Chapter VII REVENUE AND EXPENDITURE

(1) Save as otherwise provided in this Act— (a) all funds which immediately before the establishment of the Council vested in the New Delhi Municipal Committee; (b) all moneys received by or on behalf of the Council under the provisions of this Act or of any other law for the time being in force, or under any contract; (c) all proceeds of the disposal of property by, or on behalf of, the Council; (d) all rents accruing from any property of the Council; (e) all moneys raised by any tax, rate or cess levied for the purposes of this Act; (f) all fees collected and all fines levied under this Act or under any rule, regulation or bye-law made thereunder; (g) all moneys received by or on behalf of the Council from the Government or Central Government or any individual or association of individuals by way of grant or gift or deposit; (h) all interests and profits arising from any investment of, or from any transaction in connection with, any money belonging to the Council, including loans advanced under this Act; and (i) all moneys received by or on behalf of the Council from any other source whatsoever, shall form one Fund to be entitled “the Municipal Fund of New Delhi” (hereafter in this Act referred to as “the New Delhi Municipal Fund”). (2) The New Delhi Municipal Fund shall be held by the Council in trust for the purposes of this Act subject to the provisions herein contained and a General Account relating to all moneys received by or on behalf of the Council shall be maintained.

All moneys payable to the credit of the New Delhi Municipal Fund in the General Account shall be received by the Chairperson and shall be forthwith paid into the State Bank of India to the credit of the said Account which shall be entitled “The General Account of the New Delhi Municipal Fund”.

(1) Save as otherwise provided in this Act no payment shall be made by the State Bank of India out of the New Delhi Municipal Fund except on a cheque signed by both— (a) the Financial Adviser or an officer subordinate to him authorised by the Chairperson in this behalf; and (b) the Chairperson or the Secretary or an officer subordinate to the Chairperson authorised by him in this behalf. (2) Payment of any sum due by the Council in excess of Rs. 500 shall be made by means of a cheque signed in accordance with sub-section (1) and not in any other way. (3) Payments not covered by sub-section (2) may be made in cash.

No payment of any sum out of the New Delhi Municipal Fund shall be made unless the expenditure of the same is covered by a current budget-grant and a sufficient balance of such budget-grant is still available notwithstanding any reduction or transfer thereof which may have been made under the provisions of this Act: Provided that this section shall not apply to payments made in the following classes of cases, namely:— (a) refund of taxes and other moneys which are authorised under this Act; (b) repayment of moneys belonging to contractors or other persons and held in deposit and of moneys collected or credited to the New Delhi Municipal Fund by mistake; (c) sums payable in any of the following circumstances— (i) under orders of the Central Government on failure of the Council to take any action as required by that Government; or (ii) under any other enactment for the time being in force; or (iii) under the decree or order of a civil or criminal court passed against the Council; or (iv) under a compromise of any claim, suit or other legal proceedings; or (v) on account of cost incurred in taking immediate action by the Chairperson under clause (c) of section 18 to avert a sudden threat of danger to the property of the Council or to human life; (d) temporary payments for works urgently required by the Central Government in the public interest; (e) sums payable as compensation under this Act or under any rules, regulations or bye-laws made thereunder; (f) expenses incurred under section 287 by the Chairperson on special measures taken on the outbreak of dangerous diseases.

Before any person signs a cheque in accordance with section 46, he shall satisfy himself that the sum for which the cheque is drawn is either— (a) required for a purpose or work specifically sanctioned by the proper authority and covered by a current budget-grant, or (b) required for any payment referred to or specified in section 47.

Whenever any sum is expended under clauses (c), (e) or (f) of the proviso to section 47, the Chairperson shall forthwith communicate the circumstances to the Council, which may take such action under the provisions of this Act as shall, in the circumstances appear possible and expedient for covering the amount of the additional expenditure.

(1) The moneys from time to time credited to the New Delhi Municipal Fund shall be applied in payment of all sums, charges and costs necessary for carrying out the provisions of this Act, and of the rules, regulations and bye-laws made thereunder, or of which payment is duly directed, sanctioned or required by or under any of the provisions of this Act. (2) Such moneys shall likewise be applied in payment of all sums payable out of the New Delhi Municipal Fund under any other enactment for the time being in force. (2) The terms of any such consolidated loan and the form of its scrip and the rates at which exchange into such consolidated loan shall be permitted shall be subject to the prior approval of the Central Government. (3) The period for the exchanging of any such consolidated loan shall not, without the sanction of the Central Government, extend beyond the farthest date within which any of the loans to be consolidated would otherwise be repayable. (4) The Council shall provide for the repayment of any such consolidated loan by a sinking fund in the manner laid down in section 131 having regard to the amount transferred to such sinking fund under section 132.

