The KERALA WATER SUPPLY AND SEWERAGE ACT, 1986

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THE KERALA WATER SUPPLY AND SEWERAGE 
ACT, 1986 
(AcT 14 OF 1986) 
ARRANGEMENT OF SECTIONS 
Preamble: 
CHAPTER I 
PRELIMINARY 
Sectzons : • 
l. Short title; extent and commencement 
2. Definitions 
CHAPTER II 
ESTABLISHMENT, CONDUCT OF BUSINESS, FUNCTIONS 
AND POWERS OF THE AUTHORITY 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 
11. 
12. 
13. 
14. 
15. 
Establishment of Keral .. Water Authority 
Constitution of the Authority . 
DisqU&lification for bcio~ a member 
Term of office of Chainnan, Managing Director and non-official 
members 
Remuneration of the ChairmAn, the Managing Director and the 
Technical Member 
Appointment of officers and staff 
Supervision and control of employees 
Authentication o( orders and other instruments of the Authority 
Delegation of powers 
Disqualification for participation in the proceedings of the Autho· 
rity on account of interest 
Acts not co be invalidated by irregularity, vacancy etc. 
Functions of the Authority 
Powers of the Authority 
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CHAPTER III 
VESTING OF PROPERTIES, ASSETS, LIABILITIES AND 
,OBLIGATIO~S AND TRANSFER OF EMPLOYEES \ 
Sections : 
16. 
17. 
18. 
Vesting of property in Authority 
Decision of Government on the ve~ting of property to be final . . 
Vesting of exi!tlng wate· supply and sewerage services under local 
bod1es 
19 . Transfer of employees to the Authority 
20. Transfer of emplJye<'s of local bodtcs tJ'the Author1ty 
CHAPTER IV 
PROPERTY, CONTRACT, FINANCE, ACCOUNTS AND AUDIT 
21. Execution and registration of contracts etc. 
22. Funds of Authority 
23. General principles for the Authority's finance 
. 24. Grants, subventions, capital contributions and loans to the Authority 
25. Power of Authority to borrow 
26. Deprt>ciation Reserve 
27. Guarantee for loans 
28 . Estimates of income and expenditure 
29. Accounts and Audit 
30. Surcharge 
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CHAPTER. v 
TAXES, FEES AND CHI\RGES 
31. Cost 0f Water 
32. Co'>t ,of collectio:a and dispo5a 1 of waste water 
33. Meter rent 
34. Secunty l)epos1t 
35. Fees 
a6. Recovery of taxes and other sums duo ~ -
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37. 
38. 
39. 
40. 
41. 
42. 
43. 
44. 
45. 
46. 
47. 
48. 
49. 
50. 
51. 
52. 
53. 
54. 
55. 
56. 
57. 
58. 
59. 
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CHAPTER VI 
WATER SUPPLY 
Defin1ttoa of ~upply of water for dome~uc purposes 
Supply of water by the authority " 
Water supply for dom~stic purposes not to be used for non-domestic 
purposes 
Provi~ioo of public hydrants 
Provision of fire hydrants 
Provision of water meters 
Lict::nsed plumbers 
Prohibition of wastage of water 
Power to cut off water supply 
Prohibttton of ccrt.1in acts 
CHAPTER VII 
SEWERAGE 
Right of owner or occupier to oht.lin aewer connection 
Pow~r to requirl' owner to have sewer connection. 
Prohibition of connection wlth sewer ' 
Pro!1ibition l)f c >ni' r..tGtion of buildtng~ etc., over sewer 
Power to dlh ~h l t etc., for ventd l'ion of sewer or cess-pool 
Pvw~r to exa ;nuv: .1nd test 'I ewer etc., be lteved to be defective 
CHAP1 ER VI II 
GENERAL PROVISIONS 
Power of entry, survey, mspectio.t etc. 
Power to dtsinfect tanks, pools, wells 
Directions by the State Governmeut 
Annual 'report, statistics and return~ 
Duty of local bodies to assist 
Protection of acts done in good faith 
Memb Ts, officers and servants of the Authority to be publlo 
servants 
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CHAPTER IX 
PENAL TIES AND PROCEDURE 
Sections: 
60. GLneral penalty 
61. OffencLs by compan1es 
62. Composit10n of offences 
63. Duties of police offi_cers .md employees of local 
CHAPTER X 
bodies 
RULES REGULATIONS AND BYE-LAWS 
64. Power to make rules 
65. Regulations 
CHAPTRR XI 
TRANSITORY PROVISIONS 'AND REPEAL 
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66. Transitory provisions 
67. Exclusion of powers of local bodies under certain enactmtnts 
68. Amendment ol Act 15 of 1971 
69. Amendment of Act 19 of 1970 
70. Removal ol difficulties 
71 • Repeal and saving 
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THE KERALA WATER SUPPLY AND SEWERAGE 
ACT, 1986 * 
(AcT 14 OF 1986) 
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An A.ct to provide for the establishment oj .111 autonomous authority for the development 
and T6gulati~ of water. supply and Wttsle water collection and disposal in the 
State of Kerala anp [o1 mallets connected therewith 
Preamble .-WHEREAS it is considered necessary to provide. for the esta­
blishment of an autonomous authm ity fm the development and regulation 
of water supply and waste water collectiOn and d1sposal in the State of 
Kerala and fo,· matters connected therewith • 
BE it enac;ted m the Thirty-seventh Year of the Republic of India as 
follows:-
CHAPTER I 
PR~LIMINARY 
I . Short title, extent and commencement.-( I) TI11S Act may be called 
the Kcrala Water Supply and Sewerage Act, 1986. 
