The rajasthan water supply and sewerage corporation act, 1979

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THE RAJASTHAN WATER SUPPLY AND SEWERAGE 
CORPORATION ACT, 1979 
(Act No. 15 of 1979) 
 
[Published in the Rajasthan Gazette, Part IV-A, Extraordinary, dated 12th December, 
1979.] 
[Received the assent of the President on the 10th day of December, 1979.] 
An 
Act 
to provide for the establishment of a Water Supply and Sewerage Corporation for rapid 
development and proper regulation of water supply and sewerage services, and f or performance 
of other environmental engineering services in the State of Rajasthan. 
Be it enacted by the Rajasthan State Legislature in the Thirtieth Year of the Republic of 
India as follows:- 
CHAPTER I 
1. Short title, extent and commencement.  - (1) This Act may be called the Rajasthan 
Water Supply and Sewerage Corporation Act, 1979. 
(2) It extends to the whole of the State of Rajasthan excluding the cantonment areas. 
(3) It shall come into force on such date as the State Government may, by noti fication in 
the official Gazette, appoint, and different dates may be appointed for different provisions of this 
Acts; and a reference in any provision to the date of commencement of this Act shall be 
construed as reference to the date of commencement of that provision. 
2. Definitions. - In this Act, unless the context otherwise requires:- 
(i) "bye-laws" means bye-laws made under this Act; 
(ii) "Corporation" means the Rajasthan Water Supply and Sewerage 
Corporation established under section 3; 
(iii) "cess-pool" includes a settlement tank or other tank to receive or dispose 
off foul matter from any premises; 
(iv) "Chairman" means the Chairman of the Corporation; 
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(v) "communication pipe" means any pipe or system of pipes, alongwith all 
fittings thereto, by means of which water is supplied to any premises from the main, 
and includes a connection pipe, service pipe, meter or other fittings; 
(vi) "connection pipe" mea ns any water pipe from a ferrule to stop -cock 
connecting the main of the local body of the Corporation, as the case may be with the 
service pipe; 
(vii) "consumer" means any person getting the benefit of any water supply or 
sewerage service from the local body or the Corporation, as the case may be; 
(viii) "Director" means a Director of the Corporation, and includes the 
Chairman and the Managing Director; 
(ix) "domestic sewage" means waste water from the residential premises, 
boarding and lodging houses, hos tels, hotels, public places, offices and all such 
establishments as are not a part of any trade or industry, and arising out of personal 
and normal human activities such as drinking, bathing, ablution, washing and 
cooking; 
(x) "drain" means a sewer, tunnel, pipe, ditch, gutter or channel or any cistern, 
flush-tank, septic tank or other device for carrying off or treating sewage, offensive 
matter, polluted water, sullage, waste water or sub -soil water, and includes any 
culvert, ventilation shafts or pipe or other appliances or fittings connected with such 
drain, and any ejectors compressed air mains, sealed sewage mains and special 
machinery or apparatus for raising, collecting, expelling or removing sewage or 
offensive matter from any place; 
(xi) "ferrule" means a ferrule connecting the connection pipe with the main; 
(xii) "local area" means the area falling within the jurisdiction of a local body; 
(xiii) "local body" means a Municipal board, committee, corporation or 
council, a district board, Zila Parishad,  a Panchayat Samiti, Panchayat or other 
authority legally entitled to, or entrusted by the Government, with the control or 
management of a municipal or local fund and shall also include an Urban 
Improvement Trust; 
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(xiv) "Public Health Engineering Departmen t" mean the Department 
functioning for the maintenance and execution of water supply and sewerage schemes 
of the Government of Rajasthan; 
(xv) "main" means a pipe laid by the local body or the Corporation as the case 
may be, for the purpose of giving gener al supply of water as distinct from supply to 
individual consumers, and. includes any apparatus used in connection with such a 
pipe; 
(xvi) "Managing Director" means the Managing Director of the Corporation; 
(xvii) "non -official Director" means a Director; not being an  Ex-
officio Director; 
(xviii) "occupier" in relation to any premises, means the following:- 
(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) an owner who is in occupation of those premises; 
(c) a tenant of those premises who is exempt from payment of rent; 
(d) a licensee who is in occupation of these premises; and 
(e) any person, who is liable to pay damages to the owner in respect of use 
and occupation of those premises; 
(xix) "owner" in relation to any premises, means the person who receives 