(1) On the written requisition of a Secretary to the Central Government, the Chairperson may at any time undertake the execution of any work certified by such Secretary to be urgently required in public interest, and for this purpose may temporarily make payments from the New Delhi Municipal Fund so far as the same can be met without unduly interfering with the regular work of the Council. (2) The cost of work so executed and of the establishment engaged in executing the same shall be paid by the Central Government and credited to the New Delhi Municipal Fund. (3) On the receipt of any requisition under sub-section (1) the Chairperson shall forthwith forward a copy thereof to the Council together with a report of the steps taken by him in pursuance of the same.

(1) Surplus money standing at the credit of General Account of the New Delhi Municipal Fund which cannot immediately be applied for the purposes specified in section 50 shall be deposited in the State Bank of India or in such scheduled bank or banks as the Council may select or be invested in public securities. (2) The loss, if any, arising from such deposit or investment shall be debited to the General Account of the New Delhi Municipal Fund.

(1) After the commencement of this Act the Finance Commission referred to in sub-section (1) of section 107A of the Delhi Municipal Corporation Act, 1957 (66 of 1957), shall review the financial position of the Council and make recommendations to the Administrator as to,— (a) the principles which should govern,— (i) the distribution between the National Capital Territory of Delhi and the Council of the net proceeds of the taxes, duties, tolls and fees leviable by the National Capital Territory of Delhi which may be divided between them; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to or appropriated by, the Council; (iii) the grants-in-aid to the Council from the Consolidated Fund of the National Capital Territory of Delhi; (b) the measures needed to improve the financial position of the Council, (c) any other matter referred to the Finance Commission by the Administrator in the interest of sound finance of the Council. (2) The Administrator shall cause every recommendation made by the Commission under this section together within an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly of the National Capital Territory of Delhi.

(1) The Council shall constitute such special fund or funds as may be prescribed by regulations and such other funds necessary for the purposes of this Act as may be so prescribed. (2) The constitution and disposal of such funds shall be effected in the manner laid down by regulations. (2) The Chairperson may in the notice issued under sub-section (1) specify— (a) the size, material and quality of the pipes and water fittings to be provided; (b) the position of the pipes and water fittings to be provided; (c) the means of access for the inspection of the pipes and water fittings; (d) the type of pump that should be installed and the period or periods of the day for which it should be kept working; (e) the period within which any or all the requisitions specified in the notice should be carried out.

(1) The Council shall, on or before the 31st day of March of every year, adopt for the ensuing year the budget estimate which shall be an estimate of the income and expenditure of the Council to be received and incurred on account of the municipal government of New Delhi. (2) On or before the 15th day of February of each year the Council shall determine the rates at which various municipal taxes, rates and cesses shall be levied in the next following year and save as otherwise provided in this Act the rates so fixed shall not be subsequently altered for the year for which they have been fixed. (3) Budget estimates shall be prepared in such form as may be approved by the Council and presented and adopted in such manner and shall provide for all such matters as are prescribed by regulations made in this behalf. (3) As soon as any such hydrant is completed, the Chairperson shall deposit a key thereof at each place where a public fire engine is kept and in such other places as he deems necessary. (4) The Chairperson may, at the request and expense of the owner or occupier of any factory, workshop, trade premises or place of business situated in or near a street in which a pipe is laid (and not being a trunk main and being of sufficient dimensions to carry a hydrant), fix on the pipe and keep in good order and from time to time renew one or more fire hydrants, to be used only for extinguishing fires as near as conveniently may be to that factory, workshop, trade premises or place of business. (5) The Chairperson shall allow all persons to take water for extinguishing fires from any pipe on which a hydrant is fixed without any payment.

(1) On the recommendation of the Chairperson in respect of the budget estimate, the Council may from time to time, during the year, (i) increase the amount of budget-grant under any head; (ii) make additional budget-grant for the purpose of meeting any special or unforeseen requirement arising during the said year; (iii) transfer the amount or portion of the amount of the budget-grant under any head to any other head; or (iv) reduce the amount of the budget-grant under any head: Provided that due regard shall be had to all the requirements of this Act and in making any increase or any additional budget-grant, the estimated cash balance at the close of the year shall not be reduced below the sum of Rs. 1,00,000 or such higher sum as the Council may determine in respect of the budget estimate. (2) Every increase in a budget-grant and every additional budget-grant made in any year under sub-section (1) shall be deemed to be included in the budget estimates finally adopted for that year. (3) The Council may from time to time during the year— (a) reduce the amount of a budget-grant; or (b) sanction the transfer of any amount within a budget-grant. (4) The Chairperson may from time to time during the year sanction the transfer of any amount not exceeding Rs. 10,000 within a minor head if such transfer does not involve a recurring liability: Provided that every such transfer if it exceeds Rs. 10,000 shall be reported forthwith by the Chairperson to the Council and the Chairperson shall give effect to any order that may be passed by the Council in relation thereto.

