Establishment of Rural Road Development Fund

(1) There shall be constituted for the State of Tamil Nadu a fund called the Tamil Nadu Rural Road Development Fund to which such percentage of tax not exceeding ten per cent as may, from time to time, be fixed by the Government shall be credited. (2) The fund constituted under sub-section (1) shall not be expended except upon the development and maintenance of public roads in the rural areas. Explanation.—For the purpose of this sub-section, "rural area" means any area not included in- (i) the City of Madras or of Madurai; (ii) any municipality governed by the Tamil Nadu District Municipalities Act, 1920 (Tamil Nadu Act V of 1920); or (iii) any township constituted under any law for the time being in force.