CHAPTER VI
FINANCE
Municipal Contributions
Contributions from Corporation or Paurashava Fund56[103. (1) The Corporation or Paurashava shall pay from the Corporation or Paurashava Fund to the Kartripakkha on the first day of each quarter a sum equivalent to one-half per cent per quarter on the annual value of buildings and lands determined under the provisions of the Dacca Municipal Corporation Act, 1974 (LVI of 1974), or the Paurashava Ordinance, 1977 (XXVI of 1977), as it stood on the first day of the last preceding quarter.
(2) The Corporation or Paurashava contributions prescribed by sub-section (1) shall be expenditure charged on the Corporation or Paurashava Fund.]
Loans
Power of Kartripakkha to borrow money104. The Kartripakkha may from time to time borrow, at such rate of interest, and for such period, and upon such terms, as to the time and method of repayment and otherwise, as the Government may approve, any sum necessary for the purpose of-
(a) meeting expenditure debitable to the capital account under section 137, or
(b) repaying any loan previously taken under this Act.
Loans from Banks
- Whenever the borrowing of any sum has been approved under section 104, the Kartripakkha may, instead of borrowing such sum or any part thereof from the public, take credit from any Bank, on a cash account to be kept in the name of the Kartripakkha, to the extent of such sum or part; and, with the previous sanction of the Government may grant mortgages of all or any property vested in the Kartripakkha by way of securring the payment of the amount of such credit or of the sums from time to time advanced on such cash account with interest.
Application of borrowed money106. When any sum of money has been borrowed under section 104 or section 105 for the purpose of meeting particular expenditure or repaying a particular loan, no portion thereof shall be applied to any other purpose without the previous sanction of the Government.
Form, signature, exchange, transfer and effect of debentures107. (1) Whenever money is borrowed by the Kartripakkha on debentures, the debentures shall be in such form as the Kartripakkha, with the previous sanction of the Government, may from time to time determine.
(2) All debentures shall be signed by the Chairman and one other 57[member].
(3) The holder of any debenture in any form prescribed under sub-section (1) may obtain in exchange therefore, upon such terms as the Kartripakkha may from time to time determine, a debenture in any other form so prescribed.
(4) Every debenture issued by the Kartripakkha shall be transferable by endorsement, unless some other mode of transfer be prescribed therein.
(5) The right to sue in respect of moneys secured by debentures issued by the Kartripakkha shall vest in the respective holders of the debentures for the time being, without any preference by reason of some of such debentures being prior in date to others.
Signature of coupons attached to debentures108. All coupons attached to the debentures issued under this Act shall bear the signature of the Chairman; and such signature may be engraved, lithographed or impressed by any mechanical process.
Payments to survivors of joint payees109. When any debenture or security issued under this Act is payable to two or more persons jointly, and either or any of them dies, then, notwithstanding anything in section 45 of the Contract Act, 1872, the debenture or security shall be payable to the survivor or survivors of such persons:
Provided that nothing in this section shall affect any claim by the representative of a deceased person against such survivor or survivors.
Receipt by joint holders for interest or dividend
- Where two or more persons are joint holders of any debenture or security issued under this Act, any one of such persons may give an effectual receipt for any interest or dividend payable in respect of such debenture or security, unless notice to the contrary has been given to the Kartripakkha by any other of such persons.
Priority of payment for interest and repayment of loans111. All payments due from the Kartripakkha for interest on, or the repayment of, loans, shall be made in priority to all other payments due from the Kartripakkha.
Repayment of loans taken under section 104112. Every loan taken by the Kartripakkha under section 104 shall be repaid within the period approved by the Government under that section, and, subject to the provisions of sub-section (2) of section 139, by such of the following methods as may be so approved, namely:-
(a) from a sinking fund established under section 113 in respect of the loan, or
(b) by paying equal yearly or half-yearly instalments of principal, or of principal and interest, throughout the said period, or
(c) if the Kartripakkha have, before borrowing money on debentures, reserved, by public notice, a power to pay off the loan by periodical instalments and to select by lot the particular debentures to be discharged at particular periods – then by paying such instalments at such periods, or
(d) from money borrowed for the purpose under section 104, clause (b), or
(e) partly from the sinking fund established under section 113 in respect of the loan, and partly from money borrowed for the purpose under section 104, clause (b).
