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The Kerala Road Fund Act, 2001

Kerala · state statute
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Preamble 
Setltons: 
135 
THE KERALA ROAD FUND ACT, 200 l 
(Act 10 of 2001) 
CONTENTS 
1. Short title and corrunencement. 
2. Definitions 
3. Constitution and Composition of Kerala Road Fund Board. 
4. Powers and Functions of tl1e Board. 
5. 
6. 
Powers and Functions of the Executive Committee 
Establishment of Fund 
7. Accounts and Audtt 
• 
8. Power of Government Agencies and Statutory Bodies to enter into 
'o concesston agreements 
9. Approval of Transport facihty Pwjects 
10. A.sststance by Government etc. 
II. Fmancial Secur1ty for operation aud maintenance of Transport 
facility , 
12. 
13. 
14. 
I5. 
I 6. • 
17 . 
18. 
I9. 
20. 
2I 
22. 
23. 
24. 
25. 
26. 
27. 
28. 
29. 
Transfer of certain rights 
Termination of concesston agreement. 
Collection of user fee 
Exemption 
Assistance by Pohcc Officers 
Power to offer discount on user fee~. 
Penalties 
Exhibition of table of user fees and St<~.tement of Penalties 
Bar to Proceedings 
Protection of Acts done in good faith 
Bar of Jurisdiction of Civil Courts 
Removal of difficulties 
Special Provisions regarding certain bridges 
Power to make rules 
Power to make regulations 
Annual report 
Acts and proceedings of Board presumed to be valid 
Amendment of Act 6 of 2000 
30. Repeal and Savings. 
• 
137 
THE KERALA ROAD FUND ACT, 2001* 
(Act 10 of 200 I) 
An Act to provide for the .stablislzment of a Fund for inveslmmts in the transport 
facility pro;ects m the Stale, to cmiStitute a Board for admmistration of the said 
Fund and to monitor and supervt rr the ac. iz'Zties finmzcedftom 'he Fund. 
Preamblc.-WHERE.As It ~~expedient to provide for the c~tabhshment of a 
Fund for investments m the tram port facility pioJeUs in the State, to constitute 
a Board for the administration oi the said Fund and to mom tor and superVlse the 
activities financed from the Fund 
. 
Be 1t enacted 1n the Fifty-~ccond year of 1he RepuLhc of Indta as 
lollovvs:-
CH.APTI:R I 
PRELIMINARY 
l. Short titl.e and commerzc·ement.-(1) ThlS Act may be called the Kerala 
Road Fund Act, 2001. • 
(2) It shall be deemed to have come mto fr1rcc on the 7th day of 
September, 2001. 
2. D~finitions.-In this Act, unless the context otherwise require~,-
' • (a) "Board" means the Kcrala Road Fund Board constituted 'under 
section 3, 
(b) "bndge" meam a bndge With permanent ~tructure, including 
approach and eXIt roads, gUide bund~ and protective work~ thereto or a bridge 
wtth temporary structure of ferry services, as the case may be, and includes a 
bndge across rallwc.y hncs, roads or wate1 wav~, uncierpao;s or overbridge; 
(c) "collectmg agent" means any person cntt·usted With management 
and collection of user fee by. any conccs~ionan·e, Jus agent, servant or sub 
contractor~ entitled to collect user fees; 
.......-(' ~ Recctvcd the assent of the Governor on the 23Id November, 2001 
and published m Kcrala Extraordmary Gaz.; tte No. 1 853 dated 
23rd November, 2001. 
34/1318/2002/MC 
138 
(d) conrcsswn aqreemcnt'' means a tt ipart1tc agtecmcnt arnon15 the 
roncc~~tonatt<... the Board and a Govetnmcnt agcncv or a ~tatutorv bodv 
specifically authonsed by Govct nment for the purpose whereby the ca'nccs~I~­
naire undertake~ to finance, comtruct, numtam or operate a transport, faclli1y 
m accordance wtth the pro\'Jstons of th1~ Act 
(c) "~oncessionairr" means a par~ Wtth which a conce~s10n agreement 
Is entered mto by the Board and a Government agency or a statutoty body 
specifically authotl';cd by Go,·cullncn t JOJ 1 he purpose, 
(I) "consttucttcJn'' mcludc~ new con~tructlon, recomtructlon, rehabi­
litation, t'epau and mamtcnance; 
(g) ''development cost" means uutral Lost incuncd on the development 
of any transport facility pl'Oject befot e 1t IS offered to a person for Implementa­
tion and mcludes co~t mcurred on data collectiOn, pte-fcas1b1lzty ~tud1cs or 
feas1b1htv stud te5; ' 
(h)' '·escrow account" meam a banJ... aLcount 111 which ea\h is to he 
deposited or fmm wh1ch cash JS to IJe Wlthdrav.·n m the manne1 a~ ma) be 
~pecified m the conee~ston agreement, 
(1) "executive eommtttee" means the executive commtttLc of the 
Board; 
(j) ''Fund" means the Kerala Ro-td fund c~ta.blnhed undet ~ect1on 6; 
(k) "Government"' meam the Go\etnment of the State o1 Kerala. 
