(1) If any employee of the council knowingly or negligently or maliciously causes damage to the council, he shall be punished with imprisonment for a term which may extend to three months or with a fine which may extend to three thousand rupees or with both.

( 2) If an employee of the council obstructs the auditor assigned to conduct the audit of the council or if he does not give the necessary document or information requested by him, such employee will be fined up to two thousand rupees.

(3) Sub-section (1) and (2) If any employee of the council does any work in violation of this Act or the rules made under this Act, he shall be fined up to one thousand rupees.