the rent of the said 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 th e charge of, or to exercise the rights of an owner of the 
said premises; and 
(d) a mortgage-in-possession; 
(xx) "polluted water" means water containing objectionable or harmful 
material rendering it unfit for its intended use; 
(xxi) "premises" means any land or building or any part of land or building; 
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(xxii) "prescribed" means prescribed by rules; 
(xxiii) "prescribed authority" means any authority appointed by the State 
Government, by notification in the Official Gazette, to pe rform all or any of the 
functions of the prescribed authority; 
(xxiv) "private street", "public street" and "street" in relation to any local 
area, shall have the meanings assigned to them in the law relating to the local body 
having jurisdiction over that local area; 
(xxv) "regulations" means regulations made under this Act; 
(xxvi) "rules" means rules made under this Act; 
(xxvii) "service pipe" means any pipe other than the connection pipe 
beyond the stop-cock by means of which water is supplied to any premises; 
(xxviii) "sewage" means night -soil and other contents of water closets, 
latrines, privies, urinals, cesspools or drains, and polluted water from sinks, bath 
rooms, stables and other like places, and includes trade effluents; 
(xxix) "sewer" means a c losed conduit for carrying sewage offensive 
matter, polluted water, waste water or sub-soil water; 
(xxx) "sewerage" means a system of collection of waste water from a 
community from its houses, institutions, industry and public places, the pumping, 
treatment and disposal of such waste water, its effluent, sludge, gas and other 
products; 
(xxxi) "stop -cock" means a stop -cock fitted at the end of the connection 
pipe away from the main for the purpose of switching off and regulating the water 
supply to any premises; 
(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 it 
does not include domestic sewage; 
(xxxiii) "waste water" means the spent water of a community and it 
includes the combination of liquid and water carrying wastes from residences, 
commercial buildings, industrial plants and institutions together with ground water, 
surface water and storm water; 
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(xxxiv) "water-connection" includes- 
(a) any tank, cistern, hydrant, stand-pipe, meter or tap, situated or any private 
property and connected with a main or other pipe belonging to the local body or the 
Corporation, as the case may be; 
(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 requirement for drinking and other domestic uses, industry, recreation and 
various public uses; 
(xxxvi) "water works" includes water channel (including steam, lake, spring, river 
or canal, well, other underground water source, pump, gallaries, reservoir, cistern (tank), 
duct whether covered or open,  treatment units, sluice, supply main, culvert, engine, water 
truck, hydrants, stand -pipe, 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. 
CHAPTER II 
Establishment, Conduct of Business, Duties and Powers of the Corporation 
3. Establishment of the Corporation.  - (1) As soon as may be after the commencement 
of this Act, the State Government shall, by notification in the Official Gazette, with effect from a 
date to be specified therein, establish for the purposes of this Act a Corporation to be called "The 
Rajasthan Water Supply and Sewerage Corporation". 
(2) The Corporation shall be a body corporate, having perpetual succession and a 
common seal, with powers, subject to the provisions of this Act, to acquire, hold or dispose off 
property, both movable and immovabl e and to contract, and may sue or be sued by its corporate 
name as aforesaid. 
4. Constitution of the Corporation. - (1) The Corporation shall consist of the following, 
namely:- 
(a) Chairman, to be appointed by the State Government; 
(b) Managing Director, p ossessing such qualifications as may be prescribed, to be 
appointed by the State Government; 
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(c) Financial Director, who shall be a qualified economist, to be appointed by the 
State Government; 
(d) Secretary to the Government of Rajasthan in Public Health Engineering 
Department, Ex-officio Director; 
(e) Secretary to the Government of Rajasthan Finance Department, Ex -officio 
Director; 
(f) Special Secretary to the Government of Rajasthan in Planning Department, Ex -
officio Director; 
(g) Chief Engineer of the Corporation, Ex-officio Director; 
(h) Three non -official Directors, at least one of whom shall be member of 
Scheduled Castes/Scheduled Tribes, to be appointed by the State Government; 
(i) Two members of the Rajasthan Legislative Assembly to be appointed as non-
official Directors by the State Government on the recommendations of the Speaker of 
Legislative Assembly. 
(2) The names of the persons appointed as non-official Directors shall be published in the 
Official Gazette. 
