Panchayat:Repo18/vol2-page0277

Sec. 3A LOCAL AUTHORITIES LOANS ACT, 1963 277

(j) to invest any money of the Development Fund, in any investments as may be prudent and as may be necessary, provided the income from such investments shall be utilised to fulfill the objectives of the Development Fund;

(k) to act as nodal or nominated agencies on behalf of the Central and/or the State Governments for infrastructure projects in the State;

(1) to do all other things necessary and conducive to the attainment of all these objectives.

(2) (a) The Government may, by notification in the Gazette, appoint it Board of Management to manage the Development Fund established under this Act with the following members, namely:-

(i) The Minister-in-charge of the Urban Affairs - ex officio;

(ii) The Minister-in-charge of Panchayats — ex officio;

(iii) The Secretary to Government, Finance Department - ex officio;

(iv) The Principal Secretary, Local Self Government Department — ex officio;

(v) The Secretary to Government, Local Self Government (Urban) Department - ex officio;

(vi) The Secretary to Government, Planning Department-ex officio;

(vii) The Director of Urban Affairs - ex officio;

(viii) One Mayor of a Municipal Corporation, one Chairman of a Municipality and one President of a Panchayat each to be nominated by the Government.

(b) The Minister-in-charge of the Urban Affairs shall be the Chairman of the Board and the Secretary to Government, Local Self Government (Urban) Department shall be its Convenor.

(c) The Board shall stand possessed of the Development Fund subject to the powers and provisions herein contained concerning the same and the Board shall have the power at any time during the existence of the Development Fund to accept any property whether of an onerous nature or not from any person or persons from any other fund or otherwise with the intention of holding the same by or on behalf of the Board as an accretion to the Development Fund.

(3) The Board shall perform the following functions and duties, namely:-

(a) to provide financial assistance in relation to infrastructure projects and also lay down policies relating to credit approval and investments, provided if no infrastructure project has been identified for making investments, the Board may invest the Development Fund, in such manner as it deems fit in the interest of the Local authorities;

(b) to enter into a management agreement whereby the Board shall delegate such of its powers as it deems appropriate to the Fund Manager to enable the Fund Manager to manage the Development Fund, and to realise the objectives set forth in the Act;

(c) to supervise operations of the Fund Manager in relation to the Development Fund;

(d) to exercise at all times due diligence in carrying out its duties for protecting the interests of the Development Fund;

(e) to hold the Development Fund on behalf of the Government for enabling opening and operating of Bank accounts on behalf of the Fund by the Fund Manager;

(f) to accept additional contribution if any made by the Government and the local authorities towards the Development Fund;

(g) to exercise the power at any time by a resolution, revocable or irrevocable during the existence of the Development Fund to release or to any extent restrict the future exercise of . any powers hereby or by law conferred on it notwithstanding the fiduciary nature of any such . powers;

(h) to exercise the power, discretion, rights and immunities as may be prescribed.