(2) It extends to the whole of the State of Kerala 
(3) It shall be deemed to have com_; into force on the 1st day of 
March, 1984 
2. Difzmtions.-In this Act, unless the context otherwise requires,-
( I) "Authonty" means, the Kerala \Vater Authority constituted 
under section 3; , 
(ii) •·ce'>S-pool" mcludes a settlement tank or other tank to receive 
or dispose of foul matters from any·prem1se, ; 
(Iii) "Chairman" means the Chairman of the Authority ; 
(iv) "communicatlOii pipe" means any pipe or system of pipes, along 
with all fittings thereto, by means of which ""ater is supplied to any premises 
from the main, and Includes a connectwn pipe, service p1pe, tneter or other 
fittings ; 
(v) "connection ptpe" means any water ptpe from a ferrule to stop­
cock connecting the distribution mat~ wtth the service pipe ; 
(vi) "consumer" means any person gettmg the benefit of any water 
supply or .waste water scrv1ce from the Authonty ; 
• RecetVed the assent of the Prestdcnt on the 4th ch.y of August 1986 
and pubh ,!Jed in the Kerala Gazette Extrao.t'd in? ry No. 736 
· dateu ·~th ,\ugust, 1,986 
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(vii) "domestic sewage" weans waste water from any r('sidence, 
boarding or lodging-hou~e, hostel, hotel, publtc place, office or any such 
establishment as is not a part of ..1ny trade or mdu~try, <~.nd arising out of per· '( 
sonal ,md Jlormal human activities such as drmking, bathing, ablu>ion, 
washing and cooking : ' 
(viii) "drain" mea~ every part of any conJuit laid through, under 
or <~.hove a str~et, way or l<lnd whether public or private by or at the expense 
of the owner or occupier of any premises for the carnage therefrom of any 
waste water to any sewer ; 
( 1x) "ferrule" means a ferrule connecting the connectiOn pip~ with 
the main ; 
(x) "fire hydrant" means hydrant filled on the water main other 
than the trunk main for affordmg ~upply of water for extmguishing any fire; 
(xi) ''local area" means the area falling w1thm the jurisdiction of a 
local body; 
(x1i) "local body" me<~.ns a c1ty corporation, a municipal council, 
a township or a panchayat . . 
(xii1) "main" means a p1pe la1d by the Authonty for the purpose of 
giving a g<.>neral supply of water as distinct from a supply to an md1VIdual 
ccmsumer, <~.nd mcludes any <~.pparatus used in connection with such a p1pe. 
(x1v) "Managin~ Director" means the Managing Director of the 
Authority ; 
(xv) "m,:mb,~r'' means a ,nember of the Authority ; 
(xvi) "occupier", m relation to any premises, includes-
( a) .tny per~on for the time bcmg paying or Irable to pay r nt 
or any portiOn thereof to the owner in respect of •those premises ; 
(b) the owner who 1~ m occupatiOn of the prem1ses . 
(c) a tem.nt of the pre m>es who is exempt from payment of rent; 
(d) <l. hcensec who IS in OCCupation of the preffil!>CS, <~.nd 
(,.} any person who ~~ h<tblc to p::t.y damages to the owner m rc • 
pect of use and occupatiOn of the premtses ; ' . 
(xvn) ''owner", Ill relation to any premises, mr,am the pcr!>on who 
receives the rent of that premises or who would be entitkd to rec:-ive the rt'nt 
thereof 1f the premises were let, an(! mcludes,-
(a) an agent or trustee who receives such nnt on acco mt of the 
owner; 
(b) <111 <1gent or trustee who receiVes the 1 ent of, or IS entrusted 
with the management of, any prem1ses devoted to rchg1ous or chantable 
purposes ; 
(c) .1 rece1 cr or man<1ger 4ppointed by auy cou1 t of tompetent 
jurisdiction to have the charge of, or to cxcrc1~e the nghts of an owner of the 
said premises; and 
(d) a mortgagee in possession ; 
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(xvlii) "premises" ·meam an>' land or buildmg and include9-
(a) the garden, land and outhouses, II any, appertaining to a 
lJuilding or part of a buildmg, and 
(b) any fittmgs affixed to a budclillb or part of a builwng for mor6 
btncficial enjoyment tht.:reof; · 
(xi:\) "P' es::ribed '' means p1 c' CI i bed by Iu]c ~ made under this Act; 
(xx) "pnvate street" means a.1y ~trcet, ro.ul, square, court, alley, 
passage or nding-p..tth wh1ch 1s n0t .t "pubhc ~trect", but does not mclucc 
a pathwav made by the owner ol r remise~ on h1~ own land to secure access 
to or the convement usc of cueh premts cs , 
(xx1) "pubhc hydranl" means hydrant 
to the pub he withm a Joe a I a1 ea , 
meaut for •upply of water 
(xx1i) "pubhc st1ect" means any strLct, road, squar~, court, ailey, 
passage or ndwg-path over which the public have a ri~ht of way, 1\hether 
a thoroughfare or not, r!nd inc 1udes-
(a) the road .... ay OVLr any pubhc bndge or causeway; 
(b) the foot-wav att:'lchcd to any ~uch street, pubhc bridge or 
causeway , and 
(c) the drams attached t0 any ~uch street, publi.-; hndge or cause­
way and the land, whether cove·cd or not by any pavement, veranda, or 
other :,tructure, whH:h hes on either ~1de of the ro.LdWdV upto the bouncla­
ries of the adjacent property, whether that property IS pnvate property or 
property bclongmg to the Government ; 
(xluii) "regulations" means regulations made by the Authority under 
thu Act ; · 
(xx1v) ''rules" means rules m.tde u ~elcr this Act ; 
(xxv) "set·vice p1pe ., m ~.lns any p1pe other than the connectiOn pipe 
beyond the stop-coc~ hy m•:a:1s of wh1ch the w.tter 1~ ~Jpplied. t.> ar.y premises; 
(xxvt) "sewage" means mght-sotl a:1d oth~r contents of a water 
dosets, latrme~, pt'tvtes, unnab, ces -pools "rdr uns and po~luted water from 
sinks, bath-rooms, stables and other hke places and mcludes trade effluents; 
(xxv1i) "sewer" means a cL1sed cJn-iuit f •r carryin,g sewage, offensive 
.• latter, polluted water 'l.va~le water or sub-soti ,N.ttct , 
(xxviii) "sewerag.;" .ncam a system 0f cullectwn of waste 
from a connnunity from Its houses, ustnutwns, indc~stry and public 
the pumpmg, treatme,lt and disposal of such waste water, its effluent, 
gas and other end products , 
(xJtix) "S~ate" means the State of Kerala ; 
water 
places, 
s'udge, 
(xxx) "stop-cock" meaD~ a stop-cock fitted at the end of a connection­
ptpe away from the mJ.m lor the purpose of swJI clnn~~ off clnd re~ul..1.ting the 
water supply to auy prrmises , 
(xx·u) "street'' mea.1s a p:tvate stre..:t Jr a pubhc street ; 
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(xxxii) "trade effiuent'' means any hqu1d cith::r with or without 
parti.cles of matters m.•mspcns10n therein, which Is wholly or in part produced 
or d•scha·ged m rlw coursc'ofany trd ie or industry, ~r.cludmg agriculture 
and hort1culrure, b•Jt dot·s n.ot mclude domestic sewage . 
