LexThe Telangana Infrastructure Development Corporation Act, 1998.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA INFRASTRUCTURE DEVELOPMENT
CORPORATION ACT, 1998.
(ACT NO. 37 OF 1998)
ARRANGEMENT OF SECTIONS
Sections
CHAPTER - I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER - II
ESTABLISHMENT, CONDUCT OF BUSINESS AND
EMPLOYEES OF THE CORPORATION
3. Establishment of Telangana Infrastructure
Development Corporation.
4. Constitution of Corporation.
5. Constitution of Executive Committee.
6. Disqualification for Membership and removal of
Members.
7. Meetings of Corporation.
8. Constitution of Committees.
9. Provision for inviting officers of Government and Local
Authority and others.
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 servants.
14. Authentication of orders etc., of the Corporation.
2 [Act No. 37 of 1998]
CHAPTER - III
PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS
15. Power of the Government to vest or entrust projects,
works and schemes to the Corporation.
16. Transfer of assets and liabilities of the Government to
the Corporation.
CHAPTER - IV
FUNCTIONS AND POWERS OF CORPORATION
17. Functions of the Corporation.
18. General Powers of the Corporation.
19. Charges for providing facilities and rendering services.
20. Responsibility of the Corporation for payment of
interest on borrowed money.
21. Prohibition of construction of any facility for extraction
of surface water without approval of Corporation.
22. Co-ordination with other authorities to minimise
inconvenience caused by projects or works or
schemes of the Corporation.
23. Powers to be exercised by the Corporation under
certain Laws.
24. Powers of the Government to issue directions.
25. Application of the provisions of Hyderabad
Metropolitan Water Supply and Sewerage Act, 1989.
CHAPTER - V
ACQUISITION OF LAND
26. Power to acquire land.
27. Transfer of Government lands to Corporation.
28. Powers of Corporation to dispose of land etc.
[Act No. 37 of 1998] 3
CHAPTER - VI
FINANCE, ACCOUNTS AND AUDIT
29. Application of Corporation assets etc.
30. Fund of the Corporation.
31. Contribution of Government to Corporation Fund.
32. Grants, subventions, loans and advances to the
Corporation.
33. Power of Corporation to borrow.
34. Acceptance of deposits by Corporation.
35. Power to spend.
36. Expenditure on objects other than those stated in
section 17.
37. Reserve and other funds.
38. Submission of budget to Corporation.
39. Sanction of budget estimates.
40. Government as Guarantor.
41. Disposal of profits and deficits.
42. Interest, charges and other expenses to be added to
and receipts taken for reduction of capital cost.
43. Depreciation Fund.
44. Apportionment of, betterment charges levied by
Government.
45. Financial Statement and programme of work.
46. Accounts and Audit.
47. Concurrent and special audit of accounts.
4 [Act No. 37 of 1998]
CHAPTER – VII
MISCELLANCEOUS AND SUPPLEMENTARY
PROVISIONS
48. Furnishing of annual reports and returns etc.
49. Rehabilitation of affected persons.
50. Execution of contracts etc.
51. General penalty.
52. Power of entry.
53. Dues to be recovered as an arrear of land revenue.
54. Service of notice etc.
55. Public notice how to be made known.
56. Notice period for performance.
57. Default in performance of duty.
58. Offences by Companies.
59. Authority for prosecution.
60. Compounding of offences by Corporation.
61. Penalty for obstruction.
62. Delegation of powers of Corporation.
63. Protection of action taken in good faith.
64. Chairman, Managing Director, Members and Officers
etc. to be Public Servants.
65. Effect of provisions inconsistent with other laws.
66. Power to make rules.
67. Power to make regulations.
68. Power to remove doubts and difficulties.
69. Dissolution of Corporation.
70. Repeal of Ordinance.
THE TELANGANA INFRASTRUCTURE DEVELOPMENT
CORPORATION ACT, 1998.1
ACT No.37 OF 1998.
CHAPTER - I
PRELIMINARY
1. (1) This Act may be called the 2Telangana Infrastructure
Development Corporation Act, 1998.
(2) It shall extend to the whole of the State of
2Telangana.
(3) It shall be deemed to have come into force with
effect from the 14th September, 1998.
