Section 110 in The Himachal Pradesh Panchayati Raj Act, 1994
110. Power of Panchayat to borrow money.
- Subject to such rules as may be made in this behalf and the restriction contained in any law for the time being in force relating to raising of loans by local authorities a Panchayat may, with the previous sanction of the State Government, raise a loan for carrying out the purposes of this Act:Provided that if loan is to be raised for creation of income generating assets and the project is assessed by the lending institution as economically/financially viable, previous sanction of the State Government shall not be essential for taking a loan. It shall, however, be mandatory to inform the Government about the details of the project which will include the particulars of the project:Provided further that the Gram Panchayat shall be required to obtain prior approval of the Gram Sabha for raising a loan.