(xx~~.111) "waste water" ~hall includl: domestic sewage, spent water 
and all \\a~te water let out from .my mdustncs or by any other source; 
(xxx1v) "wate1 connection" mducles-
(a) a tank, cistern, hydrant, sta.nd-p1pe, mf'ter or tap, situated on 
any private P• operty .~rid connected with a mam or other pipe belongmg to 
the Autllfmty ; · . 
(b) the water pipe c·~nnecting such a tank, cistern, hydrant, stand-
ptpe, meter or tap With such rnam or p1pe, ' 
(xxxv) "water supply" means a system of providing water to a com­
mumty for mectmg lls reqUire I• ent~ both dom~~t1c and non-domestic, 
but doe~ not mclude pt·ovidmg water for Irngation ourposes ; 
(xxxvt) ·'water works" Htcludes water channel (mcludmg stream 
Jake, spru1g, river or C·l•lal, well, p.1mp, ga.ller.e~, ·~s~rv.)lr, ctstern, t.~nk)duct, 
·.vhether cov:!red or o~en, treatmellt units, <>luc ·,up ply mam, culvert, engine, 
wat!r-truck, hydrant5, s·a11d-p p~, C'•nd.llt and oU(;h inery, )and, bUilding or 
o:her thtn~s for s 1pplyi 1:; or useJ for supplying>./ atcr or for protcctJDgsources 
of water supply or for treatment of water. 
CHAPTER II 
ESTABLISHMENT-CONDUCT OF BUSINESS, FUNCTIONS 
AND POWERS OF THE AUTHORITY 
3 Establtshmmt of Kerala l·1'ater Aulhonty, -(I) Th e Go\'eiHrr>cnt ~hall 
by notification J1l the Gazette and with effect frum such date as may be 
~.peclfied therelll, esta bhsh an au1onorr.o•1s aurhonty to be called the Kerala 
Water Auth01ay , 
(2) The Autho1 ity sh .. dl bi! a IJody corpor.:1te by the name aforesaid 
hav1ng pe1peu.al success10:1 and a common seal, with power to acqUire, hold 
and dispose of property both movable and immovable, and to contract and 
~hall by rhe s:11d uame ~t.:e and be sued. 
(3) 1 he Author·ty shall for ail purpose~ be deeml!d to be a local 
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Authonty. , 
(4) The Authority shall have its hud office .lt Tnvandrum and may' • 
have offices ~t such other places as 1t may consider necessary. 
4 Constztutzon of the Autho1 ity.-Thc Authority ~hall consist of the 
followmg membci s, namely :-
(a) a Cha1rrr,an appoiot ... d by the Government, 
(b) .t Ylanagm_; Dirccto1, who possesses experience m management 
and aduwustratwn 01· who ts <~ quahfieli Engmeer not be)O\\ : h~ rank of a 
Chief Engmcer having s~ffictcnt e:-.perience m management and administration 
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in water ~uppl> and se,verag~ works appoi<lte,l hy the Go,·e1n.nent 
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Provided that no person who 1s more ·than fifty-five years of age shall 
be appomted as Managing D1rector , 
(c) the SPctetary to Government m-rharge of Public Health 
Enginecrmg Department or the Kerala Water Autlvmty, f'x-ojjiCio; • 
(d) the Finance S£>cretary to Govcrn111eJJt, ex-officzo ; 
(c) the SPcrctar y to Government m-chat gc of Local Administration 
Department, exofjic10 , · 
-(f) the Sccretarv to Go;ernment in charge of Development Depart­
tnent, ex-orjc1o , 
(g) two members represer,tmg th<: local bodies' m the State, appomed 
che Govct nment : 
~-----~ ·- ___,, __ __._ __ ~-~----
• one of whom shall b ! e a member belonging tot 
.......... ~ ...... - ......... - ... -~--o--o ·- - ----·-·---~ -- \11} 
appointed by the Go\crJl"lient, z.nd 
____ _ul-..a..-IDCilllll:aJ...-llll'..n>ht>.Y' ~-""'-~ h;) 1 L hP _., ~ .. - I.L' -·--
)Untant having a mmtmum of f• ~tu.o 
11sation or public sector undcrta''-""1 
ment, appointed by the 
L ____ \ ~I •o .... oUIIUl~Lll4rgeu· Insolvent ; 
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(c) is of unsound mmd and stands so declared by a c..,rnpetent cout t; 
{d) holOs, except as provided in ~ections fi :md 7, any office of profit 
under the Authorny ; 
(e) h<ls directly or Indm:ctly by htmself or by any partner, employer 
or erripJo, ce, any sh .re or interest, .,,hether pecuniary or of any other narurc 
in any contract or employment with, by or on behalf of the Authoruy : . 
(f) absents himself wtthout excuse, ~uffictent in the o01nion uf. the 
Authonty, from three con~ecutive mcetmgs of the Authontv. · 
6. Term oj o(fice of Chamn.m, Managz11g D11ector mzd non·ojjiClal membsrs. -
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(1) The Chairman, the ~.fano.~gtng_.Ptrr,ctor and the mcmbe·,_...~r~ ... ~.t-•~ ;,., __ 
clause (g), clau~·~ (h)-er clau~c 1 If,\.,'fse~tt&rt)4 shall hold offic "clause (i) or clause (j)" 
thrc:! years unless their term IS te.rmmated ear bet by the I __ , . ___ . 
notification in the Gazette, and shall he eligible for 1 cappomtment · · 
Provtded that an elected member m office tn anv of the loco.~! bndif'i; 
appomteri under clause (g) of scctlO'l 4, shall cease to b~ c1 member of the 
Authority, whc1' he ceas~ to be a member in offic<' of such !~cal body. 
