The State Highways Authority of Jharkhand Act 2007

-I'HE STATE HICHWAYS ALI=THORITY OF "!HAR,KHAND ACT 2ffi7
AN
ACT
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$e itsnacrd by t1e legislcruret-rfthe srare of Jharkhand in th* 58th year+ftfr* Kepublicof
In&aas follo*s:-
CTIAPTER.I
tbdtndnary
Short tittrr, rxlcnt and commerrcmcnt'q""ur t' 
a= 
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lii**il,;;il*-v t" called rlx Stnse ltiglrway ,{uthirrtyof }harkhardAct, ?0{}7-
it* irdxl*flds t$ tll* n'hCI}e*fthe rtate *f{hartthand'
t3] tt *rJl ne Omnr*d tn hnve *ome :nto fosn* op such dxte a.x ttr* *'ttte Gt:\terfiIn*flt
ma5'. by n*tifi't;mion in thc oflr*iat $axettc *pptdnt" "
lldrriiis+-
? In this Act, unless thc cuntcx'l otherwtsc requt rs:-
{ai'SutcCor'ernnent'rnearrs{ia5*T{Jhurkltl$ i { r .,
{b} "A,rh*,riiy" Rt*iirls r}':c Srtrtel{ighwuy Arrttl*riq'ofJhult}rand,esBhlishe';luirdr:r
section 3;
(c) ;'eh*ry**u$" rnff#Lq ilE Ciaaiqxrson *fth* Auttmnty;
(d),,vi,nihsiqpcr1{:r:' m:Escs $e \,*ee*c&nirp*ry*ncf r$ Aurh*rity
i.i "C*uo*lt', ni**o* ltr* {i$vsrning (sunci$ rrf the Auth*nty cnnsituted under
ssclis* 'tl re* uf tlr*Audx*rityeonstiurcdundrr(tl "Cornrnittee" mcitns the excuttve{ommit
seeti*n 9; 
ruritYer forsxr*lx{S - "Empl*ye*" m{;:nsu.ryT3t Y t$lYtl-::estrti*e'sf lhe Autlt
rh) ffiffi:ffiffi,ffiffil}:m--*rt*r*Asu
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Hrrsrs rrqz (erurunu), {lf{qfi 14 W, 2008 13
(i) "CEO'means Chief-Executive-officer; .- ,L-r i
() " "state Highway" means any highway rncluding any strucfiIre attachedthereto fbr
the time being declared ai a Jtut. itig6*ay undlr section 3 of the Jharkhand
Highways Act, 2005 (Jharkhand Act7, 2006)
(k) ,,pJrsoni shall include any company, a firm or association orbody of indivisuals'
whether incorPorated or not.
CHAPTER.II
The State HighwaysAuthority of Jharkhand
Establishment of the AuthoritY"
3" ( l) with effect from such date as the State Govemment may, by notification in the
- 
Gzz*tte,appoint in rhis behalf, there shall be established forthe purposes of this
Act, an Authority to be called the State Hi ghways Authority of Jharkhand'
(2) TheAuthority shall be a body corporate'
Governing Council'-
4. TheGoverningcouncil shall bethe highest policy making body of theAuthority and shall
be chaired by the Chief Minister of thf Stati. The other members of the Council shall be;
(a)Minister,RoadConstrutionDepartment'JharkhandVice-Ctairperson
(b) Minister,FinanceJharkhand Mpmber
(c) Minister,Planing,Jharkhand Member
(d) Chief Serretary]Jharkhana Mernber
(e) Developmentdommissioner Member
(0 Principal Secretary/Secretary'financeJharkhand Member
id, pr""rpa Secretary/Secretary' Jharkhand Member
(h) bf,i.f-g*".utire Officer(CE0) of the Authority Member
(Principal Secretary/Secretary, Road Construction
iepartment Jharkhand)
(if TWo experts (to be selected by the Exepert Members Member
(Governingcouncil) 
Memberconvener() Member@chnical)oftheAuthority
Terms of office and conditions of service of the members of the Governing council"
5.(t)AllmembersoftheGouemingCouncil,otherthanexpertmembers,shallbe
ex-officio members.
