The Andhra Pradesh Infrastructure Development Corporation Act, 1998.

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THE ANDHRA PRADESH INFRASTRUCTURE DEVELOPMENT
CORPORATION ACT, 1998
(ACT NO. 37 OF 1998)
ARRANGEMENT OF SECTIONS
SECTIONS
CHAPTER - I
PRELIMINARY
1. Short title, extent and commencement
2. Definitions
CHAPTER - II
ESTABLISHMENT, CONDUCT OF BUSINESS AND
EMPLOYEES OF THE CORPORATION
3. Establishment of Andhra Pradesh Infrastructure Development
Corporation
4. Constitution of Corporation
5. Constitution of Executive Committee
6. Disqualification for Membership and removal of Members
7. Meetings of Corporation
8. Constitution of Committees
9. Provision for inviting officers of Government and Local Authority
and others
10. Filling up of casual vacancies of Members
11. Acts or Proceedings not to be invalidated by vacancy or informality
etc.
12. Officers and servants of Corporation
13. Disqualification of all Officers and Servants
14. Authentication of orders etc., of the Corporation
CHAPTER - III
PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS
15. Power of the Government to vest or entrust projects, works and
schemes to the Corporation
16. Transfer of assets and liabilities of the Government to the
Corporation
CHAPTER - IV
FUNCTIONS AND POWERS OF CORPORATION
17. Functions of the Corporation
18. General Powers of the Corporation
19. Charges for providing facilities and rendering services
20. Responsibility of the Corporation for payment of interest on
borrowed money
21. Prohibition of construction of any facility for extraction of surface
water without approval of Corporation
22. Co-ordination with other authorities to minimise inconvenience
caused by projects or works or schemes of the Corporation
23. Powers to be exercised by the Corporation under certain Laws
24. Powers of the Government to issue directions
25. Application of the provisions of Hyderabad Metropolitan Water
Supply and Sewerage Act, 1989
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CHAPTER - V
ACQUISITION OF LAND
26. Power to acquire land
27. Transfer of Government lands to Corporation
28. Powers of Corporation to dispose of land etc.
CHAPTER - VI
FINANCE, ACCOUNTS AND AUDIT
29. Application of Corporation assets etc
30. Fund of the Corporation
31. Contribution of Government to Corporation Fund
32. Grants, subventions, loans and advances to the Corporation
33. Power of Corporation to borrow
34. Acceptance of deposits by Corporation.
35. Power to spend.
36. Expenditure on objects other than those stated in section 17
37. Reserve and other funds
38. Submission of budget to Corporation
39. Sanction of budget estimates
40. Government as Guarantor
41. Disposal of profits and deficits
42. Interest, charges and other expenses to be added to and receipts
taken for reduction of capital cost
43. Depreciation Fund
44. Apportionment of, betterment charges levied by Government
45. Financial Statement and  programme of work
46. Accounts and Audit
47. Concurrent and special audit of accounts
CHAPTER - VII
MISCELLANEOUS AND SUPPLEMENTARY
PROVISIONS
48. Furnishing of annual reports and returns etc
49. Rehabilitation of effected persons
50. Execution of contracts etc
51. General penalty
52. Power of entry
53. Dues to be recovered as an arrear of land revenue
54. Service of notice etc.
55. Public notice how to be made known
56. Notice period for performance
57. Default in performance of duty
58. Offences by Companies
59. Authority for prosecution
60. Compounding of offences by Corporation
61. Penalty for obstruction
62. Delegation of powers of Corporation
63. Protection of action taken in good faith
64. Chairman, Managing Director, Members and Officers etc. to be
Public Servants
65. Effect of provisions inconsistent with other laws
66. Power to make rules
67. Power to make regulations
68. Power to remove doubts and difficulties
69. Dissolution of Corporation
70. Repeal of Ordinance 8 of 1998
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THE ANDHRA PRADESH INFRASTRUCTURE DEVELOPMENT
CORPORATION ACT, 1998
ACT No.37 OF 1998
(23rd December,1998)
AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF ANDHRA PRADESH
INFRASTRUCTURE DEVELOPMENT CORPORATION FOR PROMOTION
AND OPERATION OF SCHEMES FOR WATER SUPPLY, SEWERAGE AND
SANITATION AND OTHER INFRASTRUCTURE PROJECTS IN THE
STATE OF ANDHRA PRADESH AND FOR MATTERS CONNECTED
THEREWITH OR INCIDENTAL THERETO:
Whereas it is expedient to establish a Corporation for promotion and
operation of schemes for supply of water for domestic, industrial and
commercial purposes, Sewerage and Sewerage treatment, public health and
sanitation and Infrastructure Projects in the State of Andhra Pradesh and other
allied and incidental activities;
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the Forty-ninth Year of the Republic of India as follows:-
CHAPTER – I
PRELIMINARY
1. Short title, extent and commencement -(1) This Act may be called the
Andhra Pradesh Infrastructure Development Corporation Act, 1998.
