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The Kerala Water Supply and Sewerage Act, 1986

Kerala · state statute
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                       THE KERALA WATER SUPPLY AND SEWERAGE ACT, 1986 
                                                       (Act 14 of 1986) 
An Act to provide for the establishment of an autonomous authority for the development and 
regulation of water supply and waste water collection and disposal in the State of Kerala 
and for matters connected there with. 
Preamble.--WHEREAS it is considered n ecessary to provide for the establishment 
of an autonomous authority for the development and regulation of water supply and 
waste water collection and disposal in the State of Kerala and for matters connected 
therewith. 
BE it enacted in the Thirty-seventh Year of the Republic of India as follows:-- 
CHAPTER I 
Preliminary 
1. Short title, extent and commencement.- 
(1) This Act may be called the Kerala Water Supply and Sewerage Act, 1986. 
(2) It extends the whole of the State of Kerala. 
(3) It shall be deemed to have come into force on the 1st day of March, 1984. 
2. Definitions.--In this Act, unless the context otherwise requires,-- 
(i) "Authority" means, the Kerala Water Authority constituted under section 3; 
(ii) "cess-pool" includes a settlement tank or other tank to receive or dispose of 
foul matters from any premises; 
(iii) "Chairman" means the Chairman of the Authority; 
(iv) "communication pipe" means any pipe or system of pipes, along with all 
fittings thereto, by means of wh ich water is supplied to any premises from the 
main, and includes a connection pipe, service pipe, meter or other fittings; 
(v) "connection pipe" means any water pipe from a ferrule to stopcock 
connecting the distribution main with the service pipe; 
(vi) "Consumer" means any person getting the benefit of any water supply or 
waste water service from the Authority; 
(vii) 1["domestic sewage" means waste water from any house or residence arising 
out a personal and normal human activities such as drinking, bathing, washing and 
cooking ;] 
(viii) "drain" means every part of any conduit laid through, under or above a 
street, way or land whether public or private by or at the expense of the owner or 
occupier of any premises for the carriage therefrom of any waste water to any 
sewer ; 
1. Substituted by Act 8 of 2009. 
_____________________________________________________________________________ 
Received the assent of the President on the 4 th day of August, 1986 and published in the Kerala 
Gazette Extraordinary No.736 dated the 4th August, 1986. 
 
 
 
(xi) "ferrule" means a ferrule connecting the connection pipe with the main ; 
  (x) " fire hydrant" means hydrant fixed on the water main other than the  trunk 
main for affording supply of water for extinguishing any fire ; 
1[(xa) “flat” means buildings or independent villas having ten or more dwelling 
units or buildings having a total plinth area of one thousand square meters or 
more in a premise. 
  (xb) “licensed plumber” means a plumber who is provided with a license by 
the authority to execute works related to any water connection or domestic or 
non domestic sewer connected to sewerage of the Authority, under sections 43 
and 47B.] 
(xi) "local area” means the area falling within the jurisdiction of a local body; 
(xii) "local body" means a city corporation, a Municipal council, a township 
or a panchayat ; 
(xiii) "main" means a pipe laid by the Authority for the purpose of giving a 
general supply of water as distinct from a supply to an individual 
consumer, and includes any apparatus used in connection with such a 
pipe; 
(xiv) "Managing Director" means the Managing Director of the Authority ; 
(xv) "member" means a member of the Authority ; 
2[(xva) “multistoried building” means buildings in a premise having 
five or more units or having a total plinth area of five hundred square 
meters or more used for non domestic activities wit h or without any 
dwelling unit. 
(xvb) “non -domestic sewage” means sewage other than domestic 
sewage and includes industrial sewage.] 
(xvi) "occupier", in relation to any premises, includes;- 
 
 
 
 
 
 
 
 
 