(2)TheExpert.MembersofthecovemingCouncil'onefromthefiledofeconomics,
finance, administration or banking and &e ofter from the field of civil (p'referably' road)
constuction shall be selectedbythe Governingc.ouncil fortl[eeyears andother
conditionsof *rcirservice shall be such as maybe prerribedbytheCovemingComcil'
Disqualification for appointment as expert-members of the Governing Council"
6. n person shallbe disqualified forbeing appointed as an expert-member of theGoveming
Councilif he:'
(a) has been convicted and sentenced to inrprisonment for an offence which' in the
opinionoftheGoverningCouncil,involvedmoralturpitude;or
(b) is an undischarged insolvent; or
(c)isofunsoundmindandstandsso-declaredbyacompetentcourt;or
(d)hasbeenremovedoradismissedfromtheserviceoftheGovernmentora
Corporation owned or controlled by the State Governmen$ or
a
-
,4f'
14
a,
HKqu"g rFrz (wmunur), YTFsR '14 w, 2008 ^.-
(a) Chiel'-ExecutiveOfficer(Principal
Secretary/Secret ary, Road Constructi on
Department, Jharkhand
(b) Member(Finance)
(c) MemPer(Technical)
(d) Member (Administration)
Terms and conditions for apointment of Members of he committee"
t I . The Method of appointmenr of the Member (Finance), Member Cfechnical) and Member
(Administration)of theExecutive Committeeof theAuthority andthe tefins andConditions
of their service shall be such as may be prescribed'
Appointmentof officers, consultants and other employees of the Authority"
lZ" ( I ) For the purpose of discharging its f uncdons, the Authority shall appoint
such number of offi cers and oiher empl oyees as it may consider necessary on
such terms and conditions as may be laid down in the regulations:
(e) has in rhe opinion of the Coverning Council, such financial or other interest in the
Authority as is likly to affect prejudicially the discharge by him of his functions as
an expert-member of the Goveming Council.
Meetings of the Governing Council'.
7 . (l) The Governing Council shall meet at such times and pl1e1 and sh1ll, observe
such rules of procedure, in regard to the transaction of business at its meeting,
Inclucting the quorum there at, as may be provided by regulations'
(2) If, forany reason, ttre Chairperson is unable to attend any meeting of the Goveming
Council, the Vice-ChairPerson shall preside at the meeting' In the absence of both
the above, Minister (member) authoriircd by tfie Chairperson shall be the Presiding
authority.
(3) All questions which come up before any meeting of the Authority shall be decided
by a nrajority of votes of the members present and voting, and in the event of an
equality of votes, the Chairperson, or in his absence the person presiding, shall
have and exercise a second or casting vote.
Vacancy in the Governing Council not to invaltdate pmceedings-
8. No act or proceeding of the Coveming Council shall be invalidated merely by reason of'
(a) Any vacancy in or any defect in the Constitution of, the Governing Council; or
(b) Any defect in the appointment of a person acting as an expert-member of the
Coverning Council; or
(c) Any inegularity in the pn:cedure adopted by the Governing Councilnot affecting
the merits of the case.
Executive Committee..
9. There shallbe anExecutiveCommitteeheadedby the Cheaf-Executiveofficer(CEO).The
Committee shall report to the Governing Council and shall be responsible for such functions
andexercise such powers as may beprescribedor assignedto it by theGoveming Council'
Constitution of the Executive Committee"
10. Theexecutive Committee shall consist of:-
- ChairPerson
Member
Member
Member
u\,\ 1
Hr{Grrs mra (enntntw), flrfiR 14 5, r0o8
(2) The Authority may appoint, from time to time, any person as adviseror
consultant as it may consider necessary, on such terms and conditions as
may be laid down in the regulations.
Authority to act on business principles--
13. In the discharge of its function underthisAct the Athority shall act, so far as may be, on
business principles.
