Development fund and revolving fund

(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.