GOVERNMENT OF MAHARASHTRA
LAW AND JUDICIARY DEPARTMENT

Maharashtra  Act  No.  XV  of  1996

THE  KRISHNA  VALLEY  DEVELOPMENT
CORPORATION  ACT,  1996

(As  modified  upto  the  15th  August,  2012)

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THE  KRISHNA  VALLEY  DEVELOPMENT  CORPORATION
ACT,  1996
CONTENTS

1

PREAMBLE.
SECTIONS.

CHAPTER  I
PRELIMINARY

1. Short  title,  extent  and  commencement.
2. Definitions.

CHAPTER  II

ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE CORPORATION

3. Establishment  of  Maharashtra  Krishna  Valley  Development  Corporation.
4. Constitution  of  Corporation.
5. Executive  Committee.
6. Disqualifications  for  membership  and  removal  of  members.
7. Meetings  of  Corporation.
8. Constitution  of  Committees.
9. Provision  for  inviting  officers  of  Government  and  local  authority.

10. Filling  up  of  casual  vacancy  of  member.
11. Act  not  to  be  invalidated  by  vacancy,  informality,  etc.
12. Officers  and  servants  of  Corporation.
13. Disqualification  of  all  officers  and  staff.
14. Authentication  of  orders,  etc.,  of  the  Corporation.

CHAPTER  III
VESTING OF PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS AND TRANSFER OF EMPLOYEES.

15. Vesting  and  transfer  of  property  to  the  Corporation.
16. Decision  of  the  State  Government  on  the  vesting  of  property  to  be  final.
17. Power  of  State  Government  to  depute  certain  Government  employees  to

Corporation.

CHAPTER  IV
FUNCTIONS AND POWERS OF CORPORATION

18. Functions  of  Corporation.
19. General  powers  of  the  Corporation.
20. Water charges for supply of water for irrigation industrial and domestic purposes.
21. Responsibility  of  Corporation  for  payment  of  interest  on  borrowed  money.
22. Prohibition of construction  of dam, bandhara, weir, etc., except  with approval

of  Corporation.

23. Co-ordination  with  other  authorities  to  minimise  inconvenience  caused  by

submergence.

24. Powers to be exercised by the Corporation under the Maharashtra Irrigation Act,

1976.

25. Powers  of  the  State  Government  to  issue  directions.

CHAPTER  V
ACQUISITION OF LAND

26. Power  to  acquire  land  for  purposes  of  this  Act.
27. Transfer  of  Government  lands  to  Corporation.
28. Power  of  Corporation  to  dispose  of  land,  etc.

H  22-1

2

CHAPTER  VI
FINANCE, ACCOUNTS AND AUDIT

29. Application  of  Corporation’s  assets,  etc.
30. Fund  of  Corporation.
31. Contribution  of  Government  to  Corporation  Fund.
32. Grants,  subventions,  loans  and  advances  to  Corporation.
33. Power  of  Corporation  to  borrow.
34. Acceptance  of  deposits  by  Corporation.
35. Power  to  spend.
36. Expenditure  on  objects  other  than  Irrigation  and  Power  Projects.
37. Allocation  of  expenditure  chargeable  to  project  on  main  objects.
38. Reserve  and  other  funds.
39. Submission  of  budget  to  Corporation.
40. Sanction  of  budget  estimates.
41. Government as  Guarantor.
42. Disposal  of  profits  and  deficits.
43. Interest  charges  and  other  expenses  to  be  added  to  and  receipts  taken  for

reduction  of  capital  cost.

44. Depreciation  Fund.
45. Apportionment  of  betterment  charges  levied  by  State  Government.
46. Financial  Statement  and  programme  of  work.
47. Accounts  and  Audit.
48. Concurrent  and  special  audit  of  accounts.
CHAPTER  VII
MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

49. Furnishing  of  annual  reports  and  returns,  etc.
50. Rehabilitation  and  resettlement  of  the  project  affected  persons.
51. Execution  of  contracts,  etc.
52. General  penalty.
53. Power of entry.
54. Dues  to  be  recovered  as  arrear  of  land  revenue.
55. Service  of  notice,  etc.
56. Public  notice  how  to  be  made  known.
57. Notice  period  for  performance.
58. Default  in  performance  of  duty.
59. Offences  by  companies.
60. Authority  for  prosecution.
61. Compounding  of  offences  by  Corporation.
62. Penalty  for  obstruction.
63. Delegation  of  powers  of  Corporation.
64. Protection  of  action  taken  in  good  faith.
65. Chairman, Vice-Chairman, Executive Director, Members and Officers, etc. to be

public  servants.

66. Effect  of  provisions  inconsistent  with  other  laws.
67. Power  to make  rules.
68. Power  to  make  regulations.
69. Power  to  remove  doubts  and  difficulties.
70. Dissolution  of  Corporation.
71. Repeal  of  Mah.  Ord.  III  of  1996  and  saving.

1996 : Mah. XV ]

3

MAHARASHTRA ACT No. XV OF 19961
[THE  MAHARASHTRA  KRISHNA  VALLEY  DEVELOPMENT  CORPORATION  ACT,  1996]
[This Act received the assent of the Governor on the 4th April 1966; assent was first
published  in  the Maharashtra  Government  Gazette, Part  IV,  Extraordinary,  on  the  4th
April,  1996.]

Amended  by  Mah.  11  of  1997  (29-10-1996*)†
Amended  by  Mah.  8  of  1999  (16-1-1999)†
Amended  by  Mah.  9  of  2000  @(8-10-1999)
Amended  by  Mah.  14  of  2000  (11-1-2000)†
Amended  by  Mah.  19  of  2004  @@(27-11-2003)
An  Act  to  make  special  provisions  for  promotion  and  operation  of  irrigation
projects, command area development and schemes for generation of hydro-electric
energy to harness the water of Krishna River allocated to the State of Maharashtra
under the Krishna Water Disputes Tribunal Award and other allied and incidental
activities  including  flood  control  in  the  Krishna  River  Valley  by  establishing  the
Maharashtra Krishna Valley Development Corporation.

WHEREAS it was expendient to make special provisions for promotion and operation
of irrigation projects, command area development and schemes for gereration of hydro-
electric energy to harness the water of Krishna River allocated to the State of Maharashtra
under  the  Krishna  Water  Disputes  Tribunal  Award  and  other  allied  and  incidental
activities  including  flood  control  in  the  Krishna  River  Valley  by  establishing  the
Maharashtra  Krishna  Valley  Development  Corporation;

AND WHEREAS it was considered necessary to immediately make a law for the same;
AND  WHEREAS  both  Houses  of  the  State  Legislature  were  not  in  session  ;
AND WHEREAS the Governor of Maharashtra was satisfied that circumstances existed
which  rendered  it  necessary  for  him  to  take  immediate  action  to  make  a  law  for  the
purposes  aforesaid;  and,  therefore,  promulgated  the  Maharashatra  Krishna  Valley
Development  Corporation  Ordinance,  1996  on  the  25th  January  1996;

AND WHEREAS it is expedient to replace the said Ordinance by an Act of the State
Legislature;  It  is  hereby  enacted  in  the  Forty-Seventh  Year  of  the  Republic  of  India  as
follows  :—

CHAPTER  I
PRELIMINARY

1. (1) This Act may be called the Maharashtra Krishna Valley Development Corporation

Act,  1996.

