Section 17 in West Bengal Apartment Ownership Bye-laws, 1974
17. Finance, Audit and Accounts.
(1) Each Association shall have a fund to be called the Apartment Owners' Association Fund to which shall be credited-(a)all the dues of the Association, on account of any assessment or otherwise, collected from its members, or on account of any rent collected from its tenants;(b)any amount by way of advance, grant, donation, loan or otherwise, received or raised by the Association; and(c)any other amount due, payable, or made over, to the Association.(2)Loans may be raised by an Association subject to the approval of the Competent Authority on such terms and conditions as the Competent Authority may impose.(3)An account shall be opened in the State Bank of India or in any Nationalised Bank, in the name of the aforesaid fund and all the money of the said fund shall be deposited in the said bank to the credit of the aforesaid fund and such account be operated by the President and the Treasurer jointly, and payments above rupees twenty shall be made by cheques:Provided that the Treasurer may, for defraying petty expenses, retain such amount of cash in his hands as the Association from time to time decides.(4)The funds of the Association may be invested to any of the securities specified in section 20 of the Indian Trusts Act, 1882 (2 of 1882) or in any other manner approved by the Competent Authority.(5)(a)The accounts of the aforesaid fund shall be maintained in such manner, as may be directed by the Association from time to time, and be audited within three months from the end of each financial year, by art auditor to be appointed by the Association.(b)A copy of the audited accounts of each Association along with auditor's report thereon shall be expeditiously forwarded to the Competent Authority, and the said Authority shall have the power to issue directions to the Association or the Board from time to time with reference to such report and such directions shall be binding upon the Association and the Board,(6)(a)An Association shall, as soon as may be, establish reserve fund out of the common profits, if any;(b)the reserve fund shall belong to the Association and be indivisible and no member shall have any claim to a share in it;(c)the reserve fund may be used for any purpose that may be sanctioned by the two-thirds majority of the members of the Association, if the Competent Authority so permits;(d)the reserve fund may be invested in any of the ways referred to in clause (4).
