The Government of Himachal Pradesh on March 07, 2026, issued the Himachal Pradesh Municipal (2nd Amendment) Act, 2025, further to amend the Himachal Pradesh Municipal Act, 1994.
The following has been amended:
• Key amendments include the insertion of a new definition of “Audit Agency” under Section 2 and changes in Section 14 and Section 24 to clarify the tenure of municipal councils and mandatory acceptance of resignation within 15 days.
• The Act revises financial and administrative provisions such as Section 66 (user charges recovery as arrears of property tax) and enhances penalties across several sections including Sections 82, 83, 111, 113–115, 126–129, 133–135, 184, 191–200, 207, 211, 216, 221, 227 and 240, mainly by increasing fines from earlier lower limits to higher ranges (e.g., ₹2,000–₹5,000).
• Further, Section 255 is amended to provide for audit of municipal accounts by the Principal Accountant General and State Audit Department, and Section 271 introduces provisions for dissolution of municipal councils when areas are converted into municipal corporations.
• Importantly, a series of amendments in Sections 304-A to 304-S significantly revise penalty provisions by reducing imprisonment terms but increasing fines up to ₹20,000 and introducing continuing penalties.
• Overall, the amendments focus on strengthening audit mechanisms, improving administrative clarity, and enhancing the penalty framework for better municipal compliance.
[Notification no. - Act No. 7 of 2026]
