Chapter IX Chapter IX

Zilla Parishad, It’s Property, Fund and Expenditure

1. (1) A Zilla Parishad may, for the purposes of any of its functions, —
   • (a) acquire and hold property, both movable and immovable, whether within or without the limits of the District ; or
   • (b) lease, sell or otherwise transfer, any movable or immovable property which vests, or may be vested, in, or may be acquired by it : Provided that, no acquisition, lease, sale or other transfer of any such properties, shall be valid, except with the previous sanction of such authority or officer as may be prescribed by rules.
2. (2) The rules made for this purpose shall also prescribe the limits of the value or consideration upto which and the subjects in relation to which each such authority or officer may accord the sanction.
3. (3) The State Government shall be competent to vary the prescribed limits, from time to time, by notification published in the Official Gazette, provided that where the limits are so increased, the increased limits shall not be more than twice the limits prescribed by the rules.]

1. (1) Every work constructed by Zilla Parishad out of the district fund or by a Panchayat Samiti out of the block grant, or with Government assistance or public participation shall vest in the Zilla Parishad.

specified therein (being property vested in the State Government). If the State Government for any purpose requires the property, it may by order served on the Zilla Parishad so decide, and thereupon, the property shall revest in the State Government.

1. (3) On such transfer, the property shall vest in the Zilla Parishad, but subject to such terms, conditions and restrictions (which may be modified from time to time) as may be specified in the notification : Provided that, on breach of any of the terms, conditions and restrictions, or if the property is required by the State Government, the property vesting in the Zilla Parishad shall revest in the State Government, and the State Government may resume possession thereof.]

1. (1) There shall be in each District a local fund which shall be called the district fund.
2. (2) The following shall be paid into, and form part of, the district fund, that is to say—
   • (a) the balance in the local fund of a district or of a Janapad area formed under the relevant District Boards Act ; Section 128 was substituted for the original by Mah. 11 of 1985, s. 3. Sub-sections (2) and (3) were substituted for sub-section (2) by Mah. 34 of 1966, s. 7.

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1. (b) the net proceeds (after deducting the expenses of assessment and collection) of any residue of the taxes or cesses payable in the District under the relevant District Boards Act;
2. (c) the proceeds (after such deductions as may be prescribed) of the cesses in the District authorised by sections 144, 146, 151 or 152;
3. (d) the balance of the amount of the tax on professions, trades, callings and employments

after deducting such percentage thereof as is to be assigned to a panchayat under clause (b) of

section 163;

1[(d-1) the sum representing the share of the Zilla Parishad in the net proceeds of the taxes, duties, tolls and fees levied by the State as distributed and allocated as determined by the State Government on the recommendations of the Finance Comminssion;]

1. (e) all rents and profits accruing from property (including ferries) vested in a Zilla Parishad;
2. (f) the proceeds of all tolls and leases of tolls on roads and bridges vested in the Zilla Parishad which are levied in the District under the Tolls on Roads and Bridges Act, 1875 (Bom. III of 1875), or any corresponding law in force in any part of the State;
3. (g) all sums received by the Zilla Parishad 2[in the execution] of, or from taxation under this Act;
4. (h) the interest on and the sale proceeds of any securities 3[and the dividends payable in respect of, and the sale-proceeds of, shares, if any,] held by the Zilla Parishad ;
   • (i) all sums contributed by private persons;
5. (j) the receipt on account of charities and trusts placed under the management of a Zilla Parishad;
6. (k) all grants, loans, assignments and contributions made by the State Government;
7. (l) all grants, loans and contributions meant for Panchayat Samitis or any institutions or persons and to be paid through the Zilla Parishad by Government;
8. (m) all other sums received 4[including any monies borrowed under the Act] by or on behalf of the Zilla Parishad under this Act or any other law for the time being in force;
9. (n) all sums paid by the State Government to the Zilla Parishad to meet expenses for the performance of any agency function;
10. (o) all sums realised by way of penalty otherwise than by way of a fine in a criminal case; and
11. (p) all amounts received from persons for supplying or providing services, facilities, benefits or amenities : Provided that, when a public ferry, road or bridge vested in one or more than one Zilla Parishad

is partly in one District and partly in another, the Commissioner, if the Districts are in one division,

and the State Government if they are in different divisions, may assign to the district fund of each

Zilla Parishad such proportion of the net proceeds of such ferry or of the toll, or of the lease of the

tolls levied on such road or bridge, as he or it may think proper.