5. Disqualification for being Chairma n, Managing Director or a non -official 
Director. - A person shall be disqualified for being appointed or continuing as Chairman, 
Managing Director or a non-official Director, if he- 
(a) has been convicted of an offence involving moral turpitude; 
(b) is an undischarged insolvent; 
(c) is of unsound mind and stands so declared by a competent Court; 
(d) holds, except as provided in section 6, any office or profit under the 
Corporation; 
(e) has, directly or indirectly by himself or by any partner, employer or em ployee, 
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: 
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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; 
(iv) the occasional sa le to the Corporation, upto a value not exceeding ten 
thousand rupees in any one year, of any article in which he or the company regularly 
trades. 
6. Term of office, salary and allowances of Directors.  - (1) The Chairman, unless 
appointed ex-officio shall hold office for three years. The State Government may, if it thinks fit 
in public interest so to do, by notification in the official Gazette, terminate the appointment of the 
Chairman earlier without entitling him to any right to compensation whatsoever. 
(2) The Managing Director and Financial Director shall hold office for such period as the 
State Government may, by order, specify. 
(3) A person appointed as Director under clause (h) of sub -section (1) of section 4 shall 
hold office for three years: 
Provided that his term may be determined earlier by the State Government, by 
notification in the Official Gazette. 
(4) A person appointed as Director under clause (i) of sub -section (1) of section 4 shall 
hold office for three years: 
Provided that he shall cease to be a Director on his ceasing to be a member of the 
Rajasthan Legislative Assembly. 
(5) A Director shall be eligible for re-appointment. 
(6) Any Director may at any time resign his office by writing under his hand, addressed 
to the State Government, and on such resignation being accepted, he shall be deemed to have 
vacated his office. 
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(7) If any Director is by infirmity or otherwise rendered temporarily incapable of carrying 
out his duties or is absent on leave or otherwise in circumstances not involving the vacation 
office, the State Government may appoint another person to officiate for him and to carry out his 
functions under the Act. 
(8) The Chairman, the Managing Director and Financial Director shall be paid from the 
Corporation Fund such salary and allowances as may be fixed by the State Government. 
(9) The other Directors of the Corporation shall be paid such allowances as may be fi xed 
by the State Government. 
7. Removal of the Chairman and other non -official Directors. - (1) If at any time, it 
appears to the State Government that the Chairman has shown himself to be unsuitable for his 
office, or has been guilty of any misconduct or neglect which renders his removal expedient, or 
has incurred any of the disqualifications mentioned in section 5, it may, by notification in the 
Official Gazette, remove him from office after giving him reasonable opportunity of showing 
cause. 
(2) The State Government may, by notification in the Official Gazette, remove any non -
official Director from office after giving him reasonable opportunity of showing cause- 
(a) if the Director, other than the Chairman, Managing Director or an Ex -officio 
Director, absents himself, without permission of the Chairman, from the three consecutive 
meetings of the Corporation; 
(b) if he has incurred any of the disqualifications mentioned in section 5; 
(c) if he in the opinion of the Government is unsuitable or has become unf it for 
acting as a Director or has so abused his position as a Director as to render his continuance 
as such Director detrimental to public interest. 
8. Officers and servants of the Corporation and their recruitment and conditions of 
service. - (1) The Cor poration may appoint such officers and servants as it considers necessary 
for the efficient performance of its duties and discharge of its functions against the post 
sanctioned by the State Government. The recruitment and the conditions of service of the 
officers and servants of the Corporation shall be determined by regulations. 
(2) The Corporation may, with the previous approval of the appropriate Government, 
appoint a servant of the Central Government or the State Government as an employee of the 
Corporation on such terms and conditions as it thinks fit. 
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(3) Subject to the superintendence of the Corporation, the Managing Director shall be the 
Chief Executive Officer of the Corporation. He shall supervise and control all the officers and 
servants including any officer of Government appointed on deputation to the Corporation. 
9. Authentication of orders, etc. of the Corporation.  - All proceedings of the 
Corporation shall be authenticated under the signatures of the Chairman or of any Director 
authorised in this behalf by the Chairman and all other orders and instruments of the Corporation 
shall be authenticated under the signatures of the Managing Director or of any other officer of 
the Corporation as may be authorised in this behalf by regulations. 
10. Assistance of Government Officers, etc. - The Corporation may invite any officer of 
Government or local body or other person to attend its meeting for the purpose of assisting or 
advising it on any matter. The person so invited may take part in the proceedings of the 
Corporation, but shall have no right to vote. 
