Power to make contracts

12. Power to make contracts. (1) The Board may enter into and perform all such contracts as it may consider necessary or expedient for carrying out any of the purposes of this Act and every contract shall be made on behalf of the Board by the Chairman: Provided that,— (a) no contract involving an expenditure of Rs. 1,00,000 and more shall be made without the previous sanction of the State Government, (b) (i) no contract involving an expenditure of Rs. 10,000 and more shall, subject to clause (a), be made without the previous sanction of the Board, (ii) no estimate or tender involving an expenditure of Rs. 10,000 and more shall, subject to clause (a), be sanctioned or accepted without the previous sanction of the Board. (2) Every contract made by the Chairman on behalf of the Board shall, subject to the provisions of this section, be entered into in such manner and form as may be prescribed. (3) A contract not executed in the manner provided in this section and the rules made thereunder shall not be binding on the Board.