The Maharashtra Tapi Irrigation Development Corporation Act, 1997

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1998 : Mah. IV]  1 
 
THE MAHARASHTRA TAPI IRRIGATION DEVELOPMENT 
CORPORATION ACT, 1997 
[Text as on 21st April 2025] 
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CONTENTS 
PREAMBLE.  
SECTIONS.  
CHAPTER I 
PRELIMINARY 
 1.  Short title, extent and commencement.  
 2.  Definitions.  
CHAPTER II 
ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE  
CORPORATION 
 3.  Establishment of Tapi Irrigation Development Corporation.  
 4.  Constitution of Corporation.  
 5.  Executive Committee.  
 6.  Disqualification for membership and removal of members.  
 7.  Meetings of the Corporation.  
 8.  Constitution of Committees.  
 9.  Provision for inviting officers of Government and local authority.  
 10.  Filling up of casual vacancy of member.  
 11.  Act not to be invalidated by vacancy, informality, etc.  
 12.  Officers and servants of Corporation.  
 13.  Disqualification of all officers and staff.  
 14.  Authentication of orders, etc., of the Corporation.  
CHAPTER III 
VESTING OF PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS AND  
TRANSFER OF EMPLOYEES. 
 15.  Vesting and transfer of property to Corporation.  
 16.  Decision of the State Government on the vesting of property to be final.  
 17.  Power of State Government to depute certain Government employees to Corporation. 
 
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Corporation Act, 1997 
CHAPTER IV 
FUNCTIONS AND POWERS OF CORPORATION 
 18.  Functions of Corporation.  
 19.  General powers of the Corporation.  
 20.  Water charges for supply of water for irrigation, industria1 and domestic purposes. 
 21.  Responsibility of Corporation for payment of interest on borrowed money.  
 22.  Prohibition of construction of dam, bandhara, weir, etc., except with approval of 
Corporation.  
 23.  Co-ordination with other authorities to minimise inconvenience caused by submergence.  
 24.  Powers to be exercised by the Corporation under the Maharashtra Irrigation Act, 1976.  
 25.  Power of State Government to issue directions.  
CHAPTER V 
ACQUISITION OF LAND 
 26.  Power to acquire land for purposes of this Act.  
 27.  Transfer of Government lands to Corporation.  
 28.  Power of Corporation to dispose of land, etc.  
CHAPTER VI 
FINANCE, ACCOUNTS AND AUDIT 
 29.  Application of Corporation’s assets, etc.  
 30.  Fund of Corporation.  
 31.  Contribution of Government to Corporation Fund.  
 32.  Grants, subventions, loans and advances to Corporation.  
 33.  Power of Corporation to borrow.  
 34.  Acceptance of deposits by Corporation.  
 35.  Power to spend.  
 36.  Expenditure on objects other than Irrigation and Power Projects.  
 37.  Allocation of expenditure chargeable to project on main objects.  
 38.  Reserve and other funds.  
 39.  Submission of budget to Corporation.  
 40.  Sanction of budget estimates.  
 41.  Government as Guarantor.  
 42.  Disposal of profits and deficits.  
 43. Interest charges and other expenses to be added to and receipts taken for reduction of capital 
cost.  
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 3 
Corporation Act, 1997 
 44.  Depreciation Fund.  
 45.  Apportionment of betterment charges levied by State Government.  
 46.  Financial Statement and programme of work.  
 47.  Accounts and Audit.  
 48.  Concurrent and special audit of accounts. 
CHAPTER VII 
MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS 
 49.  Furnishing of annual reports and returns, etc.  
 50.  Rehabilitation and resettlement of the project affected persons.  
 51.  Execution of contracts, etc.  
 52.  General penalty.  
 53.  Power of entry.  
 54.  Dues to be recovered as arrears of land revenue.  
 55.  Service of notice, etc.  
 56.  Public notice how to be made known.  
 57.  Notice period for performance.  
 58.  Default in performance of duty.  
 59.  Offence by companies.  
 60.  Authority for prosecution.  
 61.  Compounding of offences by Corporation.  
 62.  Penalty for obstruction.  
 63.  Delegation of powers of Corporation.  
 64.  Protection of action taken in good faith.  
 65.  Chairman, the three Vice-Chairmen, Executive Director, Members and Officers, etc., to be 
public servants.  
 66.  Effect of provisions of the Act inconsistent with other laws.  
 67.  Power to make rules.  
 68.  Power to make regulations.  
 69.  Power to remove doubts and difficulties.  
 70.  Dissolution of Corporation.  
 71.  Repeal of Mah. Ord. XVIII of 1997 and saving.  
  SCHEDULE 
 
 
4 The Maharashtra Tapi Irrigation Development [1998 : Mah. IV 
Corporation Act, 1997 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 5 
Corporation Act, 1997 
LIST OF AMENDMENT ACTS 
 1. Amended by Mah.  9 of 20001 (8-10-1999) 
 2. Amended by Mah.  31 of 2000 (4-5-2000) 
 3. Amended by Mah.  18 of 20012 (24-10-2000) 
 