. (1) "Government agency" mraus a co1 porauon owned or contr~lled 
by the Governmentur a company estabhshcd by the Government for the purpose 
of constructwm or maintenance oi rod.ds or bndgcs or a htghway d.Uthority; 
(m) "lughway autho• tty" means the h1ghway authonty appointed 
undet sceUun 4 of the Kcrala l·bghway Protection Act, 1999 (6 of 2000), 
(n) "Member Secretary" ITILans the :Member Secreta! y of the Board; 
(o) "motor velucle" means any meehamcally propelled vcludc 
adapted for u~e upon roach, whether the power of propulsion Is t1 ansmltted 
thereto from any e"Xtcrnal or mtetnal source and mcludes a ch<.~.ss1s to wluch 
the body ha~ not been <.~.ttached and a h a!ler, 
(p) ''owner'' mcludes, where the pe1son rn posscs.,ion of a \'chicle •~ a 
mmor the guardtan of such mtnor and 111 1elaUo11 to a veluclc whtch IS the 
subjcc't of a hire purchase agrcemrnt, the person m po~sess10n of the \'chicle 
under that agreement, 
139 
(q) "pcrc;on" mcludcs a body corporate, a company, a fitm or an 
associatiOn of mdividuals whether mcorp01 a ted or not; 
(r) "pic-scnbed" mcam ptesc11bed by rules m<>de under thi~ Act, 
(c;) "project manageme-nt agency" meam the Roadc; and Bndges 
Development CorporatiOn ofKeiala Ltd , established by the Government 
under the CompanieS Act, 1956 (Centi a! Act I of 1956), 
(t) "regulations" meam Iegulations made by the Board under this Act; 
(u) "r9ad" mcam any road, w..ty or land declared a~ a htghway under 
c;ecuon 3 of the Kcrala Htghwdy Pr9tect10n Act, 1999 (6 of 2000), and mcludes 
any land acqUired or demat cated for comtructton of a road· 
/ 
(v) "rulec;" meanc; rules made by the GoYrrnment undet th1s Act, 
(w) '\ectiOn of road or bndge" m("am a contmuou~ length of road and or 
bndgc a~ notified by the Go,·emmcnt m the Ga7cttc- on wh1ch uc;ct fee ~hall br 
charged, 
(x) "semor loan" mcanc; a loan m Iespect of which a clann on assets IS 
pnor to the claim on the assets m respect of othet loan and wh1ch 1S specified ac; 
such man agteement foi proVJdmg finance, 
(y) "State" meam the State of Ke1 ala, 
(z) "c;ubordmate loan" meanc; a loan m rec;pect of· wll!ch a cla1m on 
a~sl"ts IS subsequent to the claim on the a<;c;etc; m respect of another loan and 
which IS 'ipecificd as such man ag1cemt'nt for proY1dmg finance, 
~ 
(aa) "subc;Hly"meamfinancial asc;I<;tance m ca~hor kmd provided by 
the Fund, 
(ab) "transportfacd1ty" mt>ans,dependmg uponthecase, a bridgeora 
tunnelincludmg approach and ex1t roads thereto or a road or any section of 
bndge or tunnel or road or a 'ipecdled combmauon of all or c;ome of them; 
(ac) "usmg the tramport facility" meanc;, dependmg upon the case, 
pac;smg over a bndgc or th10ugh a tunnel mcludmg appioach and eXIt road, 
thereto or passmg through a road or any scctJOn ofb11dge or tunnel or road or 
a specified combmation of all OI ~orne of them, 
(ad) "mer fee" means the me1 fee collectcrl •'1 "~Ct;ord'l'll<::e With the 
pro• ISJons of this Act. 
