Section 90C(2) in The Maharashtra Municipal Councils, Nagar Panchayats And Industrial Townships Act, 1965
(2)When any sum of money has been borrowed or re-borrowed under subsection (1),-(a)no portion thereof shall, without the previous sanction of the State Government be applied to any purpose other than that for which it borrowed; and,(b)no portion of any sum of money borrowed or re-borrowed for the execution of any work shall be applied to the payment of salaries or allowances of any municipal officer or servant other than those who are exclusively employed upon the work for the construction of which the money was borrowed:Provided that, such share of the cost on account of the salaries and allowances of municipal officers and servants employed in part upon the preparation of plans and estimates or the construction or supervision of or upon the maintenance of the account of such work as the Council may fix may be paid out of the sum so borrowed or re-borrowed.
