Chapter IV Chapter IV

Powers of Board and Chairman to incur expenditure on schemes and enter into contracts

Powers of Board and Chairman to incur expenditure.–– Subject to budget provision and availability of funds, expenditure may be incurred on any single work or scheme for carrying out any of the purposes of this Act––

1. (1) by the Chairman, in case such expenditure does not exceed fifteen lakh rupees; and
2. (2) by the Board, in other cases: Provided that the Board shall not, without the previous approval of the Government, incur any expenditure exceeding fifty lakh of rupees if the funds are linked to any Government Guarantee and five crore of rupees in other cases.

Powers of Board and Chairman to approve estimates Powers of Board and Chairman to approve estimates.–– The Board or the Chairman may accord approval to estimates for incurring expenditure on any work or scheme for carrying out any of the purposes of this Act subject to the restrictions and conditions imposed on the Board or the Chairman, as the case may be, under section 21.

Emergency powers of Chairman.–– The Chairman may, in cases of

emergency, direct the execution of any work or the doing of any act which required the sanction of the Board and the immediate execution or doing of which is, in his opinion, necessary for the service of safety of the public, and may also direct that the expenses of executing the work or of doing the act shall be paid from the funds of the Board:

Provided that––

1. (a) he shall not act under this section in contravention of any direction of the Board or the Government prohibiting the execution of any particular work or the doing of any particular act; and
2. (b) he shall report the action taken by him under this section and the reasons therefor to the Board at its next meeting and shall also submit a copy of his report to the Government, and the Board or the Government may issue such directions as it deems fit on such report.

Power to make contracts.–– The Board may make and perform all such

contracts as it may consider necessary or expedient for carrying out the purposes of this Act.

Agreements and security deposits.––

1. (1) Every contract shall be made on behalf of the Board by the Secretary, or any other person empowered by it in this behalf.
2. (2) The Secretary shall take sufficient security deposit for the due performance of the contract.
3. (3) Written agreements shall be executed for all contracts, the value of which exceeds five hundred rupees.

Further provisions as to execution of contracts and agreements.––

1. (1) The subject to the provisions of section 24 and 25, the contracts or agreements shall be made or executed in accordance with such rules as may be made.
2. (2) The provisions of sub-section
3. (1) shall apply to every variation or abandonment of a contract or estimate as well as to an original contract or estimate.
4. (3) A contract or agreement made or executed in contravention of the provisions of this Act or the rules or regulations made thereunder shall not be binding on the Board.

Delegation of powers of the Board to sanction contracts.–– Subject to such rules as may be made, the Board may by order direct that the power conferred on it under sections 24 and 25 to sanction a contract shall be exercised by the Housing Engineer or any other officer specified by it in the order.