and immovable property of the ¥DC, or make arr-angement s to do so. To send the Vice-Chairman, any membor or Secretary on deputation. To hun d over che r go of h I s fUIlctions to t he Vic8-Uhairman during his absence, and if the 'Vlce-Chairma.n is also absent, to any membp.r.. To pprform other prescribed functions. 17. ~lct ions. Duties and Powers of the Vice-Cha.irmen The functions, duti&s, and powers of the Vice-Chairman shall be as follows: (~) To function as acting Chairmen in the abs8nce of the Chairman. (t,) To perform other pr-eacr-t b od functions. 18. Furctions. Duties. and PO\,'''''rs Qf M(>mber~ (1) The functions, duties and powers of member-s shall be as follows (a) To encourage t~ formation of non-governmental orgo.n1zatiom for development and construction works lnthin his area. (b) To extend cooperation to users' groups and non governmental organizations in the selection and formulat ion of proj oct a. (c) To discu ss development aud construct ion a.ctivi ties, and make arrangements for the presentation of feasible proj ects by non-governmental organizat ions to the VDC. (d) To submit p art Lcukar-e relating to wards, if so requested, to the VDC. (e) To perfoY"m other prescribed funct ions. (2) Members of Ward Committees shall extend coopera.tion in the performance of the f unctions of members of the VOC. 181 19. Functions. Duties,and Powers of th~~etary The functions, out ies ,and powers of the Secretary shall be as follows : (a) (b) (c) (d) (0 ) (f) (g) (h) (j ) (k) To implement the approved village dcvellopment programs under the guidance of t he Cha.Lr-man of the VDC. ~o'maintain accounts of exoenditure incurred in the construct ion works in a. silnple fe.rm, and cI ear off accounts. To maintain updated records of Prc'ljri"C1;.s conrp l e t od by non ~rw:rentB1 organisations and o tner- comp.Le tcd pr0jects. To maint ain accounts of income and expenditure. To incur expeni iture on implp.ment ing t he decision of the VDC within the limits of the budget approved by it. To have the a.ccounts audited, clea.r off ·irregula.rities, a.nd in ca.se any amount involved in such irregularit ies must be realized, forward them to the Chief District Officer through the Loca.l Development Off icer. To maintain records of movable and immovabl e property, and keep such property saf(~ly. To comply With the orders issued by the Local Development Officer. To conduct investigations subject to current law into complaints filed With the VDC, and submf.t a report thereon to the VDC. To register births, deaths,a.nd other personal events, and rna.1ntain upttat ed records of the population of the VDC area. To perform other prescribed functions. Q,hapter 2. Formula.t ion of Plans and Procedure of Impl ementa.tion• 20. Formulation of Village Development Plan (1) Every VOO must formUlate a Village Development Plan for t he development of it s village. (2) While formulat ing plans, the following programs shall be assigned priority in such a way as to benefit the maximum number of people. 'R~ (a) Programs which yield direct benefits promote employment, generate Lneome , and improve the li'Ying standard of the rural people. (b) Programs which increase agricultura.l production. (c) Programs which can be operated through the mob Ll.Lzat ion of local resourceS a.nd sk Ll.Ls , (d) Programs which yield direct benefits to backward classes, women,and ohildren in the area. (3) Plans to be launched during the next yp.a.r must be formulatad during t he current year in the following manner : (a) Estimates of means and resources availa.ble at the village level must be ma.de before .Hhadra 31 (Sempt embp.r 16). (b) Proj ect s must be procured and comp lied from non-governmental organizations in the a rea. (4) Separate periodic and annual plans must be formulated. 21. Feasibility of Projects to be Studied While implementing the Village Development ~an, the vrx:: shall have the feasibility of proj ects studied, explaining t he following matters also : (a) Target of the proj ect ; (b) Number of people benefitt ing from the proj ect, and na.ture of such benefit' ; (c) Whether or not the p roj ect 'which is being seleoted had been started previously fh the village and left unfinished ; (d) Whether or not the problem cen be solved through any otm r means instead of operating the proj ect (e) Estimates of t he expensas as well as of cost of materials required for complet ing the proj ee t , (f) Cash, comm~dity, labor, or other contributions which can be obte.ined from the users; (g) Fees or repair and maintenance expenses which can be raised from the users later ; (h) Other .particulars which need to be olarified, if any. 18~ 22. Selection of rrojects (1) (2) (3) (4 ) ( 5) Proj r:>cts shall be selected on the baai.s of the report of the feasibility study conducted according to Section 21. Projects sh~ll be selected in such a manner that the environment is protected and conserved. Proj ects shall be 'scl ect ed in sue h a manne r that the labor and participation of the maximum number of local people is needed. Proj ect s shall be selected on the basis of 'Driority after the estimut;~s of grants which can be recoivcd from the Distr~ct Development Committee (DDC) are received. Information regarding the selected projects must be furnished to the people of the village. 