Chapter VIII Chapter VIII

Finance, Accounts and Audit

1. (1) The Board shall have its own fund. 1-A) The authorised capital of the Board shall be twenty crores of rupees which shall be contributed by the State Government and the Local authorities.)
2. (2) The Board may accept loans, grants, subventions, donations and gifts from the Central 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. (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. (4) Except as otherwise directed by the Government, all moneys and receipts specified in the foregoing provision and forming part of the fund of the Board shall be deposited in the State Bank of India or any other Bank included in the Second Schedule to the Reserve Bank of India Act, 1934 ( Central Act II of 1934 ) or invested in such other form or such other securities as may be approved by the Government.

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

1. (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 its general or special order issued in this behalf by it and with its previous approval the Board may, from time to time, borrow money required for the purposes of this Act in one or more of the manners specified below:-
   • (a) raising loans from any Bank or other financing institutions of the Life Insurance Corporation 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 or the State Government ; or
   • (c) raising loan from the public by issue of bonds, debentures of stocks or otherwise in the form and manner approved by the Government.
2. (2) The Board may on the request of a local authority, advance loan to it for the purpose of meeting the expenses in connection with the execution of a water supply and sewerage scheme under this Act, on such terms and conditions as it may think necessary or expedite for protecting its interest.

The Government may guarantee in such manner as it think fit, the payment of the principal and its interest of any loans proposed to be raised by the Board in regard to the investigations, preparation or execution of schemes made under this Act.

1. (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. (2) All debentures shall be signed by the Managing Director or Secretary or by any one of the ex officio (directors) of the Board.
3. (3) The holder of any debenture in any debenture in any form specified under sub sections
4. (1) may obtain in exchange therefore a debenture in any other form specified in the manner provided in sub-section
5. (1) and upon such terms as the Board may determine.
6. (4) Every debenture issued by the Board shall be transferable by endorsement, unless some other mode of transfer is specified therein.
7. (5) All coupons attached to debentures issued by the Board shall bear the signature of the (Managing Director.)

1. (1) The Chairman shall, at a special meeting of the Board 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 financial year.
2. (2) Every such estimate shall make provision for the due fulfilment of all the liabilities of the Board, and for the efficient administration of this Act.
3. (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. (4) Every such estimate shall be compiled and copy thereof sent, by post or otherwise, to each member and Associate Director at least ten clear days before the date of the meeting at which the estimate is to be laid before the Board.
5. (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. (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.

1. (1) Every such estimate, as sanctioned by the Board under section 37, shall be submitted to the Government which 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 with directions to amend it.
2. (2) If any estimate is so returned to the Board, it shall forthwith proceed as amended to the Government which may then approve it.

1. (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. (2) The provisions of sub-sections (3),
3. (4) and
4. (6) of section 37 and of section 38 shall apply to every supplementary estimate.

Every loan taken by the Board shall be repaid by the Board within the period agreed upon by the Board by such of the methods as may be prescribed.

The Board may constitute a sinking fund, a depreciation reserve fund and a development fund in a such manner and in such form as may be prescribed by regulations.

Reports, statements and returns

1. (1) The Board shall, before such date and in such form and at such intervals as may be prescribed, submit to the government, reports on such matters as may be prescribed.
2. (2) The Government shall, as soon as may be, cause the report submitted by the Board to be laid before the House of the State Legislature.
3. (3) The Board shall also submit to the government such statistics, returns, particulars, estates, documents or papers in regard to any proposed or existing scheme or relating to any matter or proceedings connected with the working of the Board at such times and in such form and manner as may be prescribed or as the Government may, from time to time, direct.

1. (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 annual statement of accounts in such form as may be prescribed.
2. (2) The Examiner, Local Fund Accounts, shall be the auditor of the Board.
3. (3) The accounts of the Board shall be audited as far as possible once a year; Provided that the Government may direct that the accounts of the Board be audited from day to under the pre-audit system.
4. (4) The auditor referred to under sub-section
5. (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.
6. (5) The Secretary or any other officer authorised by the Board in this behalf shall cause the report of the auditor to be printed and forward a printed copy thereof to each (director) and (Associate Director) and shall bring such report before the Board for consideration at its next meeting.
7. (6) 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 auditor the cost of conducting the audit of its accounts, which shall be determined by the Government in consultation with the auditor from time to time.

1. (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. (2) The Government shall-
   • (a) cause the accounts of the Board together with the audit report thereon forwarded to them under sub-section
3. (1) to be laid annually before the House of the State Legislature and
   • (b) cause the accounts of Board to be published in the prescribed manner and make available copies thereof on sale at a reasonable price.

The Board may write off any amount whatsoever due to it, whether under a contract or otherwise or any sum payable in connection therewith if, in its opinion, such amount or sum is irrecoverable. Provided that the Board shall, before writing off any such amount of such exceeding twenty-five thousand rupees, obtain the sanction of the Government.