 
1. Inserted by Act 8 of 2009. 
 
2. Inserted by Act 8 of 2009. 
(a) any person for the time being paying or liable to pay rent or any 
portion thereof to the owner in respect of those premises ; 
(b) the owner who is in occupation of the premises ; 
(c) a tenant of the premises who is exempt from payment of rent ; 
(d) a licensee who is in occupation of the premises ; and 
(e) any person who is liable to pay damages to the owner in respect 
of use and occupation of the premises ; 
(xvii) "owner", in relation to any premises, means the person who receives 
the rent of that premises or who would be entitled to receive the rent 
thereof if the premises were let, and includes,-- 
(a) an agent or trustee who receives such rent on account of the owner; 
(b) an agent or trustee who receives the rent of, or is entrusted with the 
management of, any premises devoted to religious or charitable purposes ; 
(c) a receiver or manager appointed by any court of competent jurisdiction 
to have the charge of, or to exercise th e rights of an owner of the said 
premises; and 
(d) a mortgage in possession ; 
(xviii) "Premises" means any land or building and includes-- 
(a) the garden, land and outhouses, if any, appertaining to a building or part 
of a building; and 
(b) any fittings affixed to a building or part of a building for more 
beneficial enjoyment thereof; 
(xix) "Prescribed" means prescribed by rules made under this Act ; 
(xx) "Private street" means any street, road, square, court, alley, passage 
or riding-path which is not a "public street", but does not include a 
pathway made by the owner of premises on his own land to secure 
access to or the convenient use of such premises ; 
(xxi) "public hydrant" means hydrant meant for supply of water to the 
public within a local area ; 
(xxii) "public street” means any street, road, square, court, alley, passage 
or riding-path over which the public have a right of way, whether a 
thorough fare or not, and includes-- 
(a) the roadway over any public bridge or causeway ; 
(b) the foot-way attached to any such street, public bridge or causeway ; 
and 
(c) the drains attached to any such street, public bridge or causeway and 
the land, whether covered or not by any pavement, veranda, or other 
structure, which lies on either side of the roadway up to the boundaries of 
the adjacent property, whether that property is private property or property 
belonging to the Government ; 
(xxiii) "regulations" means regulations made by the Authority under this 
Act ; 
(xxiv) "rules" means rules made under this Act ; 
(xxv) "service pipe" means any pipe other than the connection pipe 
beyond the stop -cock by means of which the water is supplied to 
any premises ; 
(xxvi) "sewage" means night -soil and other contents of a water closets, 
latrines, privies, urinals, cess -pools or drains and polluted water 
from sinks, bath-rooms, stables and other like places and includes 
trade effluents; 
(xxvii) "sewer" means a closed conduit for carr ying sewage, offensive 
matter, polluted water, waste water or subsoil water ; 
(xxviii)"sewerage" means a system of collection of waste water from a 
community from its houses, institutions, industry and public places, 
the pumbing, treatment and disposal of such was te water, its 
effluent, sludge, gas and other end products ; 
(xxix) "State" means the State of Kerala ; 
(xxx) "stop-cock" means a stop-cock fitted at the end of a connection pipe 
away from the main for the purpose of switching off and regulating 
the water supply to any premises ; 
(xxxi) "street" means a private street or a public street; 
(xxxii) "trade effluent" means any liquid either with or without particles of 
matters in suspension therein, which is wholly or in 
part produced or discharged in the course of any trade or industry, including 
agriculture and horticulture but does not include domestic sewage ; 
(xxxiii)"waste water” shall include domestic sewage, spent water and all waste 
water let out from any industries or by any other source ; 
(xxxiv) "water connection" includes-- 
(a) a tank, cistern, hydrant, stand -pipe, meter or tap, situated on any private 
property and connected with a main or other pipe belonging to the Authority ; 
(b) the water pipe connecting such a tank, cistern, hydrant, stand-pipe, meter or 
tap with such main or pipe ; 
(xxxv) "water supply" means a system of providing water to a community for 
meeting its requirements both domestic and non domestic, but does not 
include providing water for irrigation purposes ; 
(xxxvi) "water works" includes water channel (including stream, lake, s pring, 
river or canal, well, pump, galleries, reservoir, cistern, tank), duct 
whether covered or open, treatment units, sluice supply main, culvert, 
engine, water-truck, hydrants, standpipe, conduit and machinery, land, 
building or other things for supplying or used for supplying water or for 
protecting sources of water supply or for treatment of water and 1[units 
for manufacturing, marketing, and storing of packaged drinking water, 
mineral water, and aerated water or any other processed water  or of 
goods or articles necessary for the water supply.] 
CHAPTER II 
                          Establishment, Conduct of Business, Functions And Powers of the 
Authority 
3. Establishment of Kerala Water Authority.— 
(1) The Government shall, by notification in the Gazette and with effect from 
such date as may be specified therein, establish an autonomous authority to be 
called the Kerala Water Authority. 
(2) The Authority shall be a body corporate by the name aforesaid having 
perpectual succession and a common seal, wit h power to acquire, hold and 
dispose of property, both movable and immovable, and to contract and shall by 
the said name sue and be sued. 
 
