Section 4 in The M.P. Lok Dhan (Shodhya Rashiyon Ki Vasuli) Niyam, 1988
4. Manner in which cost of proceedings shall be shared between the State Government and the Authority.
(a)The cost of proceedings, @3% of the principal amount recovered, referred to in clause (c) of Section 3 of the Act will first be deposited in the treasury under a new sub-head to be opened under the Major Head 0070-Other Administrative Services-Miscellaneous Receipts (Cost of Proceedings).(b)A separate fund will be created under the Public Account of the State called the "Bank Recoveries-Cost of Proceedings Fund".(c)Into this fund shall be paid every year, an amount equal to the sum of receipts realised as costs of proceedings during the previous year from the districts where special recovery units have been set up under separate arrangement with banks (hereinafter called the "sponsor banks") on a cost sharing basis. This expenditure shall be debitable to Major Head-2052 Secretariat General Services-091 Attached Offices-002 District Recovery Units.(d)Half the recurring expenditure on the special recovery units during the year will be debited to the "Bank Recoveries-Cost of Proceedings Fund".(e)Residual credit balances in the fund, if any, will be distributed pro-rata equally between the sponsor banks but amounts so paid to the banks will be limited to half the expenditure incurred on the special recovery units during the previous year.(f)Debit balances, if any, will be carried forward from year to year and adjusted against future accretions to the fund.
