Chapter V FINANCE, ACCOUNTS AND AUDIT

Capital of the Corporation:

1. (1) The initial capital of the Corporation shall be such amount as the Government may, by notification, determine.
2. (2) The Government may, from time to time, increase the capital of the Corporation by such amount as it may determine.
3. (3) The capital may be provided for by the Government on such terms and conditions as may be prescribed.

Fund of the Corporation:

1. (1) The Corporation shall have a fund to be called the "Road Development Fund".
2. (2) The following shall be credited to the Road Development Fund; namely:
   • (a) all grants, subventions, donations and gifts made by the Government or any local authority or any other body or any person;
   • (b) the amount paid, or as the case may be, the revenue collected by the Corporation by way of levy of tolls, fees and charges;
   • (c) all moneys received by or on behalf of the Corporation including the interest or dividend on investments;
   • (d) all moneys borrowed by the Corporation;
   • (e) all moneys received by the Corporation from the disposal of movable and immovable properties;
   • (f) all other sums received by the Corporation from any other source.
3. (3) The Fund shall be applied for meeting:
   • (a) the cost of administration and management of the Corporation;
   • (b) the cost of acquiring land and properties;
   • (c) the cost of construction, development, maintenance and repairs of the roads;
   • (d) the repayment of loans and interest thereon;
   • (e) the expenditure incurred in exercise of the powers and discharge of the duties and functions under this Act;
   • (f) any other expenditure which may be incurred for the purposes of this Act.

Charges on the Fund of the Corporation:-

1. (1) The Fund of the Corporation shall be held and applied by the Corporation, subject to and for the purposes of this Act, for payment of the following charges, namely:-
   • (a) the cost of administration of the Corporation constituted under this Act;
   • (b) the amounts required for meeting the expenses incurred in the discharge of its functions;
   • (c) the interest on any loans that may be raised by the Corporation;
   • (d) the cost of acquisition of land;
   • (e) the maintenance of the assets of the Corporation;
   • (f) such other expenses as may be authorized by the Government.

Power to borrow:-

1. (1) The Corporation may, with the previous sanction of the Government and subject to the provisions of this Act and to such conditions as may be imposed by the Government, borrow money from any source by the issue of bonds, debentures, stocks or such other instruments as it may deem fit for carrying out any of the purposes of this Act.
2. (2) The Corporation may also borrow money by way of temporary loan or overdraft from any bank or from the Government.

Expenditure not covered by the budget

1. (1) If during the financial year any sum is required to be spent and such expenditure is not covered by any provision in the budget grant or is in excess of the amount provided in the budget grant, the Corporation shall prepare a supplementary budget and get it approved by the Government.
2. (2) No expenditure shall be incurred by or on behalf of the Corporation unless such expenditure is covered by a budget grant or a supplementary budget.

Investment of funds

1. (1) The Corporation may invest its funds in such securities and in such manner as may be prescribed.
2. (2) The Corporation shall maintain a separate fund to be called the "Road Development Fund" to which shall be credited all moneys received by the Corporation by way of grants, loans, advances, fees, development charges and all other receipts of the Corporation.
3. (3) The fund shall be applied for meeting Administrative expenses of the Corporation and for carrying out the purposes of this Act: Provided that the Government may direct that any portion of the fund which is not required for immediate use shall be invested in such interest bearing securities or in such other manner as the Government may deem fit.

Accounts and audit:

1. (1) The Corporation shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the balance sheet in such form as may be prescribed by the Government in consultation with the Accountant General.
2. (2) The accounts of the Corporation shall be audited annually by the Accountant General or any other person authorised by him in this behalf and any expenditure incurred by him or any person so authorised by him in connection with such audit shall be payable by the Corporation to the Accountant General.
3. (3) The Accountant General and any person authorised by him in connection with the audit of the accounts of the Corporation shall have the same rights, privileges and authority in connection with such audit as the Accountant General has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Corporation.
4. (4) The accounts of the Corporation as certified by the Accountant General or any other person authorised by him in this behalf together with the audit report thereon shall be forwarded annually to the Government and the Government shall cause the same to be laid before the Legislative Assembly of the State.

Submission of Annual Report:

1. (1) The Corporation shall, as soon as may be after the end of each financial year, prepare and submit to the Government before such date and in such form as may be prescribed, a report giving an account of its activities during the previous financial year and the report shall also give an account of the activities, if any, which are likely to be undertaken by the Corporation in the next financial year.
2. (2) The Government shall cause the annual report together with the audit report referred to in section 23 to be laid before the Legislative Assembly of the State within a period of three months from the date of its receipt.

Power of Government to give directions to the Corporation:

1. (1) The Government may issue to the Corporation such general or special directions in writing as they think necessary or expedient for the purpose of carrying out the purposes of this Act and the Corporation shall be bound to follow and act upon such directions.
2. (2) If any dispute arises between the Government and the Corporation as to whether a question is a question of policy, the decision of the Government shall be final.