LexThe Telangana Road Development Corporation Act, 1998.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA ROAD DEVELOPMENT CORPORATION ACT,
1998.
(ACT NO. 1 OF 1998)
ARRANGEMENT OF SECTIONS
Sections
CHAPTER - I
1. Short title, extent and commencement.
2. Definitions.
CHAPTER - II
ESTABLISHMENT, CONDUCT OF BUSINESS AND
EMPLOYEES OF THE CORPORATION
3. Establishment of Telangana Road Development
Corporation.
4. Constitution of Corporation.
5. Disqualifications for membership and removal of
members.
6. Meetings of Corporation.
7. Constitution of Committees.
8. Provision for inviting officers of Government etc.
9. Filling up of casual vacancies of members.
10. Acts or proceedings not to be invalidated by vacancy
or informality etc.
11. Officers and servants of the Corporation.
12. Disqualification of all officers and servants.
13. Authentication of orders etc. of the Corporation.
2 [Act No. 1 of 1998]
CHAPTER - III
PROPERTY, ASSETS, LIABILITIES AND
OBLIGATIONS
14. Power of the Government to vest or entrust roads to
the Corporation.
15. Transfer of assets and liabilities of the Government to
the Corporation.
CHAPTER - IV
FUNCTIONS AND POWERS OF CORPORATION
16. Functions of the Corporation.
17. General powers of the Corporation.
18. Responsibility of the Corporation for payment of
interest on borrowed money.
19. Powers of Government to issue directions.
CHAPTER - V
ACQUISITION OF LAND
20. Power to acquire land for purposes of this Act.
21. Transfer of Government lands to Corporation.
22. Power of Corporation to dispose of lands etc.
CHAPTER - VI
FINANCE, ACCOUNTS AND AUDIT
23. Application of Corporation assets etc.
24. Corporation Fund.
25. Contribution of Government to Corporation Fund.
26. Grants, subventions, loans and advances to
Corporation.
27. Power of Corporation to borrow.
[Act No. 1 of 1998] 3
28. Acceptance of deposits by Corporation.
29. Power to spend.
30. Expenditure on objects other than roads.
31. Reserve and other funds.
32. Submission of budget to Corporation.
33. Sanction of the budget estimates.
34. Government as guarantee.
35. Disposal of profits and deficits.
36. Interest, charges and other expenses to be added to
and receipts taken for reduction of capital costs.
37. Depreciation Fund.
38. Financial Statement and programme of work.
39. Accounts and Audit.
40. Concurrent and special audit of accounts.
CHAPTER - VII
MISCELLANEOUS AND SUPPLEMENTARY
PROVISIONS
41. Furnishing of annual reports and returns etc.
42. Execution of contracts etc.
43. General Penalty.
44. Power of entry.
45. Dues to be recovered as arrears of land revenue.
46. Service of notice etc.
47. Public Notice how to be made known.
48. Notice period for performance.
49. Default in performance of duty.
50. Offences by Companies.
4 [Act No. 1 of 1998]
51. Authority for prosecution.
52. Compounding of offences by Corporation.
53. Penalty for obstruction.
54. Delegation of powers of Corporation.
55. Protection of action taken in good faith.
56. Chairman, Vice-Chairman, Managing Director,
Members and officers etc. to be public servants.
57. Power to make rules.
58. Power to make regulations.
59. Power to remove doubts and difficulties.
60. Dissolution of the Corporation.
61. Repeal of Ordinance.
THE TELANGANA ROAD DEVELOPMENT CORPORATION
ACT, 1998.1
ACT No.1 OF 1998.
CHAPTER - I
1. (1) This Act may be called the 2Telangana Road
Development Corporation Act, 1998.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall be deemed to have come into force on the
27th September, 1997.
2. In this Act unless the context otherwise requires,-
(a) “Corporation” means the 2Telangana Road
Development Corporation established under section 3;
(b) “Government” means the State Government of
2Telangana.