(2) It shall extend to the whole of the State of Andhra Pradesh.
(3) It shall be deemed to have come into force with effect from the 14th
September, 1998.
2. Definitions -In this Act, unless the context otherwise requires,-
(a) “Corporation”means the Andhra Pradesh Infrastructure
Development Corporation established under section 3;
(b)“Government”means the State Government of Andhra Pradesh;
(c) “ Local Authority” means,-- (i) a Municipal Corporation
constituted under any law relating to Municipal Corporations for the
time being in force;
(ii) a Municipality or a notified Area Committee, constituted
under the Andhra Pradesh Municipalities Act, 1965(Act VI of
1995);
(iii) a Gram Panchayat, a Mandal Parishad or a Zilla  Parishad,
constituted under the Andhra Pradesh Panchayat Raj Act,
1994 (Act 13 of 1994);
(d) “Notification”means a notification published in the Andhra
Pradesh Gazette; and the word “notified” shall be construed
accordingly;
(e)“Prescribed”means prescribed by rules made under this Act;
(f)“Regulations”means the regulations made under this Act.
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CHAPTER - II
ESTABLISHMENT, CONDUCT OF BUSINESS AND
EMPLOYEES OF THE CORPORATION
3.  Establishment of Andhra Pradesh Infrastructure Development
Corporation -(1) The Government shall, by notification establish for the
purposes of this Act, a Corporation to be called the Andhra Pradesh
Infrastructure Development Corporation.
(2) The Corporation established under sub-section (1) shall be a body
corporate having perpetual succession and a common seal, with power; to
contract, acquire, hold and dispose of property, both movable and immovable,
and to do all things necessary for the purposes of this Act, and may sue and
be sued by its Corporate name.
(3) The Head Office of the Corporation shall be at Hyderabad.
4. Constitution of Corporation -(1) The Corporation shall consist of the
following members, namely:-
(a) Chief Minister         Chairman
(b) Minister - incharge of Planning          Member
(c) Minister - Panchayatraj & Rural
Development, Water Supply and
Employment Generation.           Member
(d) Minister - Municipal
Administration and Urban
Development
          Member
(e) Principal Secretary or
Secretary to Government
Panchayat Raj & Rural
Development Department
         Ex-Officio Member;
(f) Principal Secretary or
Secretary to Government-
Municipal Administration and
Urban Development Department
        Ex-Officio Member;
(g)  Principal Secretary or Secretary to
Government  - Finance Department       Ex-Officio Member
(h) One Non- Official Member
Representing reputed and
recognised Financial Institutions,
to be nominated by the
Government
(i) One Officer to be appointed by the
Government as the Member
Secretary of the Corporation, who
shall be the Managing  Director of
the Corporation
(j) Three other members to be
nominated by Government from
Officials or non-Officials
(2) The term of Office of nominated Members shall be for a period of one
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year unless terminated earlier by the Government.
(3) The non-official members of the Corporation under clauses (h) and (j)
of sub-section (1) shall receive such remuneration and allowances as may be
laid down by regulations.
(4) The Official Members of the Corporation shall receive such
compensatory allowances, for the purposes of meeting the personal
expenditure in attending the meetings of the Corporation, as may be laid down
by regulations.
5. Constitution of Executive Committee- (1) There shall be   Executive
Committee consisting of the following Members, namely:-
(a)  Minister - incharge of Planning         Chairman
(b) Managing Director of the
Corporation         Vice-Chairman
(c) Principal Secretary to Government,
MA & UD  Department         Ex-Officio Member
(d) Secretary to Government (RD),
PR&RD Department         Ex-Officio Member
(e)
Chief Accounts and Finance Officer
of the Corporation             Ex-Officio Member;
(f) One Representative of any
Department of the Government as
may be nominated by the
Government.
(2) The powers, functions, and duties of the Executive Committee shall
be such as may be laid down by regulations.