• • 
' 
I 
140 
CHAPTER II 
KER.ALA ROAD FUND BOARD 
3. Cot:slitutwn and composztzon of the Kerala Road Fw1d Board.-(1) As 
soon as may be after the commencement of this Act, the Government may, by 
notification iTJ the Gazette, const1tute a Board to be called "The Kerala Road 
Fund Board··. ' 
(2) The Board shall be a body corporate by the name afotesa1d, haYmg 
perpetual success1on and a common seal With power, subject to the provisions of 
this Act, to acqu1re, hold and d1spose ofproputy, both movable and 1mmovablc 
and to contract and shall by the said name sue and be sued. 
(3) The Board shall cons1st of the followmg members, namely:-
(a) 
Board; 
the Chief Ministet eX officio, who shall be the Chairman of the 
I I 
(b) the Mmister m charge ofPubhc Works ex 0fficio; who shall be the 
Vice-Chairman of the Board, • 
(c) the Mm1~ter m charge of Fmancc-ex offic1o; 
(d) the Mimster m charge- of Transport-ex officio; 
(c) the Principal Secretary to Government in charge of Pubhc Works 
Department-ex <'ffic1o, who shall be the Member Secretary of the Board; 
(f) the Law Secretary -ex officiO; 
• 
(g) the Ch1ef Engineer, Roads and Bndges--ex officio; 
(h) thn c persons nommated by the Government from among the 
heads of financial mstitut10ns engaged m the bus1ness of mfrastructurc, 
Scheduled Banks or techmcal or engmeering personnel workmg in Nat1onal 
level mst1tutions. 
. 
(4) Nominated members of the Board -;hall hold office dUI ing the 
plea~ure of the Government 
(5) Any nominated member may, at any time, resign his office by 
letter addressed to the Chairman of the Board. 
(6) Theie shall be an c'Cecutive committee for the Board consiSting 
of the following members, namely:-
(a) the Miu1stci in charge of Pub he Work. who ~hall be the Chau·.m.an 
of the Executive Committee: 
.. 
141 
(b) the Principal Secretary to Govcrnmr nt Ill charge of Public 
Work~ Department-ex-officio who shall be the Vice; Chanman of the 
executive conmuttcc; 
(c) the Finance Secretary to Government-ex-officio. 
(d) the La'VI Scnctaiy-cx-officio _ / 
(c) .the Clucf Engineer Ru.tds & Bndgcs-cx-officio; 
(f) two members nommatcd by the Boa1d f1om among the 
nominated members of the Board. 
(7) The Board and the executive conunittec shall meet at such time 
and place as the Ch;urmrn of the Board or executive committee, a~ the ca~e 
may be, may decide z.nd shall observe ~uch rule~ of procedure in regard to 
transaction of business at their meetings including quorum as may be 
p1 escn bed . 
(8) All question~ at a meeting of the Board and executive conmultc (. 
~hall be decided by a majority of the members present and \'oting 
(9) The Board or the executive committee may associate with 1t~c l1 
in such manner and for such purpose~ as may be presCJibed by regulatiOn~, 
any person whose ass1~tance or ad vice the Board or the executive commnt, ~, 
as the case may be, may de~1re to have in the performance of any of thor 
functions under this Act, and tltc persom so associated shall have the right to 
take part in the meetmgs of Board or the executive comrmttec a~ the ca~c may 
b~, relating to that purpose but shall not be cnlitlcd to vote. 
, 
(I 0) The pl'Oject management agency ~hall' render nccc~s;>.J y 
ass•~tance to the Boa•d m t],e diScharge of Its functiOns uncle• thiS Act . 
4. Powers ant/functions of the Board.-The Board shall have the following 
poW~I"S and functions, namely:-
(a) to formulate the criteria on the basi~ ofwh1ch transpoz t facility 
projects a1e to be financed out of the Fund; · 
' (b) to take such measures as may be necc~sary to Iail.e Fundl> for 
tramport facility projects; 
(c) to raise fund~ by borruwing money ncces~ary for the due 
diScharge ol Its functions; a~d · 
(d) to perform such other ftmction~ a~ may be pres(.nlwd. 
---- -- -- ---- -- ------
142 
5. Powers and functions rif the l!..xecutive Committec.-(1) The executive 
committee shall have the following powers and functions, namely -
(a) to approve a concessiOn agreement with respect to a tran~p01 t 
facihty proJeCt on the ba~is of the Criteria formulated by the Board, and 
(b) to sanction funds to a Government agency or a concessionaJIC 
for constructron of a trans pOI t facility and monitor or mpcn'lSe such ti ampo1 t 
facility proJects and expenditure 111curred thereon, 
(2) Subject to such restnetlon~, condition~ and limitation~ a~ lll<'.y be 
imposed by the Board the executive committee ~hall aho cxercr<< all oi ~ny 
of the powers and function~ of the Boa1 d under tim Act. 