11. Delegation of Powers. - Subject to the provisions of this Act the Corporation may, by 
general or special order, or by rules to be prescribed, delegate, either unconditionally or subject 
to such conditions, including the condition of review by itself, as may be specified in the order, 
to any committee appointed by it or to the Chairman or the Managing Director or any other 
officer of the Corporation such of its powers, duties and functions under this Act as it deems fit, 
not being its powers, duties and functions under sections 34, 62 and 67. 
12. Disqualification for participation in proceedings of the Corporation or of 
Committee on account of interest.  - (1) Any Director of the Corporation or a member of a 
committee appointed by the Corporation, who- 
(a) has any share or interest of the nature described in clause (e) or clause (f) of 
section 5 in respect of any matter, or 
(b) has acted professionally, in relation to any matter on behalf of any person 
having therein any such share or interest as aforesaid , shall notwithstanding anything 
contained in the proviso to section 5, vote or take part in any proceedings (including any 
discussion on any resolution or question) of the Corporation or Committee, thereof 
relating to such matter. 
(2) If any Director of t he Corporation or any member of a committee appointed by the 
Corporation has directly or indirectly any interest in any area in which it is proposed to acquire 
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land for any of the purposes of this Act, he shall not take part in any meeting of the Corporati on 
or committee thereof in which any matter relating to such land is considered. 
(3) Nothing in sub-section (1) or (2) shall prevent any Director of the Corporation or any 
member of a committee thereof from voting on, or taking part in the discussion of, any resolution 
or question relating to any subject other than a subject referred to in these sub-sections. 
13. Acts not to be invalidated by vacancy, irregularity etc.  - No act done or 
proceedings taken under this Act by the Corporation or a committee appoi nted by the 
Corporation shall be invalidated merely on the ground of- 
(a) any vacancy of a Director or 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 appoint ment of a person as a Director of the 
Corporation or as a member of a committee thereof; or 
(c) any defect or irregularity in such act of proceedings, not affecting the 
substance. 
14. Duties and functions of the Corporation.  - The duties and functions of t he 
Corporation shall be as follows, namely:- 
(a) to prepare, execute, promote and finance scheme for supply of water and for 
sewerage and sewage disposal; 
(b) to render all necessary services in regard to water supply and sewerage to the 
State Government a nd local bodies, and on request, to private institutions or individuals 
also; 
(c) to prepare draft State Plans, for water supply, sewerage and drainage on the 
direction of the State Government; 
(d) to review and advise on the tariff taxes fees, and charges  of water supply and 
sewerage systems, in the areas of the Corporation and the local bodies which have entered 
into an agreement with the Corporation; 
(e) to assess the requirement of materials and arrange for their procurement and 
utilisation; 
(f) to establish State standards for water supply and sewerage services; 
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(g) to review annually the technical, financial, economic and other aspects of water 
supply and sewerage system of every scheme of the Corporation or the local bodies which 
have entered into an agreement with the Corporation; 
(h) to establish and maintain a facility to review and apprise the technical, 
financial, economic and other pertinent aspects of every water supply and sewerage 
scheme in the State; 
(i) to operate, run and maintain any water works and sewerage system, if and when 
so directed by the State Government, on such terms and conditions and for such period as 
may be specified by the State Government; 
(j) to assess the requirements of manpower and training in relation to water supply 
and sewerage services in the State; 
(k) to carry out applied research for efficient discharge of the duties and functions 
of the Corporation; 
(l) to perform such of the duties and functions which are being performed by the 
Public Health Engineering Department of the State as may be specified, from time to time, 
by the State Government; 
(m) to perform and discharge such other duties and functions as are allotted to the 
Corporation under other provisions of this Act; or 
(n) to perform such other environmental engineering functions as may be specified 
by the State Government, by notification in the Official Gazette. 
15. Powers of the Corporation.  - (1) The Corporation shall, subject to the other 
provisions of this Act, hav e power to do anything which may be necessary or expedient for 
performing its duties and discharging its functions under this Act. 
