Himachal Pradesh Implements Stricter User Charges and Penalties for Municipal Governance
New Regulations on User Charges and Penalties
Dues to be collected as arrears of previous property tax
Shimla: Residents living in urban local bodies throughout Himachal Pradesh are now required to promptly pay user charges, as any unpaid amounts will be collected as arrears alongside last year’s property tax. This regulation is a significant aspect of the Himachal Pradesh Municipalities (Second Amendment) Bill, 2025, which was approved by voice vote during the winter session of the Vidhan Sabha in Dharamshala, modifying the 1994 Act.
The Bill further clarifies that if any municipal area is designated as a Municipal Corporation during the winter session of a Municipal Council, the current term of the Council members will remain valid until the body either completes its term or is dissolved. Additionally, a new clause requires the Deputy Commissioner to accept the resignation of the Chairperson or Vice-Chairperson within a 15-day timeframe.
Another important reform mandates that the audit of all municipal records be conducted through the state Audit Department, thereby improving accountability and financial oversight.
Hefty fines, daily penalties sharply revised
In a comprehensive revision, penalties across over 30 sections have been significantly increased. Fines that were previously set at ₹200, ₹500, ₹1,000, or ₹2,000 can now vary between ₹1,000 and ₹5,000, depending on the violation's nature. Daily penalties, which were earlier limited to ₹50 or ₹100, have been raised to ₹500 per day for ongoing non-compliance.
Stricter penalties have been introduced for unauthorized construction, illegal commercial activities, and violations within Municipal Corporation areas. Minimum fines have been established for the first time, ranging from ₹2,000 to ₹5,000. In certain cases, the jail term has been extended from six months to one year, reflecting the government's strict stance.
Penalty raised for polluting water sources, illegal disposal
Improper disposal of garbage or waste within 50 feet of streams, wells, ponds, water reservoirs, or natural sources will now incur fines between ₹2,000 and ₹5,000. Failure to remove waste after receiving notice will result in an additional penalty of ₹500 per day.
Moreover, burial or cremation at non-designated sites without municipal approval will attract fines up to ₹5,000. Activities such as melting fat, cleaning raw hide, or boiling bones and meat without authorization are now prohibited.
Conducting cinema or stage performances outside designated venues without prior permission will also incur penalties. Establishing brick kilns, fuel storage, new factories, or workshops without the necessary approvals will lead to increased fines.
The government asserts that the updated regulatory framework is designed to modernize municipal governance, enforce accountability, and align urban civic discipline with current public health and environmental standards.