6. Disqualification for Membership and removal of members - (1) A person
shall be disqualified for being nominated as a non-official Member or continue
to be such Member, if he,--
(a) is an employee of the Corporation except the Managing Director;
(b) is of unsound mind, and stands so declared by a competent court;
(c) is an undischarged insolvent;
(d) is convicted for an offence involving moral turpitude;
(e) has, directly or indirectly by himself or by any partner, employer
or employee, any share or interest, whether pecuniary or of any other
nature, in any contract, or employment with, by or on behalf of the
Corporation; or
(f) is a Director, Secretary, Manager or other Officer of any company,
which has any share or interest in any contract or employment with,
by  or on behalf of, the Corporation:
    Provided that, a person shall not be disqualified under clause (e)
or clause (f) by reason only of his or the company in which he is a
Director, Secretary, Manager or other Officer, having a share or
interest in,-
(i) any sale, purchase, lease or exchange or immovable
property or any agreement for the same;
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(ii)  any agreement for loan of any money or any security for
payment of money only;
(iii) any newspaper in which any advertisement relating to the
affairs of the Corporation is published;
(2) the Government may remove from the Corporation any non-official
Member nominated by the Government, who, in its opinion,-
(a)  has been disqualified under sub-section (1);
(b)  refuses to act;
(c)  has so abused his position as a Member as to render his
continuance on the Corporation detrimental to the interest of the
public; or
(d)   is otherwise unsuitable to continue as Member.
(3) no order of removal under sub-section (2) shall be made unless, the
non-official Member has been given an opportunity to submit his explanation
to the Government and when such order is passed, the office of the Member so
removed shall be deemed to be vacant.
(4) A Member who has been so removed under subsection (3) shall not be
eligible for reappointment as Member or in any other capacity, in the
Corporation.
7. Meetings of Corporation -(1) The Corporation shall meet at such times and
places as the Chairman may decide and shall, subject to the provisions of sub-
section (3), observe such rules of procedure in regard to the transaction of
business at its meetings including the quorum thereof as may be laid down by
regulations:
Provided that, at least one meeting shall be held in every three months
period.
(2) The Chairman or, in his absence such other Member as may be
approved by the Chairman, shall preside at every meeting of the Corporation. If
any reason, the Chairman and such other Member are unable to attend any
meeting, the meeting shall stand adjourned.
(3) A Member, who is directly or indirectly concerned or interested in any
contract, loan, arrangement or proposal entered into, or proposed to be entered
into by or on behalf  of the Corporation, shall, at the earliest possible
opportunity, disclose the nature of his interest to the Corporation, and shall
not be present at any meeting of the Corporation when any such contract, loan,
arrangement or proposal is discussed, unless his presence is required by the
other Members for the purpose of eliciting information, but no Member so
required to be present shall vote on any such contract, loan, arrangement or
proposal:
Provided that a Member shall not be deemed to be concerned or
interested as aforesaid by reason only of his being a share holder of a company
concerned in any such contract, loan, arrangement or proposal.
8. Constitution of Committees -(1) The Corporation may, from time to time,
appoint a committee, or committees of Officials, non-Officials and its Members
consisting of such number of them as it may think proper and may delegate to
such committee such powers of the Corporation as it may deem fit for carrying
out the purposes of this Act.
(2) The Corporation may appoint a Consultant or Consultants acting in
an advisory or in any othercapacity, in matters relating to its projects, works
and schemes.
(3)  The Corporation may appoint such auditors to certify the valid
execution of its projects, works and schemes as it may deem fit.
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9. Provision for inviting officers of Government and Local Authority and
others -(1) The Corporation or any of its committees may invite any Officer of
the Central Government, State Government, a Local Authority, or any
organisation or any other person to attend its meeting or meetings as a special
invitee for the purpose of assisting or advising, on any matter or matters. The
person so invited may take part in the proceedings, but shall have no right to
vote.
(2) The person so invited shall be entitled to draw such honorarium or
compensatory allowance for the purpose of meeting the personal expenditure in
attending the meetings of the Corporation or any of its committees as the
Corporation may determine, from time to time.
10. Filling up of casual vacancies of Members -Any vacancy of a Member of
the Corporation, shall be filled as early as practicable, in like manner as if the
appointment were being made for the first time.
11. Acts or Proceedings not to be invalidated by vacancy or informality
etc., -No Act done or proceedings taken under this Act by the Corporation or a
committee appointed by the Corporation shall be invalid merely on the ground
of,-
(a) any vacancy of a Member or any defect in the constitution or
reconstitution of the Corporation or a committee thereof; or
(b) any defect or irregularity in the appointment of a person as a
Member of the Corporation or of a committee thereof; or
(c) any defect or irregularity in such act or proceedings, not affecting
the substance.
12. Officers and servants of Corporation -  (1) The Government shall appoint
the Managing Director as provided in sub-section (1) of section 4, a Chief
Engineer, a Superintending Engineer, a Chief Accounts & Finance Officer and
such other officers as may be required.
(2)  The Corporation may, with the prior approval of the Government,
appoint such other Officers and Servants subordinate to the Officers
mentioned in sub-section (1) as it considers necessary for the efficient
performance of its duties and functions.