Establishment and maintenance of sinking funds113. (1) Whenever the Government have approved the repayment of a loan from a sinking fund, the Kartripakkha shall establish such a fund and shall pay into it in every year, until the loan is repaid, a sum so calculated that, if regularly paid throughout the period approved by the Government under section 104, it would, with accumulations in the way of compound interest, be sufficient, after payment of all expenses, to pay off the loan at the end of that period.
(2) The rate of interest, on the basis of which the sum referred to in sub-section (1) shall be calculated, shall be such as may be prescribed by the Government.
Power o discontinue payments into sinking funds114. Notwithstanding anything contained in section 113, if at any time the sum standing at the credit of the sinking fund established for the repayment of any loan, is of such amount that, if allowed to accumulate at the rate of interest prescribed under sub-section (2) of that section, it will be sufficient to repay the loan at the end of the period approved by the Government under section 104, then, with the permission of the Government, further annual payments into such funds may be discontinued.
Investment of sinking funds115. (1) All money paid into any sinking fund shall, as soon as possible, be invested, under the orders of the Kartripakkha, in-
(a) Government securities, or
(b) securities granted by the Government, or
(c) debentures issued by the Kartripakkha,
in the joint names of the Secretary to the Government 58[in the Ministry or Division dealing with Finance and the Comptroller and Auditor-General of Bangladesh, hereinafter referred to as the Auditor-General, to be held by them as Trustees] for the purpose of repaying from time to time the debentures issued by the Kartripakkha.
(2) All dividends and other sums received in respect of any such investment shall, as soon as possible after receipt, be paid into the appropriate sinking fund and invested in the manner prescribed in sub-section (1).
(3) Any investment made under this section may from time to time, subject to the provisions of sub-section (1), be varied or transposed.
Application of sinking funds116. The aforesaid Trustees may from time to time apply any sinking fund, or any part thereof, in or towards the discharge of the loan or any part of the loan for which such fund was established; and until such loan is wholly discharged shall not apply the same for any other purpose.
Annual statement by Trustees117. (1) The aforesaid Trustees shall, at the end of every financial year, transmit to the Chairman of a statement showing-
(a) the amount which has been invested during the year under section 115,
(b) the date of the last investment made previous to the transmission of the statement,
(c) the aggregate amount of the securities held by them,
(d) the aggregate amount which has, up to the date of the statement, been applied under section 116 in or towards repaying loans, and
(e) the aggregate amount already paid into each sinking fund.
(2) Every such statement shall be laid before the Kartripakkha and published by notification.
Annual examination of sinking funds118. (1) The said sinking funds shall be subject to annual examination by the 59[Auditor-General], who shall ascertain whether the cash and the current value of the securities at credit of such funds are actually equal to the amount which would have accumulated, had investments been regularly made and had the rate of interest as originally estimated been obtained therefrom.
The 60[Auditor-General] may take into consideration any excess accumulation in any one sinking fund towards any deficiency in any other sinking fund.
(2) The Kartripakkha shall forthwith pay into any sinking fund any amount which the 61[Auditor-General] may certify to be deficient, unless the Government specially sanction a gradual readjustment.
Enforcement of Liabilities
Procedure if Kartripakkha fail to make any payment or investment in respect of loans119. (1) If the Kartripakkha fail-
(a) to pay any interest due in respect of any loan taken in pursuance of section 104, or
(b) to make any payment prescribed by section 112, section 113 or sub-section (2) of section 118, or
(c) to make any investment prescribed by section 115,
the 62[Auditor-General] shall make such payment or set aside and invest such sum as ought to have been invested under the said section 115, as the case may be; and the 63[Mayor of the Corporation or Chairman of the Paurashava] shall forthwith pay from the 64[the Corporation or Paurashava Fund to the Auditor-General] a sum equivalent to the sum so paid or invested by him; and the Government may attach the rents and other income of the Kartripakkha.
(2) Whenever the 65[Mayor of the Corporation or Chairman of the Paurashava] has made any payment to the 66[Auditor-General] under sub-section (1), the Government shall reimburse the Corporation or Paurashava out of the rents and income attached under sub-section (1) and if such rents and income prove insufficient for the purpose, may, 67[direct the Corporation or Paurashava to increase the tax on the annual value of buildings and lands leviable by them] to such extent as may be necessary for the purposes of making up the deficiency.
Procedure if the Mayor of the Corporation or Chairman of the Paurashava fails to make any payment due to the Kartripakkha68[120. If the Mayor of the Corporation or Chairman of the Paurashava fails to make any payment as required by section 103 or section 119, the Government may attach the Corporation or Paurashava Fund, and may direct the Corporation or Paurashava to increase the tax on the annual value of buildings and lands levied by them to such extent as may be necessary for the purpose of making such payment.]
