LexThe Telangana Water Resources Development Corporation Act, 1997.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA WATER RESOURCES DEVELOPMENT
CORPORATION ACT, 1997.
(ACT NO. 12 OF 1997)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement.
2. Definitions.
CHAPTER - II
ESTABLISHMENT, CONDUCT OF BUSINESS AND
EMPLOYEES OF THE CORPORATION
3. Establishment of Telangana Water Resources
Development Corporation.
4. Constitution of Corporation.
5. Constitution of 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 vacancies of members.
11. Acts or proceedings not to be invalidated by vacancy
or informality etc.,
12. Officers and servants of Corporation.
13. Disqualification of all officers and staff.
14. Authentication of orders etc., of the Corporation.
2 [Act No. 12 of 1997]
CHAPTER - III
VESTING OF PROPERTY, ASSETS, LIABILITIES AND
OBLIGATIONS AND TRANSFER OF EMPLOYEES
15. Vesting and transfer of the 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 the Corporation.
19. General powers of the Corporation.
20. Responsibility of Water Users’ Association for
maintenance of canals and management of water.
21. Water charges for supply of water for irrigation,
industrial and domestic purposes.
22. Responsibility of Corporation for payment of interest on
borrowed money.
23. Prohibition of construction of dam, weir etc., except
with approval of Corporation.
24. Co-ordination with other authorities to minimise
inconvenience caused by submergence.
25. Powers to be exercised by the Telangana Corporation
under Irrigation Act.
26. Powers of State Government to issue directions.
CHAPTER - V
ACQUISITION OF LAND
27. Power to acquire land for purposes of this Act.
28. Transfer of Government lands to Corporation.
[Act No. 12 of 1997] 3
29. Power of Corporation to dispose of land, etc.,
CHAPTER - VI
FINANCE, ACCOUNTS AND AUDIT
30. Application of Corporation Assets etc.,
31. Fund of Corporation.
32. Contribution of Government to Corporation funds.
33. Grants, subventions, loans and advances to
Corporation.
34. Power of Corporation to borrow.
35. Acceptance of deposits by Corporation.
36. Power to spend.
37. Expenditure on objects other than Irrigation Projects.
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 charges levied by State
Government.
46. Financial Statement and Programme of work.
47. Accounts and Audit.
48. Concurrent and Special audit of accounts.
4 [Act No. 12 of 1997]
CHAPTER - VII
MISCELLANEOUS AND SUPPLEMENTARY
PROVISIONS
49. Furnishing of annual reports and returns etc.,
50. Rehabilitation of the affected persons.
51. Execution of Contracts etc.
52. General Penalty.
53. Power of entry.
54. Dues to be recovered as an arrear 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, Managing Director, Members and Officers
etc. to be public servants.
66. Effect of provisions 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 Ordinance.
THE TELANGANA WATER RESOURCES DEVELOPMENT
CORPORATION ACT, 1997.1
ACT No.12 OF 1997.
1. (1) This Act may be called the 2Telangana Water
Resources Development Corporation Act, 1997.
(2) It shall extend to all the River Valleys in the State of
2Telangana and 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 with
effect from 18th January, 1997.
2. In this Act, unless the context otherwise requires,-
(a) “Area of operation of the Corporation” means the
area of the river Valleys 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 2Telangana Water
Resources Development Corporation established under
section 3;
1. The Andhra Pradesh Water Resources Development Corporation Act,
1997 received the assent of the Governor on the 7 th April, 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
Reorganisation 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.
Short title, extent
and
commencement.
Definitions.
2 [Act No.12 of 1997]
(c) “Irrigation & CAD Department ” means the Irrigation
and Command Area Development Department of the
Government;
(d) “Irrigation Project” means investigation, design,
planning, construction, maintenance and management of,-
(i) Major Irrigation Project having irrigable command
area of more than 10,000 hectares;
(ii) Medium Irrigation Project having irrigable
command area of more than 2 ,000 hectares and upto
10,000 hectares;
(iii) Minor Irrigation Project having irrigable command
area of more than 40 hectares and upto 2,000 hectares, and
shall include command area development, flood control,
drinking water and industrial water supply and other allied
activities;
(e) “River Valleys ” means the catchment area of all
rivers comprising of all their tributaries and distributaries
within the State of 3Telangana;
(f) “member” means a member of the Corporation
designated as Director;
(g) “prescribed” means prescribed by rules made
under this Act;
(h) “regulations” means the regulations made under
this Act;
(i) “State Government ” or “Government” means the
Government of 3Telangana.
3. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
[Act No.12 of 1997] 3
CHAPTER - II
ESTABLISHMENT, CONDUCT OF BUSINESS AND
EMPLOYEES OF THE CORPORATION
3. (1) The State Government shall, by notification in the
Official Gazette, establish for the purposes of this Act, a
Corporation to be called the 4Telangana Water Resources
Development Corporation.
(2) The Corporation established under s ub-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:-
(a) Minister, Major and Medium
Irrigation;
.. Chairman;
(b) Minister, Minor irrigation;
.. Member;
(c) Prl. Secretary / Secretary to
Government, Irrigation
Department;
.. Member;
(d) Prl. Secretary / Secretary to
Government, Finance
Department;
.. Member;
4. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Establishment of
4Telangana Water
Resources
Development
Corporation.
Constitution of
Corporation.
4 [Act No.12 of 1997]
(e) One non -official member representing reputed
and recognised financial institutions to be nominated by the
State Government;
(f) One officer to be appointed by the state
Government as the member secretary of the Corporation,
who shall be designated as the Managing Director of the
Corporation;
(g) Th ree other members to be nominated by
Government from officials or non-officials.
(2) The term of office o f nominated members shall be
for a period of one year unless terminated earlier by the
State Government.
(3) The non -official members of the Corporation
nominated under clauses (e) & (g) of sub -section (1) shall
receive such remuneration and allowances as may be laid
down by regulations.
(4) The official members of the Corporation shall
receive such compensatory allowances, for the purpose of
meeting the personal expenditure in attending the meetings
of the Corporation, as may be laid down by the regulations.
5. (1) There shall be an Executive Committee consisting
of the following members, namely:-
(a) Managing Director of the
Corporation;
.. Chairman;
(b) Engineer-in-Chief, Irrigation
Department, Hyderabad;
.. Member;
(c) Chief Accounts and Finance
Officer of the Corporation;
.. Member;
Constitution of
executive
committee.
[Act No.12 of 1997] 5
(d) Representative of the
Andhra Pradesh Industrial
Infrastructure Corporation;
.. Member;
(e) Chief Engineer, Public
Health Department;
.. Member;
(f) Representatives of the
Departments of Municipal
Administration and Urban
Development, Panchayat
Raj and Rural Development
and Industries.
.. Members;
(2) The powers, functions and duties of the Executive
Committee shall be such as may be laid down by
regulations.
6. (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 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, employ er or employee, any share or in terest,
whether, pecuniary or of any other nature, in any contract or
employment with, by or on behalf of the Corporation; or
Disqualifications
for membership
and removal of
members.
6 [Act No.12 of 1997]
(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 disqualif ied
under clause (e) or clause (f) by reason only of his or the
company of which he is a Director, S ecretary, 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, th e non -official, member has been given an
opportunity to submit his explanation to the Government
[Act No.12 of 1997] 7
and when such order is passed, the office of the member so
removed shall be deemed to be vacant.
(4) A member who has been so removed under sub -
section (3) shall not be eligible for reappointment as
member or in any other capacity in the Corporation.
7. (1) The Corporation shall meet a t 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 there of) as may be laid
down by regulations:
Provided that, at le ast one meeting shall be held in
every three months period.
(2) The Chairman or, in his absence such other
Member as may be notified by the Government shall preside
at every meeting of the Corporation . If for any reason the
Chairman and such other member 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 prese nce 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:
Meetings of
Corporation.
8 [Act No.12 of 1997]
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. The Corporation may, from time to time, constitute
Committee, or Committees o ut 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. (1) The Corporation or any of its Committees may invite
any officer of the Central Government, State Government,
local authority or any organisation or any person to attend
its meeting or meetings as a special invitee for the purpose
of assisting or advising, 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.
10. Any vacancy of a member of the Corporation shall be
filled as early as practicable, in like manner as if the
appointment were being made for the first time.
11. 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
Constitution of
committees.
Provision for
inviting officers of
Government and
local authority.
Filling up of
casual vacancies
of members.
Acts or
proceedings not
to be invalidated
by vacancy or
informality etc.,
[Act No.12 of 1997] 9
(b) any defect or irregularity in the appoin tment of 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.
12. (1) The State Government shall appoint Ma naging
Director as provided in s ection 4 (1), Chief Engineer,
Superintending Engineer, and Chief Accounts and Financ e
Officer and such other officers as may be required.
