Chapter V FINANCE, ACCOUNTS, AND AUDIT

City Development Fund.—

1. (1) There shall be established a permanent, non-lapsable fund to be known as the Bihar City Development Fund, which shall be vested in and administered by the Authority.
2. (2) The fund shall be credited with:
   • (a) all grants, subventions, loans, and financial allocations made by the Central Government or the State Government.
   • (b) all sums raised by the Authority from the debt market through Municipal Bonds, debentures, commercial borrowings, or public-private partnership
   • (PPP) frameworks.
   • (c) all fees, charges, premiums, cesses, or penalties collected by the Authority under this Act.
3. (3) The monies credited to the Fund shall be utilized exclusively for the purposes of executing Development Plans, infrastructure development, debt servicing, and meeting the operational expenses of the Authority within the Special Areas; provided that where monies have been raised through bonds or debentures, they shall be utilized in accordance with the terms of the instrument under which they were raised.
4. (4) The Authority shall, in consultation with the State Government, ensure prudent financial management of the Fund, including investment of surplus funds in term deposits, Government securities, bonds, debentures, or such other instruments as may be approved by the State Government from time to time.

Audit.—

1. (1) The accounts of Authority shall be subject to audit annually by the Finance Department of the State or a Chartered Accountant empanelled by the Controller and Auditor General or such other authority as decided by the Government, and any expenditure incurred by it in connection with such audit shall be payable by the Authority.