Chapter X FINANCE

(1) All debts and expenditures incurred, all contracts entered into all matters and things engaged to be done by , with or for the Government for the purpose of Department of Housing, Government of Bihar, created by Appointment Department Government Resolution no. Camp.- 243/55A- 135, dated Ranchi, the 27th July 1955, before and up to the date of the establishment of the Board Under this Act shall be deemed to have been incurred, entered into or engaged to be done by, with be instituted by or against the Government shall be continued or instituted by or against the Board, as the case may be. (2) All expenditure which the Government shall, not later than six months from the date of the establishment of the Board, declared to have been incurred on capital account in connection with the purposes of this Act shall be deemed to be a loan advanced to the Board on the date of such declaration: Provided that Government may extend the said period six months to a period not exceeding two years by a notification in the official Gazette. (3) All the properties, right, assets and liabilities of the Department of Housing, Government of Bihar, referred to in sub-section (1) for the purposes referred to in the Government Resolution specified in the said sub-section and all assets acquired by expenditure referred to in sub-section(2) shall upon the declaration made by the Government under sub-section(2) shall stand transferred to the Board for the purposes of this Act. (4) All proceedings under the Land Acquisition Act, 1894, (Act 1 of 1894) pending on the date of the coming into force of this Act in any area for the acquisition of Land situated in the said area for the purposes of the Department of Housing, Government of Bihar, referred to in sub-section (1) shall be deemed to be proceedings for acquisition of such land for the purposes of Board Under this Act. Explanation.- For the papooses of this "legal proceeding" includes any proceeding under the Land Acquisition Act, 1894 ( Act 1 of 1894).

(1) the Board shall have a fund called the "Housing Board Fund" . (2) The Board may accept grants, subventions, donations and gifts from the Central or State Government or a local authority or individual or body, whether incorporated or not, for all or any of the purposes of this Act. (3) The Government may every year make a grant to the Board to enable it to meet the deficit in its administrative expense: Provided that the grant so made, as may be specified by the notification by the Government, shall not exceed to amount incurred by the Government on the administrative set-up of the Housing Department immediately preceding the year of the constitution of the Board. (4) All moneys received by or on behalf of the Board by virtue of this Act, all proceeds of land or any other kind of property sold by the Board, all rents, and all interests, profits and other moneys accruing to the Board, shall constitute the Housing Board- Fund. (5) Except as otherwise directed by the Government , all moneys forming part of the fund of the Board shall be deposited in the Reserve Bank of India constituted under the Reserve bank of India Act, 1934(Act 2 of 1934) or the state Bank of India constituted under the State Bank of India Act, 1955(Act no. 23 of 1955) or a Bank specified in column 2 of the First schedule to the Banking Companies (Acquisition and Transfer undertaking) Act, 1970(Act 5 of 1970) as amended from time to time or invested in such securities as may be approved by the Government. (6) Such account shall be operated upon by such officers as may be authorised by the Board.

(1) All property , the Housing Board Fund, and all other assess vesting in the Board shall be held and applied by it, and repayment of loans, payment of interest on the market borrowing of the Board and Government and other loan shall be the first charge on the Board Funds. (2) Subject to the budget provision and availability of funds, expenditure shall be incurred out of Board's fund by the Board or by any authority empowered by the Board for execution of schemes or carrying out any purpose of this act which has been duly sanctioned under the provision of this Act.

(1) where in the opinion of the Board circumstances of extreme urgency have arisen, it shall be lawful for the Board to make, for purposes of this Act in any year expenditure not exceeding five thousand rupees notwithstanding the fact that such expenditure has not been included in its annual programme or supplementary programme mentioned by the Government. (2) Where any sum is spent under circumstances of extreme urgency as provided in sub-section(1), report thereof indicating the source from which it is proposed to meet the expenditure shall be made by the Board as soon as practicable to the Government.

The Board may within the Budget sanctioned by the Government approved appropriations not exceeding five thousand rupees from on sub-head to another and from one minor head to another under the same major head and submit a statement of such re-appropriations the Government.