 
  
                                                   
1  Mah. Ord. 31 of 1999 was repealed by Mah. 9 of 2000, s. 7 
2  Mah. Ord. 2 of 2001 was repealed by Mah. 18 of 2001, s. ll. 
Note.- The date mentioned in the bracket indicates the date of commencement of the Act. 
6 The Maharashtra Tapi Irrigation Development [1998 : Mah. IV 
Corporation Act, 1997 
  
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 7 
Corporation Act, 1997 
MAHARASHTRA ACT No. IV OF 19981 
[THE MAHARASHTRA TAPI IRRIGATION DEVELOPMENT CORPORATION ACT, 1997.] 
[This Act received the assent of the Governor on the 2nd January 1998; assent was first published in the 
Maharashtra Government Gazette, Part IV, Extraordinary No. 4, on the 6th January 1998.] 
An Act to make special provisions for promotion and operation of irrigation projects, command 
area development and schemes for generation of hydroelectric energy to harness the water of 
Tapi River pertaining to the State of Maharashtra and other allied and incidental activities 
including flood control in the Tapi River Valley by establishing the Tapi Irrigation  
Development Corporation. 
WHEREAS, it was expedient to make special provisions for promotion and operation of 
irrigation projects, command area development and schemes for generation of hydro-electric energy to 
harness the water of Tapi River pertaining to the State of Maharashtra and other allied and incidental 
activities including flood control in the Tapi River Valley by establishing the Tapi Irrigation 
Development Corporation;  
AND WHEREAS, it was considered necessary to immediately make a law for the same;  
AND WHEREAS, both Houses of the State Legislature were not in session;  
AND WHEREAS, the Governor of Maharashtra was satisfied that circumstances existed which 
rendered it necessary for him to take immediate action to make a law, for the purposes hereinafter 
appearing; and, therefore, promulgated the Maharashtra Tapi Irrigation Development Corporation 
Ordinance, 1997(Mah. Ord. XVIII of 1997), on the 4th December 1997;  
AND WHEREAS, it is expedient to replace the said Ordinance by an Act of the State Legislature; 
It is hereby enacted in the Forty-eighth Year of the Republic of India as follows :—  
CHAPTER I 
PRELIMINARY 
1.  Short title, extent and commencement.—  (1) This Act may be called the Maharashtra Tapi 
Irrigation Development Corporation Act, 1997.  
(2) It shall extend to the main stream of Tapi River in the State of Maharashtra and such other 
area or areas, as the State Government may, by notification in the Official Gazette, specify.  
(3) It shall be deemed to have come into force on the 4th December 1997. 
2.  Definitions.— In this Act, unless the context otherwise requires,—  
(a) “ area of operation of the Corporation ” means the area of the mainstream of Ta pi River 
and any other area or areas to which the provisions of this Act are extended by the State 
Government by notification in the Official Gazette under sub-section (2) of section 1;  
(b) “Corporation” means the Tapi Irrigation Development Corporation e stablished under 
section 3;  
(c) “Hydro -Electric Power Project” means and includes the planning, construction, 
maintenance and management of Hydro -Electric Power Projects, within the area of operation of 
                                                   
1  For Statement of Object and Reasons of the L. A. Bill No. LXXII of 1997, see Maharashtra Government Gazette, 1997, 
Extraordinary, Part V-A, page 556. 
8 The Maharashtra Tapi Irrigation Development [1998 : Mah. IV 
Corporation Act, 1997 
the Corporation and shall also include such hydro -electric power projects as are assigned, handed 
over or transferred to the Corporation by the State Government;  
(d) “Irrigation Department” means the Irrigation Department of Government;  
(e) “Irrigation Project” means the planning, construction, maintenanc e and  
management of—  
(i) Major Irrigation Project having irrigable c ommand area of more than 10,000  
hectares;  
(ii) Medium Irrigation Project having irrigable command area of more than 2,000 
hectares and upto 10,000 hectares;  
(iii) Minor Irrigation Project having irrigable command area of more than 250 hectares 
and upto 2,000 hectares;  
and shall include command area development, flood control and other allied activities;  
(f) “Mainstream of Tapi River ” means the geographical area of Tapi River and all its 
tributaries within the State of Maharashtra;  
(g) “Member” means a member of the Corporation designated as Director;  
(h) “prescribed” means prescribed by rules made under this Act;  
(i) “regulations” means the regulations made under this Act;  
(j) “State Government” or “Government” means the Government of Maharashtra.  
CHAPTER II 
ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE CORPORATION 
3.  Establishment of Tapi Irrigation Development Corporation. — (1) The State Government 
shall, by 1notification in the Official Gazette, establish, for the purposes of this Act, a Corporation to be 
called the Tapi Irrigation Development Corporation.  
(2) The Corporation established under sub -section (1) shall be a body corporate having perpetual 
succession a nd a common seal, with power to contract, acquire, hold and dispose of property, both 
movable and immovable, and to do all things necessary for the purposes of this Act, and may sue and 
be sued by its corporate name.  
(3) The head office of the Corporation shall be at Jalgaon. 
4.  Constitution of Corporation.— (1) The Corporation shall consist of the following members, 
namely :—  
(a) the Minister for Irrigation       . .  . .  ex-officio Chairman. 
2[(b) two non-official members from the Khandesh   . .  Vice-Chairman.]  
   region to be nominated by the State Government.  
(c) the Chief Secretary to Government  . .  . .  ex-officio Vice-Chairman.  
(d) Secretary to Government, Irrigation  . .  . . ex-officio Managing  
            Department.            Director.  
                                                   