(c) “Local Authority” means,-
(i) A Gram Panchayat, a 3[Mandal Praja Parishad] or
a 3[Zilla Praja Parishad] constituted under the Telangana
Panchayat Raj Act, 1994;
1. The Andhra Pradesh Road Development Corporation Act, 1998
received the assent of the Governor on the 31 st December, 1997. The
said Act in force in the combined State, as on 02.06.2014, has been
adapted to the State of Telangana, under section 101 of the Andhra
Pradesh Reorganisat ion Act, 2014 (Central Act 6 of 2014) vide. the
Telangana Adaptation of Laws Order, 2016, issued in G.O.Ms.No.45,
Law (F) Department, dated 01.06.2016.
2. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
3. Substituted by Act No.41 of 2006 and now see the Telangana
Panchayat Raj Act, 2018 (Act No.5 of 2018).
Short title, extent
and
commencement.
Definitions.
Act 13 of 1994.
2 [Act No.1 of 1998]
(ii) a Municipality or a Notified Area Committee
constituted under the 4Telangana Municipalities Act, 1965;
(iii) A Mun icipal Corporation constituted under any
law for the time being inforce relating to Municipal
Corporations;
(d) “National Highway” means any highway for the time
being declared as a National Highway under section 2 of the
National Highways Act, 1956;
(e) “Notification” means a notification published in the
5Telangana Gazette and the word „notified‟ shall be
construed accordingly;
(f) “Prescribed” means prescribed by rules made under
this Act;
(g) “Road” means the ground appropriated for public
travel or forming a communication between one place and
another and includes a highway, openway, passage street,
square, court alley, bridge, foot track, path, sidewalk or lane,
whether surfaced or unsurfaced and whether a thoroughfare
or not, over which the public have a right of way and also
includes;
(i) any land acquired or demarcated with a view to
construct a road along it;
(ii) any slope, berm, borrowpits, foot paths,
pavements and side catch and boundary drains attached to
such road;
4. Adapted by G.O.Ms.No.142, Municipal Administration & Urban
Development (A2) Department, dated 29.10.2015.
5. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Act VI of 1965.
Central Act 48 of 1956.
[Act No.1 of 1998] 3
(iii) all bridges, culverts, tunnels, causeways, carriage
ways and other structures constructed on or across such
road; and
(iv) all trees, fences, posts, bou ndary and land marks
and othe r road accessories and material s and material
stocks on the road;
(h) “Regulation” means regulations made under this
Act.
CHAPTER – II
ESTABLISHMENT, CONDUCT OF BUSINESS AND
EMPLOYEES OF THE CORPORATION
3. (1) The State Government shall, by notification,
establish for the purposes of this Act, a Corporation to be
called 6Telangana Road Development Corporation,
(2) The Corporation establish ed 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 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
Hyderabad.
4. (1) The Corporation shall consist of the following
members, namely:-
7[(a) Person to be appointed
by the Government.
.. Chairperson;]
6. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
7. Substituted by Act No.27 of 2017.
Establishment of
6Telangana Road
Development
Corporation.
Constitution of
Corporation.
4 [Act No.1 of 1998]
(b) Chief Secretary to
Government.
.. Ex-Officio Vice -
Chairman;
(c) Principal Secretary to
Government Transport,
Roads & Buildings
Department or
Secretary to
Government, Transport,
Roads & Buildings
Department.
.. Ex-Officio
Member;
(d) Principal Secretary to
Government Finance &
Planning Department or
Secretary to
Government, Finance
and Planning
Department;
.. Ex-Officio
Member;
(e) Engineer-in-Chief,
Roads and Buildings or
Chief Engineer, Roads
& Buildings (Roads).
