Chapter V URBAN TRANSPORT FUND

1. (1) There shall be constituted a fund to be called the ‘Urban Transport Fund’ for each Authority.
2. (2) The following shall be credited to the Fund, namely:—
   • (a) grants, advances and loans sanctioned and funds received through allocations, including budgetary allocations, by the Central Government or the State Government to the respective Authority;
   • (b) subject to the provisions of any other law for the time being in force,—
     • (i) any fine imposed and realised and compounding fee collected under this Act;
     • (ii) compounding fee collected by departments concerned, in cases of traffic violations detected through Intelligent Transport System and reported by the Authority; (c) fees and user charges available to the Authority under section 16;
   • (d) any user fees or charges, prescribed by rules, to collect from the Urban Mobility Area under this Act;
   • (e) Special Project Specific Viability Gap Funding as may be allocated by the State Government;
   • (f) any other amount legally received by the Authority.
3. (3) No amount shall be paid to the Fund or applied from and out of the Fund, except in such manner and subject to such conditions as may be prescribed by rules.
4. (4) The Fund shall be held and administered by the Chief Executive Officer of the Authority, subject to general or special directions as may be issued by the State Government from time to time.

The Authority may receive from the Central

Government or the State Government such grants, advances and loans as the Authority may deem necessary for the performance of its functions under this Act and all grants, loans and advances so received shall be subject to the terms and conditions as may be determined by such Government.

Subject to the provisions

of any law for the time being in force, all payments due from the Authority on account of interest on loans or the repayment of loans shall be made in priority out of all other dues from the Authority.

The Authority may raise finance or debt for the effective

implementation of the objects and purposes of this Act through loans or debentures or issuing bonds from such sources, and on such terms and conditions as may be approved by the State Government.

The Authority may, subject to the provisions of

any law for the time being in force, take steps to make such grants, advances and loans to any urban transport operator within the Urban Mobility Area concerned as may be deemed necessary and all grants, loans and advances so made shall be on such terms and conditions

as may be determined by the Authority, as per the laws applicable.

1. (1) The Authority shall, subject to the provisions of section 20 maintain a sinking fund for repayment of amount borrowed by it and shall pay every year into the sinking fund the amount as may be sufficient for repayment within the period fixed for the repayment of all amounts so borrowed.
2. (2) The sinking fund or part thereof shall be utilised in or towards the discharge of the loan for which such fund was credited and until such loan is wholly discharged, it shall not be utilised for any other purpose.

1. (1) The Authority shall prepare every year, in such form and at such time as may be prescribed by rules, a budget in respect of the financial year next ensuing showing the estimated receipts and expenditure and shall forward to the State Government such number of copies thereof as may be prescribed by rules.
2. (2) The Budget prepared by the Authority, in so far as it does not demand any revenue contribution from the State Government, shall be final and can be accepted by the Authority without the prior approval of the State Government. However, the budget prepared by the Authority, to the extent it demands any revenue contribution from the State Government, shall be subject to the final approval by the State Government with such change or terms and conditions as the State Government may direct.

1. (1) The accounts of the Authority shall be subject to audit annually by the Accountant General of the State and any expenditure incurred by him in respect of such audit shall be payable by the Authority to the Accountant General. The Accountant General or any person appointed by him in connection with the audit of accounts of the Authority shall have the same right, privilege and authority as the Accountant General has in connection with the audit of the accounts of the State Government and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers.
2. (2) A copy of the audit report concerned shall be submitted to the State Government, the Authority and any other person concerned or authority specified by the State Government.

1. (1) The Authority shall prepare for every year a report of its activities during that year and submit such report to the State Government on or before the 1st day of June of the ensuing year.
2. (2) The State Government shall cause a copy of the annual report to be laid before the State Legislature as soon as may be after it is submitted.
3. (3) The Authority shall at the end of each financial year submit an audited annual statement to the State Government including but not limited to the following,— time.
   • (a) amount borrowed or loan raised;
   • (b) details of the investment made during the year;
   • (c) mode of repayment, including the amount that has been earmarked for the sinking fund;
   • (d) amount of securities that have been created or raised;
   • (e) any other matter that may be specified by the State Government from time to

The Authority shall submit to the State Government such reports, returns

and other particulars as the State Government may require from time to time.