1  See Maharashtra Government Gazette, Part IV-B, Page 1571, dated 11th December 1997 (vide G. N., I. D., No. TPK 
1047/165/97, WRI, dated 11th December 1997 whereunder the Corporation has been established). 
2  Clause (b) was substituted by Mah. 18 of 2001, s. 8(a). 
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 9 
Corporation Act, 1997 
(e) Secretary to Government, Irrigation  . .  . . ex-officio Member.  
              Department (Command Area Development)  
(f) Secretary to Government, Finance Department   . . ex-officio Member.  
(g) Secretary to Government, Planning Department  . .  ex-officio Member.  
(h) Secretary to Government, Revenue and Forests   . .  ex-officio Member.  
      Department (Forests)  
(i) Secretary to Government, Revenue and Forests   . .  ex-officio Member.  
     Department (Relief and Rehabilitation).  
(j) Secretary to Government, Agriculture  . .  . .  ex-officio Member.  
     Department.  
(k) Two members to be nominated by the State Government from amongst the members of 
the Maharashtra State Legislative Assembly elected from the Assembly Constituencies in Dhule, 
Nashik and Jalgaon District.  
(l) One member to be nominated by the State Government from amongst the members of the 
Maharashtra State Legislative Council from Dhule, Nashik and Jalgaon District.  
(m) One officer not below the rank of Secretary to Governme nt, from the cadre of the 
Engineering Services of the Irrigation Department to be appointed by the State Government as the 
Member-Secretary of the Corporation who shall be designated as the Executive Director of the 
Corporation. The Executive Director shal l be entitled to take part in all the deliberations and 
proceedings of the meetings of the Corporation but shall have no right to vote.  
(2) The term of office of the nominated members shall be for a period of one year unless 
terminated earlier by the State Government:  
Provided that, the members of the Maharashtra State Legislature shall cease to be the member of 
the Corporation if they cease to be members of the Maharashtra State Legislature.  
(3) The non-official 1[members] of the Corporation nominated under clause (b) of sub-section (1) 
shall receive such remuneration and allowances as may be laid down by regulations.  
(4) The official members of the Corporation shall receive such compensatory allowances, for the 
purpose of meeting the personal expendit ure in attending the meetings of the Corporations, as may be 
laid down by regulations. 
5.  Executive Committee. — (1) There shall be an Executive Committee consisting of the 
following members, namely :—  
(a) Managing Director of the Corporation   ..  Chairman.  
(b) Executive Director of the Corporation   ..  Member.  
(c) Chief Engineer, Irrigation Department,   ..  Member.   
           North Maharashtra Region, Nashik  
(d) Chief Engineer of the Corporation   ..  Member.  
                                                   