(2) The Corporation may, with the prior approval of the
State Government appoint such other officers and servants
subordinate to the officers mentioned in sub -section (1) as it
considers necessary for the efficient performance of its
duties and functions.
(3) The conditions of appoin tment 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 regard 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,
the Managing Director shall supervise and control all its
officers and employees including any officers of the
Government appointed on deputation to the Corporation.
13. No person who has, directly or indirectly, by himsel f or
by his partner or agent, any share or interest in any contract,
by or on behalf of the corporation or in any emp loyment
under, by or on behalf of the Corporation otherwise than as
Officers and
servants of
Corporation.
Disqualification of
all officers and
staff.
10 [Act No.12 of 1997]
an officer or staff thereof, shall be qualified to be an officer
or staff of the Corporation.
14. All proceedings of the Corporation shall be
authenticated by the 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
VESTING OF PROPERTY, ASSETS, LIABILITIES AND
OBLIGATIONS AND TRANSFER OF EMPLOYEES
15. (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 properties and assets comprising movables
and immovables including Irrigation Projects, works under
construction and management of completed schemes;
specified in that behalf, situated in the area of operation of
the corporation, which immediately before the appointed
date vested in the State Govern ment and were under the
control of the Irrigation and Comman d Area Development
Department, shall vest in and stand transferred to the
Corporation, and all income derived and expenses incurred
in that behalf be brought on books of the Corporation; and
(b) the rights, liabilitie s and obligations of the State
Government, whether arising out of any contract or
otherwise pertaining to the said project of the State
Government shall be deemed to be the rights, liabilities and
obligations of the Corporation.
(2) Such properties, assets rights, liabilities and
obligations shall be valued in such manner as the State
Government may determine.
Authentication of
orders etc., of the
Corporation.
Vesting and
transfer of the
property to the
Corporation.
[Act No.12 of 1997] 11
(3) All suits and other legal proceedings with respect to
any scheme for the development of Irrigation Projects and
other 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. Where any doubt or dispute arises as to whether any
property or asset has vested in the Corporation under
section 15 or any rights, liabiliti es or obligations have
become the rights, liabilities or obligation of the Corporation
under that, section, such do ubt or dispute shall be referred
to the State Government whose decision shall be final.
17. (1) Where on account of conferment of any powers,
duties and functions on the Corporation by or under this Act
in the opinion of the State Government, the employee or
employees belonging to technical staff as well as ministerial
and non -ministerial staff, 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
authorised by the State Government in this behalf may, from
time to time having regard to the necessity therefor, by
order depute such officers or employee to the Corporation,
and the Corporation shall take them and employ them on
deputation, subject to the provisions of this section.
(2) The perio d 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 reasons as may be directed by the State Government.
After the expiry of the period of deputation, he shall stand
repatriated to service under the State Government;
Power of State
Government to
depute certain
Government
employees to
Corporation.
Decision of the
State Government
on the vesting of
property to be
final.
12 [Act No.12 of 1997]
Provided that, during the period of such deputation all
matters relating to the pay, leave, allowances, retirement,
pension, provident fund and other conditions of service of
the employees, on deputation shall be regulated by 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.
(3) All 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 the
Corporation shall, on their repatri ation to the service under
the State Government, pensions and other matters relating
to their service.
(4) The Corporation shall have the authority to transfer
the officers and staff members within the area of operation
of the Corporation.
(5) No employee on deputation to the Corporation shall
be entitled to any deputation allowance.
(6) The salaries and allowances of employees on
deputation to the Corporation shall be paid from the
Corporation fund.
(7) Save as otherwise provided in this section, t he
terms and conditions of service of employees on deputation
to the Corporation shall not be less advantageous than
those applicable to them immediately before deputation and
shall not varied to their disadvantage except with the
previous sanction of the State Government.
