Section 26. Property and Funds of Gram Panchayat :

(1) A Gram Panchayat
shall have the power to acquire, hold and dispose o f property and to enter
into contract,
Provided that in all cases of disposal of immovabl e property by the
Gram Panchayat, it shall obtain the prior approval of the Government.
(2) All property within the local limits of the jur isdiction of Gram
Panchayat of the nature hereinafter in this section specified, other
than property belonging to or maintained by the Cen tral or the State
Government or a local authority or any other Gram P anchayat, shall
vest in and belong to the Gram Panchayat, and shall with all other
property of whatsoever nature or kind which may bec ome vested in
the Gram Panchayat, be under its direction, management and control,
that is to say—
(a) All general properties;
(b) All public streets, including the soil, stones and other materials
thereof and all drains, bridges, culverts, trees, e rection materials,
implements and other things provided for such streets;
(c) All public channels, water courses, springs, ta nks, ghats,
reservoirs, cisterns, wells, aquaducts, conduits, t unnels, pipes,
pumps and other water works whether made, laid or e rected at
the cost of the Gram Panchayat or otherwise, and al l bridges,
buildings, engines, work, materials, and things con nected
therewith or appertaining thereto and also any adja cent land (not
being private property) appertaining to any public tank :
Provided that water pipes and water works, connect ed
therewith or appertaining thereto which with the co nsent of the Gram
Panchayat are laid or set up in any street by the o wners of any mill,
factory, industry, workshop or the like, primarily for the use of their
employees shall not be deemed to be public water works by reason of
their being used by the public;
(d) All public sewers and drains and all works, materials and things
appertaining thereto and other conservancy works :
Provided that for the purpose of enlarging, deepen ing or
otherwise repairing or maintaining any such sewer o r drain the sub-
soil appertaining thereto shall also be deemed to v est in the Gram
Panchayat;
(e) All sewage, rubbish and offensive matter deposi ted on streets or
collected by the Gram Panchayat from streets, latri nes, urinals,
sewers, cesspools and other places;
(f) All public lamps, lamp-posts and apparatus conn ected therewith
or appertaining thereto; and
(g) All buildings erected by the Gram Panchayat and all lands and
buildings or the property transferred to the Gram P anchayat by
the Central or the State Government or acquired by gift, purchase
or otherwise for local public purposes.
(3) The State Government may, by notification, excl ude any street, bridge
or drain from the operation of this Act or of any s pecified section of
this Act :
Provided that if the cost of the construction of th e work had been
paid from the Gram Panchayat Fund, such work shall not be excluded
from the operation of this Act or any specified Sec tion of this Act, except
after consideration of the views of the Gram Panchayat at a meeting.
(4) The Government may allocate to a Gram Panchayat any public
property situated within its local jurisdiction, an d thereupon such
property shall vest in and come under the control o f the Gram
Panchayat.
(5) For every Gram Panchayat there shall be constit uted a Gram
Panchayat Fund bearing the name of the Gram Panchay at and there
shall be placed to the credit thereof —
(a) Contributions and grants, if any, made by the Central or the State
Government;
(b) Contributions and grants, if any, made by the Z ila Parishad,
Panchayat Samiti or any other local authority;
(c) Loans, if any, granted by the Central or the St ate Government;
(d) All receipts on accounts of taxes, rates and fe es levied by it;
(e) All receipts in respect of any schools, hospita ls, dispensaries,
buildings, institutions or works vested in, constructed by or placed
under the control and management of the Gram Panchayat;
(f) All sums received as gift or contribution and a ll income from any
trust or endowment made in favour of the Gram Panchayat;
(g) Such fines and penalties imposed and realised u nder the
provisions of this Act as may be prescribed; and
(h) All other sums received by or on behalf of the Gram Panchayat.
(6) Every Gram Panchayat shall set apart and apply annually such sum
as may be required to meet—
(a) The cost of its own administration including the payment of
salary, allowances, provident fund and gratuity to the officers and
employees.
(b) Every Gram Panchayat shall have the power to sp end such sums
as it thinks fit for carrying out the purposes of this Act.
(c) The Gram Panchayat Fund shall be vested in the Gram
Panchayat and the balance to the credit of the Fund shall be kept
in such custody as may be prescribed.