 
 
 
 
1. Inserted by Act 8 of 2009. 
(3) The Authority shall for all purposes be deemed to be a Local Authority. 
(4) The Authority shall have its head office at Thiruvananthapuram and may 
have offices at such other places as it may consider necessary. 
4. Constitution of the Authority. --The Authority shall consist of the following 
members, namely:-- 
(a) a Chairman appointed by the Government ; 
(b) a Managing Director, who possesses experience in management and 
administration or who is qualified Engineer not below the rank of a Chief 
Engineer having sufficient experience in management and administration in 
water supply and sewerage works, appointed by the Government : 
Provided that no person who is more than fifty five years of age shall be 
appointed as Managing Director ; 
(c) the Secretary to the Governm ent in charge of 1[Water Resources  
Department, exofficio]; 
(d) the Finance Secretary to Government, ex-officio ; 
(e) the Secretary to the Government in charge of  2[Local self Government 
Department, ex-officio] ; 
(f) the Secretary to Government in charge of Development Department, ex-
officio ; 
(g) two members representing the local bodies in the State, appointed by the 
Government : 
Provided that if for any reason there are no elected members in office in any of 
the local b odies in the state, the Government may appoint a person who had 
been a member of any such local body ; 
2[(h) two members appointed by the Government, one of whom shall be a 
member belonging to a Scheduled Caste or Scheduled Tribe;" a technical 
member, who shall be a qualified Public Health Engineer not below the rank of 
a Chief Engineer, appointed by the Government.] 
 
3[(j) An Accounts Member, who shall be a qualified Chartered Accountant 
having a minimum of fifteen years of experience in responsible position in a 
reputed commercial organization or public sector undertaking or who shall be a 
member of the Accounts Service of the Central Govern ment, appointed by the 
Government.] 
 
1. Inserted by Act 8 of 2009. 
2. Inserted by Act 8 of 2009. 
3. Substituted by Act 6 of 1993. 
4. Inserted by Act 6 of 1993. 
5. Disqualification for being a member. --A person s hall be disqualified for being 
chosen as, and for being a member if he-- 
(a) has been convicted of an offence involving moral turpitude ; 
(b) is in undischarged insolvent ; 
(c) is of unsound mind and stands so declared by a competent court ; 
(d) holds, except as provided in Sections 6 and 7, any office of profit under the 
Authority ; 
(e) has directly or indirectly by himself or by any partner, employer or 
employee, any share or interest,  whether pecuniary or of any other nature, in 
any contract or employment with, by or on behalf of the authority ; 
(f) absents himself without excuse, sufficient in the opinion of the Authority, 
from three consecutive meetings of the Authority. 
6. Term of office of Chairman, Managing Director and non-official member.— 
(1) The Chairman, the Managing Director and the member referred to in clause 
(g), clause (h), 1[clause (i) or clause (j)] of section 4 shall hold office for a period 
of three years. Unless their term is terminated earlier by the Government by 
notification in the Gazette, and shall be eligible for reappointment: 
Provided that an elected member in office in an y of the local bodies appointed 
under clause (g) of section 4, shall cease to be a member of the Authority, when 
he ceases to be member in office of such local body. 
(2) The Chairman, the Managing Director and the members referred to in sub-
section (1) shall h old office on such terms and conditions as the Government 
may, by order, specify. 
(3) The members including the Managing Director shall be entitled to such 
travelling and daily allowances as may be prescribed. 
(4) The Managing Director or the members referred to i n subsection (1) may 
resign his office by writing under his signature addressed to the Chairman and 
on such resignation being accepted by the Authority and approved by the 
Government he shall be deemed to have vacated his office. 
 
 
 
 
 
1. Substituted by Act 6 of 1993. 
7.  Remuneration of the Chairman, the Managing Director and the Technical 
Member.--The Chairman, the Managing Director and the 1[Technical Member and the 
Accounts Member] shall be paid from the Authority's fund such remuneration as may be 
fixed by the Government from time to time. 
8. Appointment of officers and staff.— 
(1) Subject to the provisions of sub -section (2), the Authority may appoint for 
the purpose of enabling it to carry out its powers, duties and functions under this 
Act, a Secretary and such other officers and staff as may be required against posts 
duly sanctioned by it: 
Provided that the Authority shall obtain the previous approval of the Government 
for the creation of post above the rank of the Executive Engineer. 
(2) The Authority may, with the previous approval of the Government, appoint 
on deputation a servant of the Central Government or the State Government as 
an employee of the Authority on such terms and conditions as it thinks fit. 
(3) Except as provided in this section, the appointment and conditions of service 
of the officers and employees of the Authority shall be governed by rules made 
by the Government from time to time. 
9. Supervision and control of employees. --Subject to the Superintendence of the 
Authority, the Managing Director shall be the chief executive and shall have the general 
control and direction over all the employees of the Authority. 
10. Authentication of orders and other instruments of the Authority.— 
(1) All proceedings of the Authority shall be authenticated by the signature of 
the Chairman and all orders and other instruments of the Authority shall be 
authenticated by the signature of such officer of the Authority as may be 
authorised in this behalf by regulations. 
(2) The Authority may invite any person to attend a meeting of the Authority for 
the purpose of assisting or advising it on any matter and the persons so invited 
may take part in the proceedings of the Authority, but shall have no right to vote. 
11. Delegation of powers.--Subject to the provisions of this Act, the Authority may, by 
general or special order, delegate either 
 
