Chapter V FINANCIAL PROVISIONS

(1) For the purpose of enabling the Authority to carry out its objects within the capital region and to defray expenditure, including defraying initial expenses, and for the provision of working capital, a fund by the name ‘development fund’ with a seed capital of Rs. 1,000 crore (Rupees One Thousand Crores) shall be created for the purpose of administering the Act. (1A) A separate Capital City Infrastructure Development Fund shall be created within the Development Fund to enable implementation under section 53 (f) of this Act. (2) The Authority shall have the power to maintain and manage the Development Fund and allocate finances based on the plans and programmes of the functional departments or line agencies for undertaking development of amenities and infrastructure facilities and to monitor and exercise financial control over the budgetary allocations concerning development works made through it to the various public agencies, line agencies and other agencies; (3) The Authority shall manage and operate the development fund to which shall be credited: (a) all moneys received from the Central Government and the State Government by way of revolving fund, grants, loans, advances or otherwise; (b) all moneys borrowed by the Authority by way of loans or debentures; (c) all moneys received by the Authority from the disposal of lands, buildings and other properties, movable and immovable; (d) sum of money received from projects implemented under development schemes; (e) all moneys earned from remunerative projects and schemes by way of rent or otherwise, and disposal of its assets; (f) sum of money received by way of user charges; (g) all development charges or other charges, fees received under the Act or rules or standing orders made there under; (h) all monies received from financial institution or other agencies in the form of equity; and (i) any other sum of money received by the Authority from any other sources, including constituent local bodies, for performing its functions. (3A) All the funds mentioned under sub-section (3) pertaining to implement under section 53 (f) of this Act, shall be accounted for under Capital City Infrastructure Development fund and shall be managed and operated by the Authority; (3B) All properties, funds and dues which are vested in or realizable by the Authority pertaining to Capital Region (for the purposes of the Act) shall vest in or be realizable by the State Government and by the Authority on behalf of State Government; (3C) All liabilities which are enforceable against Capital Region Development Authority in the Capital Region shall be enforceable against the State Government and against the Authority representing the State Government. (4) The Authority may accept grants, subventions, donations, and gifts from the Central or State Government or local body or any individual or body whether incorporated or not, for all or any of the purposes of the Act on such terms and conditions as mutually agreed upon. (5) The Development Fund shall be applied towards meeting,- (a) the expenditure incurred in the administration of the Act; (b) the cost of acquisition of land for the purposes of the Act; (c) expenditure for any development of land for ensuring planned development in the capital region; (d) any expenses incurred by the Authority in connection with preparation of perspective plan, master plans, area development plans, and infrastructure plan or any other plans, undertaking surveys, studies, and execution of projects and schemes; (e) the maintenance of sinking fund and other separate accounts required under the Act; (f) the construction of buildings, development of infrastructure and provision of amenities and such other public purposes as required for the capital city area development. (6) The development fund shall be ringfenced to ensure that it can only be used for the purposes specified under the Act and also for the purposes of infrastructure in the capital region. Utilization of funds for any other purposes other than the specified under the Act shall be exercised only after placing the proposals before the Authority by the Commissioner and after approval by the Authority. (7) The development fund shall be governed by the following principles, namely,- (a) Head of Finance of the Authority shall be responsible for administering the development fund and should be responsible for its administration, management and monitoring; (b) The development fund shall be audited annually by reputed professional audit firms; (c) The development fund shall be managed using professional fund management practices including treasury, cash management and investment portfolio management; (d) All returns generated via investments made using development fund shall accrue back to the development fund; (e) The Head of Finance shall prepare and submit annual investment plans (along with the budget) outlining investment and funding strategy for the year. (8) In accordance with the provisions of this Act a Revolving Fund shall be created for the Authority with a fund of Rs. 250 crores (Rupees Two Hundred and Fifty Crores) for the purpose of performing its functions under the Act and for undertaking development of amenities and infrastructure facilities in the capital region.

