Chapter VII FINANCE, ACCOUNTS AND AUDIT

Board’s Funds. (1) The Board shall have its own fund. (2) The Board may accept loans, grants, subventions, donations and gifts from the Central Government or State Government or a local authority or any individual or body or organisation whether incorporated or not, for all or any of the purposes of this Act. (3) 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 charges, all interests, profits and other moneys accruing to the Board shall constitute the fund of the Board. (4) All moneys and receipts specified in the foregoing provisions and forming part of the fund of the Board shall be deposited into the public accounts of the Government under such detailed head of accounts as may be prescribed or in,- (a) the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (Central Act 12 of 1934); or (b) the State Bank of India constituted under the State Bank of India Act, 1955 (Central Act 23 of 1955); or (bb) any Scheduled Bank ; or (c) any corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (Central Act 5 of 1970). and the said account shall be operated upon by such officers of the Board as may be authorised by the Board and in such manner as may be prescribed: Provided that the Board may invest any sums not required for immediate use in such securities or debentures as may be approved by the Government.

The Government may, from time to time, make subventions and grants or advance loans to the Board or any local authority for the purposes of this Act on such terms and conditions as the Government may in each case determine.

(1) Subject to the provisions of this Act and the rules made thereunder and subject to such conditions as may be specified by the Government by a general or a special order issued in this behalf and with its previous approval, the Board may, from time to time, borrow money required for the purposes of this Act by any one or more of the following methods, namely:- (a) raising loans from any bank or other financing institutions or the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (Central Act 31 of 1956); or (b) raising loans from any corporation, owned or controlled by the Central Government or a State Government; or (c) raising loans from the public by issue of bonds or debentures or stocks or otherwise in the form and manner approved by the Government. (2) Subject to the provisions of this Act and to such conditions and limitations as may be prescribed, the Board may out of its funds grant loans and advances on such terms and conditions as it may determine, to any local authority for the provision, regulation or development of any scheme relating to water supply and drainage.

Board’s power to levy rates etc. The Board may, in respect of any water supply or sewerage undertaking vesting in it, levy rates, fees, rentals and other charges and may vary such rates, fees, rentals and other charges from time to time in order to provide sufficient revenue,- (a) to cover operating expenses, taxes and interest payments and to provide for adequate maintenance and depreciation; (b) to meet repayment of loans and other borrowings; (c) to finance normal year to year improvements; and (d) to provide for such other purposes beneficial to the promotion of water supply and sewerage.

The Government may guarantee in such manner as it thinks fit, the payment of the principal and interest of any loan proposed to be raised by the Board or any loan proposed to be given by the Board to any local authority in regard to the investigation, preparation or execution of schemes made under this Act : Provided that Government shall, so long as any such guarantees are in force, lay before both Houses of the Legislature in every year during the budget session, a statement of the guarantees if any given during the current year and an up-to-date account of the total sums, if any, which have been paid out of the Consolidated Fund of the State by reason of any such guarantees or paid into the said Fund towards repayment of any moneys so paid out.

Form, signature, exchange, transfer and effect of debentures. (1) Whenever money is borrowed by the Board on debentures, the debentures shall be in such form as the Board may with the previous sanction of the Government specify. (2) All debentures shall be signed by the Managing Director or Secretary or by any one of the official directors of the Board. (3) The holder of any debenture in any form specified under sub-section (1) may obtain in exchange therefor a debenture in any other form specified in the manner provided in sub-section (1) and upon such terms as the Board may determine. (4) Every debenture issued by the Board shall be transferable by endorsement, unless some other mode of transfer is specified therein. (5) All coupons attached to debentures issued by the Board shall bear the signature of the Managing Director and such signature may be engraved, lithographed or impressed by any mechanical process.