(3) The executiVe comffilttcc shall also cXci CI~c \UC!t P' \\'ei '> and 
functions a~ may be specified by regulation<;. 
CI-Jo\PTLR III 
KERALA ROAD FUND 
G. Establishment rif Fund.-(!) A'i soon a~ may be afte1 the constitution 
of the Boa1d, there shall be cstabii<hcd a Fur,d to be C.!.lkd the Kc1ala Roc;.d 
Fund 
(2) There shall he credited to the Fund,-
• 
(a) all moneys received fiom the Cential RoaJ Fund established 
under the CU1tral Road Fund Act, 2000 (Central Ac1 54 of 2000), 
(b) the contribution made by the Go\·emment undei sub-section (3), 
(c) all fees, fines and other amount collected by the Govemment 
as per the p10nsiom of the Kerala Hrghway Protcctron Act. 1999 (6 of 2CCO;·, 
(d) all payments made by the coneess10nauc a~ per the concession 
agicemcnt; 
(c) all amount standing to the creditof the Bndge~ Fund cstabh~hed 
under ~ectwn 12 of the Kcra.la Tolls Act, 1976 (6 of 1977); ~ 
(f) the user fcc~ collected by the Government agency or the 
statutory body under this Act; 
143 
(g) ~rant~ or loan~ or advance~ made bv the Government of India 
or any mstitut-Ion; 
(h) grants or loans or advances made by the Govemment; 
(I) all retums on mvestments made by the Board dJJ LCtly or tl11ough 
a Government agenc) or statutoiy body, 
(j) any amountbonowed by the Boa1d. 
(k) any other amount authomcd fo1 Cl edit to the Fund under the 
provisionsoftlu~Actorrulc~made thercunde1 or any other lr.w !01 the t1rne 
bemg m fore~ 
(3) The Government ~h< ll conti·1butc 10 the Fund every ye.-.r an amount 
equal to ten per cent of the tc.:-.. collected by tLcm m the p1eviOm year under 
the provis10n.s of the Kcrab. Motor Velucle~ Taxation Act, 1976 ( 19 of 1976), 
and the said amount shall be ckugcd on the Con~ohdated Fund of the State. 
(4) The amountstandmg to the rrrditof the Fund may be utlh~cd for 
all or any of the followmg purpo~e~, namely -
(a) for providmg financial a>sistancc to a conce~s10nan r on behalf 
of a Government agcnc: m Ic~pect of a hansport facility approved by the • 
Board. 
(b) for mectmg any development cost. 
(c) for defraymg tlte .1.dmnmtratl\ e expense<> of .the Board, and~ 
(d) for meetmg any !'X pend Iturc as may be p1 escnbed . 
• (5) The balan<.<' to ti1e ned It of the lund ~hall not lapse at the end of 
the financial year. 
(6) All mone)S specified ni sub-scct10n (2) and formmg pa1 t of the 
Fund shall be deposit, d m any natiOnalN:d ni ~cheduled Bank.' S1atc Co­
opeiatlve Bank or D1~tnct Co-operative Bank or m such other finanCiill msti­
tutJOns as may be decided by the Boa1d and tl < said account shall hr <- pcrated 
by the Member Scerc tary of the Board m ~uch manner as may be sp<.L died by 
I egulatlons · 
Provided that the Board may invest any sum not required for lllllnediatc 
me m such ~ecunLics or debentures as may be approved by the Board 
7 Arcounts and Audzt.-( l) The Board shall cause to be main tamed such 
books of accounts and othez books in relation to It~ accounb <1nd prepa1e an 
annual statement oJ accounts and balance sheet m such form and In such 
manner as may be specified lll the regulations. 
144 
(2) The accounts of the Board ~hall be audited by such .md1tor 
appointed hy the Board With the permimon of the Government. 
