Aljunied-Hougang-Punggol East Town Council (AHPETC) is set to appear in court on Feb 18, for operating a Chinese New Year fair from Jan 9 to 30, without a licence.
The Workers' Party-run town council said in a statement on Thursday that it had received the summons from National Environment Agency (NEA).
The statement also said that the town council had "initiated communications with the over its intention to run the event since Dec 20 last year, with the nature of the community fair and the benefit to residents clearly stated".
Last month, a fair approved by AHPETC had to stop its operations because its organiser had failed to get a relevant licence from NEA.
"In addition to summons against the town council as the organiser of the fair, the NEA has also issued notices to attend court and to pay fines to residents and their family members assisting there on Jan 28, 29 and 30," said AHPETC.
"As the case against the (town council) is already fixed for court mention... it would not be appropriate to comment further on the matter at this time. The TC will present its case in court."