Panchayat:Repo18/vol2-page0284: Difference between revisions

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284 LOCAL AUTHORITIES LOANS RULES, 1965 Rule 16

(i) the local authority shall furnish to the Examiner of Local Fund Accounts, the Accountant General, the Government and the authority authorised under Rule 6, all information which they may require regarding its funds and regarding the expenditure of the loan;

(ii) the accounts of the local authority in respect of the loan amount shall be open to audit by the ACCountant General;

(iii) If the Government or the authority authorised under Rule 6 considers that the local authority has failed to comply with any of the conditions prescribed in respect of the loan or with any of the requirements of these rules it shall be lawful for them to order that no further payments shall be made on account of such loan and that any amount advanced with interest thereon shall be repaid immediately.

16. Control and inspection of works and accounts.- The Government shall make such provisions as they may deem necessary(a) for ascertaining and Securing that the money borrowed is duly applied to the purpose for which it has been borrowed, and that the unexpended balance of the loan is not employed otherwise than in accordance with these rules. (b) Where the loan is taken for any of the purposes specified in Clauses (i), (ii), (iii), or (iv) of sub-section (1) of Section 3 of the Act for the proper inspection of the work to be carried out: Provided that every such work and the accounts connected therewith shall be open at all times to the inspection of(1) the officers of the Engineering Departments of the Government not below the rank of an Executive Engineer exercising jurisdiction over the area in which the work is executed; (2) any person who may be authorised to inspect the accounts of the local authority, and (3) any other person specially authorised by the Government in this behalf. 17. Procedure on attachment- When the Government decide to attach any funds under Section 4 or under Section 6 of the Act, the following procedure shall be observed, namely:- (a) the Government shall issue a notice to the local authority prohibiting the collection or management of Such funds by the local authority, and vesting the administration thereof in such officer as the Government may appoint. The Government shall cause such notice to be published in the Government Gazette, and in such other manner as it may deem fit within the local limits of the area subject to the control of the local authority; (b) the officer appointed by the Government under Section 4 or under Section 6 of the Act shall pay the moneys collected or received under such attachment to the lender, or in the case of a Government loan, into the Government Treasury; (c) the said officer shall, prepare the accounts of money So Collected and of the cost of collection in such form as the Government may, from time to time, direct. He shall deliver a copy of the accounts to the local authority and shall cause a copy to be published in the Gazette. 18. Procedure in respect of unexpended balances of loans.- If, on the completion of the work or the closing of the account of the transaction for which a local authority has borrowed money, the Government is satisfied that the whole of the money has not been spent on the purpose of Which it was borrowed it shall proceed as follows, namely:- (a) in the case of a Government loan - The Government shall direct that the unexpended balance shall be forthwith repaid to the Government, and the principal of the debt reduced by an equivalent amount. The Government may direct such variation as it may consider necessary on this account in the instalments fixed for the liquidation of the loan. (b) In the case of a non-Government loan - the Government may direct that the unexpended balance shall be utilised in the reduction in any way of the debt of the local authority.

