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The Vidarbha Irrigation Development Corporation Act, 1997

Maharashtra · state statute
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1997 : Mah. XXVI]  1 
THE VIDARBHA IRRIGATION DEVELOPMENT  
CORPORATION ACT, 1997 
[Text as on 8th November 2024] 
______________ 
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 Vidarbha Irrigation Development Corporation.  
 4.  Constitution of Corporation.  
 5.  Executive Committee.  
 6.  Disqualifications for membership and removal of members.  
 7.  Meetings of 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 the 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.  
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, industrial and domestic purpose.  
2 The Vidarbha Irrigation Development [1997 : Mah. XXVI 
Corporation Act, 1997 
 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 Maharashtra Irrigation Act, 1976.  
 25.  Powers of the 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. 
 44.  Depreciation fund.  
 45.  Apportionment of betterment charge levied by State Government.  
 46.  Financial Statement and programme of work.  
 47.  Accounts and Audit.  
 48.  Concurrent and special audit of accounts. 
1997 : Mah. XXVI] The Vidarbha Irrigation Development  3 
Corporation Act, 1997 
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 contract, 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.  Offences 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, Vice -Chairperson, Executive Director, Members and Officers, etc., to be  
  public servants. 
 66.  Effect of provisions of 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. XI of 1997 and Saving. 
  SCHEDULE
4 The Vidarbha Irrigation Development [1997 : Mah. XXVI 
Corporation Act, 1997 
1997 : Mah. XXVI]  The Vidarbha Irrigation Development  5 
 Corporation Act, 1997 
LIST OF AMENDMENT ACTS 
 1.  Amended by Mah.  6 of 1999 (23-11-1998)1 
 2.  Amended by Mah.  9 of 2000 (8-10-1999) 2 
 3.  Amended by Mah.  31 of 2000 (4-5-2000) 
 4.  Amended by Mah.  18 of 2001 (24-10-2000)3 
 5.  Amended by Mah.  8 of 2007 (13-04-2007)
                                                   
1 Mah. Ord. 15 of 1998 was repealed by Mah. 6 of 1999, s. 4. 
2 Mah. Ord. 31 of 1999 was repealed by Mah. 9 of 2000, s. 7. 
3  Mah. Ord. 2 of 2001 was repealed by Mah. 18 of 2001, s. 11. 
 
Note.- The date mentioned in the bracket indicates the date of commencement of the Act. 
6  The Vidarbha Irrigation Development  [1997 : Mah. XXVI 
Corporation Act, 1997 
1997 : Mah. XXVI]  The Vidarbha Irrigation Development  7 
 Corporation Act, 1997 
MAHARASHTRA ACT No. XXVI OF 19971 
[THE VIDARBHA IRRIGATION DEVELOPMENT CORPORATION ACT, 1997.] 
[This Act received the assent of the Governor on the 28th April 1997; assent was first  
published in the Maharashtra Government Gazette, Extraordinary No. 38,  
Part IV, on the 28th April 1997.] 
An Act to make special provisions for mobilisation of resources for completion of some ongoing 
irrigation projects in time bound manner, for promotion and operation of the said irrigation 
projects in Vidarbha region command area development and schemes for generation of  
hydro electric energy to harness the water of Godavari and Tapi Rivers allocated to  
the State of Maharashtra under the Water Disputes Tribunal Award and other  
allied and incidental activities including flood control by establishing the  
Vidarbha Irrigation Development Corporation. 
WHEREAS it was expedient to make special provisions for promotion and operation of some 
irrigation project s in Vidarbha region, command area development and schemes for generation of  
hydro-electric energy to hardness the water of Godavari and Tapi Rivers allocated to the State of  
Maharashtra under the Water Disputes Tribunal Award and other allied and incident al activities 
including flood control, by establishing the Vidarbha 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 Vidarbha I rrigation Development Corporation Ordinance, 
1997 (Mah. Ord. XI of 1997), on the 12th March 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 Vidarbha Irrigation 
Development Corporation Act, 1997. 
(2) It shall extend to the area of  the Godavari and Tapi Ri vers Valley in Vidarbha region of the 
State of Maharashtra, specified in the Schedule 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 12th March 1997. 
2.  Definitions.— In this Act, unless the context otherwise requires,— 
(a) “Area of operation of the Corporation”  means the area of the Godavari and Tapi Rivers 
Valley specified in the Schedule 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 Vidarbha Irrigation Development Corporation established 
under section 3 ; 
(c) “Hydro -Electric Power Project”  means and includes  the plan ning, construction, 
maintenance and management of Hydro -Electric Power Projects, within the area of operation of 
                                                   