.. Ex-Officio
Member;
(f) One non-official member representing reputed and
recognised financial institutions, to be nominated by the
Government;
(g) An Officer of the Indian Administrative Service not
below the rank of a Deputy Secretary to Government or
Engineer-in-Chief, Roads and Buildings or Chief Engineer
(Roads and Buildings) may be appointed by the
Government as the Member -Secretary of the Corporation,
and he shall be desi gnated as the Managing Director of the
Corporation; and
[Act No.1 of 1998] 5
(h) Two other members to be nominated by the
Government from officials or non-officials.
8[(2) The term of o ffice of nominated Chairperson and
nominated members shall be for a period as notified by the
Government unless terminated earlier by the Government.]
(3) The non -official members of t he Corp oration
nominated under clauses (f) and (h) 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 purposes of
meeting the personal expenditure in attending the meetings
of the Corporation, as may be laid down by regulations.
5. (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
Managing Director;
(b) is of unsound mind, and sta nds 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 in terest,
8. Substituted by Act No.27 of 2017.
Disqualifications
for membership
and removal of
members.
6 [Act No.1 of 1998]
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 news paper 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 continuan ce on the Corporation detrimental to
the interest of the public; or
(d) is otherwise unsuitable to continue as member.
[Act No.1 of 1998] 7
(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 or in any other capacity in the Corporation.
6. (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:
Provided that atleast one meeting shall be held in every
four months period.
(2) The Chairman, or in his absence the Vice -
Chairman, shall preside at every meeting of the Corporation.
If for any reason the Chairman and Vice -Chairman are
unable to attend any meeting, the meeting shall stand
adjourned.
(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 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 agreement or proposal:
Meetings of
Corporation.
8 [Act No.1 of 1998]
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, lean, arrangement or proposal.
7. The Corporation may, from time to time, constitute a
Committee, or Committees out of its members specified in
sub-section (1) of section 4 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.
8. (1) The Corporation or any of its Committees may invite
any officer of the Central Government, State Government, a
local authority or any organisation or any other person to
attend its meeting or meetings as a special invitee for the
purpose of assisting o r advising on any matter or matters.
The person so invited may take part in the proceedings, but
shall have no right to vote.
(2) The person so invited shall be entitled to 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.
9. Any vacancy of a member of the Corporation shall be
filled as ear ly as practicable, in like manner as if the
appointment were being made for the first time.
10. No act done or proceedings taken under this Act by
the Corporation or a Committee appointed by the
Corporation shall be invalidated merely on the ground of,-
(a) any vacancy of a member or any defect in the
constitution or reconstitution of the Corpora tion or a
Committee thereof; or
Provision for
inviting officers of
Government etc.
Constitution of
Committees.
Filling up of
casual vacancies
of members.
Acts or
proceedings not
to be invalidated
by vacancy or
informality etc.
[Act No.1 of 1998] 9
(b) any defect or irregularity in the appointment o f a
person as a member of the Corporation or of a Committee
thereof; or
(c) any defect or irregularity in such act or proceedings,
not affecting the substance.
11. (1) The State Government shall appoint on deputation
a Managing Director as provided in clause (g) of sub-section
(1) of section 4, an Accounts and Finance Officer of the rank
of a Company Secretary and such other officers on
deputation from the Roads and Buildi ngs Department of the
Government as may be required.
(2) The Corporation may, with the prior approval of the
Government, appoint on deputation from the Roads and
Buildings Department of the Government 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 app ointment 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) Where any officers and employees belonging to any
category in the Roads and Buildi ngs Department of the
Government are likely to be rendered surplus wholly or
partially to the requirements of the Government due to the
functioning of the Corporation by or under this Act or where
the services of such officers and employees are required by
Officers and
servants of the
Corporation.
10 [Act No.1 of 1998]
the Corporation for eff icient exercise of its powers,
performance of its duties or discharge of its functions, the
Government or any officer duly authorised by the
Government in this behalf may, by order, depute such
officers and employees to the Corporat ion as may be found
necessary from time to time, who shall be accordingly
employed by the Corporation on deputation and their
salaries and allowances shall be paid from the Corporation
Fund.
