20. Fund of the Authority-

(1) The [Local Development Authority] 2 shall have and maintain its own fund to which shall be credited—

(a) all moneys received by the [Local Development Authority] 2 from the State Government by way of grants, loans, advances or otherwise;

(b) all moneys borrowed by the [Local Development Authority] 2 from sources other than the State Government by way of loans or debentures;

(c) all [fees, tolls and charges]1 received by the [Local Development Authority] 2 under this Act;

(d) all moneys received by the [Local Development Authority] 2 from the disposal of lands, buildings and other properties, movable and immovable; and

(e) all moneys received by the [Local Development Authority] 2 by way of rents and profits or in any other manner or from any other sources.

(2) The fund shall be applied towards meeting the expenses incurred by the [Local Development Authority] 2 in the administration of this Act and for no other purposes.

(3) Subject to any directions of the State Government, the [Local Development Authority] 2 may keep in current account of any Scheduled Bank such sum of money out of its fund as it may think necessary for meeting its expected current requirements and invest any surplus money in such manner as it thinks fit.

(4) The State Government may after due appropriation made by Legislature by law in that behalf, make such grants, advances and loans to the [Local Development Authority] 2 as that Government may deem necessary for the performance of the functions of the Authority under this Act and all grants, loans and advances made shall be on such terms and conditions as the State Government may determine.

(5) The [Local Development Authority] 2 may borrow money by way of loans or debentures from such sources (other than the State Government) and on such terms and conditions as may be approved by the State Government. 

(6) The [Local Development Authority] 1 shall maintain a sinking fund for the repayment of moneys borrowed under sub-section (5), and shall pay every year into the sinking fund such sum as may be sufficient for repayment within the period fixed of all moneys so borrowed.

(7) The sinking fund or any part thereof shall be applied in or towards, the discharge of the loan for which such fund was created and until such loan is wholly discharged it shall not be applied for any other purpose.

[(8) The Local Development Authority shall contribute a fixed proportion of their net income to the State Authority as decided by the State Authority.

(9) The State Authority shall, from the funds so collected under sub-section (8) above, decide the quantum of the fund to be allocated and shall allocate the same amongst the Local Development Authorities created under section 4 of this Act.]2

2. Substituted by section 18 (1) of Uttarakhand Act No. 25 of 2013.

1. Substituted by section 18 (1) of Uttarakhand Act No. 25 of 2013.

2. Added by section 18 (2) ibid. 

20-A. Funds of the State Authority -

(1) The State Authority shall have and maintain its own fund i.e. funds received from the Local Development authorities as well as the funds allocated by the State Government to it.

(2) The fund shall be applied towards meeting the expenses incurred by the State Authority in the administration of this Act or for any other purposes/functions entrusted by it to the concerned Local Development Authority.

(3) The State Authority shall have the power to decide the quantum of fund to be allocated and to allocate the same amongst the Local Development Authorities / Local bodies in order to strengthen them financially.

(4) Subject to any directions of the State Government, the State Authority may keep in current account of any Scheduled Bank such sum of money out of its fund as it may think necessary for meeting its expected current requirement and invest any surplus money in such manner as it thinks fit.

(5) The State Government may, after due appropriation in that behalf, make such grants, advances and loans to the State Authority as the State Government may deem necessary for the performance of the functions of the State Authority under this Act and all grants, loans and advances made shall be on such terms and conditions as the State Government may determine.

(6) The State Authority may borrow money by way of loans or, debentures or from such sources (other than the State Government) and on such terms and conditions as may be approved by the State Government.

(7) The State Authority shall maintain a sinking fund for the repayment of moneys borrowed under sub-section (5) and (6) and shall pay every year into the sinking fund such sum as may be sufficient for repayment of all moneys so borrowed within the period fixed.

(8) The sinking fund or any part thereof shall be applied in or towards, the discharge of the loan for which such fund was created, and until such loan is wholly discharged it shall not be applied for any other purpose.]3 

3. Added by section 19 ibid.

21. Budget of the Authority -

The [Local Development Authority] 1 shall prepare in such form and at such time every year as the State Government may specify, a budget in respect of the financial year next ensuring, showing the estimated receipts and expenditure of the Authority.

1. Substituted by section 20 of Uttarakhand Act No. 25 of 2013.

21-A . [Budget of the State Authority -

The State Authority shall prepare in such and at such time every year as the State Government may specify a budget in respect of the financial year next ensuing, showing the estimated receipts and expenditure of the State Authority.]2

2. Added by section 21 ibid.

22. [Account and audit -

(1) The [Local Development Authority and State Authority as the case may be] 3 shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the balance-sheet in such forms as the State Government may specify.

(2) The accounts of the [Local Development Authority and State Authority as the case may be] 3 shall be subject to audit annually by the Examiner, Local Fund Accounts :

Provided that in place of or in addition to the Examiner, Local Fund Accounts, the State Government may entrust the audit to the Accountant General, Uttar Pradesh or Comptroller and Auditor General of India or to any other Auditor on such terms and conditions, in such manner for such period and at such times as may be agreed upon between him and the State Government.

(3) The rights, [Local Development Authority and State Authority as the case may be] 3 and privileges of any person conducting audit under sub-section (2) shall—

(i) in the case of Examiner, Local Fund Accounts, be the same as he has in connection with the audit of the accounts of local authority;

(ii) in the case of the Accountant General, Uttar Pradesh or as the case may be, the Comptroller and Auditor General lf India, be the same as he has in connection with the audit of Government accounts; and

(iii) in the case of any other auditor, be as prescribed; and, in particular, he shall have the right to demand production of books, accounts, connected vouchers, papers and other documents and to inspect the Office of the Authority.

(4) The accounts of the [Local Development Authority and State Authority as the case may be] 3 , as certified by the Auditor or any person appointed by him in that behalf together with audit report thereon shall be forwarded to the State Government annually or at such times as may be directed by it. The State Government may issue such directions to the authority as it may deem fit and the Authority shall be bound to comply with such directions. 

(5) Any expenditure, incurred by the Auditor in connection with the Audit, shall be payable by the [Local Development Authority and State Authority as the case may be] 2 to the Auditor.]1

3. Added by section 22 ibid.

1. Subs. by section 2 of U.P. Act No. 28 of 1983.

2. Substituted by section 22 of Uttarakhand Act No. 25 of 2013.

23. Annual Report -

The [Local Development Authority and State Authority as the case may be] 3 shall prepare for every year a report of its activities during that year and submit the report to the State Government in such form and on or before such date as the State Government may specify and such report shall be laid before both Houses of the Legislature.

3. Added by section 23 ibid. 

24. Pension and Provident Funds -

(1) The [Local Development Authority and State Authority as the case may be] 4 may constitute for the benefit of its whole-time paid members and of its officers and other employees in such manner and subject to such conditions, as the State Government may specify such pension or provident funds as it may deem fit.

(2) Where any such pension or provident fund has been constituted, the State Government may declare that the provisions of the Provident Funds Act, 1925 shall apply to such funds as if it were a Government Provident Fund.

4. Added by section 23 ibid.