 
 
 
 
 
1. Substituted by Act 6 of 1993. 
unconditionally or subject to such conditions as may be specified in the order, to 
any sub-committee appointed by it or to the Chairman, or the Managing Director 
or any other officer or committee of officers of the Authority such of its powers and 
duties under this Act as it deems fit, not being its powers and duties under sect ion 
25, 28, 29 and 65. 
12. Disqualification for participation in the proceedings of the Authority on 
account of interest. --The Chairman or any other member of the Authority or of a 
sub-committee appointed by the Authority who has acted professionally, in relation 
to any matter on behalf of any person having any share or interest whether pecuniary 
or of any other nature in any contract or employment with, by or on behalf of the 
Authority, or any other personal interest in any area in which it is proposed to 
acquire land for any of the purposes of this Act, shall not vote or take part in any 
proceedings (including any discussion on any resolution or question) of the 
Authority or of any sub-committee thereof relating to such matter. 
13. Acts not to be invalidated by ir regularity, vacancy, etc. --No act done or 
proceeding taken under this Act by the Authority or a sub committee appointed by 
the Authority shall be invalidated merely on the ground of-- 
(a) any vacancy in, or defect in the constitution of the Authority or any sub-
committee thereof, or ; 
(b) any defect or irregularity in the appointment of a person acting as a 
member thereof, or ; 
(c) any defect or irregularity in such act of proceeding not affecting the 
merits of the case. 
14. Functions of the Authority. --The Authority shall perform all or any of the 
folowing functions, namely:-- 
(i) preparation, execution, promotion, operation, maintenance and 
financing of the schemes for the supply of water and for the disposal of 
waste water ; 
(ii) rendering all necessary services in regard to water supply and collection 
and disposal of waste water to the Government and on request to private the 
private institutions or individuals ; 
(iii) Preparation of State plans for water supply and collection and disposal 
of waste water on the directions of the Government ; 
(iv) fixation and revision of tariffs, taxes and charges of water supply and maintenance 
service in the areas covered by the water supply and waste water systems of the Authority 
; 
(v) establishment of State standards for water supply and waste water services ; 
(vi) all functions, not stated herein which were being performed by the Public Health 
Engineering Department of the Government before the commencement of this Act ; 
(vii) assessment of the requirements for manpower and training in relation to water 
supply and sewerage services in the State ; 
(viii) carrying out applied research for the efficient discharge of the functions of the 
Authority ; 
(ix) making provision for the supply of wholesome water and efficient sewerage 
services to the people in the State ; 
(x) taking such other measures as may be necessary to ensure water supply in times 
of emergency ; 1[******] 
2[(xa) making provision for manufacturin g and marketing of packaged drinking water , 
mineral water, aerated water, or any other processed water  and of goods or articles 
necessary for water supply and sewerage. 
(xb) any other matter supplemental, incidental, or consequential to any of the above 
functions of the Authority, and ] 
(xi) such other functions as may be entrusted to the Authority by the Government by 
notification in the Gazette 
15. Powers of the Authority.— 
(1) The Authority shall, subject to the provisions of this Act, have power to do anything 
which may be necessary or expedient for carrying out its functions under this Act. 
(2) without prejudice to the generality of the foregoing provisions, such power shall 
include the power-- 
(i) to obtain such periodic of specific information from any local body as it may deem 
necessary ; 
(ii) to prepare and carry out schemes for water supply and sewerage and to exercise all 
powers and perform all functions relating thereto : 
Provided that the power of sanctioning schemes costing more than 3[rupees five crore] 
shall be exercised only with the previous approval of the Government ; 
(iii) to lay down the schedule of fees for all services rendered by the Authority to the 
Government, local bodies, institutions or 
 