(1) If at any time during the year it appears to the Council that, notwithstanding any reduction of budget-grant that has been made under section 56 the income of the New Delhi Municipal Fund during the same year will not suffice to meet the expenditure sanctioned in the budget estimates of that year and to leave at the close of the year the cash balance specified in or determined under the proviso to sub-section (1) of section 56, then, it shall be incumbent on the Council to sanction forthwith any measures which it may consider necessary for adjusting the year‟s income to the expenditure. (2) For the purposes of sub-section (1), the Council may either diminish the sanctioned expenditure of the year so far as it may be possible so to do with regard to all the requirements of this Act, or have recourse to supplementary taxation under section 97 or to an increase of the rates of cesses, fees, fares and other charges leviable under this Act, or to adopt all or any of these methods. (3) If the whole or any part of any budget-grant included in the budget estimates for a year remains unexpended at the close of that year, and the amount thereof has not been taken into account in the opening balance entered in the budget estimates of any of the next two following years, the Chairperson may sanction the expenditure of such budget-grant or the unexpended portion thereof during the next two following years for the completion of the purpose or object for which the budget-grant was originally made and not for any other purpose or object.

These shall be kept in such manner and in such form as may be prescribed by regulations the General Account of all receipts and expenditures of the Council.

(1) The Chief Auditor shall conduct a monthly examination and audit of the accounts of the Council and shall report thereon to the Chairperson, who shall publish monthly an abstract of the receipts and expenditure of the month last proceeding signed by him and by the Chief Auditor. (2) The Chairperson may also, from time to time and for such period, as he may think fit, conduct independently any examination and audit of the accounts of the Council. (3) For the purpose of examination and audit of the accounts of the Council, the Chief Auditor shall have access to all the accounts of the Council and to all records and correspondence relating thereto. (4) The Chief Auditor shall audit the accounts of the Council with the assistance of the officers and other employees subordinate to him. (5) In the discharge of his functions under this section the Chief Auditor shall,— (a) audit the accounts of expenditure from the revenue of the Council, expenditure on account of loan works and expenditure incurred out of special funds and shall ascertain whether moneys shown therein as have been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged, and whether the expenditure conforms to the authority which governs it; (b) audit the accounts of debts, deposits, sinking funds, advances, suspense and remittance transactions of the Council and report upon those accounts and upon the results of verification of the balance relating thereto. (6) The Chief Auditor shall examine and audit the statement of accounts relating to the commercial services conducted in any department of the Council including the trading, manufacturing and profit and loss accounts, and the balance-sheets where such accounts are maintained under the orders of the Council and shall certify and report upon these accounts. (7) The Chief Auditor shall in consultation with the Chairperson and subject to any directions given by the Council determine the form and manner in which his reports on the accounts of the Council shall be prepared and shall have authority to call upon any officer of the Council to provide any information necessary for the preparation of these reports. (8) The Chief Auditor may make such queries and observations in relation to any of the accounts of the Council which he is required to audit and call for such vouchers, statements, returns and explanation in relation to such accounts as he may think fit. (9) Every such query or observation as aforesaid shall be promptly taken into consideration by the officer or authority to whom it may be addressed and returned without delay with the necessary vouchers, documents or explanations to the Chief Auditor. (10) The power of the Chief Auditor with regard to the disapproval of, and the procedure with regard to the settlement of objections to expenditure from the revenues of the Council shall be such as may be prescribed by the Chairperson in Consultation with Chief Auditor, and with the approval of the Council. (11) If the Chief Auditor considers it desirable that the whole or any part of the audit applied to any accounts which he is required to audit shall be conducted in the offices in which those accounts originate he may require that those accounts, together with all books and documents having relation thereto, shall at all convenient times be made available in the said offices for inspection. (12) The Chief Auditor shall have the power to require that any books or other documents relating to the accounts he is required to audit shall be sent for inspection by him: Provided that if the documents are confidential, he shall be responsible for preventing disclosure of their contents. (13) The Chief Auditor shall have authority to frame standing orders and to give directions on all matters relating to audit, and particularly, in respect of the method and the extent of audit to be applied and the raising and pursuing the objections. (14) Expenditure sanctioned by the Chief Auditor