Chapter VI PROPERTY AND FINANCE

(1) The Government may, by notification, for the purposes of this Act and subject to such limitations and conditions as it may impose and to the provisions hereinafter contained, transfer to and vest in the Board any land belonging to Government or to a local authority.

(2) No land belonging to a local authority shall be vested in the Board under sub-section (1) except after consulting such local authority.

(3) Whenever it appears to the Government that any land vested in the Board under sub-section (1) is not required by the Board for purposes of this Act or any other land vesting in the Board is required by the Government or local authority, the Government may, by notification, direct that the land shall revest in or stand transferred to the Government or the local authority concerned, as the case may be.

Subject to such restrictions, conditions and limitations as may be prescribed, the Board shall have power to lease, sell or otherwise transfer any movable or immovable property which belongs to it, and to appropriate or apply any land vested in or acquired by it for the formation of open spaces or for building purposes or in any other manner for the purpose of any development scheme.

Notwithstanding anything contained in this Act or development scheme sanctioned under this Act, the Bagalkot Town Development Authority may, subject to any restriction, condition and limitation as may be prescribed, make bulk allotment by way of sale, lease or otherwise of any land which belongs to it or is vested in, or acquired by it, for the purpose of any development scheme,-

(i) to the State Government; or

(ii) to the Central Government; or

(iii) to any Corporation, Body or Organisation owned or controlled by the Central Government or the State Government; or

(iv) to any Housing Co-operative Society registered under the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959); or

(v) to any society registered under the Karnataka Societies Registration Act, 1960 (Karnataka Act 17 of 1960); or

(vi) to a trust create wholly for the charitable, educational or religious purpose;

Provided that prior approval of the Government shall be obtained for allotment of land to any category listed above except category (i)

(1) The Board may, from time to time with the previous sanction of the Government and subject to such conditions as may be prescribed in this behalf borrow any sum required for the purpose of this Act.

(2) The rules made by the Government for the purpose of this section may empower the Board to borrow by the issue of debentures and to make arrangement with the bankers.

(3) Debentures issued by the Board shall be in such form as the Board may, with the sanction of the Government, 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 Government as to the repayment of principal and payment of interest at such rate as may be fixed by the Government.

(1) The Board shall have and maintain its own Fund to which shall be credited,-

(a) all moneys received by the Board from the Government by way of grants, loans, advances or otherwise;

(b) all fees, fines and charges received by the Board under this Act;

(c) all moneys received by the Board from the disposal of lands, buildings or other property movable or immovable;

(d) all moneys received by the Board by way of rents and profits or in any other manner from any other source.

(2) The Fund shall be applied by the Board in the administration of this Act and for no other purposes.

(3) The Board shall keep such sum of money out of its Fund as may be prescribed in the Government Treasury and any money in excess of it shall be deposited in a Scheduled Bank or invested in such manner as may be approved by the Government.

(1) The Chairman shall, at a special meeting to be held not later than the first day of February in each year, lay before the Board an estimate of the income and of the expenditure of the Board for the year commencing on the first day of April then next ensuing in such detail and form as the Board shall, from time to time, direct.

(2) Such estimate shall make provision for the efficient administration of this Act and a copy of the estimate shall be sent by post or otherwise to each member of the Board at least ten clear days prior to the date of the meeting.

The Board shall consider the estimate so submitted to it and shall approve the same either unaltered or subject to such alterations as it thinks fit.

The estimate, as approved by the Board shall be submitted to the Government which may either sanction or disallow such estimate or any portion thereof and return the same for amendment. The Board shall forthwith amend the estimate so returned and shall re-submit the amended estimate to the Government. A copy of the estimate as sanctioned by the Government shall be sent to the local authorities concerned.

The Board may, at any time during the year for which any estimate has been sanctioned, cause a supplementary estimate to be prepared and submitted to it. Every such supplementary estimate shall be considered and approved by the Board and submitted to the Government for sanction and a copy of the estimate as sanctioned shall be sent to the local authority concerned, in the same manner as if it were an original annual estimate.

No sum shall be expended by or on behalf of the Board, unless included in the estimate or a supplementary estimate :

Provided that an expenditure not exceeding twenty-five thousand rupees may be incurred, though not so included, in unforeseen circumstances or to satisfy a decree of a court and in such a case the Chairman shall make a report, as soon as practicable, to the Government indicating the circumstances in which the expenditure was incurred and the source from which it is proposed to be met :

Provided further that any such expenditure shall be included in a supplementary estimate to be approved and sanctioned in the manner laid down in section 43.

Subject to such rules as may be made under this Act, the Board may within the sanctioned budget make reappropriations from one sub-head to another or from one minor head to another minor head under the same major head of account.

(1) The accounts of the Board shall be audited annually by an auditor appointed by the Government.