2. In this Act, unless the context otherwise requires,-
(a) “Corporation” means the 2Telangana Infrastructure
Development Corporation established under section 3;
(b) “Government” means the State Government of
2Telangana;
(c) “Local Authority” means,-
1. The Andhra Pradesh Infrastructure Development Corporation Act,
1998 received the assent of the Governor on the 22 nd December, 1998.
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 Orde r, 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.37 of 1998]
(i) a Municipal Corporation constituted under any law
relating to Municipal Corporations for the time being in
force;
(ii) a Municipality or a notified Area Committee,
constituted under the 3Telangana Municipalities Act, 1965;
(iii) a Gram Panchayat, a Mandal Praja Parishad or a
4Zilla Praja Parishad constituted under the 5Telangana
Panchayat Raj Act, 1994;
(d) “Notification” means a notification published in the
6Telangana Gazette; and the word “notified” shall b e
construed accordingly;
(e) “Prescribed” means prescribed by rules made
under this Act;
(f) “Regulations” means the regulations made under
this Act.
CHAPTER - II
ESTABLISHMENT, CONDUCT OF BUSINESS AND
EMPLOYEES OF THE CORPORATION
3. (1) The Government shall by notification establish for
the purposes of this Act , a Corporation to be called the
6Telangana Infrastructure Development Corporation.
3. Adapted by G.O.Ms.No.142, Municipal Administration & Urban
Development (A2) Department, dated 29.10.2015.
4. Substituted by Act No.41 of 2006.
5. Adapted by G.O.Ms.No.9, Panchayat Raj & Rural Development
(Mandal) Department, dated 12.09.2014 and now see the Telangana
Panchayat Raj Act, 2018 (Act No.5 of 2018).
6. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Establishment of
6Telangana
Infrastructure
Development
Corporation.
[Act No.37 of 1998] 3
(2) The Corporation established under sub -section (1)
shall be a body corporate having perpetual succession and
a common seal, with power to contract, acquire, hold and
dispose of property, both movable and immovable and to
do all 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) Chief Minister .. Chairman
(b) Minister - incharge of
Planning
.. Member
(c) Minister – Panchayatraj &
Rural Development,
Water Supply and
Employment Generation.
.. Member
(d) Minister - Municipal
Administration and Urban
Development.
.. Member
(e) Principal Secretary or
Secretary to Government,
Panchayat Raj & Rural
Development
Department.
.. Ex-Officio
Member;
(f) Principal Secretary or
Secretary to Government,
Municipal Administration
and Urban Development
Department.
.. Ex-Officio
Member;
Constitution of
Corporation.
4 [Act No.37 of 1998]
(g) Principal Secretary or
Secretary to Government
– Finance Department
Ex-Officio
Member;
(h) One non -official Member
representing reputed and
recognised Principal
Institutions, to be
nominated by the
Government
(i) One officer to be
appointed by the
Government as the
Member Secretary of the
Corporation, who shall
be the Managing Director
of the Corporation
(j) Three other Members to
be nominated by
Government from officials
or non-officials.
(2) The term of office of nominated Members shall be
for a period of one yea r unless terminated earlier by the
Government.
(3) The non -official members of the Corporation under
clauses (h) and (j) of sub -section (1) shall receive such
remuneration and allowances as may be laid down by
regulations.
(4) The Official Members of the Co rporation 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.
[Act No.37 of 1998] 5
5. (1) There shall be an Executive Committee consisting
of the following Members, namely:-
(a) Minister - incharge of
Planning
Chairman
(b) Managing Director of the
Corporation
Vice-
Chairman
(c) Principal Secretary to
Government, MA&UD
Department
Ex-Officio
Member
(d) Secrertary to Government
(RD), PR&RD Department
Ex-Officio
Member
(e) Chief Accounts and
Finance Officer of the
Corporation
Ex-Officio
Member
(f) One Representative of any
Department of the
Government as may be
nominated by the
Government.
(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 disqualifie d 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;
Constitution of
Executive
Committee.
Disqualification for
Membership and
removal of
Members.