(2) It shall extend to the Krishna River Valley in the State of Maharashtra and such other
area or areas, as the State Government may, by notification in the Official Gazette, specify.

(3)  It  shall  be  deemed  to  have  come  into  force  on  the  25th  January,  1996.

short,  title,
extent  and
commence-
ment.

1

For  Statement  of  Objects  and  Reasons, see  Maharashtra  Government  Gazette,  1996,
Extraordinary,  Part  V.  Page  29,  dated  the  19th  March  1996.
This  indicates  the  date  of  commencement  of  the  Act.
Section  6  of  the  Mah.  XI  of  1997  reads  as  under  :

†
*
“(1) The  Maharashtra  Krishna  Valley  Development  Corporation  (Amendment)  Ordinance,  1996  is

hereby  repealed.

  (2) Notwithstanding  such  repeal,  anything  done  or  any  action  taken  under  the  said  Ordinance  shall
be  deemed  to  have  been  done,  or  taken,  as  the  case  may  be,  under  the  principal  Act  as
amended  by  this  Act.”.

@ Mah.  Ord.  No.  XXXI  of  1999  was  repealed  by  Mah.  9  of  2000,  S.  7.
@@ Mah.  Ord.  No.  VII  of  2004  was  repealed  by  Mah.  18  of  2004,  S.  11.

4

Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

Definitions.

2.  In  this  Act,  unless  the  context  otherwise  requiries,—

Act, 1996

(a) “Area of operation of the Corporation” means the area of the Krishna River Valley
and any other area or areas to which the provisions of this Act are extended by the State
Government  by  notification  in  the Official  Gazette under  sub-section  (2)  of  section  1 ;

(b)  “Corporation”  means  the  Maharashtra  Krishna  Valley  Development  Corporation

established  under  section  3;

(c)  “Hydro-Electric  Power  Project”  means  and  includes  the  planning,  construction,
maintenance  and management  of  Hydro-Electric Power  Projects  (except Koyna  Hydro-
Electric  Power  Project),  within  the  area  of  operation  of  the  Corporation  and  shall  also
include  such  hydro-electric  power  projects  as  are  assigned,  handed  over  or  transferred
to  the  Corporation  by  the  State  Government;

(d)  “Irrigation  Department”  means  the  Irrigation  Department  of  the  Government;

(e) “Irrigation Project” means the planning, construction, maintenance and management

of—

(i) Major  Irrigation  Project  having  irrigable  command  area  of  more  than  10,000

hectares,

(ii) Medium Irrigation Project having irrigable command area of more than 2,000

hectares  and  upto  10,000  hectares,

(iii)  Minor  Irrigation  Project  having  irrigable  command  area  of  more  than  250

hectares  and  upto  2,000  hectares,

and  shall  include  command  area  development,  flood  control  and  other  allied  activities;

(f)  “Krishna  River  Valley”  means  the  geographical  area  from  the  origin  of  Krishna
River  and  its  all  tributaries  within  the  State  of  Maharashtra  as  specified  in  the  Krishna
Water  Disputes  Tribunal  Award;

(g) “Krishna Water Disputes Tribunal Award” means the report of the Krishna Water
Disputes Tribunal, given under section 5(3) of the Inter-State Water Disputes Act, 1956;

33  of
1956.

(h)  “member”  means  a  member  of  the  Corporation  designated  as  Director;

(i)  “prescribed”  means  prescribed  by  rules  made  under  this  Act;

(j)  “regulations”  means  the  regulations  made  under  this  Act;

(k)  “State  Government”  or  “Government”  means  the  Government  of  Maharashtra.

CHAPTER  II

ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE CORPORATION.

Establishment
o f
Maharashtra
Krishna
Valley
Development
Corporation.

3. (1) The State Government shall, by *notification in the Official Gazette, establish
for the purposes of this Act, a Corporaiton to be called the Maharashtra Krishna Valley
Development  Corporation.

(2) The  Corporation  established  under  sub-section  (1)  shall  be  a  body  corporate
having  perpetual  succession  and  a  common  seal,  with  power  to  contract,  acquire,  hold
and  dispose  of  property,  both  movable  and  immovable,  and  to  do  all  things,  necessary
for  the  purposes  of  this  Act,  and  may  sue  and  be  sued  by  its  corporate  name.

(3) The  Head  Office  of  the  Corporation  shall  be  at  Pune.

*

See  Maharashtra  Government  Gazette Part  IV-B.  Page  283,  dated  16th  February  1996  (Vide
G.N.,  D.,  No.  MKVDC  1195)  (212  95  W.R.P.  dated  16th  February,  1996.)

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

5

Act, 1996

4. (1)  The  Corporation  shall  consist  of  the  following  members,  namely  :—

(a)  the  Minister  for  Irrigation
1[(a-1)  two non-official members  to  be  appointed  by

ex  officio Chairman;
Vice-Chariman;]

Constitution
o f
Corporation.

Government

(b)  the  Chief  Secretary  to  Government

(c)  Secretary  to  Government,  Irrigation  Department
(d)  Secretary  to  Government,  Irrigation  Department,

(Command Area Development)

(e)  Secretary  to  Government,  Finance  Department
(f)  Secretary  to  Government,  Planning  Department
(g)  Secretary  to  Government,  Revenue  and  Forests

Department (Forests).

(h)  Secretary  to  Government,  Revenue  and  Forests

ex  officio
Vice-Chairman;
ex  officio Member;

ex  officio Member;
ex  officio Member;
ex  officio Member;

ex  officio Member;

Department  (Relief  and  Rehabilitation).

ex  officio Member;
(i)  Secretary  to  Government,  Agriculture  Department
ex  officio Member;
(j)  three  non-official  members  representing  reputed  and  recognised  financial

institutions,  to  be  nominated  by  the  State  Government;

(k)  five  members  to  be  nominated  by  the  State  Government,  from  amongst  the

members  of  the  Maharashtra  State  Legislative  Assembly;

(l)  two  members  to  be  nominated  by  the  State  Government,  from  amongst  the

members  of  the  Maharashtra  State  Legislative  Council;

(m)  two  non-official  members  to  be  nominated  by  the  State  Government  having
special  knowledge  of  practical  experience,  one  each  from  the  field  of  Irrigation  and
Finance,  respectively;

2[(m-1) one officer, not  below the rank of Accountant General,  from the cadre of
the Indian Audit and Accounts Services or any other equivalent cadre of the Central
Government,  to  be  appointed  by  the  State  Government,  shall  be  designated  as  the
Finance  Member  of  the  Corporation.  The  Finance  Member  shall  be  entitled  to  take
part in the deliberations and proceedings of the meetings of the Corporation but shall
have  no  right  to  vote.]