(5) The period of deputation of any such officer or
employee to the Corporation shall ordinarily be five years,
on expiry of which, such officer or employee shall stand
repatriated to his parent service except when any such
person is required by the Government to be repatriated
earlier on such grounds as promotion, re version,
termination or superannuation or any other reason:
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
such person on deput ation shall be regulated by such rules
governing such matters at the time of the deputation or such
other rules as may, from time to time, be made by the State
Government, but they shall not be entitled to any deputation
allowance.
(6) All such persons o n deputation to the Corporation
shall continue to have a lien on their posts in their parent
service and the per iod of their service on deputati on under
the Corporation shall, on their repatriation to their parent
service, be counted for increments, pensio n and other
matters relating to their service.
(7) The Corporation shall have the authority to transfer
the officers, employees and servants to any area of its
operation.
[Act No.1 of 1998] 11
(8) Save as otherwise provided in this section, the
terms and conditions of service of the officers and
employees on deputation to the Corporation shall not be
less advantageous than those applicable to them
immediately before such deputation and shall not be varied
to their disadvantage except with the previous sanction of
the State Government.
(9) Subject to the superintendence of the Corporation,
the Managing Director shall supervise and control all its
officers and employees including any officers and
employees of the Government appointed on deputation to
the Corporation.
12. 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 o f the Corporation, or in any employment
under, by or on behalf of the Corporation otherwise than as
an officer or servant thereof, shall be qualified to be an
officer or servant of the Corporation.
13. All proceedings of the Corporation shall be
authenticated by the C hairman or Vice -Chairman and all
orders and instruments of the Corporation shall be
authenticated by the Managing Director or any other officer
of the Corporation as may be authorised in this behalf by
regulations.
CHAPTER - III
PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS
14. The Government may from time to time, by notification
vest in or as the case may be entrust to the Corporation any
of the following roads or any stretches thereof namely,-
Disqualification of
all officers and
servants.
Authentication of
orders etc. of the
Corporation.
Power of the
Government to
Vest or entrust
roads to the
Corporation.
12 [Act No.1 of 1998]
(a) roads vested in the Government and under the
control of the Roads and Buildings Department of the
Government;
(b) roads vested in and belonging to a Cantonment
Board constitu ted under the Cantonment Act, 1924 to the
extent of any agreement with such Cantonment Board.
15. (1) Subject to the provisions of any law for the time
being in force, on and from the date of a notificati on under
section 14,-
(a) all properties and asse ts comprising of movables
and immovables of such roads vested in the Government
and under the control of the Roads and Buildings
Department of the Government, shall vest in and stand
transferred to the Corporation;
(b) all rights, obligations and liabilities, acquired or
incurred, all contrac ts entered into and all matters and
things engaged to be done by, with, or for the Government,
immediately before such date for or in connection with the
purposes of any road or any stretch there of vested in, or
entrusted to, the Corporation under section 14, shall be
deemed to have been acquired, incurred, entered into and
engaged to be done by, with or for, the Corporation;
(c) all non-recurring expenditure incurred by or for the
Government, for or in connection with the purposes of any
road or any str etch thereof so vested in or entrusted to, the
Corporation, upto such date and declared to be capital
expenditure by the Government shall, subject to such terms
and conditions as may be prescribed, be treated as capital
provided by the Government to the Corporation;
(d) all sums of money due to the Government in
relation to any road or any stretch thereof so vested in or
Transfer of assets
and liabilities of
the Government
to the
Corporation.
Central Act II of 1924.
[Act No.1 of 1998] 13
entrusted to, the Corporation immediately before such date
shall be deemed to be due to the Corporation;
(e) all suits and other leg al proceedings instituted or
which could have been instituted by or against the
Government immediately before such date for any matter in
relation to such road or any stretch thereof may be
continued or instituted by or against the Corporation.
(2) Such properties assets, rights, obligations and
liabilities shall be valued in such manner as the Government
may determine.
