Section 109(2) in The Maharashtra Municipal Corporations Act, 1949
(2)When any sum of money has been borrowed or re-borrowed under sub-section (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 was 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 officers or servants 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 or 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 Standing Committee may fix may be paid out of the sum so borrowed or re-borrowed.[109A. Restrictions on utilisation of funds created by Corporation. - Notwithstanding anything contained in section 109, except with the prior approval of the State Government, neither any internal loan shall be taken by the Corporation from any of the funds created by the Corporation nor shall any utilisation of such funds for any purposes other than the purposes for which the funds are created be made by the Corporation.]