(n) One Officer not below the rank of Secretary to Government, from the cadre of
the Engineering services of the Irrigation Department 3[or from amongst the suitable
officers  from  any  other  services’]  to  be  appointed  by  the  State  Government  as  the
Member-Secretary  of  the  Corporation,  who  shall  be  designated  as  the  Executive
Director  of  the  Corporaiton.  The  Executive  Director  shall  be  entitled  to  take  part  in
all  the  deliberations  and  proceedings  of  the  meetings  of  the  Corporation  but  shall
have  no  right  to  vote.
(2) The term of office of nominated members shall be for a period of one year unless

terminated  earlier  by  the  State  Government  :

Provided  that,  the  members of  the  Maharashtra  State  Legislature  shall  cease  to  be  the
member of the Corporation if they cease to be members of the Maharashtra State Legislature.
(3) The non-official members of the Corporation nominated under 4[clause (a-1) and
(m)]  of  sub-section  (1)  shall  receive  such  remuneration  and  allowances  as  may  be  laid
down  by  regulations.

(4)  The  official  members  of  the  Corporation  shall  receive  such  compensatory
allowances,    for  the  purpose  of  meeting  the  personal  expenditure  in  attending  the
meetings  of  the  Corporation,  as  may  be  laid  down  by  the  regulations.

1. This  clause  was  inserted  by  Mah.  11  of  1997.  s.  2(i).
2. This  clause  was  inserted  by  Mah.  14  of  2000,  s.  2.
3. These  words  were  inserted  by  Mah.  8  of  1999,  s.  2.
4. These  words,  brackets  and  letters  were  substituted  for  the  word,  brackets  and  letter  “clause  (m)”

by  Mah.  11  of  1997,  s.2.(ii).

Executive
Committee.

Disqualifica-
tions  for
membership
and  removal
of  members.

6

Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

Act, 1996

5. (1)  There  shall  be  an  Executive  Committee  consisting  of  the  following  members,

namely  :—

(a)  Executive  Director  of  the  Corporation
(b)  Chief  Engineer,  Irrigation  Department,  Pune  Division.
(c)  Chief  Engineer  (Specified  Project),  Irrigation

.. Chairman
Member
Member

Department,  Pune  Division.

1[(d)  Chief  Engineer  of  the  Corporation
.. Member]
2[(d-1)  Finance  Member  of  the  Corporation
Member]
(e)  Chief  Accounts  and  Finance  Officer  of  the  Corporation Member
(f)  Superintending  Engineer  of  the  Corporation

.. Member-Secretary.
(2) The powers, functions and duties of the Executive Committee shall be such as may

be  laid  down  by  regulations.

6. (1)  A  person  shall  be  disqualified  for  being  nominated  as  a  non-official  member

or  continue  to  be  such  member,  if  he,—

(a)  is  an  employee  of  the  Corporation,  except  the  Executive  Director;
(b)  is  of  unsound  mind,  and  stands  so  declared  by  a  competent  Court;
(c)  is  an  undischarged  insolvent;
(d)  is  convicted  for  an  offence  involving  moral  turpitude;
(e) has, directly or indirectly by himself or by any partner, employer or employee,
any  share  or  interest,  whether  pecuniary  or  of  any  other  nature,  in  any  contract  or
employment  with,  by  or  on  behalf  of,  the  Corporation;  or

(f) is a  Director, Secretary, Manager or  other Officer of any  company, which has
any  share  or  interest  in  any  contract  or  employment  with,  by  or  on  behalf  of,  the
Corporation;
Provided  that,  a  person  shall  not  be  disqualified  under  clause  (e)  or  clause  (f)  by
reason only of his or the company of which he is a Director, Secretary, Manager or other
Officer,  having  a  share  or  interest  in—

(i) any sale, purchase, lease or exchange of immloveable property or any agreement

for  the  same;

(ii) any agreement for loan of money or any security for payment of money only;
(iii)  any  newspaper  in  which  any  advertisement  relating  to  the  affairs  of  the

Corporation  is  published.
(2)  The  Government  may  remove  from  the  Corporation  any  non-official  member

nominated  by  the  Government,  who  in  its  opinion,—
(a)  has  been  disqualified  under  sub-section  (l)  ;
(b)  refuses  to  act  ;
(c)  has  so  abused  his  position  as  a  member  as  to  render  his  continuance  on  the

Corporation  detrimental  to  the  interest  of  the  public,  or
(d)  is  otherwise  unsuitable  to  continue  as  member.

(3)  No  order  of  removal  under  sub-section  (2)  shall  be  made  unless  the  non-official
member  has  been  given  an  opportunity  to  submit  his  explanation  to  the  Government,  and
when such order is passed the office of the member so removed shall be deemed to be vacant.
(4)  A  member  who  has  been  so  removed  under  sub-section  (3)  shall  not  be  eligible

for  reappointment  as  member  or  in  any  other  capacity  on  the  Corporation.

7. (1)  The  Corporation  shall  meet  at  such  times  and  places  as  the  Chairman  may
decide  and  shall,  subject  to  the  provisions  of  sub-section  (3),  observe  such  rules  of
procedure in regard to the transaction of business at its meetings (including the quorum
thereof)  as  may  be  laid  down  by  regulations  :

Provided  that,  at  least  one  meeting  shall  be  held  in  every  calendar  month  in  such
manner so as to ensure that not more than thirty days intervene between the two meetings.

1. This  clause  was  inserted  by  Mah.  19  of  2004,  s.  2.
2. This  clause  was  inserted  by  Mah.  14  of  2000,  s.  3.

Meetings  of
Corporation.

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

7

Act, 1996

1[(2) The  Chairman  or,  in  his  absence,  such  of  the  Vice-Chairman  appointed  under
clause (a-1) of sub-section (1) of section 4, if both are the Members of the Maharashtra
State  Legislature;  as may  be  predetermined  by the  Chairman  by  an order,  shall  preside
over the meeting of Corporation; and in the absense of all the three, the Chief Secretary
to  Government,  being  the  other  Vice-Chairman  shall  preside  over  such  meeting  :

Provided  that,  if  the  Vice-Chairman  appointed  under  clause  (a-1)  are  persons  other
than  the  Members  of  the  State  Legislature,  the  Chief  Secretary  as  the  Vice-Chairman
shall,  in  the  absence  of  the  Chairman,  preside  over  the  meeting  and  in  the  absence  of
the Chief Secretary, the other Vice-Chairman, as may be predetermined by the Chairman
by  an  order,  shall  preside  over  such  meeting.]

(3)  A  member,  who  is  directly  or indirectly  concerned  or  interested  in  any  contract,
loan arrangement or proposal entered into or proposed to be entered into, by or on behalf
of  the  Corporation,  shall,  at  the  earliest  possible  opportunity,  disclose  the  nature  of  his
interest  to  the  Corporation,  and  shall  not  be  Present  at  any  meeting  of  the  Corporation
when any such contract, loan, arrangement or proposal is discussed, unless his presence
is required by the other members for the purpose of eliciting information, but no member
so  required  to  be  present  shall  vote  on  any  such  contract,  loan,  arrangement  or  proposal  :

Provided  that,  a  member  shall  not  be  deemed  to  be  concerned  or  interested  as
aforesaid by reason only of his being a shareholder of a Company concerned in any such
contract,  loan,  arrangement  or  proposal.