(2) The Chairman the Managmg Dtrector .and the P1embers referred 
to in sub-~ectwn ( 1) shall hold office on such terms antl conditions a~ the 
Govemment may, by order, specify. 
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(3) The members including the Managing Director shall be entitled 
to such travelling and daily allowances 1$ may be prescribed 
(4) The Managing Director or the members referred to in sub-section 
t1) may resign his office by writing unrler his signature addressed to the ~ 
Chairman and on sul.h restgnation being accepted, by the Authority and 
approved by the Government he shall be cieemed t,o have vacated hi, office. 
_ 7. Remuneratwn of the Clzazrman, the \lanagmg Dzreclnr and the Technical 
"the Tecfumc I M ,..,..L.a C.hatrmal!, the Managmg Director and 1 he Technical Member 
a ember and the A~c··--'~-f,n,Lsuch remuner .1tion :1s , may be fixed 
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uy .. nc "- ounts Member''/ 
8. Appozrztmerzt oToJ]zcers dna \11!Jj. \ • ; ject to the provisions of st..b-
section (2), the A'.ltllorny may ap;:>o1ut for the purpose of enablmg it to 
carry out its powers, duties :nd fJ.nc.torb under th:~ Act, ~ Secretary and 
such other officers ,an-l staff a~ m ~y be required against posts duly 
sanctioned by it : 
Provided that the Authonty qhali obtain the previous appr•>val ot the 
Government for the creation of post above the r:!nk of the Executive 
Engineer. 
(2/ The Authority mav. with the previous app!'oval of the Govern­
ment, appoint 0'1 deputation :: scr·.-;:mt of the Centr.al Government or the 
State Government as an err.ployee of the Authority on such terms an~ 
conditions as it thinks fit. • 
(3) Except as prov;ded in this sedion, the appomtment and con-
dition~ ol servict.: of the officers and emplovees of the Authorily shall b.!! 
governed by JUles made by the Governmen,t from tune to time. • 
9. Supervtstun and control of emplo)'tes.-Subject to the wpel i.ltt:.Ldencc 
of the Authonty, the Ma.1; gin~ Duector shall.be the Chief Executive and 
shall have the general control and directio:1 over all the employees of the 
Authority 
l 0. Authentzcatzon of orders and other mstrununl> of the Authorzl) .-(I) All 
proceedings of the Authonty shall be authenticated by the signature ot the 
Chairman and all orders and other instruments of the Author1ty shall be 
authenticated by the signature of such officer of the Authority as may be 
authorised in this behalf by regul.twms. 
(2) The Authorit~ may mvite ,my person to att, nd a meeting of 
the Authority for the purpose of assi~ting OI . .Hlvi~ing It on 'any matter and 
the persons so invited m.1y take part m the proceedmgs of the Authority. 
but shall have no nght to vote. 
II. Delegatzon of powers.-Subject to the provisiOns of this Act, the 
Authority may, by general or spec1al orcler, delegate either ~>ncondi­
tionally or subject to such conditions as may be specified m the order, to any 
sub-committee appomted by It or to the Chairman, or the Managing Director 
or any other officer or Committee of office1 s of the Authority such of Its powers 
and duties under this Act as 1t deem~ fit, not bemg its powers and duties 
under sections 25, 28, 29 and 65. 
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12. Dzsqualifwztz on Jor partzczpatzon 111 t/ir p1 oceedings of tlu A:llhon I)' 011 
account of wterest -The Chairman or any other m<"mbcr oft he Authority 
or of a sub-committee appom ted by the Authorit v who ha~ ..let<'<l profc3· 
sionally, mrclation to an~' •natter on behalf of any per~on having auy 
>hare or interest whether pecuniary or of any other Hature m any contrar t 
or employment w1th, by or on behalf of the t\uthority, or any other person 1l 
mterest in any area m whtch it 1~ propos~d to acqtJire land 'or any of the 
purposes of this '\ct, shall not vote or take p.trt m any procecum~~~ 
(including any discussion on. any resolution or qur~tton) of the Authority 
or of any sub-committee thereof relat•ng to such matter. 
13. Acts not to be invalzdated by uregula1zty, VIJcanq, etc.-No act doue or 
proceeding taken undtr thi~ Act bv the Authonty or <t sub-wmmillr·c 
appointed by the Authority ~hall be mvahdated merel} on the grouud of -
(a) any vacancy in, or defect in the constitution of the Authority 
or any sub-committee thereof, or ; · 
(b) any defect or irrcgulanty in the appointme.1l o1 a p<'r>on .tcting' 
as a member thc>reof, or; . 
(c) any defect or irregulant"y in such act or proccedi,tg, 110t 
affecting the ments of the case. 
14. Functtons of the Authorzty -The Authonty shall perform .til or any 
of the followmg functions, namely :-
(I) preparation, execution, promottou, operation, maintefl,lllCC: and 
financmg of the schemes for the supply of water .md for the d1sposal of wa~te 
water ; 
(ii) ·rendcnng all necessary ~~rviccs m regard to water ~upply and 
collection and disposal of waste water to the Government and on request 
to private institutions or individuals ; 
(iii) preparation of State plans for water supply and collcclloll a.td 
disposal of waste water on the direcoom of the Government ; 
(iv) fixation and revision of tanffs, 'taxe~ and charges of water supply 
and maintenance service in the areas'covereJ by the water ~upply and wa~te 
water ~ystems of the Authority ; 
(v) establishment of State standards for water ~upply and wa~te 
water services ; 
(vi) all functions, not stated herem wluch were bemg p(·J ((1rmcd 
by the Public Health Engineermg Departm<'nl of the Government hefi,rr· 
the commencement of thi'l Act , 
(vu) assessment of the rcquireme11t' for manpower and tramin·~ 
in relation to water supply and sewerage sc1 vtecs in the State ; 
(viii) carrying out applieJ. research for the efficient discharge ol 
the functions of the Authonty , 
(tx) makmg provision for the supply of wholesome w,1tcr anrl efficient 
sewerage services to the people m the State ; 
(x) takmg ~uch other mea~ures J.'> m \Y be necessary to cnsme WJ.tcr 
supply m times of emergency ; and 
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• . (x1) such other functions as may be entrusted to the Authority by 
the Government by notification in the Gazette. • · 
15. Powers of the Authorzty.-( I) The Authority shall, subject to the 
provisions of this Act, hav~ power to do anything which may be 
necessary or expedient for carryin.g out its functions under this Act. 
