Chapter II ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE CORPORATION

(1) The Government shall, by notification establish for the purposes of this Act, a Corporation to be called the Andhra Pradesh Infrastructure Development Corporation. (2) The Corporation established under sub-section (1) shall be a body corporate having perpetual succession and a common seal, with power; to contract, acquire, hold and dispose of property, both movable and immovable, and to do all things necessary for the purposes of this Act, and may sue and be sued by its Corporate name. (3) The Head Office of the Corporation shall be at Hyderabad.

(1) The Corporation shall consist of the following members, namely:-(a) Chief Minister - Chairman; (b) Minister - incharge of Planning - Member; (c) Minister - Panchayatraj & Rural Development, Water Supply and Employment Generation - Member; (d) Minister - Municipal Administration and Urban Development - Member; (e) Principal Secretary or Secretary to Government Panchayat Raj & Rural Development Department - Ex-Officio Member; (f) Principal Secretary or Secretary to Government- Municipal Administration and Urban Development Department - Ex-Officio Member; (g) Principal Secretary or Secretary to Government - Finance Department - Ex-Officio Member; (h) One Non-Official Member Representing reputed and recognised Financial Institutions, to be nominated by the Government; (i) One Officer to be appointed by the Government as the Member Secretary of the Corporation, who shall be the Managing Director of the Corporation; (j) Three other members to be nominated by Government from Officials or non-Officials. (2) The term of Office of nominated Members shall be for a period of one year unless terminated earlier by the Government. (3) The non-official members of the Corporation under clauses (h) and (j) of sub-section (1) shall receive such remuneration and allowances as may be laid down by regulations. (4) The Official Members of the Corporation shall receive such compensatory allowances, for the purposes of meeting the personal expenditure in attending the meetings of the Corporation, as may be laid down by regulations. (3) The non-official members of the Corporation under clauses (h) and (j) of sub-section (1) shall receive such remuneration and allowances as may be laid down by regulations. (4) The Official Members of the Corporation shall receive such compensatory allowances, for the purposes of meeting the personal expenditure in attending the meetings of the Corporation, as may be laid down by regulations.

(1) There shall be Executive Committee consisting of the following Members, namely:-(a) Minister - incharge of Planning - Chairman; (b) Managing Director of the Corporation - Vice-Chairman; (c) Principal Secretary to Government, MA & UD Department - Ex-Officio Member; (d) Secretary to Government (RD), PR&RD Department - Ex-Officio Member; (e) Chief Accounts and Finance Officer of the Corporation - Ex-Officio Member; (f) One Representative of any Department of the Government as may be nominated by the Government. (2) The powers, functions, and duties of the Executive Committee shall be such as may be laid down by regulations.

(1) A person shall be disqualified for being nominated as a non-official Member or continue to be such Member, if he,-- (a) is an employee of the Corporation except the Managing Director; (b) is of unsound mind, and stands so declared by a competent court; (c) is an undischarged insolvent; (d) is convicted for an offence involving moral turpitude; (e) has, directly or indirectly by himself or by any partner, employer or employee, any share or interest, whether pecuniary or of any other nature, in any contract, or employment with, by or on behalf of the Corporation; or (f) is a Director, Secretary, Manager or other Officer of any company, which has any share or interest in any contract or employment with, by or on behalf of, the Corporation: Provided that, a person shall not be disqualified under clause (e) or clause (f) by reason only of his or the company in which he is a Director, Secretary, Manager or other Officer, having a share or interest in,- (i) any sale, purchase, lease or exchange or immovable property or any agreement for the same; (ii) any agreement for loan of any money or any security for payment of money only; (iii) any newspaper in which any advertisement relating to the affairs of the Corporation is published; (2) the Government may remove from the Corporation any non-official Member nominated by the Government, who, in its opinion,- (a) has been disqualified under sub-section (1); (b) refuses to act; (c) has so abused his position as a Member as to render his continuance on the Corporation detrimental to the interest of the public; or (d) is otherwise unsuitable to continue as Member. (3) no order of removal under sub-section (2) shall be made unless, the non-official Member has been given an opportunity to submit his explanation to the Government and when such order is passed, the office of the Member so removed shall be deemed to be vacant. (4) A Member who has been so removed under subsection (3) shall not be eligible for reappointment as Member or in any other capacity, in the Corporation.

(1) The Corporation shall meet at such times and places as the Chairman may decide and shall, subject to the provisions of sub-section (3), observe such rules of procedure in regard to the transaction of business at its meetings including the quorum thereof as may be laid down by regulations: Provided that, at least one meeting shall be held in every three months period. (2) The Chairman or, in his absence such other Member as may be approved by the Chairman, shall preside at every meeting of the Corporation. If any reason, the Chairman and such other Member are unable to attend any meeting, the meeting shall stand adjourned. (3) A Member, who is directly or indirectly concerned or interested in any contract, loan, arrangement or proposal entered into, or proposed to be entered into by or on behalf of the Corporation, shall, at the earliest possible opportunity, disclose the nature of his interest to the Corporation, and shall not be present at any meeting of the Corporation when any such contract, loan, arrangement or proposal is discussed, unless his presence is required by the other Members for the purpose of eliciting information, but no Member so required to be present shall vote on any such contract, loan, arrangement or proposal: Provided that a Member shall not be deemed to be concerned or interested as aforesaid by reason only of his being a share holder of a company concerned in any such contract, loan, arrangement or proposal.