(2) Without prejudice to the generality of the foregoing provisions such powers shall 
include the power- 
(a) to inspect the w ater supply and sewerage facilities in the State by whomsoever 
they are operated; 
(b) to obtain such periodic or specific information from any local body and 
operating agency, as the Corporation may deem necessary; 
(c) to provide training for its own perso nnel as well as for employees of the local 
bodies; 
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(d) to prepare and carry out schemes for water supply and sewerage; 
(e) to lay down with the prior approval of the State Government the schedule of 
fees and other charges for all kinds of services rendered  by the Corporation to the State 
Government, local bodies, institutions, or individuals; 
(f) to enter into contract or agreement with any person or persons as the 
Corporation may deem necessary, for performing its duties and discharging its functions 
under the Act; 
(g) to adopt its own budget annually; 
(h) to approve with the prior approval of the State Government tariffs for water 
supply and sewerage services applicable to respective local areas comprised within the 
jurisdiction of the Corporation and such  local bodies as have entered into an agreement 
with the Corporation; 
(i) to manage all its affairs so as to provide the people of the area within its 
jurisdiction with wholesome water and, where feasible, efficient sewerage service; 
(j) to take such other  measures as may be necessary to ensure water supply in 
times of any emergency; 
(k) to acquire, possess and hold land and other property and to carry any water or 
sewerage works through, across, over, on 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; 
(l) to extract water from any natural source and dispose of waste water; 
(m) to raise, borrow or secure money on such terms and conditions as may be 
expedient, and in particular by way of loans and advances, deposits and issue of 
debentures and obtain subventions or mortgages from public institutions like the Life 
Insurance Corporation of India, Banks and any International Organisations or from the 
State and Central Government, for drinking water and sewerage schemes or any other 
schemes relating to environmental engineering services or for improvement of sanitation; 
(n) to receive grants from the State Government, the Central Government and the 
local bodies for water supply and sewerage or any other sanitation improvement schemes; 
(o) to repay installment of loans and pay interest on the principal thereof to the 
lenders as per mutually agreed terms and conditions; 
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(p) to advance loans to the local bodie s or Government for their water supply and 
sewerage schemes on such terms and conditions as may be specified by the Corporation; 
(q) to recover from the local bodies or Government, principal and interest thereon 
in respect of loans advanced to them by the Corporation; 
(r) to incur such expenditure as the Corporation may deem necessary for 
performing its duties and functions under this Act; 
(s) to exercise such other powers as are conferred on the Corporation under other 
provisions of this Act. 
16. Powers of  the Corporation to give directions and to call for returns, reports, 
etc. - (1) Notwithstanding anything contained in any other law for the time being in force, the 
Corporation may give such directions to any local body, with regard to the implementation of 
any water supply or sewerage scheme financed by it under clause (a) of section 14, as it thinks 
fit, and such body shall be bound to comply with such directions. 
(2) In case any local body is aggrieved by any such direction or experiences any 
difficulty in complying with the same, it shall refer the matter to the State Government whose 
decision thereon shall be final. 
(3) The Corporation shall have power to call for any return, statement of account, report, 
statistics or other information from any local body or other body or individual, which is required 
by it for the exercise of its powers and performance and discharge of its duties and functions 
under this Act, and such body or individuals shall be bound to furnish such information. 
17. Supervision and Cent age charges. - The Corporation may include in the cost of any 
scheme or work, the execution or further execution whereof is undertaken under clause (a) of 
section 14, supervision and centage charges at such rate; not exceeding such  limit as may be 
prescribed, as it may determine under clause (e) of sub-section (2) of section 15. 
CHAPTER III 
Vesting of Property, assets, liabilities and Obligations and Transfer of Employees 
18. Vesting and transfer of property of the Corporation.  - (1) From such different 
dates as may be specified, from time to time, by the State Government (hereinafter in this section 
referred to as "the appointed date"):- 
(a) the properties and assets (including water works, buildings, laboratories, stores, 
vehicles, furniture and other furnishing) which immediately before the appointed date 
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were vested in the State Government for the purpose of the Public Health Engineering 
Department, Rajasthan shall vest in, and stand transferred to 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 service, shall be the rights, 
liabilities and obligations of the Corporation. 
(2) Such properties, assets, rights, liabil ities and obligations shall be valued in such 
manner as the State Government may determine. 
(3) All suits and other legal proceedings with respect to the matters referred to above, 
instituted, or to be instituted or defended by or against the State Governm ent, before the 
appointed date, may be continued, or instituted, or defended by or against the Corporation. 