' (2) Without preJUdice to the gen ~rality of the foregoing provisions, 
such power shall include the power-
(i) to obtalll such periodic or specific information from any 
local body as it may deem necessary ; . 
(ii) to prepare and carry out scheme3 for water supply and 
sewerage and to exercise al.J powers and perform all functions relating thereto : 
Prj}vj~ed that the . power ?f sanctioning schemes. costmg more than 
rupees ·one crore5shall be exercised. only w1th the previOus approval of the 
Government ; 
(ui) to lay do•vn the schedule of fees for all services r·~ndered by 
the Authonty to the Government, local bodies, institutions or Imhviduals, to 
Hx: or amend tariffs and charges for water supply and sewerage services and 
collect all such fees and charges for th<>se serv1~es as may be prescnbed : 
Provided that any revision of tariffs and charges for water supply and 
sewerage services shall be made only with the prev10us approval of the 
Goverruncnt ; 
(1v) to enter into contract or agreement wit{!. any person,firm 
or institution as the Authority may deem necessary, for performing its func­
tions under this Act : 
J ve. Provided that any contract or agreement involving more than rupees 
one CrOle!.shall be entered IntO by the Authority only with the previous 
approval of the Government ; 
(v) to adopt its own budgrt annually subject to the previous 
approval of the Government , 
(v1) to abstract water for drinkmg purpose from any natural 
source and wlth the permission of the Government for other purposes and 
dispose of waste \\ ater ; 
(vu) to borrow money, issue debentures, to obtain subventions, 
capital con tnt utions, loans and grants, to incur expenditure and manage its 
own funds ; 
. ~ (vii!) to grant loans and advances to such persons or authorities as 
the Authonty may deem neccssuy for performing the functions under this 
Act; 
(ix:) to acquire, possess and hoH lands and other property, and to 
carry;any water or sewerage works through, across, over o( under any highway, 
road, street or place and alter reasonable notice in wnting to the owner or 
occupier, into, through, over or under any building or land ; 
(x:) to accept gifts m kmd and in cash with the previous app10val 
of the Government. · • 
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CHAPTER III 
VESTING OF PROPERTIES, ASSETS, LIABILITIES AND 
OBLIGATIONS AND TRANSFER OF EMPLOYEFS 
16. Vestzng of property zn Authortty etc.-(!) 
establishment of the Authonty, (herem,tftcr in this 
"the appointed day"),-
As from the date ·of 
Chapter referred to as 
(a)• (i) all rroperties a)ld assets (including water works, huildinga, 
laboratones, stores, vehicles, furniture and other furni~hing), all the existing 
water surply and_ sewerage services, sewerage \vorks and sewage farms 
including, as the case may be, all plants, machineries, wau·r works, 
pumping stations, filter beds, water mains and public sewers in, along, over 
or under any public street and all buildings, ·lands and other works, 
materiah, stores and things appertaining thereto ; and 
(i1) so much of the sub-soil appertaimng to the said. water mains 
and sewers as may be nece!'sary fot the purpose of enl.argmg, dcrpcning or 
othawise repa1ring or maintammg any such water mains and sewers or any 
pipes and other appliances and fittings connected with such wat(·r supply 
and sewerage services and sewage works· -and ~ewage farms whieh 
immedtately before the appointed day were vested in-the Government for 
the purposes of the Public Health Enginee1 ing·Dep-l.rtment, 
shall vest m and stand transferred to the Authonty; 
(b) (i) all the water: supply and sewerage services, sewerage 
works and sewage farms includm~ all the plants, machineries, pumping 
stations, distribution lines and public <ewers in, akng, over or under any 
public street and all buildmgs, lands and oth<'r works, materials, stores and 
thmgs appertaimng thereto, and 
(ii) so much of sub-s01l appertaining to the said distnbution line, 
and sewers as may be necess<Jry for the purpose of en!.uging, deepening or 
otherwise repairing or maintaining apy such distribution lines and sewers or 
any pipes and other appliances and fittingn connected with such water 
supply and se\\erage service~ and sewerage works vested in any local body 
and in respect of which maintenance of sewerage services and sewerage 
• works, management and distribution of water supply or collection of charges 
which immedJat<'ly before the appomted day were attended to by the Public 
Health Engineering Department, 
shall vest in and stand transferred to tbe Authonty; 
(c) all the nghts, liabilities and obligation:~ of the Goventmcnt 'or 
the local body as the case may be >whether arising out of any contract or 
otherwise pertainmg to the said dep'lrt~t including tl1e right to recover 
arrears of water tax and sewage tax water chf!.rge, meter h1re and of nny 
cost or fees relatiiJg to water supply and sewerage zerv1ces shall be the 
rights, liabilities and obligations of the Authority ; and 
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(d) all the assets, nghts, !tabilities and oblig:ttions of the Kerala 
::,tate Rural De\ elopment Board constituted under the Ke1·zda State Rural 
Dcvelopmeo.t Bo2rd Act, 1971 (IS of 1971), m so far as they penain to 
execution of water supply and sewemge schemes in the panchayat areas 
mcluding the right to recover an ea1 s of annual instalments from panchayats 
towards expenditure on water supply .1nd sewerage schemes under section 
13 of the said Act, shall be the assets, rights, liabilities and obligations of 
the Authontyo 
(2) The properties, assets, 1 ights, habiht1es and obligations referred 
to iu sub-section ( l) shall be valued in such manner as the Government 
may determme. 