(3) If any doubt or disputes arises as to which of the
properties or assets or rights or liabilities of the Government
have been transf erred to the Corporation such doubt or
dispute shall be referred to and decided by the Government,
whose decision shall be final.
CHAPTER - IV
FUNCTIONS AND POWERS OF CORPORATION
16. (1) It shall be the function of the Corporation to
develop, maintain and manage the roads or any stretches
thereof vested in, or entrusted to, it by the Government.
(2) Without prejudice to the generality of the provisions
contained in sub -section (1), the Corporation may, for t he
discharge of its functions,-
(a) survey, develop, maintain and manage the roads
vested in, or entrusted to it;
(b) raise resources for such development,
maintenance and management of such roads;
Functions of the
Corporation.
14 [Act No.1 of 1998]
(c) construct offices and workshops and establish
and maintain hotels, motels, restaurants and rest -rooms at
or near the roads vested in, or entrusted to it;
(d) regulate and control the use of the roads vested
in, or entrusted to it for the proper management thereof;
(e) develop and provide consultan cy and
construction services and carry on research acti vities in
relation to the develo pment, maintenance and management
of roads or any facilities there at;
(f) provide such facilities and amenities for the users
of the roads vested in, or entrusted to it as are in the opinion
of the Corporation necessary for the smooth flow of traffic
on such roads;
(g) advise the Government on all matters relating to
roads and assist the Government in formu lation and
implementation of schemes for road development;
(h) collect such fees and charges including toll fee for
services and benefits rendered in relation to the use of the
roads vested in, or entrusted to it at such rates and in such
manner, as may be prescribed;
(i) invite tenders, bids or offers and e nter into
contracts in respect of the roads vested in, or entrusted t o it,
for the purposes of the activities of the Corporation;
(j) to undertake schemes or works, either jointly with
other corporate bodies, or institutions, or local authorities or
Government, or on agency basis in furtherance of the
purposes for which, the Corporation is established and all
matters connected therewith;
[Act No.1 of 1998] 15
(k) to develop the lands adjacent to or nearby the
roads vested in, or entrusted to it with greenery and other
infrastructural facilities;
(l) prepare annual plans and five year working
development plans;
(m) prepare annual budget;
(n) take all such steps as may be necessary or
convenient for, or may be incidental to, the exercise of any
power or the discharge of any function conferred or
imposed on it by this Act; and
(o) undertake any other activities entrusted by the
Government in furtheran ce of the objectives for which the
Corporation is established.
17. (1) The Corporation shall have the power to accord
administrative approval, revised administrative approval,
technical sanction, accept all tenders, s anction budget and
make financ ial provisions, settle dispute s arising out of
contracts and do any other things which may be necessary
or expedient for the purpose of carrying out its functions
under this Act.
(2) without prejudic e 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 and activities and
to lease, sell, excha nge or otherwise transfer any property
held by it on such conditions as may be deemed proper by
the Corporation;
General powers of
the Corporation.
16 [Act No.1 of 1998]
(b) to take measures for protection of environment,
maintenance of ecological balance and prevention of
pollution in carrying on its activities;
(c) to engage suitable consultants or persons h aving
special knowledge or skill to assist the Corporation in the
performance of its functions; and
(d) 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.
18. The C orporation shall pay any interes t due on the
borrowed money from the Corporation Fund.
19. The 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
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
20. The Government may for carrying out the purposes of
this Act, compulsorily acquire land under the 9Land
Acquisition Act, 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.
9. Please see now the Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettl ement Act, 2013 (Central Act
30 of 2013).
Responsibility of
the Corporation
for payment of
interest on
borrowed money.
Powers of
Government to
issue directions.
Power to acquire
land for purposes
of this Act.
Central Act 1 of 1894.
[Act No.1 of 1998] 17
21. (1) For the furtherance of the objects of this Act, the
Government may, by not ification, 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 Government:
Provided that the 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 t his Act or
the rules or regulations made thereunder and the directions,
if any, given by the 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
Government may ask the Corporation to sur render it to the
Government upon such terms and conditions as may be
mutually agreed upon.