Payment under section 119 to be a charge on the property of the Kartripakkha121. All moneys paid by the 69[Mayor of the Corporation or Chairman of the Paurashava] under sub-section (1) of section 119 and not reimbursed by the Government under sub-section (2) of that section and all moneys payable under sub-section (1) of section 119 and levied under section 120 shall constitute a charge upon the property of the Kartripakkha.
Budget Estimates
Estimates of income and expenditure to be laid annually before the Kartripakkha122. (1) The Chairman shall, at a special meeting to be held in the month of May in each year, lay before the Kartripakkha an estimate of the income and expenditure of the Kartripakkha for the next ensuing financial year.
(2) Every such estimate shall make provision for the due fulfilment of all the liabilities of the Kartripakkha and for the efficient administration of this Act.
(3) Every such estimate shall differentiate capital and revenue funds, and shall be prepared in such form, and shall contain such details, as the Government or the Kartripakkha may from time to time direct.
(4) Every such estimate shall be completed and printed, and a copy thereof sent, by post or otherwise, to each 70[member], at least ten clear days before the date of meeting at which the estimate is to be laid before the Kartripakkha.
Sanction of Kartripakkha to estimates123. The Kartripakkha shall consider every estimate so laid before them, and shall sanction the same, either without alteration or with such alteration as they may think fit.
Approval of Government to estimates124. (1) Every such estimate as sanctioned by the Kartripakkha, shall be submitted to the Government who may at any time within two months after receipt of the same-
(a) approve the estimate, or
(b) disallow the estimate or any portion thereof, and return the estimate to the Kartripakkha for amendment.
(2) If any estimate is so returned to the Kartripakkha, they shall forthwith proceed to amend it, and shall resubmit the estimate, as amended, to the Government who may then approve it.
Transmission of copy of estimate to the 71[Mayor of the Corporation or Chairman of the Paurashava]125. A copy of every such estimate shall, when approved by the Government, be sent by the Kartripakkha to the 72[Mayor of the Corporation or Chairman of the Paurashava].
[Omitted.]126. [Special provision as to the first estimate of the constitution of the Board.- Omitted by section 37 of the Town Improvement (Amendment) Act, 1987 (Act No. XXIX of 1987).]
Supplementary estimates127. (1) The Kartripakkha may, at any time during the financial year for which any estimate has been sanctioned, cause a supplementary estimate to be prepared and laid before them at a special meeting.
(2) The provisions of sub-sections (3) and (4) of section 122, and sections 123 to 125 shall apply to every supplementary estimate.
Adherence to estimate and maintenance of closing balance128. (1) No sum shall be expended by or on behalf of the Kartripakkha unless the expenditure of the same is covered by a current budget grant or can be met by reappropriation or by drawing on the closing balance.
(2) The closing balance shall not be reduced below one lakh of taka without the previous sanction of the Government.
(3) The following items shall be excepted from the provisions of sub-sections (1) and (2), namely,-
(a) re-payments of moneys belonging to contractors or other persons and held in deposit, and of moneys collected by, or credited to the Kartripakkha by mistake;
(b) payments due under a decree or order of a Court passed against the Kartripakkha or against the Chairman ex-officio 73[* * *];
(c) sums payable under a compromise of any suit or other legal proceeding or claim effected under section 167;
(d) sums payable under this Act by way of compensation;
(e) payments required to meet some pressing emergency; and
(f) gratuitious payments up to a maximum of five hundred taka.
(4) Whenever any sum exceeding five thousand taka is expended under clause (e) of sub-section (3) or whenever any sum is expended under clause (f) of that sub-section, the Chairman shall forthwith report the circumstances to the Government, and shall at the same time explain how the Kartripakkha propose to cover the expenditure.
Receipt of moneys and deposit in Bank129. (1) All moneys at the credit of the Kartripakkha shall be kept in the 74[Bangladesh Bank].
(2) All moneys payable to the Kartripakkha shall be received by the Chairman, and shall forthwith be paid into the aforesaid Bank to the credit of any account which shall be styled “The Account of the 75[Rajdhani Unnayan Kartripakkha]”.