(3) All suits and other legal proceedmgs instituted or defended or 
which rmght but for the vrstmg a.1d transfer unC..:er sub-section (l) have 
becl'l m~t1tuted or defended by or agalllst the Govcrnm1 nt or the \o:al body 
or the Rural Development Board, asothc C<J.Se may be, may be contmued or 
mstituted or defended by or agamst the Authonty 
170 Deczszon ofGovnnmell! on the vestl1lg of p1ofxrl)' to bcji1wl-Whcre 
any doubt or d1spute arise~ as to w hethcr any prope1 t y or asset has vested m 
the Authonty urder sectJ.JJl 16 or any nghts, liabilities or obhgatwns have 
become the rights, hab1hties and obligations of the Authonty under that 
section, such doubt or dispute shall be referred to the GovLrnment whose 
uceiSIO!l thereon shall Le final. 
I H 0 Vestzng -of ex!stuzg water supply and sewerage servzces wzde1 local 
bodzeso-( I) As from the date followmg the expiry of a penod of three years 
from the appointed day or such further penod as may be specified by the 
Government m this behalfby notification in the Gazettc,-
(a) all the wate1.
0 
wpply and sewerage services, sewerage ~101k~ ami 
sewage farms includmg all the plants, maehmeries, pumpmg stations. 
distribution lmes and pubhc sewer<> m, along, over or under any puLIIc 
street <>nd alJ buildings, lands and oth~r works, matenals, store~ and thmgs 
appertaining thereto; 
(b) w much of the sub-sod appertainmg to the said UlstnLutiOn 
lmes and sew<>rs as mav be necessary for the purpose of enlarging, deepcnmg 
or otherwise 1epairmg or maintaming any such d1stnbuuon lines and sewers 
or any p10cs and other appliances and fittingl> connected with such water 
supply and sewerage services and <>ewe I a·~c works; and 
0 
(c) .til nghts, l1abihtie~ aud obligations mcludll1g the 11ght to 
recover arrears ol water charges, meter hire and of any cost or feu relatmg 
to water supply and sewerage services, 
which immediately b~fore the above mentiOned date vested m any local 
body shall vest in and stard transferred to the Authority. 
(2) The pt opcrtw'>; as!>ets, nghb, liabilities :md obligatwns ref en ed 
tu In !>u_b-section (I) sh,dl he valued in such manner as the Gowrnment may 
dctcimine. • 
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(3) Wbere any doubt or dispute arises as to whether any property 
l'lf a~set has vested in the Authonty or anv right, ltahility or obligation ha11 
become the p~ht, ·liability or oblu~ation of the Authortty undrr tillS sccti~n, 
such doubt or dtspute shall be referred to the Government whose dccis1on 
thereon ~hall be final and bmding on th,. Authority and till' loc;ll body 
concerned. 
19. T ratZrfer of emplo)'ees to the Authonly --(I) Save as oth<·rwiM. 
provided in this sectton, every pqson who was (·mpl0yed Ill the Publi•: 
Health Engmeermg Department of the Government shall, on and from thr: 
dppointed day become an employee of the P uthority and ~hall hol<l hi' 
office or service therem by the 5ame tenure, at tlte same remuneration ami 
upon the same terms and conditions, and With the same r1ghts arul 
p1Ivdcges as to pension, gratuity and other mattf'rs as he would have hdd 
the same on the appointed day if this Act had no' come into fiJrce and shnll 
continue to do so until his employment m the Authonty i<. tcrmln,lted M 
until his remuneration or other rerms and conditions of service are revi1r:d 
or altered by the Authority under or in pursuance of any law <'I Ill 
accordance with any provision. which for the tnne being governs Ius servic~ : 
Provided that nothwg contained in tillS ~uh-section shall <ipply tn .111 
nnployee m the cadres of the Admm1strat1ve Olf1cers, Fmallcial i\s~lstanr;,.,, 
D1visional Accountants, Typists and Stenographers, who, by not1u: iu 
wntmg given to the Government and the !\uthonty withm such time <IS tlw 
Govemrnen t may, by general or speCial or de• , specify, intimates his 
intention of not becoming an employee of the Aut honty: 
PI O\ 1ded further that an employee ref'!rrcd to m the preceding provi~o 
shall continue to be an employee under the Government and shall he 
provir ed elsewhere m any post or other service under the Government. . . . 
(2) The sums standin?; m the cred1t qf 1 he ·emplovees referred to in 
sub-section (1) in any pensiOn, prov1dent fund, gratmty or other like funds 
constituted for them sh'all be transferred by the Govcrmnent to the Aut honty 
along with any accumulated intere~t due till th~ appointed day <1ncl with 
the account~ relat,ng to such funds and the i\uthonty shall, to the excln!ion 
of the Government, be' hable for payment of peru.IOII, pr0vident fimd, 
gratuity or other like sums as may bC" payable to ~uch employees at the 
appropnate ume in accordance w1th rhc condit ons of their servicr. 
(3) Notwith~tandmg J.nvtllln~ C'llll,Lill· din thc· Industrial D•sputes 
Act, 1947 (Central Act 14 of l 1H7J, u• 111 ·Ill)' other l<1w for the tune being 
10 Ioree, the tramler of service of an employee to the Authority unde1 
~ub-sc< uon (I) shall not entl' le any such ~mployee to any compr:nsatwn 
llntltr that Act or such other law and no such cl.t•m shall he cntcrt,lined hy 
......._ · any court, lribunal or other autbonty: 
(+) Everv perllldllent OI tcmpor:tJ \' f rnrloyee ofthr• l'llhlic llr-,tfl h 
Engi teermg Depa rtml'llt of the State Government unrlr•r sub-sectlol• (I 1 'hall 
on and from the appomted day, be a pcrmaucnt or tempor,uy • mployc<", 
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as the case may be, of the Authority,, against a permanent or tcmporarv 
po~t which shall stand created 1n the establishment of the Authority "'ith pr-
dfect on and from the appointed day. \._ / 
(5) An employee referred to in the first prov1so to ~t.ib-s~ction (I) 
shall b; deemed to have continued in the serv1ce of the Government 
betwee.l the appointed day and the date of relief from the establishment of 
the Authority· after receipt of his notice in wntmg addressed to the 
AuthOJ 11y referred to m that provJs" and the Authority shall be entitled to 
reimbursement from the Governmc;nt of the remuneration paid by It to such 
emplo)ee for such penod. • 
(6) Nothmg in any rule, regullttons or order apphcable to 
Government servants in_ relatiOn to retrenchment or abolition of posts sha 11 
applv to any employee referred to m sub-section ( l) 
(7) Notwithstanding anythin ~ con tamed in th~ forgomg sub-sections 
the Authority shall be competent to take mch disdplinarv or other action 
as it thinks fit or to continue any such action already initiated agamst or in 
rt>~p~ct of any employee who becomcs an employee of the Authonty under 
sub-sect 1011 (I) 111 re•pect of any act or. omissiOn or conduct or 1 ecord of such 
employee whlle he was m the service of the Government. 