6 [Act No.37 of 1998]
(b) is of unsound mind and stands so declared by a
competent court;
(c) is an undischarged insolvent;
(d) is convicted for an offence involving moral
turpitude;
(e) has directly or indirectly by himself or by any
partner, employer or employee, any share or interest,
whether pecuniary or of any other nature, in any contract, or
employment with, by or on behalf of the Corporation; or
(f) is a Director, Secretary, Manager or other Officer of
any company, which has any share or interest in any
contract or employment with, by or on behalf of, the
Corporation:
Provided that, a person shall not be disqualified
under clause (e) or clause (f) by reason only of his or the
company in which he is a Director, Secretary, Manager or
other Officer, having a share or interest in,-
(i) any sale, purchase, lease or exchan ge or
immovable property or any agreement for the same;
(ii) any agreement for loan of any 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 remov e from the Corporation
any non -official Member nominated by the Government,
who, in its opinion,-
(a) has been disqualified under sub-section (1);
[Act No.37 of 1998] 7
(b) refuses to act;
(c) has so abused his position as a Member as to
render h is continuance on the Corporation detrimental to
the interest of the public; or
(d) is otherwise unsuitable to continue as Member.
(3) no order of removal under sub -section (2) shall be
made unless, the non -official Member has been given an
opportunity to submit his explanation to the Government
and when such order is passed, the office of the Member so
removed shall be deemed to be vacant.
(4) A Member who has been so removed under sub -
section (3) shall not be eligible for reappointment as
Member or in any other capacity, in the Corporation.
7. (1) The Corporation shall meet at such ti mes 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 o f business at its
meetings including the quorum thereof as may be laid down
by regulations:
Provided that, at least one meeting shall be held in
every three months period.
(2) The Chairman or, in his absence such other
Member as may be approved by the Chairman, shall
preside at every meeting of the Corporation. If any rea son,
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
Meetings of
Corporation.
8 [Act No.37 of 1998]
of the Corporation, shall, at the earliest possible opportunity,
disclose the na ture of his interest to the Corporation, and
shall not be present at any meeting of the Corporation when
any such contract, loan, ar rangement or proposal is
discussed, unless his presence is required by the other
Members for the purpose of eliciting inform ation, but no
Member so required to be present shall vote on any such
contract, loan, arrangement or proposal:
Provided that a Member shall not be deemed to be
concerned or interested as aforesaid by reason only of his
being a share holder of a company c oncerned in any such
contract, loan, arrangement or proposal.
8. (1) The Corporation may, from time to time, appoint a
committee, or committees of officials, non -officials and 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.
(2) The Corporation may appoint a Consultant or
Consultants acting in an advisory or in any other capacity, in
matters relating to its projects, works and schemes.
(3) The Corporation may appoint such auditors to
certify, the valid execution of its projects, works and
schemes as it may deem fit.
9. (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 or advising, on any matter or matters.
The person so invited may take part in the proceedings, but
shall have no right to vote.
Constitution of
Committees.
Provision for
inviting officers of
Government and
Local Authority
and others.
[Act No.37 of 1998] 9
(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 s hall be
filled as early as prac ticable, 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 a committee appointed by the
Corporation shall be invalid merely on the ground of,-
(a) any vacancy of a Member or any defect in the
constitution or recon stitution of the Corporation or a
committee thereof; or
(b) any defect or irregularity in the appointment 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 Government shall appo int the Managing
Director as pro vided in sub -section (1) of section 4, a Chief
Engineer, a Superintending Engineer, a Chief Accounts &
Finance Officer and such other officers as may be required.
(2) The Corporation may, with the prior approval of the
Government, appoint such other officers and servants sub -
ordinate to the officers mentioned in sub-section (1) as it
considers necessary for the efficient performance of its
duties and functions.
Filling up of
casual vacancies
of Members.
Acts or
Proceedings not
to be invalidated
by vacancy or
informality etc.,
Officers and
servants of
Corporation.