19. 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 asset s has vested in the Corporation 
under section 18 or any rights, liabilities or obligations have become the rights, liabilities and 
obligations of the Corporation under that section, such doubt or dispute shall be referred to the 
State Government, whose decision shall be final. 
20. Vesting of existing water and sewerage services in the Corporation.  - (1) 
Notwithstanding anything contained in any law for the time being in force, the Corporation may, 
at any time, with the previous approval of the State Governm ent, take over any water supply and 
sewerage services for maintenance or augmentation or improvement; from any local body, and in 
such cases:- 
(a) all the existing water supply and sewerage services, sewage works and sewage 
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, belonging to or vested in that local body; 
(b) so much of the sub-soil appertaining to the said water mains and sewers as may 
be necessary for the purpose of enlarging, depending or otherwise repairing or 
maintaining any such water mains and sewers or any pipes and other a ppliances and 
fittings connected with such water supply and sewerage services and sewage works and 
sewage farms; and 
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(c) all rights, liabilities and obligations of such local body relating to the things 
mentioned in clauses (a) and (b) including the right to recover arrears of water tax and 
sewerage tax, by whatever name called, and of any cost or fees or charges relating to 
water supply and sewerage services and also including liabilities arising from any loans 
advanced by Government or any other person to  said local body for the thinks aforesaid, 
other than loans diverted to or utilised for purposes other than those referred to in clauses 
(a) and (b); 
shall on such date as may be specified by the Corporation, stand transferred to and vested 
in the Corporation and be subject to its control. 
(2) Such properties, assets, rights, liabilities and obligations shall be valued in such 
manner as State Government may determine. 
(3) Where any doubt or dispute arises as to whether any property or asset has vested in 
the Corporation under sub -section (1) or any rights, liabilities or obligations have become the 
rights, liabilities or obligations of the Corporation under this section, such doubt and dispute 
shall be referred to the State Government whose decision shall be  final and binding on the 
Corporation and the local body concerned. 
(4) For taking over any properties or assets of the local body, the Corporation shall pay to 
that body such amount as may be mutually agreed upon. In the absence of any such agreement, 
the State Government shall determine the amount to be paid to the local body on the basis of the 
valuation made under sub- section (2) and after taking into consideration the statutory duty of the 
local body to provide water supply and sewerage services, the grants received by the local body, 
from time to time, the outstanding loan liabilities of the local body, and such other relevant 
factors. The decision of the State Government shall be final and binding on both parties. 
21. Corporation to assume obligations in respect of matters to which this Act applies 
for water works taken over from local bodies.  - In respect of water works taken over from a 
local body by the Corporation, all debts and obligations incurred, all contracts entered into, all 
matters and thi ngs engaged to be done, by, with or for any local body prior to taking over the 
water works by the Corporation, shall be deemed to have been incurred, entered into or engaged 
to be done by, with or for the Corporation, and all suits or other legal proceedi ngs instituted or 
which might, but for transfer and vesting under subsection (1) of section 20, have been instituted 
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or defended by or against the local body, may be continued or instituted or defended by or 
against the Corporation. 
22. Co-ordination of activities of the Corporation and other local bodies. - If the State 
Government is of the opinion that it is in the public interest that the Corporation and other local 
bodies having jurisdiction over continuous areas should co -ordinate their activities in r elation to 
water supply services or sewerage services or both, it may issue such directions to the 
Corporation and the other local bodies concerned as it may think fit, and it shall be the duty of 
the Corporation and the other local bodies to comply with such directions. 
23. Transfer of Government Employees to the Corporation.  - (1) On and after the 
establishment of the Corporation, the State Government may, from time to time, direct that the 
services of such of the existing officer and servants of the Stat e Government in the Public Health 
Engineering Department, who in its opinion, are rendered surplus to its requirements shall stand 
terminated and their posts shall stand abolished, from such date, as may be specified by it 
(hereinafter in this section referred to as "the appointed date"), and shall on that date (which may 
be different for different officers and servants) become the officers or servants of the 
Corporation. 
(2) Every permanent or temporary employee of the Public Health Engineering 
Department in respect of whom a direction is issued under sub -section (1) shall, on and from the 
appointed date, be a permanent or temporary employee of the Corporation, as the case may be, 
against a permanent or temporary post, which shall stand created in the estab lishment of the 
Corporation with effect from the appointed date. 