(3) The conditions of appointment and service of the Officers and
Servants and their scales of pay shall,-
(a) as regards the Officers mentioned in sub-section (1) be such as
may be prescribed; and
(b) as regards the Officers and Servants mentioned in sub-section(2)
be such as may be laid down from time to time by regulations.
(4) Where any officers and employees belonging to any category in any
Department of the Government are likely to be rendered surplus wholly or
partially to the requirements of the Government due to the functioning of the
Corporation by or under this Act or where the services of such officers and
employees are required by the Corporation for efficient exercise of its powers,
performance of its duties or discharge of its functions, the Government or any
officer duly authorized by the Government in this behalf may, by order, depute
such officers and employees to the Corporation as may be found necessary
from time to time, who shall be accordingly employed by the Corporation on
deputation and their salaries and allowances shall be paid from the
Corporation Fund.
(5) The period of deputation of any such officer or employee to the
corporation shall ordinarily be five years, on expiry of which, such officer or
employee shall stand repatriated to his parent service except when any such
person is required by the Government to be repatriated earlier on such grounds
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as promotion, revertion, termination or superannuation or any other reason:
Provided that, during the period of such deputation all matters relating
to the pay, leave, allowances, retirement, pension, provident fund and other
conditions of service of such person on deputation shall be regulated by such
rules governing such matters at the time of the deputation or such other rules
as may, from time to time, be made by the State Government, but they shall
not be entitled to any deputation allowance.
(6) All such persons on deputation to the Corporation shall continue to
have a lien on their posts in their parent service and the period of their service
on deputation under the Corporation shall, on their repatriation to their parent
service, be counted for increments, pension and other matters related to their
service.
(7) The Corporation shall have the authority to transfer the officers,
employees and servants to any area of its operation.
(8) Save as otherwise provided in this section, the terms and conditions
of service of the officers and employees on deputation to the Corporation shall
not be less advantageous than those applicable to them immediately before
such deputation and shall not be varied to their disadvantage except with the
previous sanction of the State Government.
(9) Subject to the superintendence of the Corporation, the Managing
Director shall supervise and control all its officers and employees including any
officers and employees of the Government appointed on deputation to the
Corporation.
13. Disqualification of all Officers and Servants - No person who has,
directly or indirectly, by himself or by his partner or agent, any share or
interest in any contract, by or on behalf of the Corporation or in any
employment under by or on behalf of the Corporation otherwise than as an
officer or servant thereof, shall be qualified to be an officer or servant of the
Corporation.
14. Authentication of orders etc., of the Corporation -All proceedings of
the Corporation shall be authenticated by the Chairman and all orders and
instruments of the Corporation shall be authenticated by the Managing
Director or any other officer of the Corporation as may be authorised in this
behalf by regulations.
CHAPTER - III
PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS
15.  Power of the Government to vest or entrust projects, works and
schemes to the Corporation  - The Government may from time to time by
notification, vest in or as the case may be, entrust to the Corporation, any
water supply projects, Sewerages and Sewage projects, Sanitation projects,
other Infrastructure Projects works under construction, management of
completed schemes, or any other works or projects specified in that behalf
which vested in the Government and are under the control of the Panchayat
Raj and Rural Development Department or the Municipal Administration and
Urban Development Department, or any other Department of the Government:
Provided that any such vesting or entrustment in respect of any project
or work or scheme situated within the jurisdiction of a Cantonment Board
constituted under the Cantonments Act 1924 (Central Act II of 1924), shall be
to the extent of any agreement with such Cantonment Board only.
16. Transfer of assets and liabilities of the Government to the
Corporation-
(1) On and from the date of a notification under section 15,-
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(a) all the properties and assets comprising of movables and
immovables of such projects, works and schemes vested in the
Government and under the control of the Panchayat Raj and Rural
Development Department or the Municipal Administration and Urban
Development Department or any other Department of the
Government, shall vest in and stand transferred to the Corporation;
(b) all rights, obligations and liabilities, acquired or incurred, all
contracts entered into and all matters and things engaged to be done
by, with or for the Government, immediately before such date for or
in connection with the purposes of any project or work or scheme or
any part thereof vested in, or entrusted to, the Corporation under
section 15, shall be deemed to have been acquired, incurred, entered
into and engaged to be done by, with or for the Corporation;
(c) all non-recurring expenditure incurred by or for the Government,
or in connection with the purposes of any project or work or scheme
or any part thereof, so vested in, or entrusted to, the Corporation,
upto such date and declared to be capital expenditure by the
Government shall subject to such terms and conditions as may be
prescribed, be treated as capital provided by the Government to the
Corporation;
(d) all sums of money due to the Government in relation to any
project or work or scheme or any part thereof so vested in or
entrusted to, the Corporation immediately before such date shall be
deemed to be due to the Corporation;
(e) all suits and other legal proceedings instituted or which could
have been instituted by or against the Government, immediately
before such date for any matter in relation to any project or work or
scheme or any part thereof may be continued or instituted by or
against the Corporation.