CHAPTER-III
property and Contracts
Power of the State Government to vest or entrust any State htghway in theAuthority..
14. The State Government may, from time to time, by notification in the Gazette, vest in, or
entrust to, the Authority, such state highway or any stretch thercof as may be specified in
such notificalion,
Thansfer of assestes tiabilities of the StateGovernment to theAuthority"
15" (l) on andfromthedateof publicationof thenotification undersection l4:-
(a) all debts, obligations and liabilities incuned, all contracts entered into and
all matters and things engaged to be done by, with or for, the State
Government, immediately befor such date for or in connection with the
purposes of any state highway or any strtch thereof vested in, or
entrusted to the Authority under that section, shall be deemed to have
been incunedentered into andengaged tobe done by, widr ofm, theAuthority;
all non-recuning expenditure incurred by or for the State Govemment for
or in connection with the purposes of any state highway or any stretch
thereof, so vested in or entrusted to theAuthority, up to such date and
declared to be capital expenditure by the State Govemment sha]l, subject
to such terms and conditions as may be prescribed" be treated as capital
provided by the State Government to the Authority;
all sums of money due to the State Government in relation to any state
highway or any stretch thereol so vested in, or entrusted to, the Authority
irnmediately before such date shall be deemed to be due to the Authority;
all suits and other legal proceedings instituted or which could have been
instituted by or against the State Goventment immediately before such
date for any matter in retation t0 such state highway or any stretch thereof
may be continued orinstituted by or against theAuthority.
I{'any dispute arises as to which of assests, rights orliabilities of the State
Govemment have been transferrb to theAuthority, such dispute shall bedecided
by the State Government.
15
(b)
(c)
(d)
(2)
rl\, I
16 i.*. ..* (ererwtot), {rrr{R 14 W, 2oo8
Acquisition of land for theAuthority"
16. (l ) Any land required by the Authority for discharging its functions under this Act;
shall tre deemed to be land needed for a public purpose and such land may be
acquired for the Authority under the provisions of the land Acquisition Act, I 894'
(2> Any land, which is underthe ownership, control ormanagementof the Authority,
shall be deemed to be public land for which all relevant acts, rules andregulations
shallhe applicable,
Contracts by the AuthoritY--
l'l . Subject to the provisions of section 18, the Authority shall be competent to enter into and
perfbrms any (lontract necessary for the discharge of its functions under this Act'
Mode of executing contracts on behalf of the Authority"
18. (l) Er"ry.ont actshall,onbehalf of theAuthority,bemadebytheChiefExecutive
officer of theAuthority or its such other members or officers as may be generally
orspeciallyempoweredin thisbehalf bythe Authority andsuchcontractorclasses
of contracts as may be specified in the regulations shall be sealed with thecommon
sealof theAuthority;
provided that no contract for the sale of immovable property shall be
made unless it has been previously approved by the State Govemment"
(Z) Subject to the provisions of sub-section (t), the form and manner in which any
contrilct shall be made under thi s Act shall be such as may be laid down in the
regulations.
(3) A contract, which is not in accordance with the provisions of Act Rules and the
regulations made under this Ordinance, shall not be binding on the Authority'
CTIA-P,TER.IV
Functions of the AuthoritY
Functions of the AuthoritY"
I 9, ( I ) Subjecr ro the rutes made under this Acq it shall be the function of the Authority to
develop, maintain and manage the state highway and any other stretch or any
structure atfached therto vested in, or enuusted to it, by the State Govemment in
the manner that the authority becomes preferably independent of Government
fturding for 0re maintenance of the highways within tlree years from the date it is seUp'
Witlroutprejudice to the generality of the provisions contained in sub section (1),
the Authority may, for the discharge of its functions;
(a) Survey, develop, maintain and manage highways vested in' orentrusted
to it and to achieve where of theAuthority wil, inter alia;
(i) prepareimmedrateandlong-termplansforthemaintenanceandupgmdation
of the State Highways that are entrusted to it;
(ii) develop a scientific Pavement Management system for systematizinB the
maintenance operations and also lay down the standards for design
and construction of state highwaYs;
(2)
l.A.^ Dr
- grur€ 'rile (orvrunur), yTf{-sn 14 W, 2008 L'7
(iii) develop models for bringing in private and institutional, including
international funding into the road sector.