23. Qgerativn of lima-ge-Level Plan§. (1) Village level plans shall be oper'at ed in the following Planner : (a) Through the resources of the VW itself. (b) Through grants obtained from the DDC. (c) ny non-governmental organizations. (2) After projects are selected by the VDC, it shall prepare a table of opera.tions and implement them a.ccordingly, or make arrangements for doing so. (3) Programs to be operated by non-governmental organizations must be operated through agreements with the VTlC. (4) Projects to be included in the distric~ development plan must be approved by the VDC and sent to the DDC. (5) Projects operated, thrOugh a grant from the DDC shall be started after its budget is passed. (6) In circumstances where investments are made by non governmental organi~ations also in programs to be operated by the VDC, such organiZations may themselves operate the progra.ms. 24. ClassiticitiQn 21-Proiects Projects must be classifie d irJto too following categories (a) Projects to be operated through loca.l resources. (b) Projects in which grants and resources of the DDe are also used. (c) Projects to be operated by non~overnmental organizations. (d) Prn; ~cts selected for inclusion in tho district-leval plan. 184 25. pirectives to be Complied With The VDe must comply with the directives issued by the National Planning Commission and the DDC from time to time regarding the formulation und operation of t he Village Development Plan. 26. Non-GoverIllJlental Qrga.nizat 19ps to be Epcourseed (1) The VDC must encourage non-g.overnmental orgemzat ions to identJ. fy, ;Zormulat e, operate, sup ervt se , evaluat e, repair and mainta.in village development programs in each VDC area.. (2) Projects to be opera.ted by non-governmental organizations shall be operated through their own r-csourc es , aa well as t-hro ugh the resources obtained from the VDC and the DDC • (3) 'rhe concer-ned orga.nization must sumbit full particulars, relat ing to the proj ect to the VDC. (4) While operating a.ny proj ect, a non-governnental organiza.tion must ma tntadn coordinat ion wit:l the VDC. (5) The. VOC may implement and operat e proj ect s throu6h a non-governmental organization. Chapter....2 Inspection and Approval of Projects, And Clearance » 27. Inspectl~nd Approva1~~Clearanc~ (1) After a project is completed, it must be inspected and approved, and (the accounts) cleared off. (2) After the agency operatirg the project informs the VDC that the project has been completed, the VDC shall inspect and approve such project, and grant clearance, on the basis of the report 'and evaluation of the completed work by technicians. (3) For the purpose of Sub"':Section (2),the DDC must make available necessary technical cooperation, (4) The VDC must inform the DOC about the pr-oj ect s completed by it, The DDC· shall conduct technical inspection and evoluotion of such projects, and inspect, approve and clear off such projects on the basis of such reports. 185 28. Repair, ~ain~nce and ~~agement of Projects which are Inspected ang Approved (1) (2) (3) After any Project is comp Lat ed , the VDC may collect service charges from those who use its services for the repa.ir and maintenance thereof. The proceeds of the service charge mentioned in Sub Section (1) must be used to repair, raamt e In , and mar.age the proj ect. Particulars of income and expenditure under Sub-Section (1) and Sub-Section (2) shall be mainta.ined by tm VDC on an updated basis. Chapter 7 linemial Arrangement§. 