shall be audited by an officer to be nominated by the Council. (15) The Chief Auditor shall report to the Chairperson any material impropriety or irregularity which he may at any time observe in the expenditure or in the recovery of moneys due to the Council or in the accounts of the Council. (16) The Chairperson shall cause to be laid before the Council every report made by the Chief Auditor to the Chairperson and every statement of the views of the Chief Auditor on any matter affecting the exercise and performance of the powers and duties assigned to him under this Act and the Council may take such action in regard to any of the matters as aforesaid as the Council may deem necessary. (17) As soon as may be after the commencement of each year, the Chief Auditor shall deliver to the Council a report of the entire accounts of the Council for the previous year. (5) In the discharge of his functions under this section the Chief Auditor shall,— (a) audit the accounts of expenditure from the revenue of the Council, expenditure on account of loan works and expenditure incurred out of special funds and shall ascertain whether moneys shown therein as have been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged, and whether the expenditure conforms to the authority which governs it; (b) audit the accounts of debts, deposits, sinking funds, advances, suspense and remittance transactions of the Council and report upon those accounts and upon the results of verification of the balance relating thereto. (6) The Chief Auditor shall examine and audit the statement of accounts relating to the commercial services conducted in any department of the Council including the trading, manufacturing and profit and loss accounts, and the balance-sheets where such accounts are maintained under the orders of the Council and shall certify and report upon these accounts. (7) The Chief Auditor shall in consultation with the Chairperson and subject to any directions given by the Council determine the form and manner in which his reports on the accounts of the Council shall be prepared and shall have authority to call upon any officer of the Council to provide any information necessary for the preparation of these reports. (8) The Chief Auditor may make such queries and observations in relation to any of the accounts of the Council which he is required to audit and call for such vouchers, statements, returns and explanation in relation to such accounts as he may think fit. (9) Every such query or observation as aforesaid shall be promptly taken into consideration by the officer or authority to whom it may be addressed and returned without delay with the necessary vouchers, documents or explanations to the Chief Auditor. (10) The power of the Chief Auditor with regard to the disapproval of, and the procedure with regard to the settlement of objections to expenditure from the revenues of the Council shall be such as may be prescribed by the Chairperson in Consultation with Chief Auditor, and with the approval of the Council. (11) If the Chief Auditor considers it desirable that the whole or any part of the audit applied to any accounts which he is required to audit shall be conducted in the offices in which those accounts originate he may require that those accounts, together with all books and documents having relation thereto, shall at all convenient times be made available in the said offices for inspection. (12) The Chief Auditor shall have the power to require that any books or other documents relating to the accounts he is required to audit shall be sent for inspection by him: Provided that if the documents are confidential, he shall be responsible for preventing disclosure of their contents. (13) The Chief Auditor shall have authority to frame standing orders and to give directions on all matters relating to audit, and particularly, in respect of the method and the extent of audit to be applied and the raising and pursuing the objections. (14) Expenditure sanctioned by the Chief Auditor shall be audited by an officer to be nominated by the Council. (15) The Chief Auditor shall report to the Chairperson any material impropriety or irregularity which he may at any time observe in the expenditure or in the recovery of moneys due to the Council or in the accounts of the Council. (16) The Chairperson shall cause to be laid before the Council every report made by the Chief Auditor to the Chairperson and every statement of the views of the Chief Auditor on any matter affecting the exercise and performance of the powers and duties assigned to him under this Act and the Council may take such action in regard to any of the matters as aforesaid as the Council may deem necessary. (17) As soon as may be after the commencement of each year, the Chief Auditor shall deliver to the Council a report of the entire accounts of the Council for the previous year. (18) The Chairperson shall cause the said report to be printed and shall forward as soon as may be printed copy thereof to each member of the Council. (19) The Chairperson shall also forward without delay to the Government so many copies of the said report, as may be required by the Government with a brief statement of the action taken or proposed to be taken if any: Provided that the Government may at any time appoint auditor for the purpose of making a special audit of the General Account of the New Delhi Municipal Fund and reporting thereon to the Government and the costs of such audit, as determined by the Government, shall be chargeable to the New Delhi Municipal Fund. The auditor so appointed may exercise any power which the Chief Auditor may exercise.