Investment of surplus moneys130. (1) Surplus moneys at the credit of the said account may from time to time be-
(a) deposited at interest in the 76[Bangladesh Bank] or in any other Bank in 77[Dhaka] approved by the Government in this behalf, or
(b) invested in any of the securities or debentures mentioned in sub-section (1) of section 115 of this Act or section 20 of the Trusts Act, 1882.
(2) All such deposits and investments shall be made by the Chairman on behalf of, and with the sanction of, the Kartripakkha; and with like sanction, the Chairman may at any time withdraw any deposit so made or dispose of any securities, and re-deposit or re-invest the money so withdrawn or the proceeds of the disposal of such securities.
Payments by Cheques131. (1) No payment shall be made by the 78[Bangladesh Bank] out of the account referred to in section 129 except upon a cheque.
(2) Payment of any sum due by the Kartripakkha exceeding one hundred taka in amount shall be made by means of a cheque and not in any other way.
Signing of orders under section 130 and cheques79[132. All orders for making any deposit, investment, withdrawal or disposal under section 130, and all cheques referred to in section 131 shall be signed by the Chairman and a member authorised by the Kartripakkha or an officer of the Kartripakkha to be specified by it:
Provided that the Chairman may, with the approval of the Kartripakkha, empower any member to sign the cheques in his place if the amount of cheque does not exceed one lac Taka.]
Duty of Chairman and others before signing cheques133. Before 80[a person] to the Kartripakkha signs a cheque under section 132, he must satisfy himself that the sum for which such cheque is drawn either is required for a purpose or work specifically sanctioned by the Kartripakkha or is an item of one of the excepted descriptions specified in section 128, sub-section (3).
Accounts
Definition of “Cost of management”134. (1) The expression “cost of management”, as used in the following sections in this Chapter, means-
81[(a) the salary and other remuneration of the Chairman and other members;]
(c) the salaries, fees and allowances of, and the contributions paid under section 160 in respect of, employees of the Kartripakkha who are included in statements prepared under section 32;
(d) the remuneration of other employees of the Kartripakkha except employees who are paid by the day or whose pay is charged to temporary work;
82[* * *]
(2) [Omitted by section 43 of the Town Improvement (Amendment) Act, 1987 (Act No. XXIX of 1987).]
Keeping of capital account and revenue account135. (1) The Kartripakkha shall keep a capital account and a revenue account.
(2) The capital account shall show separately all expenditure incurred by the Kartripakkha on each improvement scheme and each re-housing scheme.
Credits to capital account136. There shall be credited to the capital account-
(a) all sums (except interest) received by way of special payments or betterment fees in pursuance of 83[section 94];
(b) all moneys received on account of loans taken by the Kartripakkha in pursuance of section 104 or section 105;
(c) the proceeds of the sale of any land vested in the Kartripakkha which was purchased out of any loan taken in pursuance of section 104 or section 105;
(d) where land was purchased out of an advance from the revenue account, the portion of the proceeds of the sale of such land which remains after crediting to the revenue account the amount of such advance;
(e) the proceeds of the sale of any movable property (including securities for money invested from the capital account) belonging to the Kartripakkha;
(f) all lump sums received from 84[the] Government in aid of the capital account;
(g) all premia received by the Kartripakkha in connection with leases for any term exceeding forty years;
(h) all sums (if any) which the Government directs, under sub-section (2) of section 139 to be credited to the capital account; and
(i) all moneys resulting from the sale of securities by the direction of the Government under section 140.
Application of capital account137. The moneys credited to the capital account shall be held by the Kartripakkha in trust, and shall be applied to-
(a) meeting all costs of framing and executing improvement schemes and re-housing schemes;
(b) meeting the cost of acquiring land for carrying out any of the purposes of this Act;
(c) meeting the cost of constructing buildings required for carrying out any of the purposes of this Act;
(d) the repayment of loans from money borrowed in pursuance of clause (b) of section 104;
(e) making payments in pursuance of section 163 otherwise than for interest or for expenses of maintenance or working;
(f) making or contributing towards the cost of making, surveys, in pursuance of section 180;
(g) meeting such proportion of the cost of management as the Kartripakkha may, with the sanction of the Government, prescribe in this behalf; and
(h) temporarily making good the deficit (if any) in the revenue account at the end of any financial year.