(2) Such properties, assets, rights, obligations and liabilities shall be
valued in such manner as the Government may determine.
(3) If any doubt or dispute arises to as to which of the properties or
assets or rights or liabilities of the Government have been transferred to the
Corporation such doubt or dispute shall be referred to and decided by the
Government, whose decision shall be final.
CHAPTER - IV
FUNCTIONS AND POWERS OF CORPORATION
17.  Functions of the Corporation -The functions of the Corporation shall
be,-
(a) supply of water for domestic, industrial and commercial purposes
including planning, design, construction, maintenance, operation and
management of any water supply system including maintenance of
drinking water tanks;
(b) establishing and maintaining schemes incidental to water supply
such as testing of water, designing of plant for purification of water,
and conducting research relating to water supply;
(c) sewerage, sewage disposal and sewage treatment works including
planning, design, construction, maintenance, operation and
management of sewerage and sewage treatment works;
(d) planning, design, construction maintenance, operation and
management of all sanitation and public health works, schemes and
projects including afforestation protection, of environment and
promotion of ecological aspects, safe handling of drinking water,
waste water disposal, garbage disposal, cleanliness and
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personal hygiene;
(e) planning, design, construction, maintenance, operation and
management of minor irrigation tanks having ayacut of less than 100
acres, including watershed management, and storage and
management of rainwater;
(f) planning, design, construction, maintenance, operation and
management of any infrastructure facility within the meaning of
section 80 IA of the Income Tax Act, 1961(Central Act 43 of 1961),as
amended from time to time;
(g) planning, design, construction, maintenance, operation and
management of schemes or projects in relation to the matters listed
in the eleventh and twelfth schedules of the Constitution of India;
(h) planning, design, construction, maintenance, operation and
management of schemes or projects for developing Inland Waterways
and Inland Transportation;
(i) procurement and servicing of Government Loans, Open Market
Borrowings, loans borrowed from Banks, Financial Institutions,
Insurance Companies, and other Institutions, for the purposes of
clauses (a) to (h) above, either on behalf of Government or Local
Authorities;
(j) entering into contracts in respect of the works and any other
matters transferred to the Corporation along with the assets and
liabilities under this Act;
(k) inviting tenders, bids, offers and enter into contracts for the
purposes of all the activities of the Corporation;
(l) promoting participation of any person or body or association of
individuals whether incorporated or not, in planning, investigation,
designing, construction and management of water supply, sewerage,
sanitation projects and schemes, other projects and schemes in
relation to matters listed in the eleventh and twelfth schedules of the
Constitution of India, projects and schemes falling under the
definition of infrastructure facility under section 80 IA of the Income
Tax Act, 1961 (Central Act 43 of 1961) or any other project or scheme
as may be entrusted by the Government from time to time;
(m) undertaking schemes or works, jointly with other corporate
bodies, or institutions or with Government or Local Authorities or on
agency basis in furtherance of the purposes for which the
Corporation is established and all matters connected therewith;
(n) preparing annual plan and five year working development plan;
(o) preparing annual budget;
(p) taking all such steps as may be necessary or convenient for, or
may be incidental to the exercise of any power or the discharge of any
function conferred, imposed on it by this Act; and
(q) undertaking any other activities entrusted by the Government in
furtherance of the objectives for which the Corporation is established.
18. General Powers of the Corporation -(1) The Corporation shall have the
power to accord administrative approval, revised administrative approval,
technical sanction, acceptance of all tenders, sanctioning, budget and making
financial provisions, settling disputes arising out of contracts and any other
things which may be necessary or expedient for the purposes of carrying out its
functions under this Act.
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(2) without prejudice to the generality of the foregoing provision such
power shall include the power,-
(a) to acquire and hold property, both movable and immovable as the
Corporation may deem necessary for the performance of any of its
functions, duties, and activities and to lease, sell, exchange or
otherwise transfer any property held by it on such conditions as may
be deemed proper by the Corporation;
(b) to construct or cause to be constructed such facilities within the
scope of its functions, and such other works and structure as may be
required;
(c) to take measures to prevent pollution of any water under its
control and to take all measures deemed necessary to prevent
discharges into such water of effluents which are harmful to water
supply, or public health;
(d) to assist the water users associations and any other societies or
organisations formed under any other law for the time being in force
for the better use of facilities made available by the Corporation;
(e) to engage suitable consultants or persons having special
knowledge or skill to assist the Corporation in the performances of its
functions; and
(f) to do all such other things and perform such other acts as may be
necessary for or incidental or conducive to any matters which are
necessary for furtherance of the objectives for which the Corporation
is established.