5[(2A) (a) Notwithstanding anything contained in sub-section (2), with effect from the date of commencement of the Maharashtra Zilla Parishads and Panchayat Samities (Fourth Amendment) Act, 1974 (Mah. VI of 1975) all sums representing subscriptions paid by the employees of a Zilla Parishad to any provident fund established by it or contributions made by the Zilla Parishad on such

subscriptions, if any, for the benefit of such employees shall be paid by the Chief Executive Officer

into the public account of the State. The manner in which payment into the public account of the State

Clause (d-1) was inserted by Mah. 21 of 1994, s. 75. These words were substituted for the words “for the execution” by Mah. 43 of 1962, s. 16. These words were inserted by Mah. 6 of 1975, s. 39(a). These brackets and words were inserted by Mah. 35 of 1963, s. 54. Sub-section (2A) was inserted by Mah. 6 of 1975, s. 39(b).

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Samitis Act, 1961 of such sums may be made and the withdrawal of moneys from such public account and all other matters connected with or ancillary to matters aforesaid, shall be regulated by rules made by the State Government.

1. (b) All accumulations in the provident fund held on individual accounts of all the subscribers immediately before such commencement (including any investment thereof), shall likewise be paid into the public account of the State and operated upon before such date as the State Government may direct.] 1[(2B) Notwithstanding anything contained in sub-section (2), all sums in respect of the pension contributions payable and credited to the Zilla Parishad Pension fund for a period upto and inclusive of the 31 st day of March 1974 and representing the balance therein, including investments, if any, thereof in securities or shares, shall be paid by the Chief Executive Officer into the Consolidated Fund of the State. The manner in which payment into the Consolidated Fund of the State of such sums and securities and shares, if any, may be made and all other matters connected with or ancillary to matters aforesaid, shall be regulated by such general or special order as the State Government may, from time to time, make in this behalf.]

1. (3) The district fund shall be kept—
   • (a) in the Government treasury or in the bank to which the business of the Government treasury has been made over ; or
   • (b) subject to such conditions as the State Government may specify in this behalf, in such co-operative society as may be approved by the State Government.
     • • * * * * 3[(4) The Zilla Parishad may, from time to time, with the previous approval of the State Government invest any portion of the district fund—
   • (a) in the securities of the State or Central Government or in such other securities as the State Government may approve in this behalf;
   • (b) in the purchase of shares of co-operative societies, or shares or debentures of any corporation (including a company) owned or controlled by the State, as the State Government may by general or special order approve in this behalf,

and vary such investments for others of the like nature and the income resulting from the

securities, shares or debentures and the proceeds of the sale of the same shall be credited to the district fund.]

A Zilla Parishad may borrow money for the purposes of

carrying out its functions under this Act from any bank or co-operative society in which the monies at the credit of the district fund are deposited],

5[or from such body or association, whether incorporated or not as may be approved by the State Government in this behalf.]

1. (1) The State Government may, for the purpose of reserving funds for meeting expenditure relating to any specified object, by general or special order, direct a Zilla Parishad—
   • (a) that such portion of the district fund as may be specified in the order, or
   • (b) that proceed from such source of income as may be specified therein, [be credited to a separate head in the accounts of the Zilla Parishad for meeting expenditure on the object so specified. Sub-section (2B) was inserted by Mah. 42 of 1986, s. 2. Proviso was deleted by Mah. 6 of 1975, s. 39(c). Sub-section (4) was added by Mah. 6 of 1975, s. 39(d). Section 130A was inserted by Mah. 43 of 1962, s. 17. These words were added by Mah. 35 of 1963, s. 55.