1 For Statement of Objects and Reasons of the L. A. Bill No. XX of 1997, see Maharashtra Government Gazette , 1997, 
Part V, Extraordinary No. 16, dated the 31st March 1997, page 236. 
8  The Vidarbha Irrigation Development  [1997 : Mah. XXVI 
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 the Government ;  
(e) “Irrigation Project”  means the planning, construction , maintenance and management 
of— 
(i) Major Irrigation Project ha ving irrigable command ar ea of  more than 10,000 
hectares,  
(ii) Medium Irrigation Pro ject 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) “member” means a member of the Corporation designated as Director ;  
(g) “prescribed” means prescribed by the rules made under this Act ; 
(h) “Schedule” means the Schedule appended to this Act ; 
(i) “State Government” or “Government” means the Government of Maharashtra. 
CHAPTER II 
ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE CORPORATION 
3.  Establishment of Vidarbha  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 Vidarbha Irrigation Development Corporation.  
(2) The Corporation established under sub-section (1) shall be a body corporate having perpetual 
succession and a common seal, with power to contract, acquire, hold and dispose of property, both 
movable and immovable, and to do all thing s, necessary for the purposes of this A ct, and may sue and 
be sued by its corporate names. 
(3) The Head Office of the Corporation shall be at Nagpur. 
4.  Constitution of Corporation.— (1) The Corporation shall consist of the following members, 
namely :— 
(a) the Minister of Irrigation .. ex-officio 
Chairman 
2[(b) two non-official members fr om the Vidarbha                                 
   region to be nominated by the State Government. 
.. Vice-Chairman;] 
(c) the Chief Secretary to Government  .. 
 
ex-officio  
Vice-Chairman ; 
(d) Secretary (1) to Government, Irrigation 
      Department 
.. 
.. 
ex-officio  
Managing Director ; 
(e) Secretary (Command Area Development)  
     to Government, Irrigation Department 
.. ex-officio  
Member ; 
(f) Secretary to Government, Planning 
     Department 
.. ex-officio  
Member ; 
(g) Secretary to Government, Finance  .. ex-officio  
                                                   
1 See Maharashtra Government Gazette , Part IV -B, Page 873, dated 19 th March 1998 ( vide G.N.I.D. No. VSM. 
1096/(304196) WRP, dated 25th March 1997) whereunder the Corporation is established. 
2 Clause (b) was substituted by Mah. 18 of 2001, s. 2(a). 
1997 : Mah. XXVI]  The Vidarbha Irrigation Development  9 
 Corporation Act, 1997 
      Department Member ; 
(h) Secretary (Forests) to Government,  
      Revenue and Forests Department 
.. ex-officio  
Member ; 
(i) Secretary (Relief and Rehabilitation) 
     to Government, Revenue and Forests  
     Department  
.. ex-officio  
Member ; 
(j) Secretary to Government, Agriculture 
    Department 
.. ex-officio  
Member ; 
(k) three non-official members representing reputed and recognised financial institutions, to 
be nominated by the State Government ; 
(1) five members to be nominated by the State Government, from amongst the members of the 
Maharashtra State Legislative Assembly ;  
(m) three members to be nominated by the State Government from amongst the members of 
the Maharashtra State Legislative Council ; 
(n) two non -official qualified members to be nominated by the State Government having 
graduation and special knowledge and pra ctical experience, one each from the fi eld of Irrigation 
and Finance, respectively;  
(o) one officer not below the rank of Secretary to Government, 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 shall 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 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 members of the Corporation nominated under 1[clauses ( b) and ( n)] of  
sub-section (1) shall receive such remuneration and allowance 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 expenditure in attending the meetings of the Corporation, as may be 
laid down by the regulations. 
5.  Executive Commi ttee.— (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, 
     Nagpur. 
  . . Member 
(d) Chief Engineer (Gosikhurd), Irrigation 
     Department, Nagpur. 
  . . Member 
(e) Chief Accounts and Finance Officer of  
      the Corporation.  
  . . Member 
(f) Superintending Engineer of the Corporation.   . . Member- 
Secretary. 
                                                   
1 These words, brackets and letters were substitute d for the word, brackets and letter “ clause (n)” by Mah . 18 of 2001,  
s. 2(b). 
10  The Vidarbha Irrigation Development  [1997 : Mah. XXVI 
Corporation Act, 1997 
(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 pecuniary or of any other nature, in any contract or employment with, by or 
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, purchase, lease or exchange of immovable property 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 Government may remove from the Corporation any non -official member nominated by 
the Government, 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 his 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  
re-appointment as member in any other capacity on the Corporation.  
7.  Meetings of Corporation. — (1) The Corporation shall meet at such times and places as 
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 :  
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 -Chairmen 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 
                                                   