10 [Act No.37 of 1998]
(3) The conditions of appointment and service of the
officers and servants and their scales of pay shall,-
(a) as regards the officers mentioned in sub-section
(1) be such;
(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 any Department of the Govern ment are lik ely to
be rendered surplus wholly or partially to the requirements
of the Government due to the functionin g of the Corporation
by or unde r this Act or where services of such officers and
employees are required by the Corporation for efficient
exercise of its powers, performance of its duties or
discharge of its functions, the Government or any officer
duly authorized by the Government in this behalf may, by
order, depute such officers and employees to the
Corporation as may be found necessary fr om 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, revertion, 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 deputation shall be regulated by suc h rules
[Act No.37 of 1998] 11
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 on deputation to the Corporation
shall continue to have a lien on their posts in their parent
service and the period of their service on deputation under
the Corporation shall, on their repatriation to their parent
service, be counted for increments, pension and other
matters related to their service.
(7) The Corporation shall have the authority to transfer
the officers, employees and servants to any area of its
operation.
(8) Save as otherwise provided in this section, the
terms an d conditions of service of the o fficers 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.
13. No person who has, directly or indirectly, b y himself or
by his partner or agent, any share or interest in any contract,
by or on behalf of the Corporation or in any employment
under by or on behalf of the Corporation otherwise than as
an officer or servant thereof, shall be qualified to be an
officer or servant of the Corporation.
Disqualification of
all officers and
servants.
12 [Act No.37 of 1998]
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 o fficer of the Corporation as
may be authorised in this behalf by regulations.
CHAPTER – III
PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS
15. The Government may from time to time by notification,
vest in or as the case may be, entrust to the Corporation,
any water supply projects , sewerages and sewage projects,
sanitation projects, other infrastructure projects works under
construction, management of completed schemes, or any
other works or projects specified in that behalf which vested
in the Government and are under the control of the
Panchayat Raj and Rural Development D epartment or the
Municipal Administration and Urban Development
Department, or any other Department of the Government:
Provided that any such vesting or entrustment in
respect of any project or work or scheme situated within the
jurisdiction of a Cantonment Board constituted under the
*Cantonments Act 1924, shall be to the extent of any
agreement with such Cantonment Board only.
16. (1) On and from the date of a notification under section
15,-
(a) all the properties and assets comprising of
movables and immovables of such projects, works and
schemes vested in the Government and under the control of
the Panchayat Raj and Rural Development Department or
the Mun icipal Administration and Urban Development
* See now the Cantonments Act, 2006 (Central Act 41 of 2006).
Authentication of
orders etc., of the
Corporation.
Power of the
Government to
vest or entrust
projects, works
and schemes to
the Corporation.
Transfer of assets
and liabilities of
the Government
to the
Corporation.
Central Act II of 1924.
[Act No.37 of 1998] 13
Department or any other Department of the Government,
shall vest in and stand transferred to the Corporation;
(b) all rights, obligations and liabilities, acquired or
incurred, all contracts 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 project or work or scheme or any part
thereof vested in or entrusted to, the Corporation under
section 15, 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, or in connection with the purposes of any
project or work or scheme or any part thereof, so vested in,
or entrusted to, the Corpo ration, upto such date and
declared to be capital expenditure by the Government shall
subject to such terms and conditions as may be prescribed,
be t reated as capital provided by the Government to the
Corporation;
(d) all sums of money due to the Government in
relation to any project or work or scheme or any part thereof
so vested in or entrusted to the Corporation immediately
before such date shall be deemed to be due to the
Corporation;
(e) all suits and other legal proceedings instituted or
which could have been instituted by or against the
Government, immediately before such date for any mat ter in
relation to any project or work or scheme or any part thereof
may be continued or instituted by or against the
Corporation.
14 [Act No.37 of 1998]
(2) Such properties, assets, rights , obligations and
liabilities shall be valued in such manner as the Government
may determine.
(3) If any doubt or dispute arises to as to which of the
properties or assets or rights or liabilities of the Government
have been transferred 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
17. The functions of the Corporation shall be,–
(a) supply of water for domestic, industrial and
commercial purposes including planning, design,
construction, maintenance, operation and management of
any water supply system including maintenance of drinking
water tanks;
(b) establishing and maintaining schemes incidental to
water supply such as testing of water, designing of plant for
purification of water, and conducting research relating to
water supply;
(c) sewerage, sewage disposal and sewage treatment
works including planning, design, construction,
maintenance, operation and management of sewerage and
sewage treatment works;
(d) planning, design, construction maintenance,
operation and management of all sanitation and public
health works, schemes and projects including afforestation
protection, of environment and promotion of ecological
aspects, safe handling of drinking water, waste water
Functions of the
Corporation.