Constitution
of  commit-
tees.

8. The Corporation may, from time to time, constitute committee, or committees out
of  its  members  consisting  of  such  number  of  them  as  it  may  think  proper  and  may
delegate  to  such  committee  such  powers  of  the  Corporation  as  it  may  deem  fit  for
carrying  out  the  purposes  of  this  Act.

provision  for
inviting
officers  of
Government
and  local
authority.

9. (1) The Corporation or any of its committees may invite any officer of the Central
Government,  State  Government,  local  authority  or  any  organisation  of  any  person  to
attend its meeting or meetings as a special invitee for the purpose of assisting or advising
it on any matter or matters. The officer so invited may take part in the proceedings, but
shall  have  no  right  to  vote.

Filling  up  of
casual
vacancy  of
member.
Act  not  to
be  invali-
dated  by
vacancy,
informalty,
etc.

(2)  The  officer  so  invited  shall  be  entitled  to  draw  such  honourarium  or  compensatory
allowance  for  the  purpose  of  meeting  the  personal  expenditure  in  attending  the  meetings  of
the Corporation or any of its committees as the Corporation may determine, from time to time.

10. Any vacancy of a member of the Corporation shall be filled as early as practicable,

in  like  manner  as  if  the  appointment  were  being  made  for  the  first  time.

11. No act done or proceedings taken under this Act by the Corporation or committee

appointed  by  the  Corporation  shall  be  invalidated  merely  on  the  grounds  of—

(a)  any  vacancy  of  a  member  or  any  defect  in  the  constitution  or  reconstitution

of  the  Corporation  or  a  committee  thereof;  or

(b)  any  defect  or  irregularity  in  the  appointment  of  a  person  as  a  member  of  the

Corporation  or  of  a  committee  thereof  ;  or

(c) any defect or irregularity in such act or proceedings, not affecting the substance.

1. Sub-section  (2)  was  substituted  for  the  original  by  Mah.  11  of  1997.  s.3.

8

Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

Act, 1996

12. (1) The State Government shall appoint Executive Director as provided in section
4(1), 1[2[Chief Engineer;] Finance Member, Superintending Engineer], and Chief Accounts
and  Finance  Officer  not  below  the  rank  of  Director  from  the  Maharashtra  Finance  and
Accounts  Service  for  the  Corporation.

Officers  and
servants  of
Corporation.

(2)  The  Corporation  may,  with  the  prior  approval  of  the  State  Government,  appoint
such other officers and servants subordinate to the officers mentioned in sub-section (1)
as  it  considers  necessary  for  the  efficient  performance  of  its  duties  and  functions.

(3)  The conditions  of appointment  and service  of the  officers and  servants and  their

scales  of  pay  shall,—

(a) as regards the officers mentioned in sub-section (1), be such as may be prescribed,

and

(b) as regards the officers and servants mentioned in sub-section (2) be such as may

be  laid  down  from  time  to  time  by  regulations.

(4)  Subject  to  the  superintendance  of  the  Corporation,  the  Executive  Director  shall
supervise and control all its officers and employees including any officers of Government
appointed  on  deputation  to  the  Corporation.

13. No person who has, directly or indirectly, by himself or by his partner or agent,
any  share  or  interest  in  any  contract,  by  or  on  behalf  of  the  Corporation  or  in  any
employment  under,  by  or  on  behalf  of  the  Corporation  otherwise  than  as  an  officer  or
staff  thereof,  shall  be  qualified  to  be  an  officer  or  staff  of  the  Corporation.

14. All  proceedings  of  the  Corporation  shall  be  authenticated  by  the  Chairman  or
Vice-Chairman and all orders and instruments of the Corporation shall be authenticated
by the Executive Director or any other officer of the Corporation as may be authorised
in  this  behalf  by  regulations.

CHAPTER  III
VESTING OF PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS AND TRANSFER OF EMPLOYEES.

15. (1) From such date as may be specified, from time to time, by the State Government

(hereinafter  in  this  section  referred  to  as  "the  appointed  date"),—

(a) the properties and assets comprising movables and immovables including Irrigation
Projects,  Hydro-Electric  Power  Projects,  works  under  construction  and  management  of
completed  schemes,  specified  in  that  behalf,  situated  in  the  area  of  operation  of  the
Corporation, which immediately before the appointed date vested in the State Government
and were under the control of the Irrigation Department, shall vest in and stand transferred
to  the  Corporation,  and  all  income  derived  and  expenses  incurred  in  that  behalf  be
brought  on  books  of  the  Corporation  ;  and

(b) the rights, liabilities and obligations of the State Government, whether arising out
of any contract or otherwise pertaining to the said projects of the State Government shall
be  deemed  to  be  the  rights,  liabilities  and  obligations  of  the  Corporation.

(2)  Such  properties,  assets,  rights,  liabilities  and  obligations  shall  be  valued  in  such

manner  as  the  State  Government  may  determine.

1. These  words  were  substituted  for  the  words  “Chief  Engineer,  Superintending  Engineer”  by  Mah.

14  of  2000  s.  4.

2. The  words  “Chief Engineer”,  were  deleted  by  Mah.  Ord.  13  of  2003,  s.  3,  with  effect
from  27-11-2003,  and  the  same  were  inserted,  with  effect  from  27-11-2003,  by  Mah.  19
of  2004,  s.3.

Disqualifica-
tion  of  all
officers  and
staff.

Authentica-
tion  of
orders  etc.
of  the
Corporation.

Vesting  and
transfer  of
property  to
the  Corpora-
tion.

Decision  of
the  State
Government
on  the
vesting  of
property  to
be  final.

Power  of
State
Government
to  depute
cetain
Government
employees  to
Corporation.

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

9

Act, 1996

(3) All suits and other legal proceedings with respect to any scheme for the development
of  Irrigation  Projects  and  Hydro-Electric  Power  Projects  entrusted  to  the  Corporation,
instituted or defended by or against the State Government before the appointed date may
be  continued,  or  instituted,  or  defended  by  or  against  the  Corporation.

16. Where any doubt or dispute arises as to whether any property or assets has vested
in the Corporation under section 15 or any rights, liabilities or obligations have become
the  rights,  liabilities  or  obligations  of  the  Corporation  under  that  section  such  doubt  or
dispute  shall  be  referred  to  the  State  Government,  whose  decision  shall  be  final.