1. Omitted by Act 8 of 2009. 
2. Inserted by Act 8 of 2009. 
3. Substituted by Act 45 of 2005. 
 
individuals, to fix or amend tariffs and charges for water supply and sewerage 
services and collect all such fees and charges for these services as may be prescribed 
: 
Provided that any revision of tariffs and charges for water supply and sewerage 
services shall be made only with the previous approval of the Government ; 
(iv) to enter into contract or agreement with any person, firm or institution as the 
Authority may deem necessary, for performing its functions under this Act : 
Provided that any contract or agreement involving more than 1[rupees five crore] 
shall be entered in to by the Authority only with the previous approval of the 
Government ; 
(v) to adopt its on budget annually subject to the previous approval of the 
Government ; 
(vi) to abstract water for drinking purpose from any natural source and with the 
permission of the Government for other purposes and dispose of waste water ; 
(vii) to borrow money, issue debentures, to obtain subventions, capital contributions, 
loans and grants, in incur expenditure and manage its own funds ; 
(viii) to grant loans and advances to such persons or authorities as the Authority may 
deem necessary for performing the functions under this Act; 
2[(viiia) to invest funds, with the previous approval of the Government in any public 
sector undertakings or public sector companies that are involved in the production of 
goods or articles utilized for the functions of the Authority.] 
(ix) to acquire, possess and hold lands and other property and to carry any water or 
sewerage works through, across, over or under any highway, road, street or place and, 
after reasonable notice in writing to the owner or occupier, into, through, over or 
under any building or land ; 
(x) to accept gifts in kind and in cash with the previous approval of the Government. 
 
3[15A Manufacture and Marketing of packaged drinking water, Mineral water etc -  
Notwithstanding anything contained in any other provisions of this Act, the Authority 
shall have the power to manufacture, market and sell packed water , mineral water, 
aerated water, or any other processed water and of goods or articles necessary for the 
water supply and sewerage in such manner as may be provided by regulations.] 
 
1. Substituted by Act 45 of 2005. 
2. Inserted by Act 8 of 2009. 
3. Inserted by Act 8 of 2009. 
 
 
 
 
 
16. Vesting of property in Authority etc. — (1) As from the date of establishment of the 
Authority, (hereinafter in this Chapter referred to as, ” the appointed day”),-- 
                   (a) (i) all properties and assets (including water works, buildings laboratories, 
stores, vehicles, furniture and other furnishing), all the existing water supply and sewerage 
services, sewage works and sewerage farms including, as the case may be all plants, 
machineries water 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, materials, 
stores and things appertaining thereto ; and 
                    (ii) so much of the sub -soil appertaining to the said water mains and sewers as 
may be necessary for the purpose of enlarging, deepening or otherwise repairing or 
maintaining any such water mains and sewers or any pipes and other appliances and fittings 
connected with such water supply and sewerage services and sewage works and sewage 
farms which immediately before the appointed day were vested in the Government for the 
purposes of the Public Health Engineering Department, shall vest in and stand transferred to 
the Authority; 
                  (b) (i) all the water supply and sewerage services, sewerage works and sewage 
farms including all the plants, machineries, pumping stations, distribution lines and public 
sewers in, along, over or under any public street and all buildings, lands and other works, 
materials, stores and things appertaining thereto; and 
                  (ii) so much of the sub-soil appertaining to the said distribution lines and sewers 
as may be necessary for the purpose of enlarging, deepening or otherwise repairing or 
maintaining any such distribution lines and sewers or any pipes and other  appliances and 
fittings connected with such water supply and sewerage services 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 collecti on of charges which 
immediately before the appointed day were attended to by the Public Health Engineering 
Department, shall vest in and stand transferred to the Authority; 
 
                  (c) all the rights, liabilities and obligations of the Governmen t or the local body 
as the case may be whether arising out of any contract or otherwise pertaining to the said 
department including the right to recover arrears of water tax and sewage tax, water charges, 
meter 
                                                   CHAPTER III 
Vesting of properties, Assets Liabilities and Obligations and Transfer of Employees 
hire and of any cost or fees relating to water supply and sewerage services shall be the rights, 
liabilities and obligations of the Authority and 
                        (d) all the assets, rights, liabilities and obligations of the Kerala State Rural 
Development Board constituted under the Kerala State Rural Development Board Act., 1971 
(15 of 1971), in so far as they pertain to execution of water supply and sewerage schemes in the 
panchayat areas including the right to recover arrears of annual installments from panchayats 
towards expenditure on water supply and sewerage schemes under section 13 of the said Act, 
shall be the assets, rights, liabilities and obligations of the Authority. 
                       (2) The properties assets, rights, liabilities and obligations referred to in sub -
section (1) shall be valued in such manner as the Government may determine. 
                       (3) All suits and other legal proceedings instituted or defended or which might 
but for the vesting and transfer under sub -section (1) have been instituted or defended by or 
against the Government or the local body or the Rural Development Board, as the case may be, 
may be continued or instituted or defended by or against the Authority. 
(17) Decision of Government on the vesting of property to be final.--Where any doubt or dispute 
arises as to whether any property or asset has vested in the Authority under section 16 or any 
rights, liabilities or obligations have become the rights, liabilities and obligations of the 
Authority under that section, such doubt or dispute shall be referred to the Government whose 
decision thereon shall be final. 
(18) .Vesting of existing water supp/y and sewerage services under local bodies.—(1) As from 
the date following the expiry of a period of three years from the appointed day or such further 
period as may be specified by the Government in this behalf by notification in the Gazette,-- 
(a) all the water supply and sewerage services, sewerage works and sewerage farms 
including all the plants, machineries, pumping stations, distribution lines and public 
sewers in, along, over or under any public street and all buildings, lands and other works, 
materials, stores and things appertaining thereto ; 
(b) So much of the sub -soil appertaining to the said distribution lines and sewers as 
may be necessary for the purpose of enlarging deepening or otherwise repair ing or 
maintaining any such distribution lines and sewers or any pipes and other appliances 
and fittings connected with such water supply and sewerage services and sewerage 
works; and 
(c) all rights, liabilities and obligations including the right to recover arrears of water 
charges, meter hire and of any cost or fees relating to water supply and sewerage 
services, which immediately before the above mentioned date vested in any local body 
shall vest in and stand transferred to the Authority. 
 