1  This word was substituted for the word “member” by Mah. 18 of 2001, s. 8(6). 
10 The Maharashtra Tapi Irrigation Development [1998 : Mah. IV 
Corporation Act, 1997 
(e) Chief Accounts and Finance Officer of the  ..  Member.   
           Corporation  
(f) Executive Engineer of the Corporation   ..  Member-Secretary.  
(2) The powers, functions and duties of the Executive Committee shall be such as may be laid 
down by regulations.  
6.  Disqualification for membership and removal of members. — (1) A person shall be 
disqualified for being nominated as a non-official member or continue to be such member, if he,—  
(a) is an employee of the Corporation except the Executive Director;  
(b) is of unsound mind, and stands so declared by a competent Court;  
(c) is an undischarged insolvent;  
(d) is convicted for an offence involving moral turpitude; 
(e) has directly or indirectly by himself or by any partner, employer or employee, any share 
or interest, whether pecuniar y or of any other nature, in any contract or employment with, by o r 
on behalf of, the Corporation; or  
(f) is a Director, Secretary, Manager or other officer of any company, which has any share 
or interest in any contract or employment with, by or, on behalf of the Corporation:  
Provided that, a person shall not be disqualified under clause (e) or clause (f) by reason only 
of his or the company of which he is a Director, Secretary, Manager or other Officer, having a 
share or interest in—  
(i) any sale, purc hase, lease or exchange of immovable propert y or any agreement for 
the same;  
(ii) any agreement for loan of money or any security for payment of money only;  
(iii) any newspaper in which any advertisement relating to the affairs of the 
Corporation is published.  
(2) The State Government may remove from the Corporation any non-official member nominated 
by it, who in its opinion,—  
(a) has been disqualified under sub-section (1);  
(b) refuses to act;  
(c) has so abused his position as a member as to render h is continuance on the Corporation 
detrimental to the interest of the public, or  
(d) is otherwise unsuitable to continue as member. 
(3) No order of removal under sub -section (2) shall be made, unless the non -official member has 
been given an opportunity to submit his explanation to the Government and when such order is passed 
the office of the member so removed shall be deemed to be vacant.  
(4) A member who has been so removed under sub -section ( 3) shall not be eligible for 
reappointment as member or in any other capacity on the Corporation.  
7.  Meetings of the Corporation. — (1) The Corporation shall meet at such times and places as 
the Chairman may decide and shall, subject to the provisions of sub -section (3), observe such rules of 
procedure in regard to the transaction of business at its meetings (including the quorum thereof) as may 
be laid down by regulations:  
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 11 
Corporation Act, 1997 
Provided that, at least one meeting shall be held in every calendar month in such manner so as to 
ensure that not more than thirty days intervene between the two meetings.  
1[(2) The Chairman or, in his absence, such of the Vice -Chairman appointed under clause ( b) of 
sub-section (1) of section 4, if both are the Members of the Maharashtra State Legislature, as may be 
predetermined by the Chairman  by an order, shall preside over the meeting of the Corporation and in 
the absence of all the three, the Chief Secretary to Government, being the other Vice -Chairman shall 
preside over the meeting:  
Provided that, if the Vice -Chairman appointed under claus e ( b) are persons other than the 
Members of the Legislature, the Chief Secretary as the Vice -Chairman shall, in the absence of the 
Chairman, preside over the meeting and in the absence of the Chief Secretary, the other  
Vice-Chairman, as may be predetermin ed by the Chairman by an order, shall preside over such 
meeting.] 
(3) A member, who is directly or indirectly concerned or interested in any contract, loan, 
arrangement or proposal entered into or proposed to be entered into, by or on, behalf of the 
Corporation, shall, at the earliest possible opportunity, disclose the nature of his interest to the 
Corporation, and shall not be present at any meeting of the Corporation when any such contract, loan, 
arrangement or proposal is discussed, unless his presence i s required by the other members for the 
purpose of eliciting information, but no member so required to be present shall vote on any such 
contract, loan, arrangement or proposal: 
Provided that, a member shall not be deemed to be concerned or interested as aforesaid by reason 
only of his being a share -holder of a Company concerned in any such contract , loan, arrangement or 
proposal:  
8.  Constitution of committees. — The Corporation may, from time to time, constitute 
committee, or committees out of its members consisting of such number of them as it may think proper 
and may delegate to such committee or committees such powers of the Corporation, as it may deem fit 
for carrying out the purposes of this Act. 
9.  Provision for inviting officers of Government and l ocal authority.— (1) The Corporation 
or any of its committees may invite any officer of the Central Government, State Government, local 
authority or any organisation or any person to attend its meeting or meetings as a special invitee for the 
purpose of assisting or advising it on any matter or matters. The officer or person so invited may take 
part in the proceedings, but shall have no right to vote.  
(2) The officer or person so invited shall be entitled to draw such honorarium or compensatory 
allowance f or the purpose of meeting the personal expenditure in attending the meetings of the 
Corporation or any of its committees as the Corporation may determine, from time to time.  
10.  Filling up of casual vacancy of member. — Any vacancy of a member of the Corp oration 
shall be filled, as early as practicable, in like manner as if the appointment were being made for the 
first time.  
11.  Act not to be invalidated by vacancy, informality, etc. — No act done or proceedings 
taken under this Act by the Corporation or  any committee appointed by the Corporation shall be 
invalidated merely on the grounds of—  
(a) any vacancy of a member or any defect in the constitution or reconstitution of the 
Corporation or a committee thereof; or  
                                                   