17. (1) Where  on account of  conferment of any powers,  duties and functions  on the
Corporation by or under this Act, in the opinion of the State Government, any employees
in  the  field  establishments,  that  is,  officers  and  employees  belonging  to  technical  staff
as well as ministerial and non-ministerial staff (permanent, regular, temporary, converted
regular permanent, temporary and daily wages) in the Irrigation Department on the date
specified  by  the  State  Government  engaged  in  the  fields  of  planning,  investigation,
design, construction, management, land development of the state sector, irrigation projects,
lift irrigation scheme and Hydro-Electric Power Projects, have been rendered surplus or
are  likely  to  be  rendered  surplus  wholly  or  partially  to  the  requirements  of  the  State
Governemnt  or  where  the  services  of  such  officer  and  servants  are  required  by  the
Corporation  for  efficient  exercise  of  its  powers,  performance  of  its  duties  or  discharge
of its functions, the State Government, the Head of the Department of the State Government
or any officer authorised by the State Government in this behalf may, from time to time
having  regard  to  the  necessity  therefor,  by  order  depute  such  officers  or  employees  to
the  Corporation,  and  the  Corporation  shall  take  them  over  and  employ  them  on
deputation,  subject  to  the  provisions  of  this  section.

(2)  The  period  of  deputation  of  any  such  employee  to  the  Corporation  shall  be  five
years except when any such person is required to be repatriated on the grounds such as
promotion,  reversion,  termination  or  superannuation  or  any  other  reason  as  may  be
directed by the State Government. After the expiry of the period of deputation, he shall
stand  repatriated  to  service  under  the  State  Government  :

Provided  that,  during  the  period  of  such  deputation  all  matters  relating  to  the  pay,
leave,  allowances,  retirement,  pension,  provident  fund  and  other  conditions  of  service
of employees on deputation shall be regulated  by the Maharashtra Civil Services Rules
or  such  other  rules  as  may,  from  time  to  time,  be  made  by  the  State  Government.

(3) All the regular, permanent and regular temporary permanent employees of the said
establishment  transferred  on  deputation  to  the  Corporation  under  sub-section  (2)  shall
have  a  lien  on  their  post  in  the  service  under  the  State  Government  and  the  period  of
their  service  under  the  Corporation  shall,  on  their  repatriation  to  the  service  under  the
State  Government,  be counted  for  their  increments,  pensions  and other  matters  relating
to  their  service.

(4) The Corporation shall have the authority to transfer the officers and staff members

within  the  area  of  operation  of  the  Corporation.

(5) No employee on deputation to the Corporation shall be entitled to any deputation

allowance.

(6) The salaries and allowances of employees on deputation to the Corporation shall

be  paid  from  the  Corporation  fund.

H  22-2

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Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

Act, 1996

(7)  Save  as  otherwise  provided  in  this  section,  the  terms  and  conditions  of  services
of employees on deputation to the Corporation shall not be less advantageous than those
applicable  to  them  immediately  before  deputation  and  shall  not  be  varied  to  their
disadvantage  except  with  the  previous  sanction  of  the  State  Government.

CHAPTER  IV
FUNCTIONS AND POWERS OF CORPORATION

18.  The  functions  of  the  Corporation  shall  be—

(a)  to  promote  and  operate,—

Functions  of
Corporation.

(i) irrigation projects and command area development including flood control; and

(ii)  schemes  for  the  generation  of  hydro-electrical  energy  ;

(b)  to  plan,  investigate,  design,  construct  and  manage  the  irrigation  projects  and
command area development 1[and to help drip irrigation schemes through the Agriculture
Department  of  Government]  ;

(c)  to  plan,  investigate,  design,  construct  and  manage  the  schemes  of  the  generation

of  hydro-electrical  energy  ;

(d)  to  enter  into  contracts  in  respect  of  the  works  and  any  other  matters  transferred

to  the  Corporation  alongwith  assets  and  liabilities  under  this  Act  ;

(e)  to  invite  tenders,  bids,  offers  and  enter  into  contracts  for  the  purposes  of  all  the

activities  of  the  Corporation  ;

(f)  to  promote  participation  of  any  person  or  body  or  association  of  individuals
whether  incorported  or  not,  in  planning,  investigation,  designing,  construction  and
management of irrigation  projects, and command area  development and Hydro-Electric
Power  Projects  including  flood  control  ;

(g)  to  undertake  schemes  or  works,  either  jointly  with  other  corporate  bodies,  or
institutions,  or  with  Government  or  local  authorities,  or  on  agency  basis  in  furtherance
of  the  purposes  for  which  the  Corporation  is  established  and  all  matters  connected
therewith  ;

(h) to promote irrigation related activities such as fisheries, pisciculture, floriculture,

horticulture,  sericulture,  tissueculture,  etc  ;

(i)  to  promote  tourism,  water  sports  and  other  related  activities  on  and  around  the

Irrigation  and  Hydro-Electric  Power  Projects  ;

(j)  to  develop  the  land  around  or  nearby  lake  and  in  other  suitable  locations  with
irrigation  facilities  and  other  infrastructure  facilities  and  lease  part  or  whole  of  such
developed  properties  to  the  interested  parties  ;

(k)  to  prepare  annual  plan  and  five  year  working  development  plan  ;

(l)  to  prepare  annual  budget  ;

(m) to undertake any other activities entrusted by the State Government in furtherance

of  the  objectives  for  which  the  Corporation  is  established.

19. (1)  The  Corporation  shall  have  the  power  to  accord  administrative  approval,
revised administrative approval, technical sanction, acceptance of all tenders, sanctioning
budget  and  making  financial  provisions,  settling  disputes  arising  out  of  contracts  and
any  other  thing  which  may  be  necessary  or  expedient  for  the  purposes  of  carrying  out
its  functions  under  this  Act.

General
power  of  the
Corporation.

1. These  words  were  added  by  Mah.  9  of  2000  s.  2.

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

11

Act, 1996

(2) Without  prejudice  to  the  generality  of  the  foregoing  provision,  such  power  shall

include  the  power,—

(a) to acqire and hold property, both movable and immovable as the Corporation may
deem necessary for the performance of any of its functions, duties, activities and to lease,
sell,  exchange  or  otherwise  transfer  any  property  held  by  it  on  such  conditions  as  may
be  deemed  proper  by  the  Corporation  ;

(b)  to  construct  or  cause  to  be  constructed  such  dams,  barrages,  reservoirs,  power
houses, power structures, electrical transmission lines and sub-stations, navigation works,
irrigation, flood control and drainage canals and such other works and structures as may
be  required  ;

(c)  to  take  measures  to  prevent  pollution  of  any  water  under  its  control  and  to  take
all measures deemed necessary to prevent discharges into such water of effluents which
are  harmful  to  water  supply,  irrigation,  public  health  or  fish  life  ;

(d) to stock its reservoirs or water courses with fish and to sell fish or fishing rights

and  prohibit  taking  out  fish  from  the  water  under  its  control  ;

(e)  to  assist  in  the  establishment  of  water  user  association  and  other  organisations
formed  under  the  Maharashtra  Co-operative  Societies  Act,  1961  for  the  better  use  of
facilities  made  available  by  the  Corporation  ;

Mah.
XXIV
o f
1961.