 
(2) The properties, assets, rights, liabilities and obligations referred to in sub-section (1) 
shall be valued in such manner as the Government may determine. 
(3) Where any doubt or dispute arises as to whether any property or asset has vested in 
the Authority or any right, liability or obligation has become the right, liability or 
obligation of the Authority under this section, such doubt or dispute shall be referred to 
the Government whose decisions thereon shall be final and binding on the Authority and 
the local body concerned. 
                  1[18A. Power of Government to retransfer certain Water Supply and Sewerage Services. 
—(1) Notwithstanding anything contained in this Act, on a request by a resolution passed in this 
behalf, by the local body which has its own electricity distribution system, the Government may, 
if they consider it necessary so to do, by notification in the Gazette declare that the water supply 
and sewerage services and other items mentioned in clauses (a) and (b) of s ub section (1) of 
section 18, which had been vested in the Authority under the said section shall, on and from the 
date specified in the notification, revest in and stand retransferred to such local body, subject to 
such terms and conditions as may be ment ioned therein and thereupon the local body shall 
exercise all powers and perform all functions relating thereto.  
         •  All rights, liabilities and obligations relating to the water supply and sewerage services 
revested under sub-section (1), including the right to recover arrears of water charges, meter hire 
and of any cost or fees which were due to the Authority immediately before such revesting, shall 
vest in and stand transferred to the local body.  
        •  Where any doubt or dispute arises as to whether any property or asset has revested in such 
local body under sub section (1) or any right, liability or obligation has become the right, liability 
or obligation of the local body under this section, such doubt or dispute shall be referred to the 
Government whose decision thereon shall be final and binding on the Authority and the local 
body concerned.  
(4) The Authority shall lend the services of such number of employees as may be necessary, 
to do the work in connection with the water supply or sewerage services or sewerage works 
revested in the local body under sub-section (1) and the salary, allowances, and contributions, if 
any, due to such employees shall be paid by the local body".  
2[(5) The Authority shall render necessary technical services to the local bodies 
for planning, execution and running of water supply and sewerage schemes in the 
manner prescribed by Government. 
(6) Every local body is free to start their own water supply and sewerage scheme 
either individually or as groups of local bodies and to fix their own user charges 
as may be prescribed.] 
 
 
 
1. Inserted by Act 6 of 1993. 
2. Inserted by Act 16 of 2000. 
 
             
               1[18B. Power of Authority to transfer water supply and sewerage services to local bodies.- 
(1) Notwithstanding anything contained in this act, the Authority.- 
(a) shall transfer any water supply scheme or sewerage service covering the area of a 
single village panchayat; and 
 
(b) may transfer any water supply scheme or sewerage service covering the area of a single 
municipality; on a request from such village panchayat or the municipality, as the case may 
be in the manner, as may be prescribed. 
 
(2) The Authority may, if they consider it necessary to do so, transfer any water supply or 
sewerage services to the village panchayat or the municipality concerned in the manner 
as may be prescribed. 
 
(3) The Authority shall render all necessary technical services to the local bodies for planning, 
execution and running of water supply and sewerage services of which are transferred under 
subsection (1) and (2) in the manner as may be prescribed. 
(4) The Authority may collect from the bodies concerned necessary tariff for street taps 
provided by it within the local limits of the said local bodies at the rates as may be fixed by 
Government.] 
19. Transfer of employees to the Authority. — (1) Save as otherwise provided in this section, 
every person who was employed in the Public Health Engineering Department of the 
Government shall, on and from the appointed day become an employee of the Authority 
and shall hold his office or service there in by the same tenure, at the same remuneration 
and upon the same terms and conditions, and with the same rights and privileges as to 
pension, gratuity and other matters as he would have held the same on the appointed day 
if this Act had not come into force and shall continue to do so until his employment in the 
Authority is terminated or until his remuneration or other terms and conditions of service 
are revised or altered by the Authority under or in pursuance of any law or in accordance 
with any provision which for the time being governs his service: 
Provided that nothing contained in this sub -section shall apply to an employee in the cadres 
of the Administrative Officers, Financial Assistants, Divisional Accounts, Typists and 
stenographers, who by notice  in writing given to the Government and the Authority within 
such time as the Government may, by general or special order, specify , intimates his intention 
of not becoming an employee of the Authority : 
Provided further that an employee referred to in the preceding proviso shall continue to be an 
employee under the Government and shall be provided elsewhere in any post or other service 
under the Government. 
 