29. Fund of the VDC (1) The VDC shall have a fund of its own. (2) The fund mentioned in 3ub-~ation (1) shall comprise the follow ing amount s: (a) (b) (c) (d) (e) (f) (g) ( h) (i) (j ) Grant s in ca.sh or in kind received in the prescribed manner from HfI'iG,~r the DDC. Proceeds from the sale of the assets of the VDC, or income from th~ir rents. Amounts raised from tho sole of the soil of government ow ned waste lands in the VDC area. Amounts r-o f aed from the waters of public streams except when used for public purpcses. Amounta raised from the sa.le of the produce of public tanks or orchards and gardens. Amounts raised from serVice-charges for the use of public tubewells, wells, and water-spouts. Amounts raised from public telephone fees. o!I Amounts raised from renewal ·fees of radio and television sets, and other equipment. Amounts obtained from contribut ions, gifts, assistance, or present s. . Amounts raised from the sale of branches, stems, roots, etc. by the Forest Division from among the forest product s of the VDC area. 186 (k) Amounts received in consideration of cooperation in the task of checking the poaching of forest products in the ~ area. (1) Income from income-generating programs operated by the VDC. (m) Loans o bt a t.ned from any organizution or institution with the movable and inunovabl.e property of the VDC 3.S collateraJ. with the approval of tho DDC. (n) Amounts raised from~ and fairs. (0) Amounts raised from fees, fines, and penalties, the Baksauni fee, etc. (p) Int erest on the prIncipal amount s of the VDC, and bonus. (q ) Roof-tax. (r) Amounts raised from the sale of~, fodder, etc. (s) Amounts re~eived from anw right prescribAd by HMG or obtained under other current la.w. (3) The amount s credited to the VDC fund shall be deposited at the nearest bank. 30. Procedure of lYliking DiSbursements From the VUC Fund ( 1) The VDC fund shall be op erat ed under the j oint. signatures of the Chairman and the Secret ary. (2) The Chairman may make disbursements of Ule ~ecr1b~d acount in the form of financial assistance within the limits of tho approved budg s't , (3) Subject to the budget approved by the VDC, the Sdcretary may make disbursements in order to implement the decisions of the VDC. (4) Disbursement s,must be made from the V'.'OO fund subj ect to the budget approved by the VDC and according to o'.lrrent lew. (5) statements of disbursements made from the VDC fund shall be presented At the meetings of the VDC. fhe VDC IDl.Bt makp information re8arding its Lnconre ' and expenditure available to the public in each ward. 187 31. Iaxes and f'ees ""hich the YOC MaY CQllect ( 1) 'rhe VDC may impose the fQllowing taxes, fees·, charges, etc. in its area: (a) On sta.lls opened at cattle and -regular l::!.a.l0., fa.irs, fc·s1;ival s , etc. (b) On registratiQn and renewa.l of rickshaws, .L~~i'<SS, puah-ecur-ts , etc. (c) On rents, bitauri, etc. (2) The VDQ ant o whQse area any prescribed vehicle first enters into the Kingdom o r Nepal, from abro ad may dmp o se a tax in the pr escr fb- d manner on such vehicles on a daily basis. Once the t a.x is p aid in one VDC area, it shall no t be cof.l.ect ed elsewhere a gaan, 32. Arrar~ements for ApprQval Qf CQnstruction pnd other CQntracts (1) The VDC shall undertake co ne't r-u c't Lon pr oj ect a in the following manner : (a) All cQntracts and other transactiQns shall be conducted a.ccording to current law'. (b) The appr-opzf.at e agencies must maant ai n account s and records of Village-level plans. (2) 'rne VDC may have development and oons t ruct aon pr-oj ect s impl ement ed in the prescribed manner t hrough users' gr-oups , or' t hroug h cont r-ac t s or- on wage bas t s , directly or through a non-govez-nmentaf organfzat Lqn , (3) Documents relating t o co rrt r-eot s t o be gra.nted by the VDC shall be signed by the Chairman and the Secretary j OiL tly. 33. Transfer Qf Funds NQt mer-e tha.n 10 percent frQm ea,ch head Qf the annual budget approved by the VDC may be transferred tQ anQther head by the Chairman. PrQv1d~d that no fund shall be transferred to the oontingency and financial ass iet ance heads. 34. Appr9v~1 fQr Sale bv Auct ion (1) Permission must be Qbtained in the following manner While selling by auct Lonfihs goods or property of the VDC. . (a) From the Chairman of the Vnc for the auction sale of goods costing not more than Rs. 5,000 and, t b) From the Vr.c in case the cost of the goods is hi-gher. (2) The proc eda r-s Qf auc t Lon sale shall be a cc or-ddng t o currant law. 35. Unspent Hudget balances Unspen t budget balances of any fiscal year shall be c3.~"ried forward to the budget of the next fiscal yev.r for completing unfinished projects and programs of the current year. 36. Accounts a~ rlecorg~ (1) The VDe shall maintain particulars of its income and expendi ture according to the heads prescribed for government. exp end it ur-ea, indicat ing each source of income. (2) The vee must maint ain record s according to current law. 37. Meeting Allowance The VDC may pay meeting allowance in the p rescrIbed wanner to its members for havill€' attended its meetings from income earned through its own resources. 