(1) The Corporation may, from time to time, appoint a committee, or committees of Officials, non-Officials and its Members consisting of such number of them as it may think proper and may delegate to such committee such powers of the Corporation as it may deem fit for carrying out the purposes of this Act. (2) The Corporation may appoint a Consultant or Consultants acting in an advisory or in any other capacity, in matters relating to its projects, works and schemes. (3) The Corporation may appoint such auditors to certify the valid execution of its projects, works and schemes as it may deem fit.

(1) The Corporation or any of its committees may invite any Officer of the Central Government, State Government, a Local Authority, or any organisation or any other person to attend its meeting or meetings as a special invitee for the purpose of assisting or advising, on any matter or matters. The person so invited may take part in the proceedings, but shall have no right to vote. (2) The person so invited shall be entitled to draw such honorarium or compensatory allowance for the purpose of meeting the personal expenditure in attending the meetings of the Corporation or any of its committees as the Corporation may determine, from time to time.

Any vacancy of a Member of the Corporation, shall be filled as early as practicable, in like manner as if the appointment were being made for the first time.

No Act done or proceedings taken under this Act by the Corporation or a committee appointed by the Corporation shall be invalid merely on the ground of,- (a) any vacancy of a Member or any defect in the constitution or reconstitution of the Corporation or a committee thereof; or (b) any defect or irregularity in the appointment of a person as a Member of the Corporation or of a committee thereof; or (c) any defect or irregularity in such act or proceedings, not affecting the substance. (2) without prejudice to the generality of the foregoing provision such power shall include the power,- (a) to acquire and hold property, both movable and immovable as the Corporation may deem necessary for the performance of any of its functions, duties, and activities and to lease, sell, exchange or otherwise transfer any property held by it on such conditions as may be deemed proper by the Corporation; (b) to construct or cause to be constructed such facilities within the scope of its functions, and such other works and structure as may be required; (c) to take measures to prevent pollution of any water under its control and to take all measures deemed necessary to prevent discharges into such water of effluents which are harmful to water supply, or public health; (d) to assist the water users associations and any other societies or organisations formed under any other law for the time being in force for the better use of facilities made available by the Corporation; (e) to engage suitable consultants or persons having special knowledge or skill to assist the Corporation in the performances of its functions; and (f) to do all such other things and perform such other acts as may be necessary for or incidental or conducive to any matters which are necessary for furtherance of the objectives for which the Corporation is established.

(1) The Government shall appoint the Managing Director as provided in sub-section (1) of section 4, a Chief Engineer, a Superintending Engineer, a Chief Accounts & Finance Officer and such other officers as may be required. (2) The Corporation may, with the prior approval of the Government, appoint such other Officers and Servants subordinate to the Officers mentioned in sub-section (1) as it considers necessary for the efficient performance of its duties and functions. (3) The conditions of appointment and service of the Officers and Servants and their scales of pay shall,- (a) as regards the Officers mentioned in sub-section (1) be such as may be prescribed; and (b) as regards the Officers and Servants mentioned in sub-section(2) be such as may be laid down from time to time by regulations. (4) Where any officers and employees belonging to any category in any Department of the Government are likely to be rendered surplus wholly or partially to the requirements of the Government due to the functioning of the Corporation by or under this Act or where the services of such officers and employees are required by the Corporation for efficient exercise of its powers, performance of its duties or discharge of its functions, the Government or any officer duly authorized by the Government in this behalf may, by order, depute such officers and employees to the Corporation as may be found necessary from time to time, who shall be accordingly employed by the Corporation on deputation and their salaries and allowances shall be paid from the Corporation Fund. (5) The period of deputation of any such officer or employee to the corporation shall ordinarily be five years, on expiry of which, such officer or employee shall stand repatriated to his parent service except when any such person is required by the Government to be repatriated earlier on such grounds as promotion, revertion, termination or superannuation or any other reason: Provided that, during the period of such deputation all matters relating to the pay, leave, allowances, retirement, pension, provident fund and other conditions of service of such person on deputation shall be regulated by such rules governing such matters at the time of the deputation or such other rules as may, from time to time, be made by the State Government, but they shall not be entitled to any deputation allowance. (6) All such persons on deputation to the Corporation shall continue to have a lien on their posts in their parent service and the period of their service on deputation under the Corporation shall, on their repatriation to their parent service, be counted for increments, pension and other matters related to their service. (7) The Corporation shall have the authority to transfer the officers, employees and servants to any area of its operation. (8) Save as otherwise provided in this section, the terms and conditions of service of the officers and employees on deputation to the Corporation shall not be less advantageous than those applicable to them immediately before such deputation and shall not be varied to their disadvantage except with the previous sanction of the State Government. (9) Subject to the superintendence of the Corporation, the Managing Director shall supervise and control all its officers and employees including any officers and employees of the Government appointed on deputation to the Corporation.

No person who has, directly or indirectly, by himself or by his partner or agent, any share or interest in any contract, by or on behalf of the Corporation or in any employment under by or on behalf of the Corporation otherwise than as an officer or servant thereof, shall be qualified to be an officer or servant of the Corporation.

All proceedings of the Corporation shall be authenticated by the Chairman and all orders and instruments of the Corporation shall be authenticated by the Managing Director or any other officer of the Corporation as may be authorised in this behalf by regulations.