[Act No.37 of 1998] 15
disposal, garbage disposal, cleanliness and personal
hygiene;
(e) planning, design, construction, maintenance,
operation and management of minor irrigation tanks having
ayacut of less than 100 acres, including watershed
management, and storage and management of rainwater;
(f) planning, design, construction, maintenance,
operation and management of any infrastructure facility
within the meaning of section 80 IA of the Income Act , 1961,
as amended from time to time;
(g) planning, design, construction, maintenance,
operation and management of schemes or projects in
relation to the matters listed in the el eventh and twelfth
schedules of the Constitution of India;
(h) planning, design, construction, maintenance,
operation and management of schemes or projects for
developing Inland Waterways and Inland Transportation;
(i) procurement and servicing of Government Loans,
Open Market Borrowings, loans borrowed from Banks,
Financial Institutions, Insurance Companies, and other
Institutions, for the purposes of clauses (a) to (h) above,
either on behalf of Government or Local Authorities;
(j) entering into contracts in respect of the works and
any other matters transferred to the Co rporation along with
the assets and liabilities under this Act;
(k) inviting tenders, bids, offers and enter into contracts
for the purposes of all the activities of the Corporation;
(l) promoting participation of any person or body or
association of individual s whether incorporated or not, in
Central Act 43 of 1961.
16 [Act No.37 of 1998]
planning, investigation, designing, construction and
management of water supply, sewerage, sanitation projects
and schemes, other projects and schemes in relation to
matters listed in the eleventh and twelfth schedules of the
Constitution of India, projects and schemes falling under the
definition of infrastructure facility under section 80 IA of the
Income Tax Act, 1961 or any other project or scheme as
may be entrusted by the Government from time to time;
(m) undertaking schemes or works, jointly with other
corporate bodies, or inst itutions 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;
(n) preparing annual plan and five year working
development plan;
(o) preparing annual budget;
(p) taking 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 , imposed
on it by this Act; and
(q) undertaking any other activities entrusted by the
Government in furtherance of the objectives for which the
Corporation is established.
18. (1) The Corporation shall have the power to accord
administrative approval, revise d administr ative approval,
technical sanction, acceptance of all tenders, sanctioning,
budget and making financia l provisions, settling disputes
arising out of contracts and any other things which may be
necessary or expedient for the purposes of carrying out its
functions under this Act.
General Powers of
the Corporation.
[Act No.37 of 1998] 17
(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 Corp oration may deem necessary for the
performance of any of its functions, duties, and activities
and to lease, sell, exchange or otherwise transfer any
property held by it on such conditions as may be deemed
proper by the Corporation;
(b) to construct or cause to be constructed such
facilities within the scope of its functions, and such other
works and structure 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, or public health;
(d) to assist the water users associations and any
other societies or organisations formed under any other law
for the time being in force for the better use of facilities
made available by the Corporation;
(e) to engage suitable consultants or persons having
special knowledge or skill to assist the Corporation in the
performances of its functions; and
(f) to do all such other things and perform such oth er
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.
19. The Corporation shall, from time to time, determine and
levy charges for the facilities provided and services
rendered for any purpose to the Government, Local
Charges for
providing facilities
and rendering
services.
18 [Act No.37 of 1998]
Authorities, Gov ernment agencies, associations, societies,
organisations or any other users or consumers:
Provided that, the levy of such charges shall be such
that the charges so recovered shall be sufficient at least to
cover the interest charges of the loans raised by the
Corporation from the open market.
20. The Corporation shall pay the interest on the borrowed
money through the recovery of charges levied and collected
under section 19 of this Act.
21. No person shall construct, operate or maintain within
the area of operation of any project or work or scheme
vested in or entrusted to the Corporation any facility for the
extraction of surface water, wit hout the prior approval of the
Corporation:
Provided that the Government or a Local Authority
may, construct and operate such facility, or assign or hand
over such facility to the Corporation.
22. The Corporation shall keep Co -ordination with the
Government, Local Authorities and Statutory Bodies with a
view to minimising inconvenience likely to be caused by the
Corporation‟s projects, works and schemes.