(iv) develop methods of performance based maintenance systems for
maintenance of the state highways by quality private contractors;
(v) raise institutional resources for undertaking the maintenance and
up-gradation o{' these highway; and
(vD maintain and upgrade the highways as per approved plan while encouraging
private partnership and resorces for these purposes;
(b) regulate and conrrol the plying of vehicles on the highways vested in, or
entrusted to, it forthe proper management thereof;
(c) develop and provide consultancy and constrution services in the State
- and carry on researcLr/raining acti vitiavhurman resource developmenVsetting
upof statelevel lahoratoriesetc. in relation to thedevelopmenl maintenance
and management of highways or any facilities thereaq
(d) provide such facilities and amenities for the users of the highways vested
in, or entrusted to, it as are, in the opinion of the Authority, necessary
for the convenience and smooth flow of traffic on sich highways;
(e) formoneormorecompanies undertheCompaniesAct, 1956 (Actno,l
of 1956) to further the efficient discharge of the functions imposed on it by
thisAct;
(0 engage, or entrust any of its functions to, any person on such terms and
conditions as may be Precribed;
(g) advise the State Govemment on matters relating to State highways;
3 (h) collect fees on behalf of the State Governrnent on such terms and
conditions as may be specified by the State Govemment; and
(i) take 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
confened or imposed on it by this Act
0) construct & maintain offices and workshops and establish and maintain
hotels, motels, restaurants, and rest rooms at or near the highway vested
in orentrusted
(k) construct & maintain buildings and townships for its employees
(l) promore public-private partnership to achieve the above mentained
objectives;
(3 ) Nothing contained in this section shall be construed as:-
(a) aurhorizing the disregared by the Authority of any law for the time being in
* fbrce; or
(b) authorizing any person to-institute any proceeding inrespect of a duty or
li abili ty to which the Authority or its offrcers or other employees would not
otherwise be subject under this Act.
nvL
.Hrcgrg rrnlz (ermrnrot), {rf{ER
qHAPTER.V
Finance, Accounts and Audit
Additional capital and grants to theAuthority by the State Government"
20. The State Covernmenl may, after due appropriation made by State legislature by law in
thisbehalf;
(a) provide any capital that may be required by the Authorityfor the discharge of its
functions under this Act or for any purpose connected therewith on such terms
andconditions as the StateGovemment may determine;
(b) pay te the Authority, on such terms and conditions as the State Govemment may
determine, by way of loans or grants such sums of money as the State Governrnent
may considernecessary forthe efficient discharge by theAuthority of its functions
Fund of theArtt ority-lnder 
this act'
Zl. (1) There shall be consituted a fund and there shall be credited thereto;
(a) AnygrantoraidreceivedbytheAuthority;
(b) Any loan taken by theAuthority or any borrowings made by iU
(c) any other sums received by theAuthority;
(d) All sums of money specified in section ?0 &21(a)' (b) & (c) shall be
deposited in any nationalised or Scheduled Bank orin such otherFinancial
Institutions as may be decided by the Governing Council and the said
amount shall be operated in such manner as prescribed
(2) The t'und shall be utilized formeeting-
(a) expenses of the Authority in the discharges of its functions having regard
to the purposes for which such grants, loans orborrowings are received
and for matters connected therewith or insidental thereto;
(b) salary, allowances other remuneration and facilities provided to the
members, officers and other employees of the A uthority ;
(c) expenses on objects and for purposes authorized by this Act'
(3) Any demand against the fund of the Authority shall be deemed to be public
demand, the recovery of which, shall be admissible-underthe Public Demand
Recovery Act, 1914.