1  Sub-section (2) was substituted by Mah. 18 of 2001, s. 9. 
12 The Maharashtra Tapi Irrigation Development [1998 : Mah. IV 
Corporation Act, 1997 
(b) any defect or irregularity in the appointment of a person as a member of the Corpor ation 
or of a committee thereof; or  
(c) any defect or irregularity in such act or proceedings, not affecting the substance.  
12.  Officers and servants of Corporation.— (1) The State Government shall appoint Executive 
Director as provided in sub -section ( 1) of section 4, Chief Engineer, Superintending Engineer and 
Chief Accounts and Finance Officer not below the rank of Director from the Maharashtra Finance and 
Accounts Service, for the Corporation.  
(2) The Corporation may, with the prior approval of the State Government, appoint such other 
officers and servants subordinate to the officers mentioned in sub -section (1) as it considers necessary 
for the efficient performance of its duties and functions.  
(3) The conditions of appointment and service of the officers and servants and their scales of pay 
shall,—  
(a) as regards the officers mentioned in sub-section (1), be such as may be prescribed, and  
(b) as regards the officers and servants mentioned in sub -section (2), be such as may be laid 
down, from time to time, by regulations.  
(4) Subject to the superintendance of the Corporation, the Executive Director shall supervise and 
control all its officers and employees including any officers of Government app ointed on deputation to 
the Corporation. 
13.  Disqualification of all officers and staff. — No person who has, directly or indirectly, by 
himself or by his partner or agent, any share or interest in any contract, by or on behalf of the 
Corporation or in any  employment under, by or on behalf of the Corporation otherwise than as an 
officer or staff thereof, shall be qualified to be an officer or staff of the Corporation.  
14.  Authentication of orders, etc. of Corporation. — All proceedings of the Corporation s hall 
be authenticated by the Chairman or Vice -Chairman and all orders and instruments of the Corporation 
shall be authenticated by the Executive Director or any other officer of the Corporation as may be 
authorised in this behalf by regulations.  
CHAPTER III 
VESTING OF PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS AND 
TRANSFER OF EMPLOYEES. 
15.  Vesting and transfer of property to Corporation. — (1) From such date as may be 
specified, from time to time, by the State Government (hereinafter in this section re ferred to as “the 
appointed date”),—  
(a) the properties and assets comprising movables and immovables including Irrigation 
Projects, Hydro-Electric Power Projects, works under construction and management of completed 
schemes, specified in that behalf, sit uated in the area of operation of the Corporation, which 
immediately before the appointed date vested in the State Government and were under the control 
of the Irrigation Department, shall vest in and stand transferred to the Corporation and all income 
derived and expenses incurred in that behalf be brought on books of the Corporation; and  
(b) the rights, liabilities and obligations of the State Government, whether arising out of any 
contract or otherwise pertaining to the said projects of the State Govern ment shall be deemed to 
be the rights, liabilities and obligations of the Corporation.  
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 13 
Corporation Act, 1997 
(2) Such properties, assets, rights, liabilities and obligations shall be valued in such manner as the 
State Government may determine.  
(3) All suits and other legal pr oceedings with respect to any scheme for the development of 
Irrigation Projects and Hydro-Electric Power Projects vested in the Corporation, under sub -section (1), 
instituted against or defended by the State Government before the appointed date may be continued, or, 
against or defended by the Corporation.  
16.  Decision of the State Government on the vesting of property to be final. — Where any 
doubt or dispute arises as to whether any property or assets has vested in the Corporation under section 
15 or any rights, liabilities or obligations have become the rights, liabilities or obligations of the 
Corporation under that section, such doubt or dispute shall be referred to the State Government, whose 
decision shall be final.  
17.  Power of State Government to depute certain Government employees to Corporation.— 
(1) Where on account of conferment of any powers, duties and functions on the Corporation by or 
under this Act, in the opinion of the State Government, any employees in the field establishments, that 
is, officers and employees belonging to technical staff as well as ministerial and non -ministerial staff 
(permanent, regular, temporary, converted regular permanent, temporary and daily wages) in the 
Irrigation Department on the date specified by the State Government engaged in the fields of Planning, 
investigation, design, construction, management, land development of the State sector, irrigation 
projects, lift irrigation scheme and Hydro -Electric Power Projects, have been rendered surplus or are 
likely to be rendered surplus wholly or partially to the requirements of the State Government, or where 
the services of such officers and servants are required  by the Corporation for efficient exercise of its 
powers, performance of its duties or discharge of its funct ions, the State Government, the Head of the 
Department of the State Government or any officer authorised by the State Government in this behalf 
may, from time to time, having regard to the necessity therefor, by order, depute such officers or 
employees to the Corporation, and the Corporation shall take them over and employ them on 
deputation, subject to the provisions of this section.  
(2) The period of deputation of any such employee to the Corporation shall be five years except 
when any such person is req uired to be repatriated on the grounds, such as promotion, reversion, 
termination or superannuation or any other reason as may be directed by the State Government. After 
the expiry of the period of deputation, he shall stand repatriated to service under the State Government:  
Provided that, during the period of such deputation all matters relating to the pay, leave, 
allowances, retirement, pension, provident fund and other conditions of service of the employees on 
deputation shall be regulated by the Maharashtra Civil Services Rules or such other rules as may, from 
time to time, be made by the State Government.  
(3) All the regular, permanent and regular temporary permanent employees of the said 
establishment transferred on deputation to the Corporation unde r sub-section (2) shall have a lien on 
their posts in the service under the State Government and the period of their service under the 
Corporation shall, on their repatriation to the service under the State Government, be counted for their 
increments, pensions and other matters relating to their service.  
(4) The Corporation shall have the authority to transfer the officers and staff members within the 
area of operation of the Corporation.  
(5) No employee on deputation to the Corporation shall be entitled to any deputation allowance.  
(6) The salaries and allowances of employees on deputation to the Corporation shall be paid from 
the Corporation Fund.  
14 The Maharashtra Tapi Irrigation Development [1998 : Mah. IV 
Corporation Act, 1997 
(7) Save as otherwise provided in this section, the terms and conditions of services of employees 
on deput ation to the Corporation shall not be less advantageous than those applicable to them 
immediately before deputation and shall not be varied to their disadvantage except with the previous 
sanction of the State Government.  
CHAPTER IV 
FUNCTIONS AND POWERS OF CORPORATION 
18.  Functions of Corporation.— The functions of the Corporation shall be— 
(a) to promote and operate,—  
(i) irrigation projects and command area development including flood control; and  
(ii) schemes for the generation of hydro-electrical energy;  
(b) to plan, investigate, design, construct and manage the irrigation projects, and command 
area development; upto a water use of 3 26.26 TMC at 75% dependability 1[and to help drip 
irrigation schemes through the Agriculture Department of Government];  
(c) to plan, investigate, design, construct and manage the schemes of the generation of 
hydro-electrical energy;  
(d) to enter into contracts in respect of the works and any other matters transferred to the 
Corporation along with assets and liabilities under this Act; 
(e) to invite tenders, bids, offers and enter into contracts for the purposes of all th e activities 
of the Corporation;  
(f) to promote participation of any person or body or association of individuals, whether 
incorporated or not, in planni ng, investigation, designing, construction and management of 
irrigation projects, and command area development and Hydro -Electric Power Projects including 
flood control;  
(g) to undertake schemes or works, either jointly with other corporate bodies, or institutions, 
or with Government or local authorities, or on agency basis in furtherance of the purposes for 
which the Corporation is established and all matters connected therewith;  
(h) to promote irrigation related activities such as fisheries, pisciculture, floriculture, 
horticulture, sericulture, tissueculture, etc.;  
(i) to promote tourism, water sports and other related activities on and around the irrigation 
and Hydro-Electric Power Projects;  
(j) to develop the land around or nearby lake and in other  suitable locations with irrigation 
facilities and other infrastructure facilities and lease part or whole of such developed properties to 
the interested parties;  
(k) to prepare annual plan and five year working development plan;  
(l) to prepare annual budget;  
(m) to take in possession on the terms and conditions laid down by the Corporation, the 
existing co-operative Lift Irrigation Schemes, enumerated in the Schedule appended to this Act, 
each having ICA greater than 250 ha. in Jalgaon (21 Nos.) and Dhu le (35 Nos.) districts, for 
operation and maintenance with their assets and liabilities, and hand over back to the co-operative 
                                                   