19. Charges for providing facilities and rendering services –
The Corporation shall, from time to time, determine and levy charges for
the facilities provided and services rendered for any purpose to the
Government, Local Authorities, Government agencies, associations, societies,
organisations or any other users or consumers:
Provided that, the levy of such charges shall be such that the charges so
recovered shall be sufficient at least to cover the interest charges of the loans
raised by the Corporation from the open market.
20. Responsibility of the Corporation for payment of interest on borrowed
money -The Corporation shall pay the interest on the borrowed money through
the recovery of charges levied and collected under section 19 of this Act.
21.Prohibition of construction of any facility for extraction of surface
water without approval of Corporation  - No person shall construct, operate
or maintain within the area of operation of any project or work or scheme
vested in or entrusted to the Corporation any facility for the extraction of
surface water, without the prior approval of the Corporation:
Provided that the Government or a Local Authority may, construct and
operate such facility, or assign or hand over such facility to the Corporation.
22. Co-ordination with other authorities to minimise inconvenience
caused by projects or works or schemes of the Corporation –
The Corporation shall keep Co-ordination with the Government, Local
Authorities and Statutory Bodies with a view to minimising inconvenience
likely to be caused by the Corporation’s projects, works and schemes.
23. Powers to be exercised by the Corporation under certain Laws  -
All or any of the functions that may be carried out or all or any of the
powers that may be exercised by the Government or any authority or officer
under any law for the time being in force or the rules framed thereunder, in
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respect of any project or work or scheme vested in or entrusted to the
Corporation may be carried out or exercised by the Corporation or any officer of
the Corporation duly authorised in this behalf by the Corporation respectively.
24. Powers of the Government to issue directions  -  The Government may
issue to the Corporation such general or special directions as to policy or
exercise of the powers or performance of the functions by the Corporation, as it
may think necessary or expedient for carrying out the purposes of this Act and
the Corporation be bound to follow and act upon such directions.
25.Application of the provisions of Hyderabad Metropolitan Water Supply
and Sewerage Act, 1989 -Save as otherwise expressly provided herein,
section 17 to 52 in chapter V and sections 53 to 77 in chapter VI of the
Hyderabad Metropolitan Water Supply and Sewerage Act, 1989(Act 15 of 1989)
are hereby extended to and apply mutatis and mutandis to the Corporation
established under this Act, in relation to the properties and assets of the
Corporation and all references in the said sections of the said Act to “Board”
shall be read and construed as references to “Corporation” in so far as such
properties and assets are concerned.
CHAPTER - V
ACQUISITION OF LAND
 26. Power to acquire land -The Government may, for carrying out the
purposes of this Act, compulsorily acquire land under the Land Acquisition
Act, 1894(Central Act 1 of 1894) and the acquisition of any land for any of the
said purposes shall be deemed to be of a public purpose within the meaning of
that Act:
Provided that where the owner of a land agrees to surrender his land at a
price mutually agreed between the Corporation and the owner, the Corporation
shall have the power to acquire such land at agreed rate with the prior
approval of the Government.
27. Transfer of Government lands to Corporation-  (1) For the furtherance
of the objects of this Act, the Government may, by notification, upon such
conditions as may be agreed upon between the Government and the
Corporation, place at the disposal of the Corporation, any lands vested in the
Government:
Provided that, the Government shall not place at the disposal of the
Corporation any lands which are notified and included in a reserved forest.
(2) After any such land has been so placed at the disposal of the
Corporation, it shall be dealt with by the Corporation in accordance with the
provisions of this Act, or the rules or regulations made thereunder and the
directions, if any, given by the Government in this behalf.
(3) If any land placed at the disposal of the Corporation under sub-
section (1) is not required by the Corporation, the Government may ask the
Corporation to surrender it to the Government upon such terms and conditions
as may be mutually agreed upon.
28. Powers of corporation to dispose  of land etc, -Subject to any rules
made by the Government under this Act, the Corporation may retain, lease,
sell, exchange, or otherwise dispose of any land, any building or other property
vested in it, in such manner as it thinks fit for carrying out the purposes of this
Act.
CHAPTER - VI
FINANCE, ACCOUNTS AND AUDIT
29. Application of Corporation assets etc, -All property, fund and other
assets vesting in the Corporation shall be held and applied by it, for the
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purposes of this Act.