20. Twnsjer ofemploJCeS of local bod1es to the Authonty.-(1) Save ..l.S 
otherwise provided in till~ sectwn, an employee \\ ho was employed exrlu­
SIVcly m connectiOn with water supply or sewerage serv1ce or !eweragc works 
under a local bodv whos~ proper1ies, assets, and water supply and sewerage 
services have been tramferred to the Authority under section 18 shall, on 
and from the dat< of transfer of such property and assets to the Authoritl', 
become an employee of the Authority. • 
(2) Not>l"ithstanding anything con tamed in sub-section (I) but 
subject to any cxpl.f'SS agreement to the contrary, any employee rcfr~rcd to 
therein other than a workman as defined in the Industnal Disputes Act. 
I 947 (Central Act 14 of 1947}, who becomes an employee of the Auth01 ity 
shaH be lia'l:>le fo1 tranfer from any establi£hment or undertaking in wh1ch 
he was e•1ployed immedtately before the said date to any other 
c~tablishment or unde1taking belongwg to the Authonty at the ~arne 
remuner< tion and on the same terms and condtttons as were appiicable to 
them 1mrneoia:ely before such transfu. 
(3) Jf any question arises a~ to whether an~r perwn \~as'exclusively 
employed in connection with the water supply or sewerage services or 
sewerage w0rks under a lo<..al bod\' ill!mediately before the said date, such 
question sh;,ll be decided b) the Governmc_nt. 
The sums stand1ng to the credit of the emplo)·ees 1 efcrred to 111 
sub4sntion \I) many pcmion, provident fund, gratmty or other like funds 
constitlted for them shall be transferred by the local body concerned to the 
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-~-- - , \uthonty along w1th any ac ... umulated mterest due till the said date and with 
the accounts rclatmgto the said fund and the Authority shall, to the exdu~iou 
of the local body, be liable for payment of pens1011, provident fund, gr..ttuity 
or other like sums as may be payable to ~uch employees at the appropriatt: 
ttme Jrl accordance with the conditions of their serv1ce 
(5) Notwithstanding anythmg con~.uncd m the Indu<>tnal Disput~'l 
Act, 1947. (Central Act 14 of 1947), or 111 any othc1· law for the tune being 
m force, the transfer of services of an emplovcc to the Autho11ty undc1 ~ub­
~ection (I) shall not entitle any such employee to .my compensatiOn under 
that Act or such other law and no such clann shi't II Jw entert.uncd by any 
court, ttibunal or other authority. 
(6) Every permanent or tempotary employee of a local body 
beconung an employee of the Auth011ty unde1 suh-sectwn , I) ~hall, .m and 
trom the sa1d date, be a permanent or tempo rat y employee, a'! the case may, 
be, of the Authority, against a permanent 01 tcmpo1ary post wluch shall 
stand created in the establishment of the Aw honty with effect J rom the satd date . . 
{ 7) Nothing in any rule, regulat1ons or order appltcable t0 emplovces 
of the local bodies m relation to retrenchment or abolition of post~ ~hall 
apply to any employee referred to m sub-sectwn (I). 
(8) Notwithstanding anything contained m the lotegoiu~ suo­
sections, the Authority shall be competent. to take such disciplinary 01 othe1 
a~tion as 1t thinks fit or to contmue any such action already 1I!ittated agdimt 
or in respect of any employee who becomes an employee of the Authority 
under sub-sectiOn (I) m respect of any act or omtsswn or conduct or record 
of such employee while he was in the service of the local body .. 
CHAPTER IV 
PROPERTY, CONTRACT, FINANCE, ACCOUNTS AND .:\UDIT 
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2~. Executw1t and registration. of contracts etc.-Every contract for assurance 
of property on behalf of the Authonty shall be m writing and cxecutl'd by 
such officer and in such manner as may be provided by the regulations. 
22. Funds'oj authorzty.-(1) The Authonty shall have Its own fimd to he 
called the "Kera1a Water Authonty Fund" wJuch shall be deemed to be 
a local fund and to which shall be credited all moneys received othc1 wt~e 
than, by way of loanJ by or on behalf of the Authority. 
(2) The Authonty shall also have another fund to he C..ilblthe 
"Kerala Water Authority's Loan Fund" wh1ch shall also be deemed to he 
a local fund and to which shall be credtted all moneys te.teived by 01 on 
behalf of the Authontv by way-of loans. 
(3) Without p1ejudice to the proviSions of sub-sections (I) and (~). 
the Authority may, With the previous approval of the Govenunent, constitute 
such other funds as may be necessary for the efficient performance of its 
functions under this Act. 
