Chapter IV CONTRACT, FINANCE, ACCOUNT AND AUDIT

Every contract or assurance of property on behalf of 1[the Authority] shall be in writing and executed by such authority or officer and in such manner as may be provided by regulations.

25. 1[Authority Fund.- 2[The Authority] shall have its own fund to be called "the 3[Authority] Loan Fund", which shall also be deemed to be a local fund and to which shall be credited all moneys received by or on behalf of 4[the Authority] by way of loans.

26. Other funds of 1[the Authority].- (1) 2[The Authority] shall also have another fund to be called "the Loan Fund", which shall also be deemed to be a local fund and to which shall be credited all moneys received by or on behalf of 3[the Authority] by way of loans. (2) Without prejudice to the provisions of section 25 or sub-section (1) of this section, 4[the Authority] may, with the previous approval of the State Government constitute such other funds as may be necessary for the efficient performance of duties and discharge of its functions under this Act.

27. General principles for 1[the Authority] finance.- (1) 2[The Authority] shall not, as for as practicable, and after taking credit for any grant or subvention from the State Government under section 58, carry on its operation under this Act at a loss.

28. Grants and subventions to 1[the Authority].- The State Government may, under appropriation duly made in this behalf, from time to time, make grants and subventions to 2[the Authority] for the purposes of this Act, on such terms and conditions as the State Government may determine.

29. Loans to 1[the Authority].- The State Government, from time to time, advance loans to 2[the Authority] on such terms and conditions, not inconsistent with the provisions of this Act, as the State Government and 3[the Authority] may agree upon.

30. Initial contribution of Government to 1[the Authority] Fund.- Under appropriation duly made in this behalf, the State Government may make an initial contribution to 2[the Authority] Fund of rupees one crore or such lesser sum as it thinks fit.

31. Powers to borrow and relend.- (1) 1[The Authority] may, from time to time, with the previous sanction of the State Government and subject to the provisions of this Act and to such conditions as the State Government may, by general or special order, impose, borrow any moneys required for the purposes of this Act by making arrangements with the Banks or other bodies or institutions by the State Government for this purpose.

1. (2) 2[The Authority] may advance any part of such borrowings to any local body for the performance of its duties and discharge of its functions relating to water supply and sewerage services on such terms and conditions as 3[the Authority] may determine

1[The Authority] shall create a depreciation reserve and make annual provision therefor in accordance with such principles as may be prescribed.

The State Government may guarantee the repayment of any loan and payment of interest on all or any of the loans given or transferred to 1[the Authority] for the purposes of this Act.

1. (1) 1[The Authority] shall, before the commencement of, and may at any time during a financial year, prepare a statement or a supplementary statement, as the case may be, of the programme of its activities during that year as well as a financial estimate in respect thereof and the same shall be submitted to the State Government in such form and by such dates as the State Government may, by general or special order, direct, for the previous approval of the State Government: Provided that, in the event of such previous approval not being received before the commencement of the financial year for which such financial statement has been submitted, 2[the Authority] shall be entitled to expend on all accounts upto an amount not exceeding the amount approved for the corresponding period of the previous financial year and such amount shall not include any sum spent out of the grants and subventions during the said period.
2. (2) 3[The Authority] shall cause to be maintained such proper books of account and other books in relation to its accounts and prepare the balance sheet in such form and manner as the regulations may require.
3. (3) The accounts of 4[the Authority] shall be audited by such Auditor, in such manner and at such times, as the State Government may, by general or special order, direct. The Auditor so appointed shall have such powers of requiring the production of documents and the furnishing of information respecting such matter, and shall have such powers in respect of disallowance and surcharge as may be prescribed.
4. (4) The accounts of 5[the Authority] as certified by the Auditor together with the audit report thereon shall be forwarded annually to the State Government, who may issue such directions to 6[the Authority] as it may deem fit and 7[the Authority] shall comply with such directions.
5. (5) The State Government shall cause the accounts of 8[the Authority] to be published in such manner as it thinks fit.

1. (1) 1[The Authority] shall, by notification in the Official Gazette, fix the cost of water to be supplied according to volume, and also the minimum cost to be charged in respect of each connection.
2. (2) 2[The Authority] may, in lieu of charging the cost of water according to volume, accept from any consumer a fixed sum for a specified period on the basis of expected consumption of water during that period.

1. (1) 1[The Authority] shall, by notification in the Official Gazette, fix the cost of disposal of waste water according to its volume (which may be such percentage of the volume of total water supplied to the consumer as may be prescribed), and also the minimum cost to be charged in respect of such disposal.
2. (2) 2The Authority] may, in lieu of charging the cost of disposal of waste water according to the basis stated in sub-section (1), accept from any consumer a fixed sum for a specified period on the basis of expected disposal of waste water during that period.

1. (1) 1[The Authority] may provide water meters and charge such rent for the meter as may be provided in the bye-laws.
2. (2) 2[The Authority] may charge fees for connection, disconnection, re-connection of any water supply or sewer or testing or supervision or for any other service rendered or work executed or supervised at such rates as may be provided by the bye-laws.

1[The Authority] may by bye-laws provide for requiring any consumers or class of consumers to deposit such sums as may be specified therein as security for prompt payment of its dues and due performance of the conditions subject to which services are rendered to them. It shall be lawful for 2[the Authority] to recover its dues from the amount so deposited.

39. Recovery of sums due to 1[the Authority].- Any sum due to 2[the Authority] on account of cost of water, cost of disposal of waste water, meter rent, fees, charges or otherwise under this Act, shall, without prejudice to any other mode of recovery, be recoverable as arrears of land revenue.