Chapter II Chapter II

Functions and Powers of the Corporation

Functions of the Corporation.--Subject to the provisions of this Act, and to any general or special directions of the Government, the functions of the Corporation shall be,--

1. (a) to undertake research and disposal of timber and exploitation of forest resources entrusted to it by the Government;
2. (b) to provide products and render technical advice to Government on matters relating to forestry;
3. (c) to manage, maintain and develop such forests as are transferred or entrusted to it by the Government till these are handed back to the Government; and
4. (d) to perform such other functions as the Government may from time to time require.

Powers of the Corporation.--(1) The Corporation shall, subject to the provisions of this Act, have power to do all such acts as may be necessary or expedient for carrying out its functions under this Act.

1. (2) Without prejudice to the generality of the foregoing provisions such power shall include the power,--
   • (a) to purchase, maintain and manage immoveable and moveable properties;
   • (b) to enter into such contract or contracts with any person as the Managing Director may deem necessary for its efficient performance under this Act.

Powers of Managing Director and others.--The Corporation may appoint such other officers and employees of the Government as it may consider necessary for the efficient performance of its functions on such terms and conditions as may be agreed upon.

1. (e) to incur expenditure and grant advances for the purposes of this Act.

Fund of the Corporation.--(1) The Corporation shall have its own fund to which shall be credited all moneys of the Corporation.

1. (2) The fund shall be applied towards meeting the Corporation's expenses while performing its functions under this Act.
2. (3) All moneys constituting the fund shall be kept in the Jammu and Kashmir Bank as may be determined by the Corporation: Provided that nothing in this sub-section shall be deemed to preclude the Corporation from retaining such balances in cash as may be required for current payment of day to day expenditure at any time.
3. (4) At the close of the financial year, the surplus, if any, that may accrue to the Corporation shall be paid to the State exchequer as revenue: Provided that in determining the surplus, the Corporation shall take into account all sums due on account of taxes, repayment of loans, liabilities incurred but not redeemed and such reserves as the Government may prescribe for the Corporation to create and maintain for the smooth running of the affairs of the Corporation.

Subventions to the Corporation.--The Government may, after due appropriation by law of the State Legislature, from time to time, make subventions to the Corporation for the purposes of this Act on such terms and conditions as the Government may determine.

Loan to the Corporation.--The Government may advance loans to the Corporation for the purposes of this Act on such terms and conditions as the Government may determine.

Repayment of loans.--The Corporation shall make such provision for the repayment of any loan raised by it, as may be prescribed.

Accounts and Audit.--(1) The Corporation shall maintain proper accounts and prepare annual statement of accounts including balance sheet.

1. (2) The accounts of the Corporation shall be audited annually by such qualified Chartered Accountants as the Government may appoint. The Auditor so appointed shall have the right to demand the production of books, accounts and connected vouchers, documents and papers and to inspect any of the offices of the Corporation.
2. (3) The accounts of the Corporation, as certified by the Auditor or any person authorised by him in that behalf together with the audit report shall be forwarded annually to the Government.
3. (4) The Government shall,--
   • (a) cause the accounts of the Corporation together with the audit report thereon, received by it under sub-section
4. (3) to be laid annually before each House of the State Legislature; and
   • (b) cause the accounts of the Corporation to be published in the prescribed manner and make available copies thereof for sale at a reasonable price.

Liability for loss, damage etc.--(1) The Chairman, Vice-Chairman, the Managing Director or any other member or any employee of the Corporation shall be liable to damages for the loss, waste or misapplication of any money or property of the Corporation, if such loss, waste or misapplication is a direct consequence of his misconduct while acting as such Chairman, Vice-Chairman, Managing Director or member or employee.

1. (2) The procedure for fixing liability shall be such as may be prescribed.

Directions on the question of policy.--(1) In the discharge of its functions under this Act, the Corporation shall be guided by such directions on questions of policy as may be given to it by the Government.

1. (2) If any question arises whether any matter is not a matter on which the Government may issue a direction under sub-section
2. (1) the decision of the Government thereon shall be final.

Annual Report.--(1) The Corporation shall, as soon as may be before the end of each financial year, prepare and submit to the Government before such date and in such form as the Government may direct, a report giving a true and full account of its activities during the previous financial year and such report shall also give an account of the activities, if any, which are likely to be undertaken in the next financial year and the Government shall cause such report to be laid before each House of the State Legislature as soon as may be after it is received by the Government.

1. (2) The Corporation shall furnish to the Government at such times and in such form and manner as the Government may require, such returns and statements and such particulars in regard to any proposed account as the Government may from time to time require.