Budget--
22" TheAuthority shall prepare, in such form and at such time in each financial yearas may be
prescribed, its budget for the next financial year showing the estimated receipt and
expencliture of the Authority and forward the same to the StateGovernment.
investmentof funds--
23. TheAuthority may invest its funds (inctuding any reserve fund) in the securities of the
State Government or in such other manner as may be prescribed'
Borrowing powers of the A uthority-'
24. ( l ) The Authority may, with rhe concent of the State Govemment or in accordance
with the terms of any general or specigl au&rority given 0o it by the State Govemnent,
borrow money from any source by the issue of bonds, debentures or such other
instruments as itmay deem fitfordischargingall orany ofitsfunctionsunderthisAct.
q..{t
Hrcrrs rtrc (ervrrrror), YfirqR , 2008
(2);:'lT:;ffi I'fi'"I jl":ff"ffffi T:I3 jl"Tlfill" jil:"li'"i1xl;
amounts as it may requiredfordischargingits functions underthis Act'
(3) The State Govemment may guarantee in such manner as it thinks fit the rcpayment
of the principal and the payment of interest thereon with respect to the borrowings
made by the Authority under sub-section ( 1).
Annualreport-
25. TheAuthority shall prepare, in such forms and at such time in each financialyearas maybe
prescribed, its annual report, giving a full account ofits activities during the previous
financial year, and submit a copy thereof to the state Government.
Accountandaudit -
26. The account of theAuthority shall be maintained and audited in such manner as may, in
consultation with theAccountant General of the State be prescribed and the Authority
shall furnish, to the State Government before such date as may be prescribed, its audited
copy of accounts together with the auditor's report thereon'
Annual report and auditor's report to be laid before legislature..
27. The State Government shall cause the annual report and auditor's report to be laid, as
soonasmaybe,aftertheyarereceivedbeforethelegislature.
CHAPTERVI
Miscellaneous
Delegation of Powers.-
28. The Governing Council may, by general or special order in writing delegate to the
Chairperson or a sub-committee of the Council or to the Executive Committee or
to Chief-Executive officer or any officer of the Authority, subject to such conditions
and limitations, if any be specified in the order, such of its powers and functions
under this Bill as it may deem necessory except that tlre foliowing functions and
powers shall be exercised only by the Council;
(a) to borrow long term funcls from the market or financial institutions, This will not
include arranging short+erm funds and overdraft to meet the working capital
requirments.
(b) to apoint officers or employees whose basic pay exceeds a sum as prescribed in
rules;
(c) framing regulations for the working of the authority and if required, amendments
thereto.
td) any othermatter, as may be prescribed'
Authentication of orders and other instruments of thtAuthority-
Zg. All orders, decision and other instruments of theAuthority shall be authenticatedby the
signature of the Chairperson orany officerof the Authority athorized by it in this behalf'
q(q
Employees of the Authority to be public servants"
30" All members, ofhcers and employees of the Authority shall, when acting or purporting to
act or of any nrle or regulation made thereunder, be deemed to be public servants within
the meaning of section 21 of the Indian penal Code, 1860 (Act no.45 of 1860) and
under the rules or directions made by the State Govemment'
Protection of action taken ln good faith"
3 I . ( I ) No suit, prosecution or other legal proceeding shall lie against the Authority or any
member or officer or employee of theAuthority for anything which is in good faith
done or intended to be done under this act, or the rules or regulations made
thereunder.
(Z) No suit, Fosecurion or other legal proceeding shall lie against the Authoriry or any
member or officer or employee of the Authority for any damage caused or likely
[o be caused by anything which is in good faith done or intended to be done
under this Act, or the rules or regulations made thereunder'
Power of theAuthority to undertake certain works"
32. The Authority may undertake to carry out on behalf of the State Government or any local
authority anv works or services or any class of works or services on such terms and
conditions as may be aggreed upon between theAuthority and the State Govemment or
the lncal authority concemed'
Fower to enter."
