Section 115 in The Maharashtra Municipal Corporations Act, 1949
115. Annual examination of sinking funds. - (1) All sinking funds established or maintained under this Act shall be subject to annual examination by [the Chief Auditor, Local Fund Accounts] who shall ascertain whether the cash and the value of the securities belonging thereto are actually equal to the amount which should be at the credit of such funds had investments been regularly made and had the rate of interest as originally estimated been obtained therefrom.
(2)The amount which should be at the credit of a sinking fund shall be calculated on the basis of the present value of all future payments required to be made to such fund under the provisions of this Act, on the assumption that all investments are regularly made and the rate of interest as originally estimated is obtained therefrom.(3)The securities belonging to a sinking fund shall be valued for the purposes of this section at their current market value, except in the case of debentures issued under this Act or for any loan raised before the appointed day for which the Corporation is liable which shall always be valued at par, provided that the Corporation shall make good immediately any loss which may accrue on the actual sale of such debentures at the time of repayment of the loan.(4)The Corporation shall forthwith pay, into any sinking fund any amount which [the Chief Auditor, Local Fund Accounts] may certify to be deficient, unless the [State] Government specially sanctions a gradual readjustment.(5)If the cash and the value of the securities at the credit of any sinking fund are in excess of the amount which should be at its credit, [the Chief Auditor, Local Fund Accounts] shall certify the amount of such excess sum and the Corporation may thereupon transfer the excess sum to the Municipal Fund :Provided that the Corporation may transfer such excess sum or such portion thereof as it may determine to the Transport Fund if the sinking fund from which the transfer is made pertains to a loan which has been raised in whole or part, for the purposes of the Transport Undertaking.(6)If any dispute arises as to the accuracy of any certificate made by [the Chief Auditor, Local Fund Accounts,] under sub-section (4) and (5), the Corporation may, after making the payment or transfer, refer the matter to the [State] Government whose decision shall be final.