(f)  to  lease  rights  for  water  sports,  other  recreational  activities  related  to  the  use  of

reservoir  and  its  surroundings  and  reservoir  water  ;

(g) to establish, maintain and operate laboratories, experimental and research stations

and  farms  for  conducting  experiments  and  research  for—

(i) utilising the water, electrical energy and other resources in the most economical

manner  for  the  development  of  the  Krishna  River  Valley  ;

(ii)  determining  the  effect of  its  operations  on  the  flow conditions  in  the  Krishna

River  and  its  tributaries  ;

(iii)  providing  navigation  condition  in  the  Krishna  River  and  its  tributaries  ;

(h) to engage suitable consultant or person having special knowledge or skill to assist

the  Corporation  in  the  performance  of  its  functions  ;

(i)  to  do  all  such  other  things  and  perform  such  acts  as  may  be  necessary  for,  or
incidental  or  conductive  to  any  matters  which  are  necessary  for  furtherance  of  the
objectives  for  which  the  Corporation  is  established.

20. The  Corporation  shall,  from  time  to  time,  determine  and  levy  water  charges
according to volume, for supply of water for irrigation, industrial and domestic purposes
to  the  State  Government,  local  authorities,  Government  agencies,  cultivators  and  water
users  associations  :

Provided that, the levy of water charges shall be such that water charges so recovered
shall  be  sufficient  at  least  to  cover  the  interest  charges  of  the  loan  raised  by  the
Corporation  from  the  open  market.

Water
charges  for
supply  of
water  for
irrigation,
industrial
and  domestic
purposes.

12

Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

21.  The  Corporation  shall  pay  the  interest  on  the  borrowed  money  through  the

recovery  of water  charges.

Act, 1996

22. No person shall construct, operate or maintain within the area of operation of the
Corporation  any  dam, bandhara or  weir  or  other  work  or  any  installation  for  the
extraction  of  surface  water  without  the  prior  approval  of  the  Corporation  :

Provided  that, the  State  Government  or a  local  authority  may, construct  and  operate
such  dams,  weirs, bandharas etc.,  anywhere  or,  accross  any  river  or  basin  within  such
area of operation or assign or handover such dam, bandhara, weir etc. to the Corporation.

23. The  Corporation  shall  keep  co-ordination  with  the  State  Government,  Railway
Authorities,  local  authorities  and  statutory  bodies  with  a  view  to  minimising  the
inconvenience likely to be caused by the submergence of railways, lands and roads and
communications  and  shall  bear  the  cost  of  any  re-alignment  thereof  or  resettlement  of
any  population  rendered  necessary  by  such  submergence.

Mah.
XXX-
VIII
o f
1976.

24. Nothwithstanding anything contained in the Maharashtra Irrigation Act, 1976 and

the  Bombay  Canal  Rules,  1934,—

(a)  the  Corporation  may  carry  out  all  or  any  of  the  functions  and  exercise  all  or

any  of  the  powers  of  the  State  Government  or  the  appropriate  authority;  and

(b) any officer of the Corporation authorised in this behalf by the Corporation may
carry out all or any of the functions and exercise all or any of the powers of the Canal
Officer,

under  the  provisions  of  the  said  Act  and  the  rules,  within  the  area  of  operation  of  the
Corporation.

Responsibil-
ity  of
Corporation
for  payment
of  interest
on  borrowed
money.

Prohibition
of  construc-
tion  of  dam,
bandhara,
weir  etc.
except  with
approval  of
Corporation.

Co-ordination
with  other
authorities  to
minimise
inconve-
nience
caused  by
sub-
mergence.
Power  to  be
exercised  by
the  Corpora-
tion  under
the
Maharashtra
Irrigation
Act,  1976.

25. The  State  Government  may  issue  to  the  Corporation  such  general  or  special
directions as to policy or exercise of the powers or performance of the functions by the
Corporation, as it may think necessary or expedient for carrying out the purposes of this
Act  and  the  Corporation  shall  be  bound  to  follow  and  act  upon  such  directions.

Power  of
State
Government
to  issue
directions.

CHAPTER  V
ACQUISITION OF LAND

I  of
1894.

26. The State Government may, for carrying out the purposes of this Act, compulsorily
acquire land under the Land Acquisition Act, 1894, and the acquisition of any land for
any  of  the  said  purposes  shall  be  deemed  to  be  a  public  purpose  within  the  meaning
of  that  Act.

Power  to
acquire  land
for  purposes
of  this  Act.

27. (1) For the furtherance of the objects of this Act, the State Government may, by
notification  in  the Official  Gazette, upon  such  conditions  as  may  be  agreed  upon
between  the  Government  and  the  Corporation,  place  at  the  disposal  of  the  Corporation
any  lands  vested  in  the  State  Government  :

Transfer  of
Government
lands  to
Corporation.

Provided that, the State Government shall not place at the disposal of the Corporation

any  lands  which  are  notified  and  included  in  a  reserved  forest.

Power  of
Corporation
to  dispose  of
land,  etc.

Application
o f
Corporation’s
assets,  etc.

Fund  of
Corporation.

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

13

Act, 1996

(2) After any such land has been so placed at the disposal of the Corporation it shall
be  dealt  with  by  the  Corporation  in  accordance  with  the  provisions  of  this  Act,  or  the
rules  or  regulations  made  thereunder  and  the  directions,  if  any,  given  by  the  State
Government  in  this  behalf.

(3) If any land placed at the disposal of the Corporation under sub-section (1) is not
required by the Corporation, the State Government, may ask the Corporation to replace
it  to the  State  Government  upon such  terms  and conditions  as  may  be mutually  agreed
upon.

28. Subject  to  any  rules  made  by  the  State  Government  under  this  Act,  the
Corporation  may  retain,  lease,  sell,  exchange  or  otherwise  dispose  of  any  land,  any
building or other property vested in it, in such manner as it thinks fit for carrying out
the  purposes  of  this  Act.

CHAPTER  VI

FINANCE, ACCOUNTS AND AUDIT

29.  All  property,  fund  and  other  assets  vesting  the  Corporation  shall  be  held  and

applied  by  it,  for  the  purposes  of  this  Act.

30. (1)  The  Corporation  shall  have  and  maintain  its  own  fund,  to  which  shall  be

credited—

(a) all moneys received by the Corporation from the State Government by way of

grants,  subventions,  loans,  advances  and  the  loans  raised  under  this  Act;

(b)  all  fees,  costs  and  charges  received  by  the  Corporation  under  this  Act;

(c)  all  moneys  received  by  the  Corporation  from  the  disposal  of  lands,  buildings

and  other  properties,  movable  and  immovable  and  other  transactions;

(d)  all  moneys  received  by  the  Corporation  by  way  of  water  charges,  rents  and

profits  or  from  any  other  source.

(2)  The  Corporation  may  keep  current  and  deposit  account  with  the  State  Bank  of

India  or  any  other  Bank  approved  by  the  State  Government  in  this  behalf.

(3)  Such  accounts  shall  be  operated  by  such  officers  of  the  Corporation  as  may  be

authorised  by  it  in  this  behalf.

(4)  Notwithstanding  anything  contained  in  sub-sections  (2)  and  (3),  the  Corporation
may  keep  on  hand  such  sum  as  it  thinks  fit  for  its  day  to  day  transactions,  subject  to
such  limits  and  conditions  as  may  be  prescribed.

Contribution
of  Govern-
ment  to
Corporation
Fund.