(3) Any officer or servant so transferred shall hold his office under the Corporation by the 
same tenure, at the same remuneration and upon the same other conditions of service and with 
the same rights and privileges as to pension, gratuity, provident fund  and other matters as he 
would have held on the appointed date if this Act had not come into force. Any service rendered 
by him under the State Government shall be deemed to be service rendered under the 
Corporation. He shall continue in service under the Corporation until his employment under the 
Corporation is duly terminated or his remuneration or other conditions of service are duly revised 
or altered by the Corporation in pursuance of the law which for the time being governs his 
conditions of service: 
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Provided that the conditions of service applicable immediately before the appointed date 
to the case of any such officer or servant shall not be varied to his disadvantage, except with the 
previous approval of the State Government. 
(4) The sums standing to  the credit of the employees referred to in sub -section (1) in any 
person, provident fund, gratuity or other like funds constituted for them shall be transferred by 
the State Government to the Corporation along with any accumulated interest due till the 
appointed date and with the accounts relating to such fund. On and after the appointed date, the 
Corporation shall, to the exclusion of the State Government, be liable for payment of pension, 
provident fund, gratuity or other like sums as may be payable to s uch employees at the 
appropriate time in accordance with the conditions of their service. 
(5) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (Central Act 
XIV of 1947), or in any other law for the time being in force, the transfer o f services of any 
employee to the Corporation 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 authority. 
(6) Nothing contained i n sub-section (1) shall apply to any employee who, by notice in 
writing given to the State Government, within two months from the appointed date or such 
extended time as the State Government may, by general or special order, specify, intimates, his 
intention of not becoming or continuing as an employee of the Corporation. 
(7) Notwithstanding anything contained in the foregoing sub-sections:- 
(a) no person employed in the Public Health Engineering Department against 
whom any disciplinary proceeding is pendin g or to whom any notice or order of 
termination of his services or compulsory retirement has been issued before the date of 
commencement of this Act shall be transferred to the Corporation, and such person may 
be dealt with after the said date in such mann er and by such authority as the State 
Government may, by general or special order, specify in this behalf. 
(b) if the services or any employee of the State Government stand transferred 
under sub-section (1) to the Corporation, the Corporation shall be comp etent after such 
transfer, to take such disciplinary or other action as it thinks fit against or in respect of 
such employee, having regard to any act or omission or conduct or record of such 
employee while he was in service of the State Government. 
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CHAPTER IV 
Contract, Finance, Accounts and Audit 
24. Execution of Contracts, etc.  - Every contract or assurance of property on behalf of 
the Corporation shall be in writing and executed by such authority or officer and in such manner 
as may be provided by regulations. 
25. Corporation Fund.  - The Corporation shall have its own fund to be called "the 
Corporation Fund", which shall be deemed to be a local fund and to which shall be credited all 
moneys received by or on behalf of the Corporation, otherwise than by way of loans. 
26. Other funds of the Corporation.  - (1) The Corporation shall also have another fund 
to be called "the 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 Corporation, by way of loans. 
(2) Without prejudice to the provisions of section 25 or sub-section (1) of this section, the 
Corporation may, with the previous approval of the State Government, constitute such other 
funds as may be necessary for the efficient perf ormance of its duties and discharge of its 
functions under this Act. 
(3) Except as otherwise directed by the State Government, all moneys and receipts 
specified in the foregoing provisions and forming part of the funds of the Corporation shall be 
deposited in the Reserve Bank of India or in any nationalised bank or other Scheduled Bank or 
invested in such securities as may be approved by the State Government. 
27. General principles for the Corporation's finance.  - The Corporation shall not, as 
far as practicable, and after taking credit for any grant or subvention from the State Government 
under section 28, carry on its operations under this Act, at a loss. 
28. Grants and subventions to the Corporation.  - The State Government may, under 
appropriation duly made in this behalf, from time to time, make recurring and non -recurring 
grants and subventions to the Corporation for the purposes of this Act on such terms and 
conditions as the State Government may determine. 
29. Loans to the Corporation. - The State Government may, from time to time, advance 
loans to the Corporation on such terms and conditions, not inconsistent with the provisions of 
this Act, as the State Government and the Corporation may agree upon. 
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30. Ini tial contribution of Government to the Corporation Funds.  - Under 
appropriation duly made in this behalf, the State Government may make an initial contribution to 
the Corporation Funds of rupees one crore or such lesser sum as it thinks fit. 