30. Fund of the Corporation -(1) The Corporation shall have and maintain its
own fund, to which it shall be credited,-
(a) all moneys received by the Corporation from the Government by
way of grants, subventions, loans, advances and the loans raised
under this Act;
(b) all fees, costs and charges received by the Corporation under this
Act;
(c) all moneys received by the Corporation from the disposal of lands,
buildings and other properties, movable and immovable, and other
transactions;
(d) all moneys received by the Corporation by way of charges, from all
projects works and schemes, rents and profits or from any other
sources.
(2) The Corporation may keep current and deposit account with such
bank or banks, specified by the Government in this behalf.
(3) Such accounts shall be operated by such Officers of the Corporation
as may be authorised by it in this behalf.
(4) Notwithstanding anything contained in sub-sections (2)and (3) the
Corporation may keep on hand such sums as it thinks fit for its day to day
transactions, subject to such limits and conditions as may be prescribed.
31. Contribution of Government to Corporation Fund -(1) The Government
shall, by appropriation duly made in this behalf, from time to time, provide
funds to the Corporation to the extent considered necessary for the-
performance of the functions of the Corporation under this Act.
(2) The capital provided by the Government shall not carry any interest.
32. Grants, subventions, loans and advances to the Corporation –
The Government may, after due appropriation made by the State
Legislature by law in this behalf made such grants, subventions, loans and
advances to the Corporation as it may deem necessary for the performance of
the functions of the Corporation under this Act and all grants, subventions,
loans and advances made shall be on such terms and conditions as the
Government may determine.
33. Power of Corporation to borrow -(1) The Corporation may, subject to
such conditions as may be prescribed in this behalf, borrow money from the
financial institutions or Commercial Banks or non-resident Indians or from the
open market by issue of guaranteed or unguaranteed bonds, debentures stocks
or otherwise, for the purpose of providing itself with adequate resources.
(2) The maximum amount which the Corporation may at any time have
on loan under sub-section (1) shall not exceed rupees one thousand crores,
unless the Government fixes a higher maximum limit for this purpose.
(3) The Corporation may approach any financial Institution or
Commercial Bank for guaranteeing repayment of loans borrowed and payment
of interest thereon on payment of guarantee Commission.
(4) The Corporation may also accept contributions and donations from
any individual including a non-resident Indian, or corporate body or trust, or
multilateral agency for the purpose of undertaking projects or schemes notified
under section 35 AC of the Income Tax Act, 1961(Central Act 43 of 1961):
Provided that acceptance of any contribution or donation from a Non-
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resident Indian shall with the prior permission of the concerned authority
under any law for the time being in force.
34. Acceptance of deposits by Corporation -The Corporation may accept
deposits on such conditions as it deems fit from persons, Authorities or
Institutions, to whom, allotment or lease or sale of land or buildings or other
properties or rights is made or is likely to be made in furtherance of the objects
of this Act.
35.Power to spend -The Corporation shall have the authority to spend such
sums as it thinks fit for the purposes authorised under this Act from and out of
the fund of the Corporation referred to in section 30 or from the reserve and
other funds referred to in section 37, as the case may be.
36. Expenditure on objects other than those stated in section 17 -It shall
be competent for the Corporation to spend such sums as it thinks fit also on
objects authorised under this Act other than projects and schemes referred to
in section 17 and such sums shall be treated as common expenditure payable
out of the funds of the Corporation.
37.Reserve and other funds -(1) The Corporation shall make provisions for
such reserve and other specially denominated funds as the Government may,
from time to time direct.
(2) The management of the funds referred to in sub-section (1), the sums
to be transferred, from time to time, to the credit thereof and the application of
money comprised therein, shall subject to the directions, if any, issued by the
Government in this behalf, be determined by the Corporation.
(3) None of the funds referred to in sub-section (1) shall, except with the
previous approval of the Government, be utilised for any purposes other than
that for which it is constituted.
38. Submission of budget to Corporation -(1) The Managing Director of the
Corporation shall, at a special meeting to be held in the month of October in
each year, lay before the Corporation, the budget estimates of the Corporation
for the next year.
(2) Every such budget estimates shall be prepared in such form as the
Government may from time to time, by order, determine and shall provide for,-
(i) the proposals, plans and projects which the Corporation
proposes to execute either in part or in whole during the next year;
(ii) the due fulfillment of all the liabilities of the Corporation; and
(iii) the implementation of the provisions of this Act, such
estimates shall contain a statement showing the estimated income
and expenditure on capital and revenue accounts for the next year
and such other particulars, indicating the financial performance of
the Corporation, as the Government may direct. The budget shall
clearly reveal the financial outlay and performance.
39. Sanction of budget estimates -The Corporation shall consider the budget
estimates submitted to it under section 38 and approve the same with or
without modifications on or before such dates as the Government may, from
time to time determine.
40. Government as Guarantor -The Government may guarantee the
repayment of any loans and payment of interest on all or any of the loans given
or transferred to the Corporation.