31. (1) The State Government shall, by appropriation duly made in this behalf, from
time  to  time,  provide  an  aggregate  sum  of  not  less  than  rupees  3,500  crores  to  the
Corporation Fund, as its share of the capital required by the Corporation for the performance
of  the  functions  of  the  Corporation  under  this  Act  and  such  contribution  shall  be  paid
in suitable instalments spread over a period of five years from the date of establishment
of  the  Corporation  :

Provided that, the State Government shall, by appropriation duly made in this behalf,

initially  contribute  and  pay  a  sum  of  rupees  700  crores  to  the  Corporation  Fund  :

Provided  further  that,  the  contribution  made  by  the  Government  shall  be  exclusive
of  the  expenditure  incurred  by  the  Government  for  and  in  connection  with  the
establishment  of  the  Corporation.

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Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

Act, 1996

(2)  The  capital  provided  by  the  State  Government  shall  not  carry  any  interest.

32. The State Government may, after due appropriation made by the State Legislature
by  law  in  this  behalf,  make  such  grants,  subventions,  loans  and  advances  to  the
Corporation  as  it  may  deem  necessary  for  the  performance  of  the  functions  of  the
Corporation under  this Act; and  all grants, subventions,  loans and advances  made shall
be  on  such  terms  and  conditions  as  the  State  Government  may  determine.

33. (1) The Corporation may, subject to such conditions as may be prescribed in this
behalf, borrow money from the financial institutions or non-resident Indians or from the
open  market  by  issue  of  guaranteed  or  unguaranteed  bonds,  debentures,  stocks  and
otherwise,  for  the  purpose  of  providing  itself  with  adequate  resources.

Grants,
subventions,
loans  and
advances  to
Corporation.

Power  of
Corporation
to  borrow.

(2) The maximum amount which the Corporation may at any time have on loan under
sub-section (1) shall not exceed rupees one thousand crores, unless the State Government
fixes  a  higher  maximum  limit  for  this  purpose.

34. The  Corporation  may  accept  deposits  on  such  conditions  as  it  deems  fit  from
persons,  authorities  or  institutions,  to  whom  allotment  or  sale  of  land  or  buildings  or
fishing  rights  is  made  or  is  likely  to  be  made  in  furtherance  of  the  objects  of  this  Act.

35. The  Corporation  shall  have  the  authority  to  spend  such  sums  as  it  thinks  fit  for
the purposes authorised under this Act from and out of the fund of Corporation referred
to in section 30 or from the reserve and other funds referred to in section 38, as the case
may  be.

36. It shall be competent for the Corporation to spend, such sums as it thinks fit also
on  objects  authorised  under  this  Act  other  than  Irrigaiton  Projects  and  Hydro-Electric
Power  Projects  and  such  sums  shall  be  treated  as  common  expenditure  payable  out  of
the  fund  of  the  Corporation  before  allocation  under  section  37  of  this  Act.

37. The  total  capital  expenditure  chargeable  to  a  project  shall  be  allocated  between
the  two  main  objects,  Irrigation  Projects  and  Hydro-Electric  Power  Project  as  follows
namely  :—

(1)  Expenditure  solely  attributable  to  any  one  of  the  said  two  objects,  including
a proportionate share of overhead and general charges, shall be charged to that object;
and

(2) Expenditure common to both the said objects, including a proportionate share
of  overhead  and general  charges,  shall  be allocated  to  the  said objects  in  proportion
to  the  expenditure  which,  according  to  the  estimate  of  the  Corporation,  would  have
been  incurred  in  constructing  a  separate  structure  for  that  object  less  any  amount
determined  under  clause  (1)  in  respect  of  that  object.

Acceptance
of  deposits
by  Corpora-
tion.

Power  to
Spend.

Expenditure
on  objects
other  than
Irrigation
and  Power
Projects.

Allocation  of
expenditure
chargeable  to
project  on
main  objects.

38. (1)  The  Corporation  shall  make  provisions  for  such  reserve  and  other  specially

denominated  funds  as  the  State  Government  may,  from  time  to  time,  direct.

Reserve  and
other  funds.

(2)  The  management  of  the  funds  referred  to  in  sub-section  (1),  the  sums  to  be
transferred,  from  time  to  time,  to  the  credit  thereof  and  the  application  of  money
comprised therein, shall, subject to the directions, if any, issued by the State Government
in  this  behalf,  be  determined  by  the  Corporation.

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

15

Act, 1996

(3)  None  of  the  funds  referred  to  in  sub-section  (1)  shall,  except  with  the  previous
approval of the State Government, be utilised for any purposes other than that for which
it  is  constituted.

Submission
of  budget  to
Corporation.

39. (1)  The  Executive  Director  of  the  Corporation  shall,  at  a  special  meeting  to  be
held  in  the  month  of  October  in  each  year,  lay  before  the  Corporation,  the  budget
estimates  of  the  Corporation  for  the  next  year.

(2) Every such budget estimate shall be prepared in such form as the State Government

may,  from  time  to  time,  by  order,  determine  and  shall  provide  for,—

(i)  the  proposals,  plans  and  projects  which  the  Corporation  proposes  to  execute

either  in  part  or  in  whole  during  the  next  year  ;

(ii)  the  due  fulfilment  of  all  the  liabilities  of  the  Corporation  ;  and

(iii)  the  implementation  of  the  provisions  of  this  Act  ;

and  such  estimates  shall  contain  a  Statement  showing  the  estimated  income  and
expenditure on capital and revenue accounts for the next year and such other particulars,
indicating  the  financial  performance  of  the  Corporation,  as  the  State  Government  may
direct.  The  budget  shall  clearly  reveal  the  financial  outlay  and  performance.

Sanction  of
budget
estimates.

40. The Corporation shall consider the budget estimates submitted to it under section
39  and  approve  the  same  with  or  without  modifications  on  or  before  such  date  as  the
State  Government  may,  from  time  to  time,  determine.

Government
as  Guarantor.

41. The  State  Government  may  guarantee  the  repayment  of  any  loans  and  payment

of  interest  on  all  or  any  of  the  loans  given  transfer  to  the  Corporation.

Disposal  of
profits  and
deficits.

42. (1) Subject to the provisions of sub-section (2) of section 44 of this Act, the net
profit, if any, attributable to each of the main objects, namely, irrigation and power, shall
be  fully  credited  to  the  Corporation.

(2)  The  net  deficit,  if  any,  in  respect  of  any  of  the  objects  shall  be  solely  borne  by

the  State  Government.

Interest
charges  and
other
expenses  to
be  added  to
and  receipts
taken  for
reduction  of
capital  cost.

Depriciation
Fund.

Apportion-
ment  of
betterment
charges
levied  by
State
Government.

43. The  interest  charges  and  all  other  expenditure  shall  be  added  to  the  capital  cost
and  all  receipts  shall  be  taken  in  reduction  of  such  capital  cost,  if  the  Corporation  is
in  defieit.

44. (1) The Corporation  may make provision for  depriciation fund at such  rates and
such  terms  as  may  be  specified  by  the  Comptroller  and  Auditor  General  of  India,  and
consultation  with  the  State  Government.