[Act No.12 of 1997] 13
CHAPTER – IV
FUNCTIONS AND POWERS OF CORPORATION
18. The functions of the Corporation shall be,-
(a) to promote and operate irrigation projects and
command area development including flood control;
(b) to plan, investigate, design, construct and manage
the irrigation projects and command area development;
(c) to plan, investigate, design, construct and manage
drinking water supply schemes;
(d) to plan, investigate, design, construct and manage
industrial water supply schemes;
(e) to enter into contracts in respect of the works and
any other matters transferred to the Corporation along with
assets and liabilities under this Act;
(f) to invite tenders, bids, offers and enter into contracts
for the purposes of all the activities of the Corporation;
(g) to promote participation of any person or body or
association of individuals, whether incorporated or not in
planning, investigation, designing, construction and
management of irrigation projects and command area
development including flood control;
(h) to undertake schemes or works, either jointly with
other corporate bodies, or institutions, or with Government
or local authorities or on agency basis in furtherance of the
purposes for which the Corporation is established and all
matters, connected therewith;
Functions of the
Corporation.
14 [Act No.12 of 1997]
(i) to promote irrigation related activities such as
fisheries, pisciculture floriculture, horticulture, sericulture,
tissueculture etc;
(j) to promote tourism, water sports and other related
activities on and around the Irrigation projects;
(k) to develop the land around or nearby lakes and in
other suitable, locations with irr igation facilities and other
infrastructure facilities and lease part or whole of such
developed properties to the interested parties;
(l) to prepare annual p lan and five year working
development plan;
(m) to prepare annual Budget;
(n) to undertake any other activities entrusted by the
State Government in furtherance of the objectives for which
the Corporation is established.
19. (1) The Corporation shall have the power to accord
administrative approval, revised administrative approval,
technical sanction acceptance of all tenders, sanctioning
budget and making financial provisions, settling disputes
arising out of contracts and any other things which may be
necessary or expedient for the purpose of carrying out its
functions under this Act.
(2) Without prejudice to the generality of the foregoing
provision, such power shall include the power,-
(a) to acquire and hold property, both movable and
immovable as the Corporation may deem necessary for the
performance of any of its functions, duties, activities and to
lease, sell, exchange or otherwise transfer any property held
General powers of
the Corporation.
[Act No.12 of 1997] 15
by it on such conditions as may be deemed proper by the
Corporation;
(b) to construct or cause to be construc ted such
dams, barrages, reserv oirs, 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
acquatic life;
(d) to stock its reservo irs or water sources 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
associations and other organisations formed under the
5Telangana Co -operative Societies Act , 1964, or any other
Act for the better use of facilities made available by the
Corporation;
(f) to lease rights fo r 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,-
5. Adapted by G.O.Ms.No.53, Agriculture and Co-operation (Coop.II)
Department, dated 20.05.2016.
Act 7 of 1964.
16 [Act No.12 of 1997]
(i) utilising the water, and other resources in the
most economical manner for the devel opment of the River
Valleys;
(ii) determining the effect of its operations on the
flow conditions in the river valleys;
(iii) providing navigation condition in the River
Valleys,
(h) to engage suitable consultants or persons having
special knowledge or skill to assist the Corporation in t he
performance of its functions;
(i) to do all such other things and perform such acts
as may be necessary for, or incidental or conducive to any
matters which are necessary for furtherance of the
objectives for which the Corporation is established.
20. Water Users ‟ Associations shall be responsible for
maintenance of the canals and management of the water.
21. 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 user associations:
Provided that, the levy of water charges shall be such
that water charges so recovered shall be sufficient at least to
cover the interest charges of the loan raised by the
Corporation from the open market.
Responsibility of
Water Users‟
Association for
maintenance of
canals and
management of
water.
Water charges for
supply of water for
irrigation,
industrial and
domestic
purposes.
[Act No.12 of 1997] 17
22. The Corporation shall pay the interest on the borrowed
money through the recovery of water charges.
23. No person shall construct, operate or maintain within
the area of operation of the Corporation any dam or weir or
other work or any installation for the extraction of surface
water without the prior approval of the Corporation;
Provided that the State Government or a local authority
may, construct and operate such dams, weirs etc.,
anywhere or across any river or basin within such area of
operation or assign or handover such dam, weir etc., to the
Corporation.
24. The Corporation shall keep co-ordination with the State
Government, Railway Authorities, local authorities and
statutory bodies with a view to minimising the inconvenience
likely to be caused by the submergence of railway ‟s lands
and roads and communication s and shall bear the cost of
any realignment thereof or resettlement of any population
rendered necessary by such submergence.
25. Notwithstanding anything contained in the 6Telangana
Irrigation (Construction and Maintenance of Water Courses)
Act, 1965,-
(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;
(b) any officer of the Corporation authorised in this
behalf by the Corporation may carry out all, or any of the
functions and exercise all or any of the powers of the
6. Adapted in G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Responsibility of
Corporation for
payment of
interest on
borrowed money.