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1. (2) When a fund is created under sub-section (1), such expenditure only which expressly relates to the object specified in the order, shall be debited to such fund.

1[Expenditure including any grant] by a Zilla Parishad out of the district fund shall, save as otherwise provided by this Act, be made within the area

subject to its authority only ; but may, with the sanction of the Commissioner, be made outside that

area for any of the purposes of this Act, but for the purpose of maintaining its property outside that area

2[or for providing residential accommodation or house rent allowance in lieu thereof to the presiding authorities under sub-section (2) of section 46, sub-section (2) of section 69, or as the case may be, sub-section (2) of section 84]

3[or for holding outside such area]

4[but within the revenue

district], conferences, receptions, ceremonies, exhibitions or social and cultural events,] no such sanction shall be necessary.

Every Zilla Parishad shall, from the district fund at

its disposal, pay—

1. (a) the monthly honoraria to the presiding authorities provided by sections 46, 69 and 84; 5[and the amount of sumptuary allowance placed at the disposal of the President under section 46-A];
2. (b) the travelling and other allowances of Councillors, Members of any Panchayat Samiti or Committee and of the officers holding posts under, and the servants of, the Zilla Parishad;
3. (c) the salaries and allowances of the officers and servants of class III service and class IV service working under the Zilla Parishad;
4. (d) pensions (including contributions towards pensions) and other retiring allowances, gratuities or compassionate allowances payable to officers and servants and their families as provided by or under this Act;
5. (e) the cost of acquisition of land and establishment of markets;
   • • * *
6. (f) the cost of performance of agency functions entrusted to it; 7[(g) the cost of performance of the duties and functions as are entrusted to the Zilla Parishad by or under any other law for the time being in force.]

1. (1) Subject to the provisions of sections 258, 259, 260 and 268 no payment shall be made from the Government treasury or by a bank or co-operative society out of district fund except upon a cheque or letter of credit signed by 8[the Chief Executive Officer] 9[or any officer specifically authorised by him in this behalf].
2. (2) Payment of any sum in excess of 10[one thousand rupees] shall be made by means of a cheque or letter of credit signed as aforesaid, and not in any other way.

Accounts of receipts and expenditure of every Zilla Parishad or Panchayai Samiti shall be kept in such form as the State Government may, from time to time, by rules made in this behalf, prescribe; and shall be balanced annually on the last day of every financial or revenue year, as the State Government may prescribe.

These words were deemed always to have been substituted for the word “Expenditure” by Mah. 8 of 1966, s. 9. These words were inserted by Mah. 21 of 1968, s. 11. These words were inserted by Mah. 15 of 1969, s. 2. These words were substituted for the words “but within the district” by Mah. 6 of 1975, s. 40. These words, figures and letter were inserted by Mah. 6 of 1975, s. 41(a). The word “and” was deleted by Mah. 6 of 1975, s. 41(b). Clause (g) was added by Mah. 6 of 1975, s. 41(c). These words were substituted for the words “any officer holding office under the Zilla Parishad duly authorised in that behalf by the Zilla Parishad” by Mah. 35 of 1963, s. 56. These words were added by Mah. 21 of 1968, s. 12(a). These words were substituted for the words “two hundred rupees” by Mah. 21 of 1968, s. 12(b).

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(1) The Chief Executive Officer shall, every year on or before such date and in such form as the State Government may by rules prescribe, prepare a statement of accounts of receipts and

expenditure of the Zilla Parishad showing the amounts drawn from the district fund, the charges on

establishment, and for all other of expenses, the works and development schemes undertaken, and the balance, if any, in hand, and shall also on or before such other date that may be prescribed in that behalf, prepare a statement of variations of expenditure from the final modified grant with his remarks and explanations on those variations.