(1) The Chairman shall, at a special meeting to be held in the month of February in each year, lay before the Board an estimate of the income and expenditure of the Board for the next ensuing year. (2) Every such estimates shall make provision for the due fulfillment of all the liabilities of the Board and for the efficient administration of this Act. (3) Every such estimate shall differentiate capital and revenue funds, and shall be prepared in such form and shall contain such details, as the Board may, from time to time, specify. (4) Every such estimate shall be compiled and a copy thereof sent, by post or otherwise, to each Director atleast ten clear days before the date of the meeting at which the estimate is to be laid before the Board. (5) A revised estimate, if any, including all the expenditure not covered in the original budget estimate shall be laid before the Board at a special meeting to be held in the month of December, in each year. (6) The Board shall consider every estimate so laid before it and shall sanction the same, either without modifications or with such modifications as it may think fit. (2) The Managing Director or any officer of the Board authorised in writing in this behalf may sign on behalf of the Board any agreement or other instrument to be executed on behalf of the Board.

Approval of Government to estimates. (1) Every such estimate, as sanctioned by the Board, shall be submitted to the Government who may at any time within three months after receipt of the same,- (a) approve the estimate, or (b) disallow the estimate or any portion thereof, and return the estimate to the Board for amendment. (2) If any estimate is so returned to the Board, it shall forthwith proceed to amend it and shall resubmit the estimate as amended to the Government who may then approve it.

(1) The Board may at any time, during the year for which any estimate has been sanctioned, cause a supplementary estimate to be prepared and laid before it at a special meeting. (2) The provisions of sub-sections (3), (4) and (6) of section 34 and section 35 shall apply to every supplementary estimate.

Repayment of loans by the board. Loan taken by the Board shall be repaid by the Board within the period agreed upon by the Board by such of the following methods as may be approved by the Government, namely:-

Establishment and maintenance of sinking and other funds. The Board may constitute a sinking fund, a depreciation reserve fund and a development fund in such manner and in such form as may be prescribed by regulations. Such funds shall be invested in such manner as may be determined by the Board with the approval of the Government.

Annual reports, statistics and returns. (1) The Board shall, as soon as may be, after the end of each year, prepare and submit to the Government before such date and in such form as may be prescribed a report giving an account of its activities during the previous year and the report shall also give an account of the activities, if any, which are likely to be undertaken by the Board in the next year; and the Government shall cause every such report to be laid before the State Legislature as soon as may be after it is received by the Government. (2) The Board shall furnish to the Government at such times and in such form and manner as may be prescribed or as the Government may direct, such statistics and returns and such particulars in regard to any proposed or existing scheme as the Government may from time to time require.

(1) The accounts of the Board shall be maintained in such manner and in such form as may be prescribed by regulations. The Board shall prepare an annual statement of accounts in such form as may be prescribed. (2) The accounts of the Board shall be audited once in a year by such auditor as the Government may appoint in this behalf. (3) The auditor appointed under sub-section (2) shall in connection with such audit, have such rights, privileges and authority as may be prescribed and in particular, the right to demand the production of books, accounts connected vouchers and other documents and to inspect any of the offices of the Board. (4) The Secretary shall cause the report of the auditor to be printed and forward a printed copy thereof to each Director and shall place such report before the Board for submit a report thereon to the Government. (5) The Board shall remedy forthwith any defects or irregularities that may be pointed out by the auditor and submit a report thereon to the Government.

The Board shall pay to the said auditor such remuneration as the Government may direct.

(1) The accounts of the Board, as certified by the auditor, together with the audit report thereon shall be forwarded annually to the Government and the Government may issue such instructions to the Board in respect thereof as it deems fit and the Board shall comply with such instructions. (2) The Government shall,- (a) cause the accounts of the Board together with the audit report thereon forwarded to it under sub-section (1) to be laid annually before the State Legislature ; and (b) cause the accounts of the Board to be published in the prescribed manner and make available copies thereof for sale at a reasonable price.

Powers to write off irrecoverable amounts. The Board may with the previous sanction of the Government write off any amount whatsoever due to it, whether under a contract or otherwise or any sum payable in connection therewith.