38. Propert~ of th~-Y~ (1) The VDC ·shall have full title to property of the follow ing cat eg or-Lea within the VDC area, and i 1; nius t look after and manvge such property : (a) Property constructed or pur-chaand through t he fund of the VDC or gr-ant ed by HMG or a.ny individual. (b) Public sewerages, channels, bridges, t anks , temples, roadside shelters, wells, water-s~)outs, pa..3(;ure grounds, ghats, outlets and paths which are neither ~nod·~r. the control of HMG or the DDC,nor own~d by any an ~vdduuL • (c) Unclaimed wa.ste lands not exceeding 5~ ropan~ or 4 bighas. (d) Forests granted according to current forest legislation, or by fu~G; Provided that only rights granted by current forest legilsation shall be available in respect to such forests .• (2) The VDC sha.ll not sell or otherwise trasnfer the property mentioned in Sub-Section (1) without the approval of HMG. In case it does so, such transaction sholl be ~!!£i2 invalid in all circumstances. 39. Audit A person designated by the VDC shall conduct the internal audit of the ,. uccoun't a of income and expenditure of the VDC. Final audit shall be conducted by a registered auditor appointed by the DDC. 189 Chapter 8 Arrangements Regerging Administration and Staff 40. Appointmp.nt o~cretary The Secretary of the VOC shall be appointed by Hlw1G. 41. Adminiatrative Control (1) 'The Secretary and other employees deouted to the VDC shall remain under its control. (2) The VUC may recommend to the concerned agency that any employee who has been deputed to the VDC be rewarded if he does good work, and that action be taken agai~~t him if his performance is not good. 42. Allocation of Staff and ~intment (1) The VDC may appoint employees in the light of it$ work load with remunerations to be pa.id from its internal resources. (2) The VDC shall establish a permanent fund and cr edf.t a prescribed percentage 'from its annual income f~om internal resources for providing prescribed facilities to employees whose salaries are paid from its internal resources. (3) HMG shall make availoble to the DDC the amount required for the payment of salaries and allowances of employees appointed..by HMG in the VDC. 43. Ser"ice, Fa.cilities, and Control of VDC Employees The VDC shall control and take action in the ~,~ manner through tne S~cretp.ry against employees appointvd by i~. Chapter 9 JUdicial Powers Relating to Complaints and Compromise 44,. Power to Hear Complaint s COIIJPla.int s in resp ect to the following matters within the VDC area may be filed wit h the VOC (a) Encroachment on paths or outlets. (b) Walls of terraces or boundaries. (c) Wages and rent e, (d) Use of ghats and protection of public property. (e) Dams and irrigation channels, o~ apportionment of water. (f) Disputes regarding minor monetary transactions. (g) Pastures, fodder, firewood, etc. 190 45. Compromise (1) In case a complaint is filed under Section 44 with the VDC, the VUC shall summon both sides, discuss the matter, a.nd persua.de them to effect a compromise. In case a compromise cannot be effected, the VDC shall indicate the matter a.ccordingly, and inform the concernGd side to file a complaint in tho court within three months from the date when the complaint was filed with the VDC. (2) While effecting a compromise, the VDC may collect the hak3auni fee in the manner prescribed in current law. (3) other procedures relating to compromise shall be as prescribed. 46. Files and Documents to Remain Under the Custody of the Secretary. Files and documents relating to complaints filed with the VDC shall remain under the custody of the Secretary. 47. Devolution of Casp,~ Cases or complaints pending with the VDCs formed under the 1990 VDC Act shall, devolve on the VOCs formed under this act. Chapter 10 powers 52! HMG and thPc District D~Yelopment Comrnitt-ee 48. Power to Issue Directiv~ (1) HMO may direct the VDC to take action as follows : (a) To abolish, reduce, or break contracts, taxes, fees, charges, etc. in the public interests.• (b) To have the work of the VOC and its store records inspected. (2) The DDC may issue necessary directives to the VDC. (3) It shall be the duty of the appropriate VDC to comply with the directives of Hm to and the DDC. 49. Investigatio~ (1) In case HMO considers it necessary to conduct invest igat tons into a.ny abuse, misappropriat ion or corruption of the funds of the VDC, or any matter of public interests, it may depute an invesgiation toam thro ugh the DDC. 191 (2) HlVlG shall take necessary action on the basis of the report submitt ed by the investigation tea.m under Sub-Section (1). (3) Nothing contained in Sub-Section (1) and Sub-Section (2) shall prej udice any action to be taken under current law. (1) ln caae HJVIG foels t hat any VDC has taken any of the followinc actions, it may eu sp onc such VDC by not ificat ion in the Negal Raj ap atra by mentioning • the matter: (a) Any action in contravention of the Constitution of the Kingdom of Nepal, 1990. (b) Any action th~t is likely to undermine the soveroignty, integrety, nationalism, and