 
 
 
1. Inserted by Act 16 of 2000. 
 
 
(2)   The sums standing in the credit of the employees referred to in sub -section (1) in any 
pension, provident fund, gratuity or other like funds constituted for them shall be transferred 
by the Government to the Authority  along with any accumulated interest due till the 
appointed day and with the accounts relating to such funds and the Authority shall to the 
exclusion of the Government, be liable for payment of pension, provident fund, gratuity or 
other like sums as may be payable to such employees at the appropriate time in accordance 
with the conditions of their service. 
 
(3)   Notwithstanding anything contained in the Industrial Disputes Act, 1947 (Central Act 
14 of 1947), or in any other law for the time being in force,  the transfer of service of an 
employee to the Authority under sub-section (1) shall not entitle any such employee to any 
compensation under that Act or such other law and no such claim shall be entertained by 
any court, tribunal or other authority. 
 
(4) Every permanent or temporary employee of the Public Health Engineering Department 
of the State Government under sub section (1) shall on and from the appointed day, be a 
permanent or temporary employee, as the case may be, of the Authority, against a 
permanent or temporary post which shall stand created in the establishment of the Authority 
with effect on and from the appointed day. 
 
(5) An employee referred to in the first proviso to sub -section(1) shall be deemed to have 
continued in the service of the Government between the appointed day and the date of relief 
from the establishment of the Authority after receipt of this notice in writing addressed to 
the Authority referred to in that proviso and the Authority shall be entitled to reimbursement 
from the Government of the remuneration paid by it to such employee for such period. 
 
 
(6) Nothing in any rule, regulations or order applicable to Government servants in relation 
to retrenchment or abolition of posts shall apply to any employee referred to in sub-section 
(1). 
 
(7) Notwithstanding anything contained in the forgoing subsections, the Authority shall be 
competent to take such disciplinary or other action as it thinks fit or to continue any such 
action already initiated against or in respect of any employee who becomes an employee of 
the Authority under sub-section (1) in respect of any act or omission or conduct or  record 
of such employee while he was in the service of the Government. 
(20) Transfer of employees of local bodies to the Authority. —(1) Save as otherwise 
provided in this section, an employee who was employed exclusively in connection with 
water supply or sewerage service or sewerage works under a local body whose properties, 
assets and water supply and sewerage services have been transferred to the Authority under 
Section 18 shall, on and from the date of transfer of such properly and assets to the 
Authority, become an employee of the Authority. 
 
                     (2) Notwithstanding anything contained in sub-section (1) but subject to any 
express agreement to the contrary, any employee referred to therein other than a workman 
as defined in the Industrial Disputes Act, 1947 (Central Act 14 of 1947), who becomes an 
employee of the Authority shall be liable for transfer from any establishment or undertaking 
in which he was employed immediately before the said date to any other establishment or 
undertaking belonging to the Authority at the same remuneration and on the same terms 
and conditions as were applicable to them immediately before such transfer. 
 
                    (3) If any question arises as to whether any person was exclusively employed 
in connection with the water supply or sewerage services or sewerage works under a local 
body immediately before the said date, such question shall be decided by the Government. 
 
                    (4) The sums standing to the credit of the employees referred to in sub-section 
(1) in any permission, provident fund, gratuity or other like funds constituted for them shall 
be transferred by the local body concerned to the Authority along with any accumulated 
interest due till the said date and with the accounts relating to the said fine and the Authority 
shall, to the exclusion of the local body, be liable for payment of  pension, provident fund, 
gratuity or other like sums as may be payable to such employees at the appropriate time in 
accordance with the conditions of their service. 
 
 
                     (5) Notwithstanding anything contained in the Industrial Disputes A ct, 1947 
(Central Act 14 of 1947), or in any other law for the time being in force, the transfer of 
service of an employee to the Authority under sub -section (1) shall not entitle any such 
employee to any compensation under that Act or such other law and no such claim shall be 
entertained by any court, tribunal or other authority. 
 