(2) The auditor shall, for the purpose of the audit, have access to all the accounts and other records of the Board.

(3) The Board shall pay from its fund such charges for the audit as may be prescribed.

(1) The Auditor may,-

(a) require in writing the production of such vouchers, statement, returns, correspondence, notes or other documents in relation to the accounts as he may think fit;

(b) require in writing any salaried servant of the Board accountable for or having the custody or control of such vouchers, statements, returns, correspondence, notes or other documents or of any property of the Board or any person having directly or indirectly by himself or his partner, any share or interest in any contract with or under the Board to appear in person before him at the Board office and answer any question ;

(c) in the event of a clarification being required on any specific point from the Chairman or any officer or member in writing, require such person to furnish the clarification on such point.

(2) The auditor may, in any requisition made under sub-section (1) fix a reasonable period not being less than three days within which the said requisition shall be complied with.

(3) The auditor shall give to the Board not less than two weeks’ notice in writing of the date on which he proposes to commence the audit :

Provided that notwithstanding anything contained in the sub-section, the auditor may, for special reasons which shall be recorded in writing, give shorter notice than two weeks or commence a special or detailed audit if so directed by the Government without giving notice.

Any person who wilfully neglects or refuses to comply with any requisition lawfully made upon him under clauses (a), (b) or (c) of sub-section (1) of section 47 shall, on conviction, be punished with fine which may extend to two hundred rupees:

Provided that no proceedings under this section shall be instituted except with the sanction of the Government or such other officer as the Government may authorise in this behalf :

Provided further that before giving such sanction the Government or the authorised officer shall call upon the person against whom the proceedings are to be instituted to show cause why the sanction should not be given.

(1) The auditor shall include in his report a statement of,-

(a) every payment which appears to him to be contrary to law;

(b) the amount of any deficiency or loss which appears to have been caused by the gross negligence or misconduct of any person;

(c) the amount of any sum received which ought to have been but is not brought into account by any person, and

(d) any material impropriety or irregularity which he may observe in the accounts other than those mentioned in clauses (a), (b) and (c).

(2) Within three months after the completion of the audit, the auditor shall send a report on the accounts audited and examined to the Board.

(1) Within two months of the receipt of the report under section 49, the Chairman shall place it before a meeting of the Board together with a statement of the action taken or proposed to be taken to remedy any defect or irregularity that may have been pointed out in such report and an explanation in regard thereto and shall with the approval of the Board, remedy the defects or irregularities. He shall also as soon as may be, after the decision of the Board send to the Controller, State Accounts Department, intimation of having remedied the defects or irregularities pointed out in the report, or shall, within the said period, supply the Controller any further explanation in regard to such defects or irregularities as the Board may decide to give.

(2) On receipt of such intimation or explanation the Controller may,-

(a) accept the explanation given by the Board and withdraw the objection;

(b) direct that the matter be re-investigated at the next audit or at any earlier date; or

(c) hold that the defects or irregularities have not been removed or remedied.

(3) The Controller, shall send a report to the Government and shall forward a copy of such report to the Chairman. The Controller shall state in the report whether in his opinion the defects or irregularities have or have not been removed or remedied and indicate whether the defects or irregularities can be regularised or whether they can be condoned. He shall also state whether the amounts to which the defects or irregularities relate should, in his opinion, be surcharged or charged. The audited accounts and the report shall be laid before each House of the State Legislature as soon as may be, after it is received by the Government.

(4) The Board shall include in its next administration report such portions of the report under section 49 as deal with defects and irregularities falling under clause (c) of sub-section (2), the explanation if any, given under sub-section (1) and the final report of the Controller thereon under sub-section (3).

(5) Nothing in this section shall preclude the Controller, at any time from bringing to the notice of the Government any matter which appears to him to involve criminal misappropriation or fraud or deserves special attention or immediate investigation.

(1) The Government may, after considering the report of the Controller and after taking the explanation of the person concerned or making such further enquiry as it may consider necessary, by order disallow any item which appears to it to be contrary to law and surcharge the same on the person making or authorising the making of the illegal payment; and may charge any person responsible therefor the amount of any deficiency or loss caused by the negligence or misconduct of that person, or any such amount received which ought to have been, but is not brought into account by that person and shall, in every such case, certify the amount due from such person.

(2) The Government shall state in writing the reason for its decision in respect of every surcharge or charge and shall send by registered post a copy thereof to the person against whom it is made.

(3) If a person to whom a copy of the Government decision is sent under sub-section (2) refuses to take delivery thereof he shall be deemed to have duly received it on the day on which it was refused by him.

(1) The amount surcharged or charged shall be paid by the person concerned within one month from the date of communication of the order under section 51, into the treasury or bank holding the funds of the Board.

(2) The said sum, if not so paid, shall be recovered as arrears of land revenue.