(1)The Government may , from time to time , make subventions to the Board for the purposes of this Act on such terms and conditions as the Government may determine. (2) The Government may from time to time advance loans to the Board on such terms and conditions and conditions not inconsistent with the provisions of the this Act as the Government may determine

(1) The Board may, from time to time , with the previous sanction of the Government and subject to the provisions of this Act and to such conditions as may be prescribed on this behalf may borrow any sum required for the purposes of this Act on guarantee of the state Government or on Bank guarantee or mortgaging its properties. (2) The rules made by the Government for the purposes of this section may empower the Board to borrow by the issue of debenture and to make arrangements with bankers. (3) All debentures issued by the Board shall be in such form as the Board, with the sanction of the sanction of the Government may from time to time determine. (4)Every debenture shall be signed by the managing Director and one other, member of the Board. (5)Loans borrowed and debentures issued under this section shall be guaranteed by the Government as to the repayment of principal and the payment of interest as such rate as may be fixed by the Government. (6)Subject to the provisions of this Act, and to such conditions and limitations as may be prescribed, the Board may out of its funds grants loans and advances on such terms and conditions as it may determine, to any Co-operative society registered or deemed to be registered under the law relating to Co-operative societies for the time being in force in the state or to any other Person for for the constructions of houses.

(1) whenever a loan has to be repaid from a sinking fund, the Board shall establish such a fund and shall pay into it every year until the loan is repaid, a sum so calculated that if regularly paid throughout the period agreed upon by the Board, it would, with accumulations in the way of compound interest be sufficient after payment of all expenses, to pay of the loan at the end of that period. (2)The rate of interest on the basis of which the sum referred to in sub- section(1) shall be calculated shall be such as may be prescribed.

Notwithstanding anything contained in section 70, if at any time , the sum standing at credit of sinking fund established from repayment of any loan is of such amount that if allowed to accumulate at the rate of interest prescribed under sub-section(2) of that section, it will be sufficient to repay the loan at the end of period agreed upon by the Board, then the Board may, with the permission of the Government, discontinue further annual payment into such fund.

(1) All moneys paid into any sinking fund shall as soon as possible , be invested by the Board in- (a) Government securities, or (b)Securities guaranteed by the Central or State Government, or (c)debentures issued by any local authority, or (d)debentures issued by the Board; or (e)fixed deposit in the State Bank of India or any Bank specified in column 2 of the first schedule to the Banking companies(Aquisition and Transfer of undertaking)Act, 1970(Act V of 1970) as amended from time to time in the name of the Housing Board to be held by it in trust for the repayment of the loan for which the sinking fund was established. (2) All dividends and other sum received in respect of any such investment shall as soon as section(1). (3) Any investment made under this section may , from time to time, subjects to the provision of sub-section(1) be varied or transposed.

(1) No payment shall be made by the Bank, out of account of the " Housing Board Fund" referred to in section 64 except upon cheque signed- (a)by the Managing Director and Secretary to the Board or (b) in the event of the illness or occasional absence by reason or leave of the managing Director by any member or any authority empowered by Managing Director in his place and in the event of illness, or occasional absence or leave of the secretary , by Chief Accounts Officer appointed by the State Government . (2) Payment of any sum due by the Board exceeding one hundred rupees in amount shall be made by means of a cheque, and not in any other form.

Before the managing Director or any member or the secretary to the Board signs a cheque under section 73 he must satisfy himself that the sum for which such cheque is drawn is required for a purpose or work specifically sanctioned by the Board.

(1) The Board shall keep a capital account and a revenue account. (2)The capital account shall show separately all expenditure incurred by the Board on each housing or improvement scheme.

(1)The Board shall cause to be maintained proper books of accounts and such other books as the rule may require and shall prepare in accordance with the rule and annual statement of account. (2)The Board shall cause its accounts to be audited annually by such person as the Government may direct , and that person shall have the right to demands the production of books, accounts and connected vouchers, documents and papers and to inspect any of the offices of the Board. (3) As soon as the accounts of the Board have been audited, the Board shall send a copy thereof together with a copy of the report of the auditor thereon to the Government and shall cause the accounts to be published in the prescribed manner and place copies thereof on sale at a reasonable price. (4) The Board shall comply with such directions as the Government may after perusal of the report of the auditor think fit of issue.

(1) Notwithstanding anything contained in section 76 the Government may order that there shall be a concurrent audit of the account of the Board by such person as it thinks fit. (2) The Government may also direct a special audit to be made by such person as it thinks fit of the accounts of the Board relating to any particular transaction or a class of transactions of to a particular period . (3) When an order is made under sub-section (1) or (2) the Board shall present or cause to be presented for audit such accounts and shall furnish to the Person appointed under sub-section(1) or (2) such, information as the said person may require for the purpose of audit and remedy or cause to be remedied the defects pointed out by such person, unless they are condoned by the Government.