Fund of the Authority and its application

(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 90;

(d) sum of money borrowed under section 122 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 80;

(g) increased stamp duty received under section 86;

(h) charges for using agricultural land for building purposes under section 87;

(i) users' charges received by the Authority from the disposal of land, buildings and other properties; and

(k) any other sum of money received by the Authority from any other source for performing its functions.

(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) The development fund account of every Authority shall be opened and maintained in the current or savings account of the State Bank of India or any other nationalised bank. Such surplus amount of money out of the aforesaid fund, as may determined by the Authority in this behalf, shall be invested in such manner as may be approved by the Authority, but such investment shall be only in Government approved securities.

(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.