31. Power to b orrow and re -lend. - (1) The Corporation may, from time to time, with 
the previous sanction of the State Government and subject to the provisions of this Act and to 
such conditions as the State Government may, by general or special order impose, borrow any  
moneys required for the purposes of this Act, by making arrangements with the banks or other 
bodies or institutions approved by the State Government for this purpose. 
(2) The Corporation may advance any part of such borrowing to any local bodies or any 
other department of the State Government for the performance of its duties and discharge of its 
functions relating to water supply and sewerage services, on such terms and conditions as the 
Corporation may determine. 
32. Depreciation Reserve.  - The Corporation shall create a depreciation reserve and 
make annual provision therefor in accordance with such principles as may be prescribed. 
33. Government as Guarantor.  - The State Government may guarantee the re -payment 
of any loan and payment of in terest on all or any of the loans given or transferred to the 
Corporation for the purposes of this Act. 
34. Annual Financial Statements, Accounts and Audits.  - (1)(a) In February of each 
year the Corporation shall submit to the State Government a statement  in the prescribed form of 
the estimated Capital and Revenue receipts and expenditure for the ensuing year. 
(b) The said statements shall include a statement of the salaries of Directors 
officers and employees of the Corporation and of such other particula rs as may be 
prescribed. 
(c) The State Government shall as soon as may be after the receipt of the said 
statement cause it to be laid on the table of the House of the State Legislature, and the said 
statement shall be open to discussion therein, but shall not be subject to vote. 
(d) The Corporation shall take into consideration any comments made on the said 
statement in the State Legislature. 
(e) The Corporation may at any time during the year in respect of which a 
statement under clause (a) has been submit ted, submit to the State Government a 
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supplementary statement, and all the provisions of this sub -section shall apply to such 
statements as they apply to such statement under the said clause. 
(2) The Corporation shall cause to be maintained such proper boo ks of account and other 
books in relation to its accounts and prepare the balance -sheet in such form and manner as the 
regulations may require. 
(3) The accounts of the Corporation shall be audited by such auditor in such manner and 
at such times, as the St ate Government may, by general or special order, direct. The auditor so 
appointed shall have such powers of requiring the production of documents and the furnishing of 
information respecting such matters, and shall have such powers in respect of dis -allowance and 
surcharge as may be prescribed. 
(4) The accounts of the Corporation as certified by the auditor together with the audit 
report thereon shall be forwarded annually to the State Government, who may issue such 
directions to the Corporation as it may d eem fit, and the Corporation shall comply with such 
directions. 
(5) The State Government shall cause the accounts of the Corporation to be published in 
such manner as it thinks fit. 
CHAPTER V 
Taxes, fees and charges 
35. Cost of water.  - (1) The Corporation  shall with the prior approval of the State 
Government and by notification in the Official Gazette, fix the cost of water to be supplied 
according to volume and also the minimum cost to be charged in respect of each connection. 
(2) The Corporation may, in lieu of charging the cost of water according to the volume, 
accept from any consumer a fixed sum or a flat rate for a specified period on the basis of 
expected consumption of water during that period. 
36. The cost of disposal of waste water.  - (1) The Corp oration shall with the prior 
approval of the State Government and by notification in the Official Gazette, fix the cost of 
disposal of the volume of total water supplied to the consumer, as may be prescribed) and also 
the minimum cost to be charged in respect of such disposal. 
(2) The Corporation may, in lieu of charging the cost of disposal of waste water 
according to the basis stated in sub -section (1), accept, from any consumer, a fixed sum for a 
specified period on the basis of expected disposal of waste water during that period. 
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37. Meter Rent and fees for services.  - (1) The Corporation may provide water meters 
and charge such rent for the meters as may be provided in the bye-laws. 
(2) The Corporation may charge fees for connection, disconnection, reco nnection of any 
water supply or sewer or testing or supervision or for any other service rendered or work 
executed or supervised, at such rates may be provided by the bye-laws. 
38. Deposits. - The Corporation, may by bye-laws, provide for requiring any consumer or 
class of consumers to deposit such sums as may be specified therein, as security for prompt 
payment of its dues and due performance of the conditions subject to which services are rendered 
to them. It shall be lawful for the Corporation to recover its dues from the amount

Excerpt shown. Open the full act in Lexace.

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