1  These words were inserted by Mah. 9 of 2000, s. 5. 
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 15 
Corporation Act, 1997 
Lift Irrigation Societies on a receipt of the full payment of expendit ure incurred by the 
Corporation;  
(n) to undertake any other activities entrusted by the State Government in furtherance of the 
objectives for which the Corporation is established.  
19.  General powers of the Corporation. — (1) The Corporation shall have the power to accord 
administrative approval, revised adminis trative approval, technical sanction, acceptance of all tenders, 
sanctioning budget and making financial provisions, setting disputes arising out of contracts and any 
other thing which may be necessary or expedient for the purposes of carrying out its func tions under 
this Act.  
(2) Without prejudice to the generality of the foregoing provisions, such power shall include the 
power,—  
(a) to acquire and hold property, both movable and immovable as the Corporation may 
deem necessary for the performance of any of its functions, duties, activities and to lease, sell, 
exchange or otherwise transfer any property held by it on such conditions as may be deemed 
proper by the Corporation;  
(b) to construct or cause to be constructed such dams, barrages, reservoirs, pow er houses, 
power structures, electrical transmission lines, and sub -stations, navigation works, irrigation, 
flood control and drainage canals and such other works and structures as may be required;  
(c) to take measures to prevent pollution of any water un der its control and to take all 
measures deemed necessary to prevent discharges into such water of effluents which are harmful 
to water supply, irrigation, public health or fish life;  
(d) to stock its reservoirs or water courses with fish and to sell fish  or fishing rights and 
prohibit taking out fish from the water under its control;  
(e) to assist in the establishment of water users association and other organisations formed 
under the Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961), for the better use 
of facilities made available by the Corporation; 
(f) to lease rights for water sports, other recreational activities related to the use of reservoir 
and its surroundings and reservoir water;  
(g) to establish, maintain and operate laboratori es, experimental and research stations and 
farms for conducting experiments and research for,—  
(i) utilising the water, electrical energy and other resources in the most economical 
manner for the development of the Tapi River Valley;  
(ii) determining the  effect of its operations on the flow conditions in the Tapi River 
and its tributaries;  
(iii) providing navigation condition in the Tapi River and its tributaries;  
(h) to engage suitable consultant or person having special knowledge or skill to assist th e 
Corporation in the performance of its functions;  
(i) to do all such other things and perform such acts as may be necessary for, or incidental or 
conducive to any matters which are necessary for furtherance of the objectives for which the 
Corporation is established.  
 