1. (2) The Block Development Officer shall, every year on or before such date and in such form as

the State Government may prescribe, prepare a statement of accounts of receipts and expenditure of

the Panchayat Samiti showing the amount drawn from the block grant, the works and development

schemes undertaken and the balance, if any, in hand and shall also on or before such other date that

may be prescribed in that behalf, prepare a statement of variations of expenditure from the final modified grant with his remarks and explanations on those variations, and forward the statement of accounts together with the statement of variations to the Chief Executive Officer before such date as may be prescribed in this behalf.

1. (3) The Chief Executive Officer shall, on or before the date as may be prescribed in that behalf, place the statements of accounts and the variations prepared under sub-sections (1) and (2) before the Finance Committee which shall scrutinise the statements as required by section 109-A and prepare its

report on or before such date as may be prescribed in that behalf. The Chief Executive Officer shall

immediately thereafter cause the report or reports to be placed before the Zilla Parishad, or as the case may be, the Panchayat Samitis.

1. (4) The Zilla Parishad shall, on or after such date as may be prescribed in this behalf, consider the accounts prepared under sub-section (1) and the report of the Finance Committee in relation thereto prepared under sub-section (3) and approve the same on or before such date as may be prescribed in that behalf.
2. (5) Every Panchayat Samiti shall, on or after such date as may be prescribed in that behalf, consider the accounts prepared under sub-section (2) and the report of the Finance Committee in relation thereto, prepared under sub-section (3) and approve and forward the same to the Zilla Parishad on or before such date as may be prescribed in that behalf with such remarks as it thinks fit.
3. (6) If a Zilla Parishad fails to approve the accounts on or before the date prescribed in that behalf, the Chief Executive Officer shall forward the accounts prepared under subsection (1) together with the report of the Finance Committee thereon under sub-section (3) to the State Government, and the Government shall approve the same with or without modifications. The accounts so approved by the State Government shall be deemed to have been duly approved by the Zilla Parishad.
4. (7) If a Panchayat Samiti fails to approve the accounts and to forward the same to the Zilla Parishad before the date prescribed in that behalf under sub-section (5), the Block Development Officer shall forward the accounts prepared under sub-section (2) together with the report of the

Finance Committee thereon under sub-section (3) to the Zilla Parishad and the Zilla Parishad shall

approve the same with or without modifications. In the event of the failure of the Zilla Parishad to approve the accounts of any Panchayat Samiti on or before such date as may be prescribed in that behalf, the Chief Executive Officer shall forward the same to the State Government which shall approve the same with or without modification and the accounts so approved by the State Government shall be deemed to have been duly approved by the Panchayat Samiti.

1. (8) The Block Development Officer shall, prepare on or before such date and in such form as may be prescribed, an abstract of the statement of accounts approved by the Panchayat Samiti under sub-section (5) or deemed to have been approved under sub-section (7), and forward the same to the

Chief Executive Officer. The accounts so forwarded by each Block Development Officer shall form

part of the accounts of the Zilla Parishad.

1. (9) The Chief Executive Officer shall, on or before such date and in such form as may be prescribed, prepare an abstract of the statement of the accounts approved by the Zilla Parishad under Section 136 was substituted for the original by Mah. 6 of 1975, s. 42.

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Samitis Act, 1961 sub-section (4) or deemed to have been approved under sub-section (6), and publish the same together with the statement of accounts of all the Panchayat Samitis in the District forwarded by the Block Development Officer under sub-section (8), before such date, and in such form, and in such manner, as may be prescribed by the State Government].