23. All or any of the functions that may be carried out or all
or any of the powers that may be exercised by the
Government or any authority or officer under any law for the
time being in force or the rules framed thereunder, in
respect of any proj ect or work or scheme vested in or
entrusted to the Corporation may be carried out or
exercised by the Corporation or any officer of the
Responsibility of
the Corporation
for payment of
interest on
borrowed money.
Prohibition of
construction of
any facility for
extraction of
surface water
without approval
of Corporation.
Co-ordination with
other authorities
to minimise
inconvenience
caused by
projects or works
or schemes of the
Corporation.
Powers to be
exercised by the
Corporation under
certain Laws.
[Act No.37 of 1998] 19
Corporation duly authorized in this behalf by the
Corporation respectively.
24. 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 be bound to follow
and act upon such directions.
25. Save as otherwise expressly provided herein, section
17 to 52 in chapter V and sections 53 to 77 in chapter VI of
the Hydera bad Metropolit an Water Supply and Sewerage
Act, 1989 are hereby extended to and apply mutatis and
mutandis to the Corporation established under this Act, in
relation to the properties and assets of the Corpo ration and
all references in the sa id sections of the said Act to “ Board”
shall be read and construed as references to “ Corporation”
in so far as such properties and assets are concerned.
CHAPTER - V
ACQUISITION OF LAND
26. The 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 of a public
purpose within the meaning of that Act:
Provided that where the owner of a land agrees to
surrender his land at a price mutually agreed between the
Corporation and the owner, the Corporation shall have the
power to acquire such land at agreed rate with the prio r
approval of the Government.
7. See now the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 (Central Act 30 of
2013).
Powers of the
Government to
issue directions.
Application of the
provisions of
Hyderabad
Metropolitan
Water Supply and
Sewerage Act,
1989.
Act 15 of 1989.
Power to acquire
land.
Central Act 1 of 1894.
20 [Act No.37 of 1998]
27. (1) For the furtherance of the objects of this Act, the
Government may, by notification, 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 this 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 surrender it to the
Government upon such terms and conditions as may be
mutually agreed upon.
28. Subject to any rules made by the Governm ent under
this Act, the Corporation may retain, lease, sell, exchange,
or otherwise dispose of any land, any building or other
property vested in it, in such manner as it thinks fit for
carrying out the purposes of this Act.
CHAPTER - VI
FINANCE, ACCOUNTS AND AUDIT
29. All property, fund and other assets vesting in the
Corporation shall be held and applied by it, for the purposes
of this Act.
30. (1) The Corporation shall have and maintain its own
fund, to which it shall be credited,-
Transfer of
Government lands
to Corporation.
Powers of
Corporation to
dispose of land
etc.
Application of
Corporation
assets etc.
Fund of the
Corporation.
[Act No.37 of 1998] 21
(a) all moneys received by the Corporation from the
Government by way of grants, subventions, loans, advances
and the loans raised under this Act;
(b) all fees, costs and charges received by the
Corporation under this Act;
(c) all moneys received by the Corporation from the
disposal of lands buildings and other properties, movable
and immovable, and other transactions;
(d) all moneys received by the Corporation by way of
charges, from all pro jects works and schemes, rents and
profits or from any other sources.
(2) The Corporation may keep current and deposit
account with such bank or banks, specified by the
Government in this behalf.
(3) Such a ccounts shall be operated by such Offic ers
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 transaction, subject to such
limits and conditions as may be prescribed.
31. (1) The Government shall, by appropriation duly made
in this behalf, from time to time, provide funds to the
Corporation to the extent considered necessary for the
performance of the functions of the Corporation under this
Act.
(2) The capital provided by the Government shall not
carry any interest.
Contribution of
Government to
Corporation Fund.
22 [Act No.37 of 1998]
32. The Government may, after due appropriation made by
the State Legislature by law in this behalf made such grants,
subventions, loan s 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.
33. (1) The Corporation may, subject to such conditions as
may be prescribed in this behalf, borrow money from the
financial institutions or Commercial Banks or non -resident
Indians or from the open market by issue of guaranteed or
unguaranteed bonds, debentures stocks or otherwise, for
the purpose of providing itself with adequate resources.