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(4) A moneys spec1 e m the f01 egomg prOVISIOns and fo1 ming 
part of the funds of the Authonty shall be deposited undet such detailed 
Head~ or Accounts as may be prCSCIJbed-
(a) into the Public Account of the Govetnment, or 
(b) m the State Bank of Imha constituted under the State Ban1 
of India Act, 1955 (Central Act 23 of 1955), or 
(c) in a Substdiary Bank as dehned In ~ection 2 of .the State 
Bank of Ind1a (Subsidiary Banks) Act, 1959 (Central Act 38 of 1959); 01 
(d) m, anv Natwnuliscd Bank commg w1tlun the scope of the 
B'l.nking Companies (Acquisition and Tiansfer of Unde1takings) Act, 1970 
iliJ.f~a)_ Act 5 of 1970) or the Banking Companies (Acquil!itlon :md Transfer 
1Jiid,"-mgs) Act, 1980 (Central Act 40 of 1980); 
a 1il, -1·~ount shall be operated upon by ~uch officet s of the 
Autho , C~ /9-aurhorised by the Authonty and m such manner as 
may be pr 'J~ 
th Ce/Jtr. ity may mvest any sums not requucd lor 
immediate usc m sue Ci/.1'-or debentures as may be approved by. 
the Government. Cf ~ 
23. Ger.eral pnnczples for the A Of)9.].,ce.-The Authority shall not, 
a'> far as practicable and after takin </_) 0,. ;my gr,;t;nts or subventions 
or capital con tnbutions or loans from II] Ci -., II] a "1der seC I JOn 24, 
ca1 ry on its •operations under this Act at 11y (' tall so fix and 
adjust 1ts rates of taxes and charges under this Act ,_ \ble It to mt>et 
as· soon as feasible the cost of, 1ts operations, ,r \ce and debt 
service .-nd where pract icabk to ach1ew an ceo/ . on its fixed 
assets. / 
24. Grants subventtons capztal contrzbut• to tlzc Authorti.J'.-
The Government may, alter duy/ by law of- the State 
Legislature, from time to time , subventions, capital contri-
butions and advance loans to the A or the purposes of this Act on 
such terms and conditions as the Gove t may determme. 
25. Power oj Authorzty to borrow.- (I) Notwithstanding anything contain­
ed in any law for the tim~ being in Ioree under which any local body is 
constituted, the Authority shall With eff.:ct hom the date of its establish­
ment be the only loc.1l ·authonty autl-tonsed to borrow any sum of mony 
for water supply and sewerage works. 
(2) Without prejudice tl the provisiOns of st:tb-secrion (1), the 
Authonty may, from time to time, with the previous sanction of the 
Government and subject to the provisions of this Act and to sucb conditions 
as the Government may, by general or special order, determme, borrow any 
sum required for the purposes of thts Act whether by the Issue of bonds or 
stock or otherwise or by makmg arrangement With Bank, other bodies of 
institutions approved by the Government in that behalf. 
(3) Stocks issued by she Authonty under this sect1on ~hall be i~sued, 
transferred, dealt with and redeemed in such manner as the Government 
may, by general or special order, direct. 
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26. Depreczatzon Remve.-The Authority shall create a Deprc< 1 1lton 
Reserve! and mak..: annual provtsion therefor in accordance with such 
principles as rna' be prescribed. 
27. Guarantn for Loans.-(!) Governm~nt may guarantee the repayment 
of' any loan and payment of interest on all loan~ made ot transf<'l'l'ed to 
he Authonty for the purposes of this Act; · 
(2) The Govcrnme:nt shall s? long as any such gua1antee is in fOJc<", 
lay before the State Legtslatur,~ m every· year durmg the budget ~ession, .t 
statement of the guarantees, if any, g1ven durmg the current finan<!i,ll yeat 
and up·to-date·account<; of the tot'll sum~, 1f any, which have hcen p'lld out 
of tile Consolidated Fund of the State by rea~on of any such gu.u,mte~ or 
paid Into the sa1d Fund towards repayment of any mowys so p.11d out 
23 Estzmates of mcome and expenditure -( l) The Authorit~ shall hefo'l'<: 
the commencement of, ano n ay at any time during, a fma:nci.tl year prepare 
a statement or a supplementary statement, as the case uwv lw, ol th r 
programme ol Its activities durmg the ye=1r as well as a· hu,mctal csllluate 
m respect thereof • and the same shall be submitted in such mannc1, lll 
such fonn and by such dates as the Governmc11t may, by general or 
special order, d1rect, fvr the previous approval of the Government: 
Provided tqat m the event of such previou~ appro .raJ not heing received 
before the commencement of the hnanc1al year for which ~uch !m,mcial state­
ment ~as been submitted, the Author1ty ~h,11l he cntllh:d to expcud on all 
accounts up to an amount not exceeding the am Junt .1pprovet1 J 01 tht; corrc:s• 
ponding pc.riod ol the preVIOUS financial year .1nd such amount ~hall not 
include any sum spent out of grants and subventions du11ng the s.uq p('nod 
(2) Every financial estimate referred to in sub-section ( 1) shallma.kc 
p10V1sion for the due fulfilment of all the liabilities of the 1\uthority .tml for 
the efficient administration of thts Act. 1 • 
• (3) Save where m the opmwn of the Authority cit cumstance'> of 
extreme urgency have ansen, no sum exceeding one lakh of rupee-, on 
account of rf'curnng eA.p~ndt ture or exceeding five lakh~ of rupee~ on account 
of non-recurring expenditure shall be expended by the Authority many yea1 
of account unless such sum has been included in a fi.ndncial estimate 
suom\tted under sub-section (1) to the Government . • (4) \:\'here any such sum is expended under em um~t<lllCC'> of' 
extreme urgency, a report thereon indicatmg the ~ources lrolll wluch 1t i~ 
proposed to meet the expendtturt" shall be made a~ '>oon as practi<.:.tble to the 
Government. 
(5) The Government shall cause the financial estimates ol' the 
Autlionty CfCetved by it under sub-secuon ( l) to be laid <:tnnua lly before the 
State Leg1slature. • 
29. Accounts and Audzt.-(l) Tile Authority shall came to be 'm.unta1.1•~d 
such b'loks of accotmts anr! other bl)ok~ in relatiOn to tt. accounts :.md 
prepare a.1 an lUal statement of account and balance sheet in ~uch form 
and in such manner as the regulatwns may 1:equire. 
25/2484/B 
90 
(~) The accounts of the Authorit

Excerpt shown. Open the full act in Lexace.

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