(3) The accountsofthc Board a<; certified by the auditor togethc1 W1th 
the audit report thereon shall be forwardc_d annually to the Government and 
it shall cause the ~a me to be laid annually befo1 e the Lq,I~Iatn e A~stmbl~ 
CHAPTER IV 
CONSTRUCTION OF TRANSPORT FACILITIES 
ANp LEVY OF USER FEES 
8 Powe1 cif Govemment agencies and statuto')' bodzes to enter into concessio1z 
agreements.--(!) Notw!th~tandmg anythmg con tamed m the Kerala Highway 
Pro tect10n Act, I 999 (Gof2000;, or in any other Jaw for the tunc being m force, 
any Govcllllllcn t agency or With the pe1 misSion of the Government any 
statutory body may entc1 mto a concession agreement m acco1dancc Wlth the 
p1 O\"I'>Ions of tlus Act for the como uct10n of a transport facility. 
(2) \\Then an agreement Is entered mto undeJ sub-sccuon (!) the 
cow·esswnane o1· tl1e Gove1nmcnt agency o1 the statut01y body, as the con-
• cc<;<;Ion agl'eemcnt may provide, is entitled to levy and collect user fees on a ,A_ 
moto1 vehicle usmg the tramport facility of mch rate, for services or benefits 
I< nde1cd by hun wl11ch shall be fixed by the Board com1dering the expenditure 
mvolvcd in bUildmg mamtenance, management and opel auon of tlte whole 01 
pa1 t of such transpo1 t f<~.cility, mtcrest on capital mve~ted, reasonable Ietum, 
the volume of traffic and the pe1 iod of ~uch agreement· 
• P10vided that the user fees collected by a concessionaire l>hall be 1etamed 
by hun and uuhscd m accordance with the proviSion of the concessiOn 
agreement. 
(3) The concessionaire or tl1e Government agency or the statuto!) 
body, as the ca~e may be, shall have powers to regulate and control the traffic 
in accordance w1th the provisions con tamed in Chaptc1 VIII of the Motor 
Vehicle~ Act, 1988 (Central Act 59 of 1988) on the loads 01 the bridges and 
tunnels togcthe1 With the1r approach and eXIt roads formmg whJ<..Ct mattu 
of<;uch concessiOn agreement for proper management thereof. 
9 Approval cif Transport Fac1lzty Projecls.-(1) A proposal of a Govern-
ment agency or a statutory body fo1 parucipauon by a party m financmg 
consu uct1on, 1 c-construction, Improvbation, repair n1amtenance or operation 
of a transpo1 t facility shall be loiWardcd through the proJeCt management 
agency to the .Member Secretary along with mformation relating thereto as 
may be p1·cscnbed b) re;5ulatJOm. 
145 
(2) As soon a~ may be after the rccctpt of the propo~al under sub­
,cctlon (!), the M·~mbcr s~c.·etary ~l1all place the same for the consideration of 
the executive committee. 
(3) Thecxecuti've comnuttee shall constdet It along Wlth the concession 
agreement and retutn 1t along with the concession agreement to the Govern­
ment agency_ or to the statuto!) body concerned with .modifications or 
recommendatlon, tf any. 
(4) The Board and the Government agency or the statutory body 
concerned may enter into a concession agreement with a person who is selected 
through a competitive pubhc bidding or in the manner prescribed for the 
financing and construction of a transport facility. 
(5) A concession agreement may provide that the Board may revise 
the user fees, referred to insub-sectton (2) of5ectton Shaving regard to the rate 
of inflation, variation in the rate of forctgn exchange and such other factors, 
as may be prescribed. · 
10. Assistance by Government, etc.-The Government, or a Government 
agency, or the Board or the statutory body may provide to a concessionaire or a 
Government agency or to a statutory body assistance for the financing and 
construction of a transport facility in the following manner, namely:-
• 
0 
(a) Funded assistance by,-
(u) 
(iti) 
(iv) 
• 
partici.Ji>ating in the equity of the transport facility not 
exceedtng forty-nine per cent of the total equity, 
providing subsidy not exceeding twenty-five per cent of the 
cost of the transport facility; · 
extending senior or subordinate loans; or 
such other manner as may be prescribed. 
(b) Non-funded assistance by,-
(i) guaranteeing in respect ofliability arising out of a concession 
agreement; 
(ii) conferring of development rights in respect of any land; or 
(iu) such other manner as may be prescribed. 
34fl3l8f2Q02/MC. 
146 
(c) Other assistance IJy,-
(1) opening and operation of escioW accow1t; 
(u) providmg assistance 111 oiJtaming project suppo1 t from the 
Government m the form of Government signing a State 
Support Agreement; 
(m) pwvidmg assistance In the form of exemption from the 
payment of, or iac1htaUng deferred paym cut of any taX or 
lee levied by the Government ~under any law, or 
(1v) such other manner as may be prcscnbed. 