(2) The maximum amount which the Corporation may
at any time have on loan under sub -section (1) shall not
exceed rupees one tho usand crores, unless the
Government fixes a higher maximum limit for this purpose.
(3) The Corporation may approach any financial
Institution or Commercial B ank for guaranteeing repayment
of loans borrowed and payment of interest thereon on
payment of guarantee commission.
(4) The Corporation may also accept contributions and
donations from any individual including a non -resident
Indian, or corporate body or trust, or multilateral agency for
the purpose of undertaking projects or schemes notified
under section 35 AC of the Income Tax Act, 1961:
Provided that acceptance of any contribution or
donation from a Non -resident Indian shall with the prior
permission of the concerned authority under any law for the
time being in force.
Grants,
subventions,
loans and
advances to the
Corporation.
Power of
Corporation to
borrow.
Central Act 43 of 1961.
[Act No.37 of 1998] 23
34. The Corporation may accept deposits on such
conditions as it deems fit from persons, authorities or
institutions, to whom, allotment or lease 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.
35. The Corporation shall have the authority to spend such
sums as it thin ks fit for the purposes authoris ed under this
Act from and out of the fund of the Corporation referred to in
section 30 or from the reserve and other funds referred to in
section 37, as the case may be.
36. It shall be competent for the Corporation to spend such
sums as it thinks fit also on objects authorized under this Act
other than projects and schemes referred to in section 17
and such sums shall be treated as common expenditure
payable out of the funds of the Corporation.
37. (1) The Corporation shall make provisions for such
reserve and other specially denominated funds as the
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 direction s, if any, issued by the
Government in this behalf, be determined by the
Corporation.
(3) None of the funds referre d to in sub -section (1)
shall, except with the previous approval of the Government,
be utilised for any purposes other than that for which it is
constituted.
38. (1) The Managing Director of the Corporation shall, at a
special meeting to be held in the month of October in each
Power to spend.
Acceptance of
deposits by
Corporation.
Expenditure on
objects other than
those stated in
section 17.
Reserve and other
funds.
Submission of
budget to
Corporation.
24 [Act No.37 of 1998]
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 Governmen t 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 fulfil ment of all the liabilities of th e
Corporation; and
(iii) the implementation of the provisions of this Act,
such estimates shall contain a statement showing the
estimated income and expenditure on capital and revenue
accounts for the next year and such other particulars,
indicating the financial performance of the Corporation, as
the Government may direct. The budget shall clearly reveal
the financial outlay and performance.
39. The Corporation shall consider the budget estimates
submitted to it under section 38 and approve the same with
or without modifications on or before such dates as the
Government may, from time to time determine.
40. The Government may guarantee the repayment of any
loans and payment of interest on al l or any of the loans
given or transferred to the Corporation.
41. (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, like water supply, sanitation or
sewerage, shall be fully credited to the Corporation.
Sanction of
budget estimates.
Government as
Guarantor.
Disposal of profits
and deficits.
[Act No.37 of 1998] 25
(2) The net deficit, if any, in respect of any of the
objects shall be solely borne by the Government.
42. The interest, charges and all other expenditure shall be
added to the capital cost an d all receipts shall be taken in
reduction of such cost, if the Corporation is in deficit.
43. (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 consulation with the Government.
(2) The net profit for the purpose of section 41 sha ll be
determined after such provision has been made.
44. In the event of any betterment levy being imposed by
the Government, the proceeds thereof in so far as they are
attributable to the oper ations of the Corporation, shall be
credited to the Corporation.
45. (1) The Corporation shall, by such date in each
financial year as may be prescribed, prepare and submit t o
the Government for approval o f annual financial 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 a s the
Government thinks fit.
(2) The annual financial statement shall how the
estimated receipts and expenditure 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
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
Government.
Financial
Statement and
programme of
work.
26 [Act No.37 of 1998]
of the financial year provided that all such variations and re -
appropriations out of the sanctioned budget are brought to
the notice of the Government 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 Government.
46. (1) The Corporation shall maintain books of account
and other book 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 nin e months from the end of the fi nancial
year, the Corporation shall send a copy of the accounts
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 expi ry of the year
next succeeding the year to which the accounts and the
report relate.
47. (1) Notwithstanding anything contained iExcerpt shown. Open the full act in Lexace.