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-Rule 15 LOCAL AUTHORITIES LOANS RULES, 1965 283
+'''284 LOCAL AUTHORITIES LOANS RULES, 1965 Rule 16'''
-. Inquiries to be made on applications.- The Government or the authority authorised under Rule 6, shall cause such inquiry as they think fit to be made into the statements contained in the application made, under Rule 6 or 7 as the case may be. Such enquiry may be conducted through such persons as the Government or the authority may authorise or with reference to such records as they may deem fit.
-. Rejection of application etc.- If it appears to the Government or the authority authorised under Rule 6, as the case may be, that the money ought not to be borrowed or that the payment of interest on the money expended or to be expended on any work or for any of the purposes, to which such funds might be by law applied, shall not be guaranteed, it shall reject the application.
-. X x X x)
+(i) the local authority shall furnish to the Examiner of Local Fund Accounts, the Accountant General, the Government and the authority authorised under Rule 6, all information which they may require regarding its funds and regarding the expenditure of the loan;
-. Disposal of application.- The Government or the authority authorised under Rule 6, as the case may be, after conducting the enduiry referred to in Rule 8 either
-(i) reject the application, or (ii) grant the loan or sanction the raising of the loan as the case may be, or
-(iii) permit the local authority to guarantee the payment of interest under Section 5 of the Act.
+(ii) the accounts of the local authority in respect of the loan amount shall be open to audit by the ACCountant General;
-Provided that no application shall be rejected under this rule without giving the Local authority an opportunity to show cause against the action proposed to be taken.)
-A X x X x)
+(iii) If the Government or the authority authorised under Rule 6 considers that the local authority has failed to comply with any of the conditions prescribed in respect of the loan or with any of the requirements of these rules it shall be lawful for them to order that no further payments shall be made on account of such loan and that any amount advanced with interest thereon shall be repaid immediately.
-. Power of Government to grant urgent loans.- Where a local authority in its application desires the immediate grant, or sanction to the raising of a loan on the ground that funds are urgently needed for any of the purposes mentioned in sub-section (1) of Section 3 of the Act, the Government or the authority authorised under rule 6 as the case may be, if it is satisfied that the loan is urgently needed for any purpose, may, notwithstanding anything contained in Rules 8 X x X) and 11 after such inquiry, if any, as it thinks fit to make, grant, or sanction the raising of, such loan at any time after the receipt of the application.
-. Conditions relating to non-Government loans.- The Government or the authority authorised under Rule 6 shall not permit the raising of a non-Government loan unless it is satisfied that the local authority will be able to repay the loan together with interest in time from the proceeds from the work to be executed with the proposed loan.
+'''16. Control and inspection of works and accounts.'''- The Government shall make such provisions as they may deem necessary(a) for ascertaining and Securing that the money borrowed is duly applied to the purpose for which it has been borrowed, and that the unexpended balance of the loan is not employed otherwise than in accordance with these rules. (b) Where the loan is taken for any of the purposes specified in Clauses (i), (ii), (iii), or (iv) of sub-section (1) of Section 3 of the Act for the proper inspection of the work to be carried out: Provided that every such work and the accounts connected therewith shall be open at all times to the inspection of(1) the officers of the Engineering Departments of the Government not below the rank of an Executive Engineer exercising jurisdiction over the area in which the work is executed;
-. Inspection of works etc.- it shall be lawful for the Government or for such officers as they may authorise, to inspect or to cause the inspection or any work carried out under contract in respect of which the payment of interest is guaranteed by a local authority either severally or in conjunction with any other local authority under Section 5 of the Act and every person in charge of the execution of the Work shall be bound to afford such facilities as the inspecting officers may require for the purpose of inspection of the work.
+(2) any person who may be authorised to inspect the accounts of the local authority, and (3) any other person specially authorised by the Government in this behalf.
-(2) The person or the corporate body with whom any such contract for the work is made, shall keep Such accounts in respect of the Work as the Government or such inspecting officers may require and all Such accounts shall be made available to the Government or the inspecting officers for inspection if so called for.
+. Procedure on attachment- When the Government decide to attach any funds under Section 4 or under Section 6 of the Act, the following procedure shall be observed, namely:-
-. Grant of Government Loans.- (1) If the Government grant a loan to a local authority under Rule 11, the local authority shall be required to execute an agreement in the form given in Appendix Illin favour of the Government and the loan shall be granted subject to such conditions
+(a) the Government shall issue a notice to the local authority prohibiting the collection or management of Such funds by the local authority, and vesting the administration thereof in such officer as the Government may appoint. The Government shall cause such notice to be published in the Government Gazette, and in such other manner as it may deem fit within the local limits of the area subject to the control of the local authority;
-as the Government may specify. ി (2) Every grant of a Government loan shall be subject to the conditions that
+(b) the officer appointed by the Government under Section 4 or under Section 6 of the Act shall pay the moneys collected or received under such attachment to the lender, or in the case of a Government loan, into the Government Treasury;
+(c) the said officer shall, prepare the accounts of money So Collected and of the cost of collection in such form as the Government may, from time to time, direct. He shall deliver a copy of the accounts to the local authority and shall cause a copy to be published in the Gazette.
+. Procedure in respect of unexpended balances of loans.- If, on the completion of the work or the closing of the account of the transaction for which a local authority has borrowed money, the Government is satisfied that the whole of the money has not been spent on the purpose of Which it was borrowed it shall proceed as follows, namely:-
+(a) in the case of a Government loan - The Government shall direct that the unexpended balance shall be forthwith repaid to the Government, and the principal of the debt reduced by an equivalent amount. The Government may direct such variation as it may consider necessary on this account in the instalments fixed for the liquidation of the loan.
+(b) In the case of a non-Government loan - the Government may direct that the unexpended balance shall be utilised in the reduction in any way of the debt of the local authority.