11 . Fznatuial secunty for operatiotl and mamtenance if transport Jacilzty.­
Where a provlSlon IS made m a concessiOn ag1eemcnt requ1nug the concessio­
narrc to operate and mamtam the transport, facility constructed by him for a 
penod as spcC!hcd m such agreement, there shall be opened an escrow account 
by the concess10narre and the money shall be expended for the mamtenance of 
the transport facd..1ty only m accordance With tile provlSlon m the concessiOn 
agreement or In any other agreement. 
12. Transfil if certazn rlghts.-Where the transport facility IS transferred 
to the Government, accordmg to the provc.10ns of the concessiOn agreement, 
all the nghts of the concess1onalfe m respe<-t of the transport fac1llty shall 
stand transferred to the Government. 
13. Termznatzon if cotlCesszon agreement.-( I) Where a concession agree­
ment lS termmated by the Government agency or Board or the statutory 
body without the consent of the conce~Ionaue or In the absence of any default 
by the concessionaire, the conce~siOnalfe ~hall be entitled to such amount of 
compcnsa~on for such termmanon as specified m the concessiOn agreement. 
(2) A concessiOn agreement may proVIde that If a default specified 
therem 1s committed by the conces~ionau·e, the Government agency or the 
Board or the statutory body ~hall, after g1vmg to the concessionaire a reasonable 
opportunity of being heard, ~have the nght to terminate tlte concess1on 
agreement and,-
(a) take over the transport facility Without rcpaymg the amount 
mvestc~ by the concedss1
1
ona1retam.K. thcb· eq
1
wty and shalt! a
1
sstlumc the llab~htyli~tl1e ~ 
concess10na1retowar s oans <-n y Irmlllrespec o 1e transport1aCI .;;or -
(b) ente1 mto a concessiOn agreement with another party, whose 
name 1s 1 ecommended by the Board, on the same terms and conditions as are 
speCified m the concos1on agrcl'mcntso ternunated. 
• 
147 
14. Collection cifuscr .fee.-(1) The user fcc~ leviable untler this Act shall 
be collected by the concessionaire, or the Government agency or the S!atutorv 
body as the case may be Its agents, servants and sub contractors, In such 
manner as may be specified by regulations for such period as may be stated 
in the conce-;sion agreement 
(2) Any person emploved in the mz.na!_;emcnt and collection o fuser 
fees under this section shall be liable to the same responsibilities as would 
belong to him if employed in the collection ofba~ic tax . 
Explanatiorz.-In this sub-section basic tax means the basic tax payable 
under the Kerala Land Tax Act 1961 (13 of 1961). 
(3) The" concessionaire, depending upon its constitution, through its 
authori~ed repre<;entz.tivC' shall be responsible to emure that user fees arc 
collected at not more than the agi ccd ra tcs, and the user fee collection is smooth 
and does not cz.use undue hz.rdship to the trz.nsport facility users and for all 
other matters connected with the user fee collection on the transport facility. 
(4) \Vhcre any user fcc is not paid on demand, the collecting agent shall 
seize any motor vehicle on which it is chargeable or any goods carried by such 
motor vehicle and if the mer fee and the cost <>.ri<;ing from 'iuch seizure, remain-; 
unpaid for twenty four hours the cz.<;e <;hall be brought before an officer 
appointed by the Government by notificz.tion in the Gazette to Supcnntendent 
the collection of the user fee. 
(5) Where a ca<;c is broughtbefore an officer undcrsub-~cction (4), he 
may sell the property seized in public auction for discharge of tLe user fcc~ and 
a"ll expenses occa<;ioncd by such non-payment, sc>izurc and sale of the property in 
public auction, and any balance that may remain after such discharge shall be 
returned on demand to the owner of the motor vehicle or goods, as the case 
may be: 
Provided that if at any time before the sale has actually begun, the person 
whose property has been seized tenders the amormtofallexpenses mcurred and 
double the user fees payable by him, the property seized shall forthwith be 
released. 
15 Excmption.-The Government may in public interest, by notification 
m the Official Gazette, exempt any motor vehicle from the levy of user fees 
under the provisions of this Act 
16. Assistance by Police 0./ftecrs -All Police Officers shall be bound to assisit 
the collecting agents and concessionJ.Jrc when required, m the execution of 
this Act, and for that purpose shall have the same powers which they have in 
the excrci·,c of their ordinary police duties. 
