Chapter III PROPERTY AND CONTRACTS

1. (1) As from such day as the Andhra Pradesh Government may appoint by notification in the Official Gazette,-
   • (a) all properties and other assets related or connected to Shipping, Inland Waterways & water Transport and Water Tourism vested in various departments of the Andhra Pradesh Government, immediately before such day shall vest in the Authority;
   • (b) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with, or for the AP Government immediately before such day for or in connection with inland Waterways & Transport and Water Tourism shall be deemed to have been incurred; entered into and engaged to be done by, with or for the Authority;
   • (c) all non-recurring expenditure incurred by the Andhra Pradesh Government for or in connection with purposes of Inland Water Transport and Water Tourism up to such day and declared to be capital expenditure by the State Government shall subject to such terms and conditions as may be prescribed by the AP Government, be treated as capital provided by the AP Government to the Authority;
   • (d) all sums of money due to the AP Government in relation to Shipping, Inland Waterways & Transport and Water Tourism purposes by any other department of AP Govt, immediately before such day shall be deemed to be due to the Authority;
   • (e) all suits and other legal proceedings with respect to any matter in relation to Inland Water Transport, Water Tourism by any department of AP Govt, which having been instituted by or against the AP Government are pending, or which could have been so instituted, immediately before such date shall on and after such date be continued or instituted by or against the Authority; and
   • (f) The Authority can take employees from other departments of Govt, of AP, Central / State PSU/Autonomous Bodies on deputation basis or appoint regular employee or contract employees on its own as per procedure followed by the Government. Provided that during the period of deputation of any such employee with the Authority, the Authority shall pay to the AP Government or concerned department in respect of every such employee, such contribution towards his leave salary, pension and gratuity as may be prescribed by the Government of Andhra Pradesh. Provided further that any such employee, who has, in respect of the proposal of the Authority to absorb him in its regular service intimated within such time as may be specified in this behalf by the Authority his intention of becoming a regular employee of the Authority, shall be absorbed by the Authority in its regular service.
2. (2) If any dispute or doubt arises as to which of the properties, rights or liabilities of the AP Government have been transferred to the Authority or as to which of the employees serving under the AP Government are to be treated as on deputation with the Authority, under this section, such dispute or doubt shall be decided by the AP Government in consultation with the Authority and the decision of the AP Government thereon shall be final.
3. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 or in any other law for the time being in force, the absorption of any employee by the Authority in its regular service under this section shall not entitle such employee to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority.

Subject to the provisions of section 15, the Authority shall be competent to enter into and perform any contract necessary for the discharge of its functions under this Act.

1. (1) Every contract up to Rs. 100 crores on behalf the Authority shall be made by the Chairman or such other member or such officer of the Authority, as may be generally or specially empowered in this behalf by the Authority and such contracts or class of contracts as may be specified in the regulations shall be sealed with the common seal of the Authority: Provided that no contract exceeding such value or amount as the Government of Andhra Pradesh may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the Authority : Provided further that no contract for the acquisition or sale of immovable property or for the leasing out or taking on lease of any property for a term exceeding sixty years and no other contract exceeding such value or amount as the Government of Andhra Pradesh may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the AP Government: Provided after that, the manner in which the Lease sale / acquisition of the immovable properties shall be prescribed by the Board of the Authority.
2. (2) Every Contract shall be entered into and executed after obtaining approval of the Board of Authority.
3. (3) No contract shall be executed without the approval of Board of the Authority.
4. (4) In case the seat of Chairman is vacant, the CEO of the authority is empowered to enter into contracts in the normal course of the activities of the authority and if required, with Banks after obtaining approval of the board at their meeting.