Chapter XII FINANCE, ACCOUNTS AND AUDIT

1. (1) The Authority shall have and maintain a separate fund called "development fund" to which shall be credited:-
   • (a) sum of money received from the Government or any other State, national or international agency, loans, advances, or otherwise for the performance of functions under this Act and for any other function which the Government may assign;
   • (b) all development charges or other charges or fees received under this Act or rules or regulations made thereunder;
   • (c) contribution from Municipalities under section 81;
   • (d) sum of money borrowed under section 111 from the market with the approval of Government by way of debentures, bonds and other means in accordance with the prescribed rules;
   • (e) sum of money earned from remunerative projects by way of rent or otherwise and disposal of its assets;
   • (f) sum of money earned from projects implemented under section 75;
   • (g) users' charges received by the Authority from the disposal of land, buildings and other properties; and
   • (h) any other sum of money received by the Authority from any other source for performing its function.
2. (2) The development fund shall be applied towards meeting: -
   • (a) the expenditure incurred in the administration of this Act;
   • (b) the cost of acquisition of land in the development area for the purpose of planned development;
   • (c) the expenditure for development of land in the development area;
   • (d) any expenses incurred by the Authority under this Act in connection with preparation of perspective plan, development plan and annual plan and planning and execution of projects and schemes unless expressly provided otherwise in this Act;
   • (e) the expenditure for such other purposes as the Government may direct; and
   • (f) the expenditure for such other purposes not inconsistent with this Act.
3. (3) The development fund account of every Authority shall be opened and maintained in the current or savings account of any bank as approved by the Government. Such surplus amount of money out of the aforesaid fund, as may determined by the Authority in this behalf, shall be only in Government approved securities.
4. (4) The Government may take such grants, advances and loans to the Authority as the Government may deem necessary for the performance of the functions of the Authority under this Act, and all such grants, loans and advances made shall be on such terms and conditions as the Government may determine.

The Board and every Authority, shall prepare in such form and at such time every year, as may be prescribed, a budget in respect of the financial year next ensuing, showing their estimated receipts and expenditure, such number of copies of the budget, as may be prescribed, shall be forwarded to the Government:-

1. (a) directly in the case of the Board;
2. (b) through the Board, in the case of the Authority.

1. (1) The Board and every Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the balance sheet in such forms as may be prescribed.
2. (2) The accounts maintained under sub-section
3. (1) shall be subject to audit annually by the Accountant General of the State and any expenditure incurred by him in connection with such audit shall be payable by the concerned Authority to the Accountant General.
4. (3) The Accountant General or any person appointed by him in connection with the audit of accounts under sub-section (2), shall have the same right, privilege, and authority in connection with such audit as the Accountant General has in connection with the Government accounts and in particular shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the office of the concerned Authority. The accounts as certified by the Accountant General or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Government:-
   • (a) directly in the case of the Board;
   • (b) through the Board, in the case of the Authority.

1. (1) In order to recover fully or partly the capital expenditure and the cost of maintenance of utilities, amenities, services or facilities provided by the Authority, it may levy and collect a charge from the users, (hereinafter called the users' charge).
2. (2) The amount of users' charges to be levied and its manner of assessment and collection shall be such as may be prescribed under regulations.
3. (3) The Authority may assign, on such terms and conditions, as may be agreed, the task of providing and maintaining any utility, amenity, service or facility, within the area of jurisdiction, to any person or agency including an association or body of individuals whether corporate or not and permit them to collect such users' charges from such beneficiaries and subject to such terms and conditions as may be prescribed under regulations.

Every municipal body within the development area shall at the beginning of the financial year, contribute from municipal fund, a sum not less than ten percent of its total receipts from all sources during the last preceding year to the development fund of the Authority, as the Government may specify from time to time.

1. (1) The Board shall prepare every year on its activities, during that year and submit the report to the Government in such form on or before such date as may be prescribed and the Government shall cause a copy of the report to be laid before the State Legislature.
2. (2) The Authority shall prepare every year a report on its activities during that year clearly specifying sector-wise physical targets achieved along with regular financial statements and submit the report to the Government and the Board in such form on or before such date, as may be prescribed.

1. (1) The Board and the Authority shall constitute for the benefit of their whole-time paid members, officers and other employees, in such manner and subject to such conditions, as may be prescribed, such central provident fund as it may deem fit.