communal goo<i.YJill of the Ki~dom of Nepal. (c) Abuse of authority. (d) In case it is proved that corruption has been committed through misappropriation of the property or inc ome of the VDC. (2) Before SllSP em ing any VDC und er Sub-Sect ion (1), it shall not be dep r-Lved of an opportunity to prssant reasons, if any, why it should not be suspended, except in specia.l and gra.ve circumstancos. <:5) In case any VDC has been suspended according to Sub Section (1), HMG may des"ignate an authority to diRcharge it s functions. (4) Invest igations shall be conducted in the prescribed manner, and the matter disposed of within three months, in coneection With a VDC which has been suspended under Sub-Section (1). If this is not done within such time-limit, the suspension shall be ipso facto inoperat ive. ( 5) In ca.se investigat ions condu cted according to Sub Section (4) reveal adequate reasons, HMG may dissolve such VDC by notification in the Nepal Rejapatra. (6) In case & VDC is dissolved according to Sub-Section (5), a stat ement indicat il€ the reasons must be presented in both Houses of the Parliament. (7) Election of members of a VDC Which is dissolved according to Sub-Section (5) must be held w.ithin one year after such dissolution. Until the elections are held, H~G shall make arrangements for having the functions of the VOO performed. 192 51. Extension ~f Time-Limit In case elect ions of members of a VDC cannot be held Ln time becauae of special c i r-cumstances , HI'lG mny "'"nko ar-rangeraen to for having the functions per-f'o.rmed by ext end Lng t ne time-lind t for not more than one year, or othervlise. 52. Hemunerations HMG may prescribe the remunerations of the Chairma.n and the Vice-Chairman of the VDC. Chapter 11 Penalties 53. VOO lvay....l!!m.Q.§§. Penalties (1) In case any person does anyt hing in contravention of this act, or the rules or bye-rules framed, or orders issued hereunder, the VDC may impnse penalties as ment ioned elsewhere in this act, or else impose a f~e of not more than Ra , 500. In case the offense is repeated, the amount of the five shal.L be doubled for each successive offense. (2) In case any person alters, removes, or damages any public property lying within the area of the VDe, he shall be punished 1:1..-3 provided for in current l~lI'l, or else fined as provided for in Sub-Section (1). The VDC may recover the amount of such loss .or damage fr('l'll such person, or have him res tore the property to i t:J oJ."ii~i!lal condition. Chapter 12 Nis cellaneous 54. Powers l'13.V He Handed Over (1) HJv~ may hand over any or all of t he powers vested in it under this act to any committee, inst i tution, or authori ty by notification.. in the i'lepal Ra.japatra. (2) HMG may resume the powers handed over according to Sub-Section (1) at any time. 55. Q911ection As Arrears Due to the Government In case any person default s in t he payment of fees and charges prescribed or imposed by the VDC, or to pay off arrears, the District Administration Office shall recover the amount in the same manner as arrears due to the {!.cver-· ~nt. 193 56. VDC IVIay IvlElke Rec~!ldat ions The vnc may make reconmendat ions to HfVlG or the nnc in any matter concerning the welfare of the local inhabitants. 57. Collection of P",)'Lnent s In casu the VDl; collects paymont s on behalf of anyone it IIJE:.y collect f3 service char'ge on such amount in the prescribed munnur-, 58. ~ ~hY ColI ACt Payments The VOC she l.'l r-ec oLve the proceeds from the sale of forest products which wp.re being smugpled in con~id~ration of hnving extended cooporntion in chocking pooching and smuggling of forest products. 59. Power to Prome RUI e::; nnd bvg-RuluS (1) HlvlG may frnme necas coury rules for implement ing the o oj ect Lvea of this DCt. (2) Subject to this act nnd the rules framed hereunder, the VDC may frame byp.-rules for discharging its functions and duties. Such bye-rules shall be enforced aft er t hey are approved by the DDC. 60. Devolution of Assets und LiabiJites After t ue commencement of this ne t , the asset s and liF.lbi.litins of VDCs f'o rmod und er- the 1990 VDC Ac t 3h~lll devolve on VLCs formed under this act. 61. Action Not to be RegQrded As Invalid Notwithstanding a.nything corrta fned in this act, in case there has been ony defect in the formotion of the VDC, or in case any a.ction has been taken while the post of any member was vacant, t he act ions of the WC shall not be invalid simply by reason thereof. 62. Repeal The 1990 VDC Act has been repealed. 63. Convers1.Q1L The terms Village Assembly or Village Panchnyat, occurring in current law ha.ve been replaced by Village Development Committee. Royu.l Saul aff ix ad on: Chaitra 26, 2048 (April 8, 1992). ***il***