Section 107 in Andhra Pradesh Metropolitan Region and Urban Development Authorities Act, 2016
107. Development Fund and its Application.
(1)The Authority shall manage and operate the Development Fund to which shall be credited:(a)all moneys received from the Central Government and the State Government by way of revolving fund, grants, loans, advances or otherwise;(b)all moneys borrowed by the Authority by way of loans or debentures;(c)all moneys received by the Authority from the disposal of lands, buildings and other properties, movable and immovable;(d)sum of money received from projects implemented under Development Schemes;(e)all moneys earned from remunerative projects and schemes by way of rent or otherwise, and disposal of its assets;(f)sum of money received by way of user charges;(g)all development charges or other charges, fees received under the Act or rules or regulations made there under;(h)all moneys received from financial institution or other agencies in the form of equity; and(i)any other sum of money received by the Authority from any other sources, including constituent Local Authorities, for performing its functions.(2)The Development Fund shall be utilized towards meeting:-(a)the expenditure incurred in the administration of the Act;(b)the cost of acquisition of land for the purposes of the Act;(c)expenditure for any development of land for ensuring planned development in the development area;(d)any expenses incurred by the Authority in connection with preparation of Perspective Plan [PP] or Master Plan [MP] or Infrastructure Development Plan [IDP] or Area Development Plan or Zonal Development Plan or Land Pooling Scheme [LPS] or Town Planning Scheme [TPS] or a Development Scheme or any other plans, undertaking surveys, studies, and execution of projects and schemes;(e)the maintenance of sinking fund and other separate accounts required under the Act;(f)the construction of buildings, development of infrastructure and provision of amenities and such other public purposes as required.(3)The Authority may accept grants, subventions, donations, and gifts from the Central or State Government or Local Authority or any individual or body whether incorporated or not, for all or any of the purposes of the Act on such terms and conditions as mutually agreed upon.(4)The Authority may, from time to time, for the purposes of this Act, raise loans from the Government or mobilise resources from any other source, either by creation and issue of debentures, bonds or otherwise.(5)Loans, debentures and bonds issued under this section may be guaranteed by the Government as to the repayment of the principal and the payment of interest at such rate as may be agreed upon.(6)The Authority shall pay interest on such loans at such rates and at such times, and shall make such provision for the mode and time or times of repayment of principal.(7)The Authority may, from time to time borrow by way of temporary loan or overdraft from a bank or otherwise, any sum which it may temporarily require,-(a)for the purpose of defraying expenses pending the receipt of revenues receivable by it in respect of the period of account in which those expenses are chargeable; or(b)for the purpose of defraying, pending the receipt of money due in respect of a loan authorized to be raised under sub-section (4), expenses intended to be defrayed by such loan.(8)The Authority shall maintain a sinking fund for the repayment of loans and moneys borrowed and shall pay every year into the sinking fund such sum as may be required under the borrowing contract and sufficient for repayment within the period fixed for all moneys so borrowed.(9)The Development Fund shall be ring-fenced to ensure that it can only be used for the purposes specified under the Act and also for the purposes of infrastructure in the development area. Utilization of funds for any other purposes other than the specified under the Act shall be exercised only after placing the proposals before the Authority by the Metropolitan Commissioner / Vice-Chairperson and after approval by the Authority.(10)The Development Fund shall be governed by the following principles, namely:-(a)The Head of the Finance Section of the Authority shall be responsible for administering the Development Fund and should be responsible for its administration, management and monitoring;(b)The Development Fund shall be audited annually by reputed professional audit firms;(c)The Development Fund shall be managed using professional fund management practices including treasury, cash management and investment portfolio management;(d)All returns generated via investments made using Development Fund to accrue back to the Development Fund only;(e)The Head of the Finance Section shall prepare and submit annual investment plans (along with the budget) outlining investment and funding strategy for the year.
