Chapter VI FINANCE, ACCOUNTS AND AUDIT

assets vesting in the Corporation shall be held and applied by it, for the purposes of this Act.

1. (2) The Corporation shall have and maintain its own fund, to which shall be credited:
   • (a) all monies received by the Corporation from the Government by way of grants, subventions, loans, advances and the loans raised under this Act;
   • (b) all fees, charges and costs received by the Corporation under this Act;
   • (c) all monies received by the Corporation from the disposal of lands, buildings and other properties, movable and immovable and other transactions;
   • (d) all monies received by the Corporation by way of rents and profits or from any other source.
2. (3) The Corporation may keep current and deposit account with such bank or banks as may be specified by the Government in this behalf.
3. (4) Such accounts shall be operated by such officer of the Corporation as may be authorised by it in this behalf.
4. (5) The Corporation may keep on hand such sum as it thinks fit for its day to day transactions subject to such limits and conditions as may be prescribed.

appropriation duly made in this behalf, from time to time, provide funds to the extent considered necessary, to the Corporation for the performance of the functions of the Corporation under this Act. The Capital provided by the

Reserve and other funds -(1) The Corporation shall make provisions for such reserve and other specially denominated funds as the Government may, from time to time, direct.

1. (2) The management of the funds referred to in sub-section (1), the sums to be transferred, from time to time, to the credit thereof and the application of money comprised therein, shall, subject to the directions if any, issued by the Government in this behalf, be determined by the Corporation.
2. (3) None of the funds referred to in sub-section (1) shall, except with the previous approval of the Government, be utilized for any purposes other than that for which it is constituted.

Government guarantee for the debt servicing whenever necessaryand the Government shall guarantee the payment of the amounts due subject to agreed conditions of such guarantee provided.

and other books in relation to the business and transactions in such form, and in such manner, as prescribed under the Companies Act, 2013(Central Act No.18 of 2013).

1. (2) The accounts of the Corporation shall be audited by an Auditor appointed by the Government, in consultation with the Comptroller and Auditor General of India.
2. (3) Within six (6) months from the end of the financial year, the Corporation shall send a copy of the accounts audited together with a copy of the report of the Auditor thereon to the Government.
3. (4) The Government shall cause the accounts of the Corporation together with the audit report thereon forwarded to it under sub-section (3) to be laid before the State Legislature, as far as possible before the expiry of the year next succeeding the year to which the accounts and the report are related.

contained in the last preceding section, the Government may order that there shall be concurrent audit of the accounts of the Corporation by such person as it thinks fit. The Government may also direct a special audit to be made by such person as it thinks fit of the accounts of the Corporation relating to any particular transaction or class or series of transactions or a particular period.

1. (2) When an order is made under sub-section (1), the Corporation shall present or cause to be presented for audit all such accounts and shall furnish to the person, such information as the said person may require for the purpose of audit. CHAPTER – VII MISCELLANEOUSAND SUPPLEMENTARY PROVISIONS

Shareholders/ State Government, in such form as may be prescribed as per relevant Act, an annual report within six (6) months after the end of every financial year, of its activities during the previous financial year.

furnish to the Shareholders/State Government such returns, statistics, reports, accounts and other information in respect to it’s conduct of affairs, properties or activities or assignment of schemes from time to time.

for prosecution.

payable by any person to the Corporation or recoverable by it on account of any charge, costs, expenses, fees, rent, compensation or any other account under this Act or any rule or regulation made there under or any agreement made with the Corporation and all charges or expenses incurred in connection therewith shall, without prejudice to any other mode of recovery, be recoverable as an arrear of land revenue.

this Act or any rule or regulation made thereunder shall be in writing and under the signature of the officer concerned and shall be widely made known in the locality or in the properties or areas to be affected thereby affixing copies thereof in conspicuous public places, within the said locality or the said properties or areas or by publishing the same by beat of drum or by any other means that the officer may think fit.

Default in performance of duty -(1)If the Government is of the opinion that the Corporation has made a default in the performance of any duty or obligation imposed or cast on it by or under this Act, the Government may fix a period for the performance of that duty or obligation and give notice to the Corporation accordingly.