                        (6) Every permanent or temporary employee of a local body becoming an 
employee of the Authority under sub -section (1), shall, on and from the said date, be a 
permanent or temporary employee, as the case may be, of the Authority, against a 
permanent or temporary post which shall stand created in the establishment of the Authority 
with effect from the said date. 
 
                       (7) Nothing in any rule, regulations or order applicable to employees of the 
local bodies in relation to retrenchment or abolition of posts shall apply to any employee 
referred to in subsection (1). 
 
                       (8) Notwithstanding anything contained in the foregoing sub sections, the 
Authority shall be competent to take such disciplinary or other action as it thinks fit or to 
continue any such action already initiated against or in respect of any employee who 
becomes an employee of the Authority under sub -section (1) in respect of any act or 
omission or conduct or record of such employee while he was in the service of the local 
body. 
CHAPTER IV 
Property, Contract, Finance, Accounts and Audit 
(21) Execution and registration of contracts etc.--Every contract for assurance of property 
on behalf of the Authority shall be in writing and executed by such officer and in such 
manner as may be provided by the regulations. 
 
(22) Funds of Authority.— 
(1) The Authority shall have its own fund to be called the "Kerala Water 
Authority Fund" which shall be deemed to be a local fund and to which shall 
be credited all moneys received otherwise than by way of loans by or on 
behalf of the Authority. 
(2) The Authority shall also hav e another fund to be called the "Kerala 
Water Authority's Loan Fund" which shall also be deemed to be a local fund 
and to which shall be credited all moneys received by or on behalf of the 
Authority by way of loans. 
(3) Without prejudice to the provisions of s ub-sections (1) and (2), the 
Authority may, with the previous approval of the Government, constitute 
such other funds as may be necessary for the efficient performance of its 
functions under this Act. 
(4) All moneys specified in the foregoing provisions and forming part of the funds of the Authority 
shall be deposited under such detailed Heads of Accounts as may be prescribed-- 
            (a)  into the Public Account of the Government; or 
(b) in the State Bank of India constituted under the State Bank of India Act,1955 
(Central Act 23 of 1955); or 
 (c) in a subsidiary Bank as defined in section 2 of the State Bank of India 
(Subsidiary Banks) Act, 1959 (Central Act 38 of 1959); or 
(d) 1[In any Scheduled Bank as defined in  the Reserve Bank of India, Act, 1934 
(Central Act 2 of 1934) or in any Co -operative Bank ] or Nationalized Bank 
coming within the scope of the Banking Companies (Acquisition and Transfer of 
Undertakings) Act, 1970 (Central Act 5 of 1970) or the Banking Companies 
(Acquisition and Transfer of Undertakings) Act, 1980 (Central Act 40 of 1980); 
 
And the said account shall be operated upon by such officers of the Authority as may be authorized 
by the Authority and in such manner as may be prescribed. 
Provided that the Authority may invest any sums not required for immediate use in such securities 
or debentures as may be approved by the Government. 
 
(23) General Principles for the Authority's Finance.--The Authority shall not, as far as practicable 
and after taking credit for any grants or subventions or capital contributions or loans from the 
Government under section 24, carry on its operations under this Act at a loss and shall so fix and 
adjust its rates of taxes and charges under this Act as to enable it to meet as soon as feasible the 
cost of its operations, maintenance and debt service and where practicable to achieve an economic 
return on its fixed assets. 
 
(24) Grants, Subventions, capital contributions and loans to the Authority. -- The Government 
may, after due appropriation by law of the State Legislature, from time to time make grants, 
subventions capital contributions and advance loans to the Authority for the purposes of this Act 
on such terms and conditions as the Government may determine. 
 
(25) Power of Authority to borrow.— (1) Notwithstanding anything contained in any law for the 
time being in force under which any local body is constituted, the Authority shall with effect from 
the date of its establishment be the only local authority authori zed to borrow any sum of money 
for water supply and sewerage works. 
 
 
 
 
1. Substituted by Act 6 of 1993. 
                     (2) Without prejudice to the provisions of sub -section (1), the Authority may, 
from time to time, with the previous sanction of the Government and subject to the provisions 
of this Act and to such conditions as the Government may, by general or special order, 
determined, borrow any sum required for the purposes of this Act whether, by the issue of 
bonds or stock or otherwise or by making arrangements with Banks or other bodies or 
institutions approved by the Government in that behalf. 
 
                      (3) Stocks issued by the Authority under this sections shall be issued, transferred, 
dealt with and redeemed in such manner as the Government may, by general or special order, 
direct. 
 
(26) Depreciation Reserve.-- The Authority shall create a Depreciation Reserve and make 
annual provision therefor in accordance with such principles as may be prescribed. 
 
(27) Guarantee for loa

Excerpt shown. Open the full act in Lexace.

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