41. Disposal of profits and deficits -(1) Subject to the provisions of sub-
section (2) of section 43 of this Act, the net profit, if any, attributable to each of
the main objects, like water supply, sanitation or sewerage, shall be fully
credited to the Corporation.
(2) The net deficit, if any, in respect of any of the objects shall be solely
borne by the Government.
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42. Interest, charges and other expenses to be added to and receipts
taken for reduction of capital cost -The interest, charges and all other
expenditure shall be added to the capital cost and all receipts shall be taken in
reduction of such cost, if the Corporation is in deficit.
43. Depreciation Fund-  (1) The Corporation may make provision for
depreciation fund at such rates and on such terms as may be specified by the
Comptroller and Auditor General of India, and in consultation with the
Government.
(2) The net profit for the purpose of section 41 shall be determined after
such provision has been made.
44. Apportionment of, betterment charges levied by Government –
In the event of any betterment levy being imposed by the Government,
the proceeds thereof in so far as they are attributable to the operations of the
Corporation, shall be credited to the Corporation.
45. Financial Statement and programme of work -(1) The Corporation shall,
by such date in each financial year as may be prescribed, prepare and submit
to the Government for approval of annual financial Statement and the
programme of work for the succeeding financial year and the Government may,
approve such financial Statement and the programme of work of the
Corporation as submitted by the Corporation or with such variations as the
Government thinks fit.
(2) The annual financial statement shall show the estimated receipts and
expenditure during the succeeding financial year in such form and detail as
may be prescribed.
(3) The Corporation shall be competent to make variations in the
approved programme of work in the course of the financial year provided that
all such variations and re-appropriations out of the sanctioned budget are
brought to the notice of the Government by a supplementary financial
Statement.
(4) A copy of the annual financial Statement and the supplementary
financial Statement, if any, shall be placed before the State Legislature as soon
as may be after their receipt by the Government.
46. Accounts and Audit - (1) The Corporation shall maintain books of account
and other books in relation to the business and transactions in such form, and
in such manner, as may be prescribed.
(2) The accounts of the Corporation shall be audited by an Auditor
appointed by the Government, in consultation with the Comptroller and
Auditor General of India.
(3) Within nine months from the end of the financial year, the
Corporation shall send a copy of the accounts audited together with a copy of
the report of the Auditor thereon to the Government.
(4) The Government shall cause the accounts of the Corporation together
with the audit report thereon forwarded to it under sub-section (3) to be laid
before the State Legislature, as far as possible before the expiry of the year next
succeeding the year to which the accounts and the report relate.
47. Concurrent and special audit of accounts - (1) Notwithstanding anything
contained in the last proceeding section, the Government may order that there
shall be concurrent audit of the accounts of the Corporation by such person as
it thinks fit. The Government may also direct a special audit to be made by
such person as it thinks fit of the accounts of the Corporation relating to any
particular transaction or class or series of transactions or a particular period.
(2) When an order is made under sub-section (1), the Corporation shall
16
present or cause to be presented for audit all such accounts and shall furnish
to the person appointed under sub-section (1) such information as the said
person may require for the purpose of audit.
CHAPTER - VII
MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
48. Furnishing of annual reports and returns etc - (1) The Corporation shall
prepare and submit to the Government, in such form as may be prescribed, an
annual report within six months after the end of every financial year of its
activities during the previous financial year, with reference to its functions
under section 17.
(2) The Corporation shall also furnish to the Government such returns,
statistics, reports, accounts and other information with respect to its conduct
of affairs, properties or activities or in regard to any proposed project, work or
scheme as the Government may, from time to time, require.
49. Rehabilitation of effected persons - The rehabilitation and resettlement
of the persons affected due to the works, schemes and projects of the
Corporation shall be carried out by the Government in accordance with the
provisions of this Act:
Provided that all the expenditure required to be incurred by the
Government for the rehabilitation and the resettlement of persons affected by
the water supply, sanitation, sewerage and other projects undertaken by the
Corporation shall be borne by the Corporation.
50. Execution of contracts etc - Every contract or assurance of property on
behalf of the Corporation shall be in writing and executed by such authority or
officer in such manner as may be provided by regulations.
51. General penalty - Whoever contravenes the provisions of this Act or any
rule or regulations made thereunder or fails to comply with any notice, order or
requisition issued under this Act shall, on conviction, be punished with
imprisonment which may extend, to six months or with fine which may extend
to one thousand rupees or with both.
52. Power of entry - Any officer or servant of the Corporation generally or
specifically authorised by the Corporation may at all reasonable time enter
upon any land or premises and do such things as may be necessary for the
purpose of lawfully carrying out any of its works or of m

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