Chapter V FINANCE, BUDGET AND ACCOUNTS

1. (1) There shall be a fund for the Metropolitan Authority to be called 1[Mumbai Metropolitan Region Development Fund] to which shall be credited all moneys received by the Authority, including- 2[***]
   • (b) a contribution to be made by the State Government of a sum of not less than rupees ten crores towards a revolving fund to be established by the Authority, in such instalments, as the State Government may determine in accordance with the schemes included in the State Plan and under appropriation duly made in this behalf, which contribution shall be utilised by the Authority for such planned development as the State Government may, from time to time, approve;
   • (c) such other moneys as may be paid to the Authority by the State Government ;
   • (d) such moneys as may be paid to the Authority by the Union Government or any other authority or agency;
   • (e) the sums placed at its disposal by the State Government from out of the proceeds of any cess levied under Chapter VI ;
   • (f) the proceeds of any betterment charge levied under Chapter IV ;
   • (g) all fees, costs and charges received by the Authority under this Act or any other law for the time being in force;
   • (h) all money received by the Authority from the disposal of lands, buildings and other properties, moveable and immoveable, and other transactions ;
     • (i) all moneys borrowed by the Authority ;
   • (j) all moneys received by the Authority by way of rents and profits or in any other manner or from any other source.
2. (2) The Metropolitan Authority may keep in current or deposit account with the State Bank of India or with any Scheduled Bank as defined in the Reserve Bank of India Act, 1934 (II of 1934), which holds a licence issued by the Reserve Bank of India under section 22 of the Banking Regulation Act, 1949 (X of 1949), or with any other bank approved by the State Government in this behalf, such sum of money out of its Fund as may be prescribed, and any money in excess of the said sum shall be invested in such manner as may be approved by the State Government.
3. (3) Such accounts shall be operated upon by such officers of the Metropolitan Authority as may be authorised by it by regulation made in this behalf.

1[18A. Loans Fund.- (1) As a part of 2[the Mumbai Metropolitan Region Development Fund] the Metropolitan Authority shall establish in district Bank accounts a Loans Fund for the purposes of (a) receiving all monies borrowed by it including all repayments of loan instalments together with payment of interest made by the borrower on loans, (b) providing all moneys to be made available by the Authority as loans or advances to local authorities and other authorities or persons. (c) repayment of loans raised by the Authority for the purpose of this Act, and (d) expenditure on projects and schemes.

1. (2) All matters connected with the Loans Fund shall be governed by the regulations made in this behalf.]

1. (1) The Metropolitan Authority shall make provisions for a reserve fund and may provide for other specially denominated funds as it deems fit.
2. (2) The management of the funds referred to in sub-section (1), the sums to be transferred from time to time to the credit thereof and the application of money comprised therein, shall be determined by the Metropolitan Authority.

All property, funds and other assets vesting in the Metropolitan Authority shall be held and applied by it for the purposes and subject to the provisions of this Act.

The Metropolitan Authority may, with the previous approval of the State Government, borrow any moneys for carrying out the purpose of this Act or for servicing any loan obtained by it, at such rates and on such conditions as the State Government may determine at the time the moneys are borrowed.

1[21A. Power to Metropolitan Authority to finance projects and schemes and impose conditions therefor.- The Metropolitan Authority shall be competent to give grants, advances or loans to, or to share expenses with, any local authority or other authority in the Metropolitan Region, for any of the purposes of section 12, and notwithstanding anything contained in any law for the time being in force, 2[but subject to the restrictions (if any) contained in 3[the Mumbai Municipal Corporation Act (Bom III of 1888)], it shall be lawful for such other authority to accept such grants, advances or loans or share in the expenses, subject to such terms and conditions as the Metropolitan Authority may, from time to time, in consultation with such other authority, specify.]

1[21B. State guarantee to loans taken or given by Authority.- The State Government may guarantee repayment of the principal of, and interest on, any loan raised or given by the Metropolitan Authority or transferred to it, for the purposes of this Act, subject to such conditions as the State Government may think fit to impose.]

1. (1) The Metropolitan Authority shall keep accounts in such form and in such manner as it may by regulations made in this behalf determine.
2. (2) The accounts of the Metropolitan Authority shall be audited by the Chief Auditor, Local Fund Accounts 1[or by any other auditor appointed by the State Government from time to time].
3. (3) The audit shall be made in such manner as may be determined by regulations.
4. (4) The auditor shall submit his audit report to the Metropolitan Authority and shall forward a copy thereof to the State Government.

1. (1) 1[The Member-Secretary] of the Authority shall prepare, every year, in such form and at such time as may be prescribed, an annual budget estimate in respect of the financial year next ensuing showing the estimated receipts and disbursements of the Metropolitan Authority and shall submit it to the Metropolitan Authority for approval.
2. (2) 2[The Member-Secretary] shall forward to the State Government copies of the budget estimate so prepared by him and the budget as approved by the Metropolitan Authority.

The Metropolitan Authority shall prepare after the end of each year (ending on the 31st day of March), a report of its activities during the previous year and submit it to the State Government before the 30 day of November and the State Government shall cause a copy of such report to be laid before the State Legislature.

1[24A. Operations of Authority not to be carried out at a loss.- The Metropolitan Authority shall not and shall not be required to carry out any of its operation under this Act at a loss. Any deficit in the 2[Mumbai Metropolitan Region Development Fund] in any financial year shall be made good by the Authority not later than those of the next succeeding financial year].