16 The Maharashtra Tapi Irrigation Development [1998 : Mah. IV 
Corporation Act, 1997 
20.  Water Charges for supply of water for irrigation, industrial and domestic purpose. — 
The Corporation shall, from time to time, determine and levy water charges according to volume, for 
supply of water for irrigation, industrial and domest ic purposes to the State Government, local 
authorities, Government agencies, cultivators and water users associations:  
Provided that, the levy of water charges shall be such that water charges so recovered shall be 
sufficient at least to cover the interes t charges of the loan raised by the Corporation from the open 
market.  
21.  Responsibility of Corporation for payment of interest on borrowed money. — The 
Corporation shall pay the interest on the borrowed money through the recovery of water charges.  
22.  Prohibition of construction of dam, bandhara, weir, etc., except with approval of 
Corporation.— No person shall construct, operate or maintain within the area of operation of the 
Corporation any dam, bandhara or weir or other work or any installation for t he extraction of surface 
water without the prior approval of the Corporation:  
Provided that, the State Government or a local authority may, construct and operate such dams, 
weirs, bandharas, etc., anywhere or across any river or basin within such area of operation or assign or 
handover such dam, bandhara, weir, etc., to the Corporation.  
23.  Co-ordination with other authorities to minimise inconvenience caused by 
submergence.— The Corporation shall keep co -ordination with the State Government, Railway 
Authorities, local authorities and statutory bodies with a view to minimising the inconvenience likely 
to be caused by the submergence of railway, lands and roads and communications  and shall bear the 
cost of any  re-allignment thereof or re -settlement of any  population rendered necessary by such 
submergence. 
24.  Powers to be exercised by the Corporation under the Maharashtra Irrigation Act, 
1976.— Notwithstanding anything contained in the Maharashtra Irrigation Act, 1976  (Mah. XXXVIII 
of 1976) and the Bombay Canal Rules, 1934,—  
(a) the Corporation may carry out all or any of the functions and exercise all or any of the 
powers of the State Government or the appropriate authority; and  
(b) any officer of the Corporation authorised in this behalf by the Corporation may carry out 
all or any of the functions and exercise all or any of the powers of the Canal Officer,  
under the provisions of the said Act and the rules, within the area of operation of the Corporation.  
25.  Power of State Government to issue direct ions.— The State Government may issue to the 
Corporation such general or special directions as to policy or exercise of the powers or performance of 
the functions by the Corporation, excepting in respect of levying and recovery of water charges by the 
Corporation, as it may think necessary or expedient for carrying out the purposes of this Act and the 
Corporation shall be bound to follow and act upon such direction.  
CHAPTER V 
ACQUISITION OF LAND 
26.  Power to acquire land for purposes of this Act.— The State Government may, for carrying 
out the purposes of this Act, compulsorily acquire land under the Land Acquisition Act, 1894  (1 of 
1894), and the acquisition of any land for any of the said purposes shall be deemed to be a public 
purpose within the meaning of that Act.  
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 17 
Corporation Act, 1997 
27.  Transfer of Government lands to Corporation.— (1) For the furtherance of the objects of 
this Act, the State Government may, by notification in the Official Gazette, upon such conditions as 
may be agreed upon between the Government and t he Corporation, place at the disposal of the 
Corporation any lands vested in the State Government:  
Provided that, the State Government shall not place at the disposal of the Corporation any lands 
which are notified and included in a reserved forest.  
(2) After any such land has been so placed at the disposal of the Corporation it shall be dealt with 
by the Corporation in accordance with the provisions of this Act or the rules or regulations made 
thereunder and the directions, if any, given by the State Government in this behalf.  
(3) If any land placed at the disposal of the Corporation under sub -section (1) is not required by 
the Corporation, the State Government may ask the Corporation to restore it to the State Government 
upon such terms and conditions as may be mutually agreed upon.  
28.  Power of Corporation to dispose of land, etc. — Subject to any rules made by the State 
Government under this Act, the Corporation may retain, lease, sell, exchange or otherwise dispose of 
any land, any building or other property vested in it, in such manner as it thinks fit for carrying out the 
purposes of this Act.  
CHAPTER VI 
FINANCE, ACCOUNTS AND AUDIT 
29.  Application of Corporation’s assets, etc. — All property, fund and other assets vesting in 
the Corporation shall be held and applied by it, for the purposes of this Act. 
30.  Fund of Corporation.— (1) The Corporation shall have and maintain its own fund, to which 
shall be credited—  
(a) all moneys received by the Corporation from the State Government by way of grants,  
subventions, loans, advances and the loans raised under this Act;  
(b) all fees, costs and charges received by the Corporation under this Act;  
(c) all moneys received by the Corporation from the disposal of lands, buildings and other 
properties, moveable and immoveable and other transactions;  
(d) all moneys received by the Corporation by way of water charges, rents and profits or 
from any other source.  
(2) The Corporation may keep current and deposit account with the State Bank of India or any 
other Bank approved by the State Government in this behalf.  
(3) Such accounts shall be operated by such officers of the Corporation as may be authorised by it 
in this behalf.  
(4) Notwithstanding anything contained in sub-sections (2) and (3), the Corporation may keep on 
hand such sum as it thinks fit for its day to day transactions, subject to such limits and conditions as 
may be prescribed.  
31.  Contribution of Government to Corporation Fund.— (1) The State Government shall, by 
appropriation duly made in this be half, from time to time, provide an aggrega te sum of not less than 
rupees 1[2337 crores] to the Corporation Fund, as its share of the capital required by the Corporation, 
for the performance of the functions of the Corporation under this Act and such contr ibution shall be 
                                                   