22. Subject to any rules made by the Government under
this Act in this behalf, 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
23. All property, fund and other assets vesting in the
Corporation shall be held and applied by it, for the purposes
of this Act.
24. (1) The Corporation shall have and maintain its own
fund, to which shall be credited,-
Transfer of
Government lands
to Corporation.
Power of
Corporation to
dispose of lands
etc.
Application of
Corporation
assets etc.
Corporation Fund.
18 [Act No.1 of 1998]
(a) all moneys received by the Corporation from the
Government by way of grants, subventions, loans, advances
the loans raised under this Act;
(b) all fees, charges and costs received by the
Corporation under this Act;
(c) all moneys re ceived by the Corporation from the
disposal of lands, bui ldings and other properties, mo vable
and immovable and other transactions;
(d) all moneys received by the Corporation by way of
rents and profits or from any other source.
(2) The Corporation ma y keep current and deposit
account with such bank or banks as may be specified by
the Government in this behalf.
(3) Such accounts shall be operated by such officer of
the Corporation as may be authorised by it in this behalf;
(4) Notwithstanding anyth ing contained in sub -section
(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.
25. (1) The Government shall, by appropriation duly made
in this behalf, from time to time, provide funds to the extent
considered necessary, to the Corporation for the
performance of the functions of the Corporation under this
Act.
(2) The Capital provided by t he Government shall not
carry any interest.
Contribution of
Government to
Corporation Fund.
[Act No.1 of 1998] 19
26. The Government may after due appropriation made by
the St ate Legislature by the 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 Government may determine.
27. (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 unguaranteed
bonds, debentures, stocks and otherwise, for the purpose of
providing itself with adequate resources.
(2) The maximum amount which the Corporation may
at any time h ave on loan under sub -section (1 ) shall not
exceed rupees one thousand crores unless the Government
fixes a higher maximum limit for this purpose.
28. The Corporation may accept deposits on such
conditions as it deems fit from persons, authorities or
institutions, to whom allotment or leas e or sale of land or
buildings or other properties or rights is made or is likely to
be made in furtherance of the objects of this Act.
29. 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 Corporation referred to in
section 24 or from the reserve and other funds referred to in
section 31, as the case may be.
30. It shall be competent for the Corporation to spend such
sums, as it thinks fit also on objects authorized under this
Act other than roads and such sums shall be treated as
common expenditure payable out of the fund of the
Corporation.
Grants,
subventions,
loans and
advances to
Corporation.
Power of
Corporation to
borrow.
Acceptance of
deposits by
Corporation.
Power to spend.
Expenditure on
objects other than
roads.
20 [Act No.1 of 1998]
31. (1) The Corporation s hall make provisi ons for such
reserve and other s pecially denominated funds as the
Government may, from time to time, direct.
(2) The management of the fun ds 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
Government in this behalf, be determined by the
Corporation.
(3) None of the funds referred to in sub -section (1)
shall, except with the previ ous approval of the Government,
be utilised for any purposes other than that for which it is
constituted.
32. (1) The Managing Director of the Corporation shall, at a
special meeting to be held in the month of Octob er in each
year lay before the Corporation, the budget estimates of the
Corporation for the next year.
(2) Every such budget estimates shall be prepared in
such form as the Government may, from time to time, by
order, determine and shall, provide for,-
(i) the proposals, plans and projects which the
Corporation proposes to execute either in part or in whole
during the next year;
(ii) the due fulfi lment of all the liabilities of the
Corporation; and
(iii) the implementation of the provisions of this Act.
(3) Such estimates shall contain a Statement showing
the estimated income and expenditure on capital and
revenue accounts for the next year and such other
Reserve and other
funds.
Submission of
budget to
Corporation.
[Act No.1 of 1998] 21
particulars indicating the financial performance of the
Corporation as the Government may direct. The budget
shall clearly reveal the financial outlay and performance.