Prohibition of
construction of
dam, weir etc.,
except with
approval of
Corporation.
Co-ordination with
other authorities
to minimise
inconvenience
caused by
submergence.
Powers to be
exercised by the
6Telangana
Corporation under
Irrigation Act
18 [Act No.12 of 1997]
concerned officer under the provisions of the said Act and
the rules, within the area of operation of the Corporation.
26. The State Government may issue to the Corporation
such general or special directions as to policy or exercise of
the powers or performance of the functions by the
Corporation, as it may think necessary or expedien t 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
27. The State Government may, for carrying out the
purposes of this Act, compulsorily acquire land under the
7Land 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.
28. (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) Af ter any such land has been so placed at the
disposal of the Corporation it shall be dealt with by the
Corporation in accordance with the provisions of this Act, or
the rules or regulations made there under and the
7. See now the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 (Central Act
No.30 of 2013).
Powers of State
Government to
issue directions.
Power to acquire
land for purposes
of this Act.
Act 1 of 1894.
Transfer of
Government lands
to Corporation.
[Act No.12 of 1997] 19
directions, if any, given by the State Gov ernment 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 surrender it
to the State Government upon such terms and conditions as
may be mutually agreed upon.
29. Subject to any rul es made by the State Government
under this Act, the Corporation may retain, lease, sell,
exchange or otherwise dispose of any land, any building, or
other property vested in it, in such manner as it thinks fit for
carrying out, the purposes of this Act.
CHAPTER - VI
FINANCE, ACCOUNTS AND AUDIT
30. All property, fund and other assets vesting in the
Corporation shall be held and applied by it, for the purpose
of this Act.
31. (1) The Corporation shall have and maintain its own
fund, to which it 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;
Power of
Corporation to
dispose of land,
etc.,
Application of
Corporation
assets etc.
Fund of
Corporation.
20 [Act No.12 of 1997]
(d) all moneys received by the Corporation by way of
water charges, rents and profit or from any other sources.
(2) The Corporation may keep current and deposit
account with such Bank or Banks specified 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 sums
as it thinks fit for its day to day transactions, subject to such
limits and conditions as may be prescribed.
32. (1) The State Government shall, by appropriation duly
made in this behalf, from time to time, provide funds to the
Corporation for the performance of the function s of the
Corporation under this Act.
(2) The capital provided by the State Government shall
not carry any interest.
33. The State Government may, after, due a ppropriation
made by the State Legislature by law in this behalf, make
such grants, subventions, loans and advances to the
Corporation as it may deem necessary for the performance
of the functions of the Corporation under this Act and all
grants, subventions, loans and advances made shall be on
such terms and conditions as the State Government may
determine.
34. 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 ungua ranteed
Contribution of
Government to
Corporation
funds.
Grants,
subventions,
loans and
advances to
Corporation.
Power of
Corporation to
borrow.
[Act No.12 of 1997] 21
bonds, debentures, stocks and otherwise for the purpose of
providing itself with adequate resources.
(2) The maximu m amount which the Corporation may
at any time have on loan under sub -section (1) 8[shall not
exceed rupees three thousand crores] , unless the State
Government fixes a higher maximum limit for this purpose.
35. 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.
36. 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 30 or from the reserve and other funds referred to in
section 37, as the case may be.
37. It shall be competent for the Corporation to spend such
sums as it thinks fit also on objects authorised under this
Act other than I rrigation Projects, Drinking Wat er Projects,
Industrial Water Supply Projects and Roads and such sums
shall be treated as common expenditure payable out of the
fund of the Corporation.
38. (1) The Corporation shall make provisions for such
reserve and other specially denominated funds as the State
Government may, from time to time, direct.
(2) The management of the funds referred to in sub -
section (1), the sums to be transferred, from time to time, to
the credit thereof and the application of money comprised
therein, shall, subject to the directions, if any, issued by the
8. Substituted by Act No.8 of 2004.
Acceptance of
deposits by
Corporation.
Power to spend.
Expenditure on
objects other than
Irrigation Projects.
Reserve and other
funds.
22 [Act No.12 of 1997]
State Government in this behalf, be determined by the
Corporation.
(3) None of the funds referred to in sub -section (1)
shall, except with the previous approval of the State
Government be utilised for any purposes other than that for
which it is constituted.