1. (2) If the Corporation fails or neglects to perform such duty or obligation within the period so fixed for its performance, it shall be lawful for the Government to supersede and reconstitute the Corporation as it deems fit. (3)After the supersession of the Corporation and until it is reconstituted in the manner laid down in Chapter –II, the powers, duties and functions of the Corporation under this Act shall be carried on by the Government or by such officer or officers or Body of officers as the Government may appoint for this purpose, from time to time. (4)All property vested in the Corporation shall, during the period of such supersession, vest in the Government. (5)Where an offence under this Act has been committed by a Company, every person who, at the time the offence was committed, was in charge of and was responsible to, the company for the conduct of the Business of the Company, to be guilty of the offence and shall be liable to be prosecuted and punished as per the applicable laws in force: Provided that, nothing contained in this section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the Commission of such offence.
2. (6) Notwithstanding anything contained in this sectionwhere an offence under this Act has been committed by a company, and it is proved that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation : For the purpose of this section,
   • (a) “Company” means a body corporate and includes a firm, association or persons or body of individuals whether incorporated or not and
   • (b) “Director” means a Director appointed to the Board of a

Authority for prosecution -Unless otherwise expressly provided, no court shall take cognizance of any offence relating to property belonging to, or vested by or under this Act in the Corporation, punishable under this Act except on the complaint of, or upon information received from the Corporation or any person authorized by the Corporation by general or special order in this behalf.

person authorized the Corporation by general or special order in this behalf may, either before or after the institution of the proceedings, compound any offence made punishable by or under this Act: Provided that, where an offence has been compounded, the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence compounded.

previous approval of the Government, delegate any of its powers under this Act to any officer of the Government or any of its officers and permit them to re- delegate specific powers to their subordinates by general or specific order in this behalf.

legal proceedings shall lie against any person or anything which is in good faith done or intended to be done under this Act or rules or regulation made there under.

etc., to be public servants -The Chairman, Vice-Chairman and Managing Director, Members, Officers, Employees and servants on deputation to or of the Corporation as the case may be, shall while acting or purporting to act in pursuance of any of the provisions of this Act or rules or regulations made there under, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code, 1860 (Central Act No.45 of 1860).

1. (1) The State Government may, by notification in the Andhra Pradesh Gazette, make rules to carryout the purposes of this Act. (2) Every rule made under this Act shall immediately after it is made, be laid before the Legislature of the State, if it is in session and if it is not in session, in the session immediately following for a total period of fourteen (14) days which may be comprised in one session or in two successive sessions, and if, before the expiration of the session in which it is so laid or the session immediately following, the Legislature of the State agrees in making any modifications in the rule or in the annulment of the rule, the rule shall, from the date on which the modification or annulment is notified, have effect only in such modified form or shall stand annulled as the case may be, so however, that anysuch modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

the Andhra Pradesh Gazette, make rules to carryout the purposes of this Act.

1. (2) Every rule made under this Act shall immediately after it is made, be laid before the Legislature of the State, if it is in session and if it is not in session, in the session immediately following for a total period of fourteen (14) days which may be comprised in one session or in two successive sessions, and if, before the expiration of the session in which it is so laid or the session immediately following, the Legislature of the State agrees in making any modifications in the rule or in the annulment of the rule, the rule shall, from the date on which the modification or annulment is notified, have effect only in such modified form or shall stand annulled as the case may be, so however, that anysuch modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

consistent with this Act and the rules made thereunder for all or any of the matters to be provided under this Act by regulations and generally for all other matters for which provision is, in the opinion of the Corporation, necessary for the exercise of its powers and the discharge of its functions under this Act.

O.MS. No. 80, of Finance (PMU-CASPS, FC&IF) Department, dated 27-08-2020 and the provisions of this Act, the provisions of this Act shall prevail.

1. (2) If any doubt or difficulty arises in giving effect to the provisions of this Act, the Government may by order make provisions or give such directions not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for the removal of the doubt or difficulty.

that the purposes for which the Corporation was established under this Act have been substantially achieved so as to make the continued existence of the Corporation in the opinion of the Government, unnecessary, the Government may by notification declare that the Corporation shall be dissolved with effect from such date as may be specified in the notification, and the Corporation shall be deemed to be dissolved accordingly and upon such dissolution, the members including the Chairman and the Vice-Chairman & Managing Director, if any, shall vacate their respective offices from the date as specified in the said notification of dissolution. (2)All properties, funds, and dues which are vested in, or realizable by, the Corporation shall vest in, or be realizable by the Government. (3)All liabilities which are enforceable against the Corporation shall be enforceable against the Government.

State Development Corporation Ordinance, 2020is hereby repealed.

(2)Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under this Act.