(1) The Authority shall have the power to collect such fees, charges, user charges, cesses, arrears or such other revenues as prescribed. Explanation:- For removal of doubts, it is hereby declared that the Authority may,- (a) levy and collect such fees for the execution of works arising out of the development plans and for provision of other services and amenities; (b) to levy and collect such scrutiny fees for scrutiny of documents submitted to the Authority for permission for development; (c) to levy and collect the development charges; (d) to levy and collect the user charges for various services delivered in the development area; and (e) to levy and collect impact fee, urban infrastructure fee, cess or any other fee incidental to mobilise funds and other incidental expenses.

The Authority may, sell any developed land or part thereof.

(1) The Authority may, from time to time, for the purposes of this Act, raise loans from the Government or, mobilise resources from any other source, either by creation and issue of debentures, bonds, or otherwise. (2) The Authority shall pay interest on such loans at such rates and at such times, and shall make such provision for the mode and time or times of repayment of principal. (3) The Authority may, from time to time borrow by way of a temporary loan or overdraft from a bank or otherwise, any sum which it may temporarily require,— (a) for the purpose of defraying expenses pending the receipt of revenues receivable by it in respect of the period of account in which those expenses are chargeable; or (b) for the purpose of defraying, pending the receipt of money due in respect of a loan authorised to be raised under sub-section (1), expenses intended to be defrayed by such loan. (4) Loans, debentures and bonds issued under this section may be guaranteed by the Government as to the repayment of the principal and the payment of interest at such rate as may be agreed upon. Explanation:- For removal of doubts, it is hereby declared that the Authority may raise finance for any project or scheme for the development of the capital region and extend assistance to the local bodies in the region for the execution of such project or scheme; (5) All loans raised by the Authority under this section, together with all interest and other sums payable in respect thereof, shall be charged indifferently upon all the revenues of the Authority and shall rank equally with one another, with priority over any other charge on the revenues of the Authority. (6) The Authority shall maintain a sinking fund for the repayment of loans and moneys borrowed and shall pay every year into the sinking fund such sum as may be required under the borrowing contract and sufficient for repayment within the period fixed for all moneys so borrowed.

As a consequence of the vesting of any property, rights or liabilities of the Government in the Authority under this Act, or of any capital injection or other investment by the Government in the Authority in accordance with any written law, the Authority may issue such securities or other securities to the Government as mutually agreed.

(1) The Authority shall every year cause to be prepared and shall adopt annual estimates of income and expenditure of the Authority for the ensuing year. (2) Supplementary estimates may be adopted by the Authority at any of its meetings. (3) A copy of all annual and supplementary estimates shall, upon their adoption by the Authority, be sent forthwith to the Government. (4) The Authority may transfer all moneys or part thereof assigned to one item of expenditure to another under the same head of expenditure in supplementary estimates. (5) A summary of the annual estimates and supplementary estimates adopted by the Authority shall be published in the official Gazette.

(1) The Authority shall prepare for every year, and annual plan, and further shall as soon as practicable after the end of each financial year but not later than 30th September in each year furnish to the Government a report of its functions during the preceding year. (2)The Government shall cause a copy of every such report to be presented to State Legislature.

The Authority may invest its funds in accordance with the standard investment power of statutory bodies as defined under law.

The Government may, after consultation with the Authority, give directions to the Authority as to the manner in which its revenues shall be applied.

(1) The Authority shall constitute for the benefit of its whole time paid members, officers and other employees in such manner and subject to such conditions, as may be prescribed, such contributory pension and provident fund as it may deem fit. (2) Where any such contributory pension or provident fund has been constituted, the Government may declare that the provisions of the Provident Fund Act, 1925 (Central Act, 19 of 1925), shall apply to such fund as if it were a Government Provident Fund.

(1) The Commissioner shall have power to administratively sanction works and investment plans including tender approvals costing up to Rs. 10 crore, the executive committee up to Rs. 100 crores and Authority for works beyond Rs. 100 crores. Such limits may be modified by the Authority at any time through standing orders. (2) The financial provisions set out in the Third Schedule shall have effect with respect to the Authority.