1. (1) Every Zilla Parishad shall prepare annually, on or before such date and in such form as the State Government may from time to time by rules made in this behalf prescribe, a budget estimate of the income and expenditure of the Zilla Parishad for the next financial year.
2. (2) Every Panchayat Samiti shall prepare annually, on or before such date and in such form as the State Government may from time to time by rules made in this behalf prescribe a budget estimate of the income and expenditure of the Panchayat Samiti for the next financial year relating to the works and development schemes to be undertaken or continued or executed from block grants.
3. (3) Every Panchayat Samiti shall, as soon as may be after the said date, consider the budget estimate so prepared and approve the same with or without modifications and forward it to the Zilla Parishad for the inclusion thereof in the budget estimate of the Zilla Parishad before such date as the State Government may, by rules made in this behalf, prescribe.
4. (4) The Zilla Parishad shall on or after the date prescribed under sub-section (1), consider the budget estimate prepared under sub-section (1) (excluding budget estimates forwarded by the Panchayat Samiti) and approve the same with or without modification 1[on or before such date as may be prescribed by the State Government in this behalf]. The budget estimate forwarded by every Panchayat Samiti in the District shall form part of the budget estimate of the Zilla Parishad.
5. (5) If a Zilla Parishad fails to approve the budget estimate on or before the date prescribed as aforesaid, the Chief Executive Officer shall forward the budget estimate prepared under sub-section
6. (1) to the State Government, and that Government shall approve it with or without modification. The budget estimate so approved by the State Government shall be certified by that Government and, thereupon shall be deemed to have been duly approved by the Zilla Parishad.
7. (6) If a Panchayat Samiti fails to approve the budget estimate and to forward it to the Zilla Parishad before the date prescribed in that behalf under sub-section (3), the Bolck Development Officer shall forward the budget estimate prepared 2[under sub-section (2), to the Zilla Parishad ; and

the Parishad shall approve it with or without modification]. The budget estimate so approved by the

Zilla Parishad

• • * * shall be certified by the Parishad and thereupon shall be deemed to have been duly approved by the Panchayat Samiti.

Reappropriation to be subject to approval like budget estimate.— (1) Every Zilla Parishad may, at any time during the year for which any such budget estimate has been approved, causes a revised or supplementary budget estimate to be prepared. Every such revised or supplementary estimate shall be considered and approved by the Zilla Parishad in the same manner as if it were an original budget estimate.

1. (2) Re-appropriation of funds in a budget estimates may be made from time to time, subject to like approval : 4[Provided that, the re-appropriation of funds from grants made by the State Government shall be subject to such terms and conditions as may be prescribed.]
2. (3) Notwithstanding anything contained in sub-section (2),—
   • (a) re-appropriation of funds between the major heads of account may be approved by the Standing Committee for an amount not exceeding twenty thousand rupees 5[at a time, subject to a limit of rupees one lac in the aggregate, in any financial year] ; These words were inserted by Mah. 35 of 1963, s. 57. This portion was substituted for the words, brackets and figure “under sub-section (2) to the Zilla Parishad” by Mah. 43 of 1962, s. 19(a). These words “with or without modification” were deleted by Mah. 43 of 1962, s. 19(b). This proviso was added by Mah. 8 of 1966, s. 10. These words were inserted by Mah. 6 of 1975, s. 43(a).

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1. (b) re-appropriation of funds between the sub-heads under the same major head of account in respect of the subjects allotted to a Subjects Committee, may be approved by such Committee for an amount not exceeding twenty-five thousand rupees 1[at a time, subject to a limit of rupees one lac and twenty-five thousand in the aggregate, in any financial year] ; and
2. (c) re-appropriation of funds between the sub-heads under the same major head of account in respect of all subjects enumerated in the District List may be approved by the Standing Committee for an amount exceeding twenty-five thousand rupees but not exceeding fifty thousand rupees 2[at a time, subject to a limit of rupees one lac and fifty thousand in the aggregate, in any financial year]. 3[(4) The provisions of sub-sections (1) and (2) relating to the preparation of revised or supplementary budget estimates and re-appropriation of funds therein by Zilla Parishad shall apply mutatis mutandis in relation to the preparation of revised or supplementary budget estimates and re-appropriation of funds therein by Panchayat Samitis.]