1 Sub-section (2) was substituted by Mah. 18 of 2001, s. 3.  
1997 : Mah. XXVI]  The Vidarbha Irrigation Development  11 
 Corporation Act, 1997 
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 -Chairmen appointed under clause ( b) are persons other than the 
Members of the State Legislature, the Chief Secretary as the Vice -Chairman shall in the absence of the 
Chairman, preside over the meeting and in t he absence of the Chief Secretary, the other  
Vice-Chairman, as may be predetermined 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 s uch contract, loan, arrangement or 
proposal is discussed, unless his presence is 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 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 local 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 meetings as a special invitee for the purpose of 
assisting or advising it on any matter or matters. The officer so invited may take part in the 
proceedings, but shall have no right to vote.  
(2) The officer so invited shall be entitled t o draw such honorarium or compensatory allowance 
for 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 vacan cy of member.— Any vacancy of a member of the Corporation 
shall be filled as early as practicable, in like manner as if the appointment is 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 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  
(b) any defect or irregularity in the appointment of a person as a member or the Corporation 
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 section 4( 1) 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.  
12  The Vidarbha Irrigation Development  [1997 : Mah. XXVI 
Corporation Act, 1997 
(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 superintendence of the Corporation and the overall control on the activiti es of 
the Corporation by the Managing Director, the Executive Director shall supervise and control all its 
officers and employees including any officers of Government appointed on deputation to the 
Corporation.  
13.  Disqualification of all officers and st aff.— 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 then as an 
officer or staff thereof, shall be qualified to be an officer or staff of the Corporation.  
14.  Authentication of orders, etc., of the Corporation. — All proceeding of the Corporation 
shall be authenticated by the Chairman or Vice -Chairman and all orders and instrum ents of the 
Corporation, subject to overall control and direction by the Managing Director, 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 the Corporation. — (1) From such date as may be 
specified, from time to time, by the State Government (hereinafter in this section referred to as “the 
appointed date”),—  
(a) the assigned projects of the Corporation and their assets comprising movables and 
immovables including Irrigation Projects, Hydro -Electric Power Projects, works under 
construction, specified in that behalf, situated 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 ;  1[* *]  
2[(a-1) the properties and assets, comprising movables and immovables, in a ll Irrigation 
Projects under survey and investigation or under construction, in the Vidarbha region, vested with 
the Government as on the date of coming into force of the Vidarbha Irrigation Development 
Corporation and Konkan Irrigation Development Corpora tion (Amendment) Act, 2007   
(Mah. VIII of 2007), alongwith the establishment thereof, shall vest in the Corporation ;  
(a-2) all Irrigation Projects in the Vidarbha region for which the administrative approval has 
been granted by the Water Resources Department of Government, however, budget provision 
therefor has not been made before the date of coming into force of the Vidarbha Irrigation 
Development Corporation and  the Konkan Irrigation Development Corporation (Amendment) 
Act, 2007 (Mah. VIII of 2007), shall vest in 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 Government, shall be deemed to 
be rights, liabilities and obligations of the Corporations.  
                                                   
1  This word was deleted by Mah. 8 of 2007, s. 2(a). 
2  Clauses (a-1) and (a-2) were inserted by Mah. 8 of 2007, s. 2(b). 
1997 : Mah. XXVI]  The Vidarbha 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 proceedings with respect to any scheme for the development of 
Irrigation Projects and Hydro -Electric Power Projects entrusted to the Corporation instituted or 
defended by or against the State Government before the appointed date may be continued, or instituted, 
or defended by or against the Corporation. 
16.  Decision of the State Government on the vest ing 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 obligation 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, d uties 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 devel opment of the state 
sector, irrigation projects, lift irrigation schemes 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 servi ces of such officers and servants are required by the Corporation 
for efficient exercise of its powers, performance of its duties or discharge of its functions, the State 
Government, the Head of the Department of the State Government or any officer authori sed by the 
State Government in this behalf may, from time to time, having regard to the necessity therefor, by 
order depute such officer; or employees to the corporation, and the Corporation shall take them over 
and employ them on deputation, subject to the provision 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 required to be repatriated on the grounds, such as promotion, reversion, 
termination or superannuation, or any other reason as may be dire cted 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 condition 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, perm anent and regular temporary permanent employees of the said 
establishment transferred on deputation to the Corporation under sub -section (2) shall have a lien on 
their posts in the service under the State Government and the period of their service under th e 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 employee on deputation to the Corporation shall be paid from 
the Corporation fund.  
(7) Save as otherwise provided in this section, the terms and conditions of services of employees 
on deputation to the Corporation, shall not be less advantageous than those applica ble to them 
14  The Vidarbha Irrigation Development  [1997 : Mah. XXVI 
Corporation Act, 1997 
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) some irrigation projects mentioned in the Schedule and command area development 
including flood control; and  
(ii) some schemes for the generation of hydro-electrical energy ;  
(b) to  plan, investigate, design, construct and manage those irrigation projects and their 
command area development 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 contracts in respect of the work 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 the activities 
of the Corporation ;  
(f) to promote participation of any person or body or association of individual whether 
incorporated or not, in planning , 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 ag ency 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, flori culture, 
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 undertake any other project and 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 
technical sanction, acceptance of all tenders, sanctioning budget and making financial provisions, 
settling dispute arising out of contracts and any other thing which may be necessary or expedien t for 
the purposes of carrying out its functions under this Act. 
(2) Without prejudice to the generality of the foregoing provision, such power shall include 
power,—  
                                                   