--- -- ------
148 
' I 7. Power to offer discount on user foes -Any coiiP.cting agent or 
concessionaire mayoffcradiscountforanyperiod not exceeding one year to 
any person for a certain sum to be paid by such person for any motor vehicle 
kept by him, on the rate~ of user fees authorised to be levied under this Act, 
subject to such conditions and restrictions as may be specified by regulations. 
18. Penalties.-(!) Every person, other than collecting agent or 
concessionaire, who lcvie~ or demands any user fee~ on any tran~port facility 
shall, on conviction by a Magistrate, be lbble to impmonment for a term which 
may extend to onemo nth or with fine which may extend to five hundred rupee~, 
or with both. 
(2) Eve!"'' collecting a~entor concessionaire who unlawfully demands a 
hi~hcr rate of user fee or under the colour of this Act seizes or sells any property 
knowmg that such ~eizurc or sale is unlawful, or in any manner unlawfully 
extorts money or any valuable thmg from any per~on under the colour of thiS 
Act, shall, on conVIction by a Mag1strate, be liable to imprisonment for a term 
which may extend to SIX months, or with fine which may extend to two 
thousand rupees, or with both. 
(3) Whoever,-
(i) attempt~ of using the transport facility Without paying the user ,.,JA.. 
fees payable by him under this Act; or 
(1i) obstructs any collecting agent from di~charging his dutie~ 
imposed by or under this Act, 
~hall on conviction by a Magistrate, be liable to impnsonmcnt for a te1m which 
may extend to three months or fine which m<-1y extend to one thousand rup6'es 
or With both. 
(4) No Magi~tratc shall take cognrsance of any offence under thiS Act 
except on a complamt in writing made by an officer authorised by the Govern­
ment in this behalf or by an authorised representative of the concc~sionaire 
depending upon Its constitut10n, in respect of such t1 :~n~port facility being 
under user fees imposed. 
I 9 Exhibition of table of user fees and stat~ment of penalties -A tab lc of user 
fees authoriSed to be taken in respect of a transport facihty shall be put 
in a conspicuous place near rhe collection booth of such transport facility 
legibly writtcfl or prmted in wo1·ds and figures In English, Malayalam and 
in the language of the locality. 
20. Bar to proceedingr.-No suit, prosecution or other legal proceeding~ 
shall lie against any collcctmg a;ent or concessionaire fo <nything which 
i~ in good fa1th done 01 intended to be done under this Act· 
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149 
CHAPTER v 
MISCELLANEOUS 
21. Protection of acts done in good faith.-No mit, prosecution or other legal 
proceeding shall lie against the Board or any member of the Board for 
anything which is done or intended to be done in good faith in pursuance of 
the provisions of this Act or any rules and regulations made thereunder. 
22. Bar of jurisdiction oJCinil Courts.-No Civil Court shall have jurisdiction 
to settle, decide or deal with any question or to determine any matter which is 
by or under this Act required to be settled, decided or dealt with or to be 
determined by the Government or the Board or any officer authorised by 
the Government or the Board. 
23. Remooal of di.fficulties.-(1) If any difficulty arises in giving effect to the 
provisions of thts Act, the Government may, a:. occasion may require, by 
order. do anything not mconsistentwith this Actorthe rules made thereunder, 
which appears to them necessary for the purpose of removing the difficulty. 
Provided that no order shall be made under this section after the lapse o[ 
'.two years from the date of commencement of this Act. 
(2) Every order made under sub-section (1) shall be laid before the St<:>.tc 
Legi<Jla ture. • 
24.. Special provisions regarding certain bridges.-(1) Notwithstanding 
anything contained in this Act, wher!' any bridge has been constructed before 
the commencement of this Act by any person on a build, operate ,md transfer 
ba~is in pursuance of an agreement executed by him with Government and a 
development authority constituted under tl1e Town Planning Act, 1108 (IV of 
1108) or the Madras Town Planning Act, 1920 (VII ofl920), such agreement 
shall be deemed to have been executed under the proviSions uf thi~ Act and a 
user fee may be levied and collected by such person on !'very vclucle entering 
such bridge. 
(2) The user fees leviable under sub-section (I) shall be at such rates 
and for such period a-;, the Gov!'rnmcnt may be notification, declare in acco­
rdance with the provlSlons of t11e agreement. 