33 " Subject to any regulations made in this behalf any person, generally or specially or
authorized by theAuthor in this behalf, may whenever it is necesaary to do sofor any
of the purposes of this Bill, at all reasonable times, enter uPon any land or premises, and-
(a) make any inspection, suwey, measurement, va]uation orenquiry;
(b) take levels;
(c) dig or bore into sub-soil;
(d) set out boundaries and intended lines of worki -
(e) mark such levels, boundaries and lines by placing marks and cutting trenches; or
(0 do such other acts or things as may be prscribed:
Provided that no such person shall enter any boundary or any enclssed court or
garden attached to a dwelling house (except with consent of the occupier thercof)
without previously giving such occupier at least twentyfour hours' notice in writing
of his intetion to do so.
Fower of the State Government to annual inconsistant declqion of theAuthority'-
34" If any resolution or direction of the Authority is inconsistent with the broad policy
pararneters defined by the state government, then state Government may annual
the same.
Power of the State Government to make rules"
35. The State Government may mak rules for carrying out the purposes of this Act;
\,4\a
FKGrog ftre (eru'runu), qTFrqri 14 81, 2008 2L
In particular, and without prejudice to the generality of the foregoing power, such
rules may provide for-
the appointment, terms of office and other conditions of service of the expert-
members of the Governing Council amd Member (Technical), Member
(Fi nance) and Member (Administration);
the powers and duties of the chairperson, Chief Executive officer and other
members of the Committee;
the terms and conditions subject to which the non recurring expenditure incurred
by or for the State Government for or in connection with the purposes of any
State highway shalt be treated as capital provided by thq State Govemment to the
Authority underclause (b) of sub-section (l) of section l5;
the basic salary underclause (b) ofsection 28;
the terms and conditions subject to which the functions of the Authority may be
entrusted to any person under clause (0 or sub-section (2) of section 19;
the form in which and the time within which theAuthority shall prepare its budget
under section 22 and its annual report under section 25;
The manner in which the authority may invest is funds under section 2 3;
the mannerin which the accounts of theAuthority shallbe marntained and audited
and the date before which the audited copy of the accounts together with the
auditor's report thereon shall be furnished to the Stab Govenurlent under section 26;
the conditions and restrictions with respect to the exercise of the power to enter
undersection 33;
O any other matter which is required to be, or may be prescribed.
Powers of theAuthority to make regulations--
36. ( I ) TheAuthority may, by notification in the gazotts,make regulations not inconsistent
with this Act, and the rules made thereunder to carry out the provisions of this Act;
In particular and without prejudice to the generality of the forcgoing power, such
regulations may provideforallorany of the following matters, namely;
the tjmes and place of the meetings of the Councifand the Committee and the
procedure to be followed for the transaction of business at such meetings;
the terms and conditions of service, method of recruitment and the remuneration
of officers and other employees to be appointed by the Authority;
the form and manner in which a contract or class of contracts which are to be
made by theAuthority and the contracts or classes of contracts which are to be
sealed with thecommon sealof theAuthority;
The manner of preventing obstructions on the State highways for their normal
frrnctioning;
the mannerof prohibiting the parking cirwaiting of any vehicle orcarriage on the
State highway execept at place specified by theAuthority;
the manner of prohibiting or restricting access to any part of the State highway;
the mannerof regulating orrestricling advertisements on oralound State Highway
the manner of rransaction of the business of the authority including the delegation
ofpowers; and
(b)
(c)
(2)
(a)
(d)
(e)
(0
(2)
(a)
(b)
(c)
(d)
(e)
G)
(h)
(i)
(0
(e)
(h)
uv?
22 grqs-g rEra (emrtrnur), Yrf{qn 14 T1, 2008
(i) generally for the efficient and proper maintenince and management of the State
highways.
Power to remove difficulties--
37 . (l) If any difficulty arises in giving effect to the provisions of this Act, the State
Government, may by notification in the Gazette, make such order not inconsistent
with the provisions of this Act as may appear to it to be necessary or expedient
for the removal of the difficulty.
(Z) Every order made under this section shall be laid, as soon as may be after it is
made, before the Irgislature.
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