1  These figures and word were substituted for the figures and word “1400 crores” by Mah. 31 of 2000, s. 4. 
18 The Maharashtra Tapi Irrigation Development [1998 : Mah. IV 
Corporation Act, 1997 
paid in suitable instalments spread over a period of ten years from the date of e stablishment of the 
Corporation:  
Provided that, the State Government shall, by appropriation duly made in this behalf, initially 
contribute and pay a sum of rupees 100 crores to the Corporation Fund:  
Provided further that, the contribution made by the Government shall be exclusive of the 
expenditure incurred by the Government for and in connection with the establishment of the 
Corporation.  
(2) The capital provided by the State Government shall not carry any interest.  
32.  Grants, subventions, loans and advances to Corporation. — The State Government may, 
after due appropriation made by the State Legislature by law in this behalf, make such grants, 
subventions, loans and advances to the Corporation as it may deem necessary for the performance of 
the functions of the Corporation under this Act; and all grants, subventions, loans and advances made 
shall be on such terms and conditions as the State Government may determine.  
33.  Power of Corporation to borrow.— (1) The Corporation may, subject to such conditions as 
may be prescribed in this behalf, borrow money from the financial institutions or non -resident Indians 
or from the open market by issue of guaranteed o r unguaranteed bonds, debentures, stocks, Cash 
certificates, fixed deposits receipts and otherwise, for the purpose of providing itself with adequate 
resources.  
(2) The maximum amount which the Corporation may at any time have on loan under sub-section 
(1) shall not exceed rupees one thousand crores, unless the State Government fixes a higher maximum 
limit for this purpose.  
34.  Acceptance of deposits by Corporation. — The Corporation may accept deposits on such 
conditions as it deems fit, from persons, authorities or institutions, to whom allotment or sale of land or 
buildings or fishing rights is made or is likely to be made in furtherance of the objects of this Act. 
35.  Power to spend.— The Corporation shall have the authority to spend such sums as it t hinks 
fit for the purposes authorised under this Act from and out of the fund of Corporation referred to in 
section 30 or from the reserve and other funds referred to in section 38, as the case may be.  
36.  Expenditure on objects other than Irrigation and Power Projects.— It shall be competent 
for the Corporation to spend such sums as it thinks fit also on objects authorised under this Act other 
than Irrigation Projects and Hydro-Electric Power Projects, and such sums shall be treated as common 
expenditure payable out of the fund of the Corporation before allocation under section 37 of this Act.  
37.  Allocation of expenditure chargea ble to project on main objects. — The total capital 
expenditure chargeable to a project shall be allocated between the two mai n objects, Irrigation Projects 
and Hydro-Electric Power Projects as follows, namely :—  
(a) Expenditure solely attributable to any one of the said two objects, including a 
proportionate share of overhead and general charges, shall be charged to that object; and  
(b) Expenditure common to both the said objects, including a proportionate share of 
overhead and general charges, shall be allocated to the said objects in proportion to the 
expenditure which, according to the estimate of the Corporation, would have  been incurred in 
constructing a separate structure for that object less any amount determined under clause (a) in 
respect of that object.  
38.  Reserve and other funds.— (1) The Corporation shall make provisions for such reserve and 
other specially denominated funds as the State Government may from time to time, direct.  
1998 : Mah. IV] The Maharashtra Tapi Irrigation Development 19 
Corporation Act, 1997 
(2) The management of the funds referred to in sub -section (1), the sums to be transferred, from 
time to time, to the credit thereof and the application of money comprised therein, shall, subject to the 
directions, if any, issued by the State Government in this behalf, be determined by the Corporation.  
(3) None of the funds referred 

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