33. The Corporation shall consider the budget estimates
submitted to it under section 32 and approve the same with
or without modifications on or before such date as the
Government may, from time to time, determine.
34. The Government may guarantee the repayment of any
loans and payment of interest on all or any of the loans
given or transferred to the Corporation.
35. (1) Subject to the provisions of sub -section (2) of
section 37 of this Act, the net profit, if any, attributa ble to
each of the main objects, namely road development,
maintenance and management shall be fully credited to the
Corporation.
(2) the net-deficit, if any in respect of any of the objects
shall be solely borne by the Government.
36. The interest, charges and all other expenditure shall be
added to the capital cost and all receipts shall be taken in
reduction of such cost if the Corporation is in deficit.
37. (1) The Corporation may make provis ion for
depreciation fund at such rates and on such terms as may
be specified by the Comptroller and Auditor General of India
and in consultation with the Government.
(2) The net profit for the purpose of section 35 shall be
determined after such provision has been made.
Disposal of profits
and deficits.
Government as
guarantee.
Sanction of the
budget estimates.
Interest, charges
and other
expenses to be
added to and
receipts taken for
reduction of
capital costs.
Depreciation
Fund.
22 [Act No.1 of 1998]
38. (1) The Corporation shall by such date in each financial
year as may be prescribed, prepare and submit to the
Government for approval an annual fin ancial statement and
the programme of work for the succeeding financial year
and the Government may, approve such financial statement
and the programme of work of the Corporation as submitted
by the Corporation or with such variations as the
Government thinks fit.
(2) The an nual financia l statement shall s how the
estimated receipts and expenditure during the succeeding
financial year in such form and details as may be
prescribed.
(3) The Corporation shall be competent to make
variations in the approved programme of work in the course
of the financial year provided that all such variations and
reappropriations out of the sanctioned budget are brought
to the notice of the Government by a suppleme ntary
financial statement.
(4) A copy of the annual financial statement and the
supplementary financial statement, if any, shall be placed
before the State Legislature as soon as may be after their
receipt by the Government.
39. (1) The Corporation shall maintain books of account
and other books in relation to the business and transactions
in such form, and in such manner, as may be prescribed.
(2) The accounts of the Corporation shall be audited by
an auditor appointed by the Government, in consultation
with the Comptroller and Auditor General of India.
(3) Within nine months from the end of the financial
year, the Corporation shall send a copy of the accounts
Financial
Statement and
programme of
work.
Accounts and
Audit.
[Act No.1 of 1998] 23
audited together with a copy of the report of the Auditor
thereon to the Government;
(4) The Government shall cause the accounts of the
Corporation together with the audit report thereon forwarded
to it under sub -section (3) to be laid before the State
Legislature, as far as possible before the expiry of the year
next succeeding the year to which the accounts and the
report relate.
40. (1) Notwithstanding anything contained in the last
preceding section, the Government may order that there
shall be concurrent audit of the accounts of the Corporation
by such person as it think s fit. The Government may als o
direct a special audit to be made by such person as it thinks
fit of the accounts of the Corporation relating to any
particular transaction or class or series of tran sactions of a
particular period.
(2) When an order is made under sub -section (1), the
Corporation shall present or cause to be presented for audit
all such accounts and shall furnish to the person, appointed
under sub -section (1) such information as t he said person
may require for the purpose of audit.
CHAPTER - VII
MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
41. (1) The Corporation shall prepare and submit to the
Government, in such form as m ay be prescribed, an annual
report within six months after the end of every financial year
of its activities during the previous financial year , with
particular reference to,-
(a) development, maintenance and management of
roads vested in, or entrusted to it; and
Concurrent and
special audit of
accounts.
Furnishing of
annual reports
and returns etc.
24 [Act No.1 of 1998]
(b) other activities of the Corporation.
(2) The Corporation shall also furnish to the
Government such returns, statistics reports, accounts and
other information with respect to its conduct of affairs
properties or activities or in regarding any proposed work or
scheme as the Government may, from time to time, require.