39. (1) The Managing Director of the Corporation shall, at a
special meeting to be held in the month of October in each
year, lay before the Corporation, the budget estimates of the
Corporation for the next year.
(2) Every such budget estimate shall be prepared in
such form as the State 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 w hole
during the next year;
(ii) the due fulf ilment of all the liabilities of the
Corporation; and
(iii) the implementation of the provisions of this Act;
and such estimates shall contain a Statement showing the
estimated income and expenditure on cap ital and revenue
accounts for the next year and such other particulars
indicating the financial performance of the Corporation, as
the State Government may direct. The budget shall clearly
reveal the financial outlay and performance.
40. The Corporation shall consider the budget estimate
submitted to it under section 38 and approve the same with
or without modifications on or before such dates a s the
State Government may, from time to time, determine.
Submission of
budget to
Corporation.
Sanction of
budget estimates.
[Act No.12 of 1997] 23
41. The State Government may guarantee the repayment
of any loans and payment of interest on all or any of the
loans given/transferred to the Corporation.
42. (1) Subject to the provisions of sub -section (2) of
section 43 of this Act, the net profit, if any, attributable to
each of the main objects, namely, irrigation, 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 State Government.
43. 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.
44. (1) The Corporation may make provision 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 State Government.
(2) The net profit for the purpose of section 41 shall be
determined after such provision has been made.
45. In the event of any betterment levy being imposed by
the State Government, the proceeds thereof in so far as they
are attributable to the operations of the Corporation, shall be
credited to the Corporation.
46. (1) The Corporation shall, by such date in each
financial year as may be prescribed, prepare and submit to
the State Government for approval an annual fin ancial
statement and the programme of work for the succeeding
financial year and the State Government may, approve such
financial statement and the programme of work of the
Government as
Guarantor.
Disposal of profits
and deficits.
Interest charges
and other
expenses to be
added to and
receipts taken for
reduction of
capital cost.
Depreciation
Fund.
Apportionment of,
betterment
charges levied by
State
Government.
Financial
Statement and
Programme of
work.
24 [Act No.12 of 1997]
Corporation as submitted by the Corporation or with such
variations as the State Government thinks fit.
(2) The annual financial statement shall show the
estimated receipts and expenditu re during the succeeding
financial year in such form and, detail 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 State Governmen t by a supplementary
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 State Government.
47. (1) The Corporation shall mainta in books of account
and other books in re lation to the business and trans action
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 State 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
audited together with a copy of the report o f the Auditor
thereon, to the State Government.
(4) The State 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
Accounts and
Audit.
[Act No.12 of 1997] 25
year next succeeding the year to which the accounts and
the report relate.
48. (1) Notwithstanding anything contained in the last
preceding section, the State Government may order that
there shall be concurrent audit of the accounts of the
Corporation by such person as it thinks fit. The State
Government may also direct a special audit to be made by
such person as it thinks fit of the accounts of the
Corporation relating to an y particular transaction or class or
series of transactions or to 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 the said person
may require for the purpose of audit.
CHAPTER - VII
MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
49. (1) The Corporation shall prepare and submit to the
State Government, in such form as may be prescribed, an
annual report within six months after the end of every
financial year of its activities during the previous fi nancial
year, with particular reference to,-
(a) irrigation, command area developme nt and flood
control;
(b) industrial water supply;
(c) drinking water supply schemes;
(d) recreation facilities;
(e) use of lands;
Concurrent and
Special audit of
accounts.
Furnishing of
annual reports
and returns etc.,
26 [Act No.12 of 1997]
(f) re-settlement of displaced persons; and
(g) other activities of the Corporation.
(2) The corporation shall also furnish to the State
Government such returns, statistics, reports, accounts and
other information with respect to its conduct of affairs,
properties or activities or in regard to any proposed work or
scheme as the State Government may, from time to time,
require.
50. The rehabilitation and resettlement of the persons
affected due to the irrigation projects shall be carried out by
the State Government in accordance with the provisions of
this Act:
Provided that all the expenditure required to be
incurred by the State Government for the rehabilitation and
the resettlement of persons affected by the irrigation
projects shall be borne by the Corporation.
51. Every contract or assurance of property on behalf of
the Corporation shall be in wr iting and executed by such
authority or officer in such manner as may be provided by
regulations.
52. Whoever contravenes the provisions of this Act or any
rule or regulations made thereunder or fail to comply with
any notice, order or requisition issued under this Act shall,
on cExcerpt shown. Open the full act in Lexace.