• (3) The provisions under sub-section (3) of section 8, sections 14 to io 
and section 23 ~hall mutatis mutandis apply to the collection of user fees undc1 
sub-section (1). · 
150 
25 Power to malr.e rules.-(1) The Government may be notifieation.in the 
Gazette, m1.kc rules for the purpo~e of carrying into effect the provisions of this ,. ' 
Act. ~-
(2) In particular, and without prejud icc t') the general! ty of the foregoing 
poWer such rules may provide for,-
(a) the term of office and other conditions of ~ervicc of the mcmbe~ 
of the Board; 
(b) the power and d utlC~ of the Chan·man, the Member Secretary 
and other members of the Board; 
(c) any other matter which is required to he, OJ'lll2.Y be, prescnbed. 
(3) Every rule made under this Act shall be laid, as soon a~ may be after 
it 1s matle before the Legislative Assembly for a period offourtccn days which 
may be compri~ed in one sesswn or m two successive sessions and 1fbefiJrc the 0 
cxpuy of the scsston tn which it is s~ la1d or the ~ession Immediately folluwing, 
the Legislative Assembly makes z.ny modificz.tion m the rule ordcctdes that the 
rule should not be made, the rule shall thereafter have effect only m such 
modified form or be of no effect, as the case may be; so however that any such. ~ 
mod1ficattonorannulmcntshall be without prejudice to the validityofanything 
prevtously done under that rule. 
• 26. Power to make regulations.-(!) The Board may make J'egulat10ns not 
inconsistent with the provisions of this Act and the rules"made theicunder, for 
cnablmg it to discharge 1ts fw1ctions under this Act. - • 
(2) In particular and without preJudice to the foregomg power, such 
regulations may provide for all or any of the following matters, namely - · 
(a) 
(b) 
(c) 
the time and the place of the meetings of the Board and rules of 
proccd ure to be observed by the Board in regard to transactiOn of 
business at its meeting under this Act; 
the rate of user fees and the method of collections; 
any other matter which is, or may be, necessary for the efficient 
conduct of the affairs of the Board. 
27. Anmtal report.-(1) The Board shall during each financial year prcpa1c 
in such form and at such nme as may be provided by Iegularions, an annual 
report giving a true and full accountofits activities in the previoUS financial 
year <!nd cop1c~ of such report >hall be forwarded to the State Government. 
151 
(2) T.lC State Government shall cause every such report to be laid before 
Li1c Stdtc L~g1~L~ture as soon as may be after the receipt of the same. 
28. Acts and proceedings of Board presumed to be valid.-No act or proceeding 
of the Board shall be invalid merely by reason of,-
( a) any vacancy therein or any defect in the constltutl.on thereof; 
(b) any defect in the appointment of J. person acting as a member of 
the Board ; or 
(c) any Irregulanty Inlts pi'ocedure not atlecnng the ment of the case. 
29. Amendment of Act G of 2000.-lu the K,·rala Highway Pwtectxon Act, 
I999 (6of2000),-
(I) m sectiOn 2 after clause (1), the iollowmg clause shall be inserted, 
namely:-
"(Ia) "Kerala Road Fund" means the Kerala Road Fund establiShed 
unde1 section 6 of the Kerala Road I• und Act, 2001 ''; 
(2) after section II, the followmg section shall be mscrtcd, namely:­
' "IIA Fees for servz.ces or berze}1ts rendered on /ughways.-(1) Tne Government 
may, be notificaUon m the Gazette levy fees at :.uch rates as may be laid down 
by rules made in this behalf for services or benefits ,rendered m relations to the 
use oi fernes, permanent blldges, the cost of construcUon of each of wluch 
1s more than thirty five lakh~ rupec..s, · temporary bndges and tunnels on 
highways and the use of sections of highw,q: 
Provided that uthc Government is of opimon that it IS necessary in the 
public mtcrest so to do, 1t may, by like no tificatlon, specify any bridge in 
relau 011 to the use of which fees shall not bcleviable under tl11S sectJon. 
(2) Such fees when ~o levied shall be collected in accordance with 
the rules made unde1 tlus Act and remitted to the Kerala Road Fund 
established under the Kerala Road Fund Act, 2001. 
(3) The Government may levy fees under ~ub-section (I) on all bJ Idges in 
respect ofwh1chthe realiS<tUon of toll under the provisions of tl1e Kcr<lle~ Tolb 
Act, 1976 (6 of 1977), 1S completed." 
30. Repeal and savmg.-(1) The Kcrala Road Fund Ordinance, 2001 
(34 of 2001), IS hereby repealed. 
(2) Notwithstandmg such 1 epeal, anything dOne or any action tak<- 1 
under the said Ordmance shall be deemed to have been done or taken under 
this Act. 

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