42. Every contract or assurance of property on behalf of
the Corporation shall be in writing and executed by such
authority or officer in such manner as may be provided by
regulations.
43. Whoever contravenes the provisions of this Act or any
rule or regulation made thereunder or fails to comply with
any notice, order or requisition issued under this Act shall
on conviction, be punished with imprisonment which may
extend to six months or with fine which may ext end to one
thousand rupees or with both.
44. Any o fficer or servant of the Corporation generally or
specially authorised by the Corporation may at all
reasonable times enter upon any land or premises and do
such things as may be necessa ry for the purpose of lawfully
carrying out any of its works or of making any survey,
examination or investigation preliminary or incidental to the
exercise of powers or the performance of functions by the
Corporation under this Act.
45. All sums due or payable by any person to the
Corporation or recoverable by it on account of any charge,
costs, expense, fees, rent, compensation or any other
account under this Act or any r ule or regulation made
thereunder or any agreement made with the Corporation
and all charges or expenses incurred in connection
therewith shall, without prejudice to any other mo de of
recovery, be recoverable as an arrear of land revenue.
Execution of
contracts etc.
General Penalty.
Power of entry.
Dues to be
recovered as
arrears of land
revenue.
[Act No.1 of 1998] 25
46. (1) All notices, orders and other documents required
by the Act or any rule or regulations made thereunder to be
served upon any person shall, save as otherwise provided in
this Act or such rule or regulation, be deemed to be duly
served,-
(a) where a person to be served is a Company, the
service is effected in acco rdance with the provisions of
section 51 of the 10Companies Act, 1956;
(b) whe re the person to be served is a firm, if the
document is addressed to the firm at its principal place of
business identifying it by the name and style under which its
business is carried on and is either,-
(i) sent under a certificate o f posting or by
registered post; or
(ii) left at the said place of business;
(c) where the person to be served is a statutory
public body or a corporation or a society or other body, if
the document is addressed to the Secretary, treasurer or
other principal officer of that body, corporation or society at
its principal office, and is either,-
(i) sent under a certificate of post ing or by
registered post; or
(ii) left at that office;
(d) in any other case, if the document is addressed to
the person to be served; and
(i) is given or tendered to him; or
10. See now the Companies Act 2013 (Central Act 18 of 2013).
Service of notice
etc.
Central Act I of 1956.
26 [Act No.1 of 1998]
(ii) if such person cannot be found, is affixed on
some conspicuous part of his last known place of residence
or business or is given or tendered to some adult member
of his family or is affixed on some conspicuous part of the
land or building to which it relates; or
(iii) is sent under a certificate of posting or by
registered post to that person.
(2) Any document which is required or authorised to be
served on the owner or occupier of any land or building may
be addressed „the owner‟ or „the occupier‟ as the case may
be of that land or building (naming that land or building)
name or description, and shall be deemed to be duly
served,-
(a) if the document so addressed is sent or delivered
in accordance with clause (d) of sub-section (1); or
(b) if the document so addressed or a copy thereof
so addressed is given or tendered to some person on the
land or building or, where there is no person on the land or
building to whom it can be delivered, is affixed on some
conspicuous part of the land or building.
(3) Where a document is served on the firm in
accordance with this section, the document shall be
deemed to be served on each partner.
(4) For the purpose of enabling any document to be
served on the owner of an y property, the occupier, if any of
the property may be required by notice in writing by the
Government or the Corporation, as the case may be to state
the name and address of the owner thereof.
[Act No.1 of 1998] 27
47. Every public not ice given under this Act or any rule or
regulation made there under shall be in writing and under
the signature of the officer concerned and shall be widely
made known in the locality or in the properties or areas to
be affected thereby affixing copies the reof in conspicuous
public places within the said locality or the said properties or
areas or by publishing the same by beat of drum or by any
other Excerpt shown. Open the full act in Lexace.