Credits to revenue account138. There shall be credited to the revenue account-
(a) all interest received in pursuance of sections 92, 98 or 99;
(b) all sums contributed from 85[Corporation or Paurashava Funds] which are received by the Kartripakkha under section 103;
(c) all damages received by the Kartripakkha under section 175;
(d) all annually recurring sums received from the Government in aid of the funds of the Kartripakkha;
(e) all premia received by the Kartripakkha in connection with leases for any term not exceeding forty years;
(f) all rents of land vested in the Kartripakkha; and
(g) all other receipts by the Kartripakkha which are not required by section 136 to be credited to the Capital account.
Application of revenue account139. (1) The moneys credited to the revenue account shall be held by the Kartripakkha in trust, and shall be applied to-
(a) meeting all charges for interest and sinking fund due on account of any loan taken in pursuance of clause (a) of section 104 or section 105 and all other charges incurred in connection with such loans;
(b) paying all sums due from the Kartripakkha in respect of rates and taxes imposed under the 86[Dhaka Municipal Corporation Act, 1974 (LVI of 1974), and the Paurashava Ordinance, 1977 (XXVI of 1977),] upon land vested in the Kartripakkha;
(c) paying the cost (if any) of maintaining a separate establishment for the collection of the rents and other proceeds of land vested in the Kartripakkha;
(d) paying all sums which the Government may direct to be paid to any auditor under section 146;
(e) making payments in pursuance of section 163 for interest or for expenses of maintenance or working;
(f) paying the cost of management, excluding such portion thereof as may be debited to the capital account under clause (g) of section 137; and
(g) paying all other sums due from the Kartripakkha, other than those which are required by section 137 to be disbursed from the capital account.
(2) The surplus (if any) remaining after making the payments referred to in sub-section (1) shall, subject to the maintenance of a closing balance as required by sub-section (2) of section 128, and except as provided in section 141 and unless the Government otherwise directs, be invested, in the manner prescribed in section 115, towards the service of any loans outstanding after the expiry of sixty years from the commencement of this Act.
Power to direct sale of securities140. If, at any time after any surplus referred to in sub-section (2) of section 139 has been invested, the Government is satisfied that the investment is not needed for the service of any loan referred to in that sub-section, it may direct the sale of the securities held under the investment.
Advances from revenue account to capital account141. (1) Notwithstanding anything contained in section 139, the Kartripakkha may advance any sum standing at the credit of the revenue account for the purpose of meeting capital expenditure.
(2) Every advance shall be refunded to the revenue account as soon as may be practicable.
Advances from capital account to revenue account142. (1) Any deficit in the revenue account at the end of any financial year may be made good by an advance from the capital account.
(2) Every such advance shall be refunded to the capital account in the following financial year.
Submission of abstracts of accounts143. The Kartripakkha shall submit to the Government at the end of such half of every financial year, an abstract of the accounts of their receipts and expenditure.
Annual audit of accounts144. The accounts of the Kartripakkha shall, once in every financial year, be examined and audited by such auditor as the Government may appoint in this behalf.
Powers of auditors145. The auditor so appointed may,-
(a) by written summons, require the production before him of any document which he may consider necessary for the proper conduct of the audit;
(b) by written summons, require any persons having the custody or control of, or being accountable for, any such documents to appear in person before him; and
(c) require any person so appearing before him to make and sign a declaration with respect to any such document, to answer any questions, or to prepare and submit any statement.
Remuneration of auditor146. The Kartripakkha shall pay to the said auditor such remuneration as the Government may direct.
Auditor’s report to the Kartripakkha147. The said auditor shall-
(a) report to the Kartripakkha any material impropriety or irregularity which he may observe in the expenditure, or in the recovery of moneys due to the Kartripakkha, or in the accounts, and report the same to the Government,
(b) furnish to the Kartripakkha such information as they may from time to time require concerning the progress of his audit, and
(c) within fourteen days after the completion of his audit, forward his report upon the accounts to the Chairman.
Kartripakkha to remedy defects148. It shall be the duty of the Kartripakkha forthwith to remedy any defects or irregularities that may be pointed out by the auditor.
Auditor’s report to be sent to each 87[member]149. The Chairman shall cause the report mentioned in clause (c) of section 147 to be printed and shall forward a printed copy thereof to each 88[member], and shall bring such report before the Kartripakkha for consideration at their next meeting.
Publication and transmission of an abstract of the accounts150. As soon as practicable after the receipt of the said report, the Kartripakkha shall prepare an abstract of the accounts to which it relates, and shall publish such abstract by notification, and shall send a copy of the abstract to 89[Mayor of the Corporation or Chairman of the Paurashava] and to Government.