1  These words were added by Mah. 9 of 2000, s. 3. 
1997 : Mah. XXVI]  The Vidarbha Irrigation Development  15 
 Corporation Act, 1997 
(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 constructe d such dams, barrages, reservoirs, power 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 under 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 Cooperative Societies Act, 1961  (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 laboratories, 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 Godavari and Tapi River Valley in Vidarbha region ;  
(ii) determining the effect of its operations on the flow conditions in the Godavari and 
Tapi River and its tributaries in Vidarbha region ;  
(iii) providing navigation condition in its Godavari and Tapi River and its tributaries in 
Vidarbha region ;  
(h) to engage suitable qualified consultant or person having special knowledge or skill to 
assist the Corporation in the performance of its functions ;  
(i) to do all such other  things including making interest bearing monetary advances to the 
contractors executing works on the projects of the Corporation 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.  
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 domestic 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 sha ll be 
sufficient at least to cover the interest charges and repayment 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 charges  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 the extraction of surface 
water without the prior approval of the Corporation : 
16  The Vidarbha Irrigation Development  [1997 : Mah. XXVI 
Corporation Act, 1997 
Provided that, the State Government or local authority may, construct and operate such dams, 
bandhara, etc., a nywhere or across any river or basin within such area of operation or assign or hand 
over 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 railways, lands and roads and communications and shall bear the 
cost of any re -alignment thereof or resettlement of any population rendered necessary by such sub -
mergence. 
24.  Powers to be exercised by the Corporation under the Maharashtra Irrigation Act, 
1976.— Notwithstanding anything contained in the Maharashtra Ir rigation 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 authorise 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.  Powers of the State Government to issue directions.— The State Government may issue to 
the Corporation such general or special directions 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 directions. 
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, c ompulsorily acquire land under 1the Land Acquisit ion Act, 1894  (I 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. 
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 the 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 Corpora tion 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 replace 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 rule s made by the State 
Government under this Act, the Corporation may retain, lease, sell, exchange or otherwise dispose of 
                                                   
1 This Act has been repealed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and 
Resettlement Act, 2013 (30 of 2013), s. 114(1). 
1997 : Mah. XXVI]  The Vidarbha Irrigation Development  17 
 Corporation Act, 1997 
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, movable and immovable 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 s uch 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 behalf from time to time, provide an aggregate sum of not less than 
rupees 1[3335 crores] to the Corporation Fund, as its share of the capital required by the Corporation, 
of the performance of the functions of the Corporation under this Act and such contribution shall be 
paid in suitable instalments spread over a period of 2[Ten years] from the date of establishment of the 
Corporation :  
Provided that, the State Government shall, by appropriation duly made in this behalf, initially 
contribute and pay a sum of rupees 150 crores to the Corporation Fund :  
Provided further that, the contri bution 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 per formance 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 or un-guaranteed bonds, debentures, stocks, cash 
                                                   
1 These figures and word were substituted for the figures and word “2245 crores” by Mah. 31 of 2000, s. 2. 
2 These words were substituted for the words “five years” by Mah. 6 of 1999, s. 2(b). 
18  The Vidarbha Irrigation Development  [1997 : Mah. XXVI 
Corporation Act, 1997 
certificates, fixed deposit 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, u nless 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 thinks 
fit for the purposes authorised under this Act from and out of the fund of the 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 a

Excerpt shown. Open the full act in Lexace.

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