No budget estimate of a Zilla Parishad and no re-appropriation of a budget item shall be approved as aforesaid, unless provision is therein made for such Zilla Parishad having at its credit at the end of the financial year

4[a free revenue balance] of not less than five thousand rupees, or such higher amount as the State

Except on pressing emergency, no sum not provided for in budget estimate to be expended.— Save in case of pressing emergency,

5[or save as otherwise expressly provided in this

Authorities of Zilla Parishad to sanction loans or contingent expenditure or to write

off dues. Limits of such power.— (1) When provision is made in the budget estimate of any Zilla Parishad for granting loans for any specified purposes, loans out of such sum may be granted by such authorities of the Zilla Parishad to such extent, and in respect of such subjects as may be prescribed by the State Government : Provided that, notwithstanding anything contained in section 100, no Zilla Parishad shall be entitled to grant loans in respect of matters falling in the sphere of “Agriculture” and “Irrigation” and in respect of any other matter as the State Government may by order direct.

1. (2) Such authorities of a Zilla Parishad as may be prescribed by the State Government may, out of the amounts provided for in the budget estimates of the Zilla Parishad incur expenditure of

recurring or non-recurring nature of contingencies in respect of such subjects, and to such extent, as

may be prescribed by the State Government.

1. (3) Such authorities of a Zilla Parishad as may be prescribed by the State Government may, in respect of such subjects as may be prescribed, direct any arrears of tax or fee or any other sum due to the Zilla Parishad, whether under this Act or otherwise 6[(including any prescribed sum which is irrecoverable)], to be written off to such extent, as may be prescribed by the State Government.

1. (1) Any sum payable to a Zilla Parishad under any agreement express or implied, may be recovered in the same manner as an arrears of land revenue.
2. (2) If any question arises whether a sum is payable to the Zilla Parishad within the meaning of sub-section (1), it shall be referred to a Tribunal constituted by the State Government (consisting of one or more persons not connected with the Zilla Parishad or any authority subordinate to it or with These words were inserted by Mah. 6 of 1975, s. 43(b). These words were added by Mah. 6 of 1975, s. 43(c). Sub-section (4) was added by Mah. 35 of 1963, s. 58. These words were substituted for the words “a balance” by Mah. 21 of 1968, s. 13. These words were inserted by Mah. 34 of 1966, s. 8. These brackets and words were inserted by Mah. 43 of 1964, s. 21. Section 141A was inserted by Mah. 43 of 1962, s. 20.

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Samitis Act, 1961 the person by whom the sum is alleged to be payable) which shall, after making such inquiry as it may deem fit and after giving to the person by whom the sum is alleged to be payable, an opportunity of being heard, decide the question; and the decision of the Tribunal thereon shall be final and shall not be called in question in any Court or before any other authority

1[except that an application for revision of such decision may be made to the High Court within sixty days from the date of such decision.]

1. (3) The procedure to be followed by the Tribunal in deciding questions referred to it under sub-section (2) shall be such as may be prescribed by the State Government.]

1. (1) Every Zilla Parishad or Panchayat Samiti shall, subject to the provisions of this section, prepare its administration report.
2. (2) Every Panchayat Samiti shall include the audit notes with the replies thereto in its administration report and shall forward the report of the Zilla Parishad for purpose of its inclusion in the administration report of the Zilla Parishad.
3. (3) Every Zilla Parishad shall include in its administration report the audit notes with the replies thereto, as also the reports of the Panchayat Samitis received by it.
4. (4) Every Zilla Parishad shall publish the administration report in such form and in such manner as the State Government may prescribe and the report shall be laid before each House of the State Legislature as soon as it is published.

The

accounts of any Zilla Parishad or Panchayat Samiti may be checked at any time by the Accountant

General, Maharashtra State, in accordance with such directions as the State Government may give from time to time in such manner as may be determined by the Accountant General.]