Chapter VII FINANCE, ACCOUNTS AND AUDIT

(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 Government or State Government or a local authority or any individual or body, whether incorporated or not, for all or any of the purposes of this Act. (3) [Omitted]. (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 interest, profits and other moneys accruing to the Board, shall constitute the Housing Board Fund. (5) Except as otherwise directed by the State Government, all moneys and receipts specified in the foregoing provisions and forming part of the fund of the Board shall be deposited in the Reserve Bank of India or in any Scheduled Bank or invested in such securities as may be approved by the State Government. (6) [Omitted]. Explanation.—For the purposes of this section, the Reserve Bank of India shall mean the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934, and a Scheduled Bank shall mean a bank included in the Second Schedule to the said Act.

All property, the Housing Board Fund, and all other assets vesting in the Board shall be held and applied by it, subject to the provisions and for the purposes of this Act.

Expenditure in case of urgency, etc. (1) Where in the opinion of the Board circumstances of extreme urgency have arisen, it shall be lawful for the Board to make for the purposes of this Act in any year, expenditure not exceeding Rs. 50,00,000, notwithstanding the fact that such expenditure has not been included in its annual programme or supplementary programme sanctioned by the State Government or the variation of the programme made under section 23. (2) Where any sum is expended under circumstances of extreme urgency as provided in sub-section (1), a 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 State Government. (3) The Board may, within the budget sanctioned by the State Government, approve appropriations not exceeding Rs. 50,00,000, from one sub-head to another and from one minor head to another under the same major head and submit a statement of such re-appropriations to the State Government.

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

(1) Subject to the provisions of the Act and to such conditions as may be prescribed, the Board may from time to time borrow money required to carry out the purpose of this Act from any Scheduled Bank or a Corporation owned or controlled by the Government of India or the State Government. (2) The rules made by the State Government for the purposes of this section may empower the Board to borrow by the issue of debentures 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 State Government may from time to time determine. (4) Every debenture shall be signed by the Chairman and one other member of the Board. (5) Loans borrowed and debentures issued under this section may be guaranteed by the State Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the State Government. (6) The Board shall be competent to mortgage by way of security any of its properties for loan obtained from the Housing and Urban Development Corporation, New Delhi or from any Scheduled Bank or from any other recognised Housing Financial Institutions.

Mode of repaying loan. Every loan obtained by the Board shall be repaid within the period and in the manner agreed upon by the Board,— (a) from a sinking fund established for the purpose under section 54B; or (b) from money borrowed for the purpose; or (c) partly from the sinking fund established under section 54B and partly from the money borrowed for the purpose.

(1) The Board may establish a sinking fund for the purpose of repayment of loans borrowed by it. (2) The amounts to be paid into the sinking fund and the mode of payment shall be as may be prescribed. (3) All moneys paid into the sinking fund shall be invested in Government securities or fixed deposits with Scheduled Bank.

Account and audit. (1) The Board shall cause to be maintained proper books of accounts and such other books as the rules under this Act may require and shall prepare in accordance with such rules an annual statement of accounts. (2) The Board shall cause its accounts to be audited annually by such persons as the State Government may direct. (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 State Government; and shall cause the accounts to be published in the prescribed manner and place copies thereof on sale at a reasonable price. The audited accounts and the report shall be laid before each House of the State Legislature, as soon as may be after they are received by the State Government. (4) The Board shall comply with such directions as the State Government may after perusal of the report of the auditor think fit to issue.

Concurrent and special audits of accounts. (1) Notwithstanding anything contained in section 55, the State Government may order that there shall be concurrent audit of the accounts of the Board by such person as it thinks fit. The State Government may also direct a special audit to be made by a Chartered Accountant appointed by it of the accounts of the Board relating to any particular transaction or a class or series of transactions or to a particular period. (2) When an order is made under sub-section (1), the Board shall present or cause to be presented for audit such accounts and shall furnish to the person appointed under sub-section (1) such information as the said person may require for the purpose of audit.