(2)  The  net  profit  for  the  purpose  of  section  42  shall  be  determined  after  such

provision  has  been  made.

45. In the event of any betterment levy being imposed by the State Government, the
proceeds  thereof  in  so  far  as  they  are  attributable  to  the  operations  of  the  Corporation,
shall  be  credited  to  the  Corporation.

H  22-4

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Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

Act, 1996

46. (1)  The  Corporation  shall,  by  such  date  in  each  financial  year  as  may  be
prescribed, prepare and submit to the State Government for approval an annual financial
statement and the programme  of work for the succeeding financial  year and the State
Government may, approve such financial statement and the programme of work of the
Corporation  as  submitted  by  the  Corporation  or  with  such  variations  as  the  State
Government  thinks  fit.

Financial
Statement
and
programme
of  work.

(2) The annual financial statement shall show the estimated receipts and expenditure

during  the  succeeding  financial  year  in  such  form  and  detail  as  may  be  prescribed.

(3) The Corporation shall be competent to make variations in the approved programme
of  work  in  the  course  of  the  financial  year  provided  that  all  such  variations  and
reappropriations  out  of  the  sanctioned  budget  are  brought  to  the  notice  of  the  State
Government  by  a  supplementary  financial  statement.

(4)  A  copy  each,  of  the  annual  financial  statement  and  the  programme  of  work  and
the supplementary financial statement, if any, shall be placed before each House of the
State  Legislature  as  soon  as  may  be  after  their  receipt  by  the  State  Government.

47. (1) The Corporation shall maintain books of account and other books in relation
to the business and transaction in such form, and in such manner, as may be prescribed.

Accounts
and  Audit.

(2) The accounts of the Corporation shall be audited by an Auditor appointed by the
State  Government,  in  consultation  with  the  Comptroller  and  Auditor  General  of  India.

(3) Within nine months from the end of the financial year the Corporation shall send
a copy of the accounts audited together with a copy of the report of the Auditor thereon
to  the  State  Government.

(4) The  State Government  shall cause  the accounts  of the  Corporation together  with
the  audit  report  thereon  forwarded  to  it  under  sub-section  (3)  to  be  laid  before  each
House  of  the  State  Legislature,  as  far  as  possible  before  the  expiry  of  the  year  next
succeeding  the  year  to  which  the  accounts  and  the  report  relate.

48. (1)  Notwithstanding  anything  contained  in  the  last  preceding  section,  the  State
Government  may  order  that  there  shall  be  concurrent  audit  of  the  accounts  of  the
Corporation  by  such  person  as  it  thinks  fit.  The  State  Government  may  also  direct  a
special audit to be made by such person as it thinks fit of the accounts of the Corporation
relating  to  any  particular  transaction  or  class  or  series  of  transactions  or  to  a  particular
period.

Concurrent
and  special
audit  of
accounts.

(2)  When  an  order  is  made  under  sub-section  (1),  the  Corporation  shall  present  or
cause  to  be  presented  for  audit  all  such  accounts  and  shall  furnish  to  the  person
appointed under sub-section (1) such information as the said person may require for the
purpose  of  audit.

CHAPTER  VII
MISCELLANIOUS AND SUPPLEMENTARY PROVISIONS

49.  (1)  The  Corporation  shall  prepare  and  submit  to  the  State  Government,  in  such
form  as  may  be  prescribed,  an  annual  report  within  six  months  after  the  end  of  every
financial year of its activities during the previous financial year, with particular reference
to—

Furnishing
of  annual
reports  and
returns  etc.

(a)  irrigation,  command  area  development  and  flood  control,

(b)  water  supply,

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

17

Act, 1996

(c)  hydroelectrical  energy,

(d)  recreation  facilities,

(e)  use  of  lands,

(f)  re-settlement  of  displaced  persons;  and

(g)  other  activities  of  the  Corporation.

(2) The Corporation shall also furnish to the State Government such returns, statistics,
reports, accounts and other information with respect to its conduct of affairs, properties
or activities or in regard to any proposed work or scheme as the State Government may,
from  time  to  time,  require.

50. The  rehabilitation  and  resettlement  of  the  persons  affected  due  to  the  irrigation
and  the Hydro-Electric  Power Projects  shall  be carried  out  by the  State Government  in
accordance with the provisions of the Maharashtra Project Affected Persons Rehabilitation
Act,  1986  :

Mah.
XXX-
II  of
1989.

Rehabilitation
and  re-
settlement  of
the  project
affected
persons.

Provided  that  all  the  expenditure  required  to  be  incurred  by  the  State  Government
for the rehabilitation and the resettlement of persons affected by the irrigation and hydro
electric  power  project  shall  be  borne  by  the  Corporation.

Execution  of
Contracts  etc.

51. Every contract or assurance  of property on behalf of the  Corporation shall be in
writing  and  executed  by  such  authority  or  officer  in  such  manner  as  may  be  provided
by  regulations.

General
Penalty.

52. Whoever  contravenes  the provisions  of  this  Act  or  any rule  or  regulations  made
thereunder or fails to comply with any notice, order or requisition issued under this Act
shall,  on  conviction,  be  punished  with  imprisonment  for  a  term  which  may  extend  to
six  months  or  with  fine  which  may  extend  to  one  thousand  rupees  or  with  both.

Power  of
entry.

Dues  to  be
recovered  as
an  arrears  of
land
revenue.

53. Any officer or servant of the Corporation generally or specially authorised by the
Corporation  may  at  all  reasonable  time  enter  upon  any  land  or  premises  and  do  such
things as  may be necessary  for the  purpose of lawfully  carrying out any  of its  work or
of  making  any  survey,  examination  or  investigation  preliminary  or  incidental  to  the
exercise  of  powers  or  the  performance  of  functions  by  the  Corporation  under  this  Act.
54. All  sums  due  or  payable  by  any  person  to  the  Corporation  or  recoverable  by  it
on  account  of  any  charge,  costs,  expenses,  fees,  rent,  compensation,  or  on  any  other
account under this Act or any rule or regulation made thereunder or any agreement made
with the Corporation and all charges or expenses incurred in connection therewith shall,
without  prejudice  to  any  other  mode  of  recovery,  be  recoverable  as  an  arrear  of  land
revenue.

Service  of
notice  etc.

55. (1)  All  notices,  orders  and  other  documents  required  by  this  Act  or  any  rule  or
regulations  made  thereunder  to  be  served  upon  any  person  shall,  save  as  otherwise
provided  in  this  Act  or  such  rule  or  regulation,  be  deemed  to  be  duly  served—

(a) where a person to be served is a company, the service is effected in accordance

with  the  provisions  of  section  51  of  the  Companies  Act,  1956;

I  of
1956.

(b) where the person to be served is a firm, if the document is addressed to the firm
at  its  principal  place  of  business,  identifying  it  by  the  name  and  style  under  which
its  business  is  carried  on,  and  is  either,—

(i)  sent  under  a  certificate  of  posting  or  by  registered  post;  or

18

Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

(ii)  left  at  the  said  place  of  business  ;

Act, 1996

(c)  where  the  person  to  be  served  is  a  statutory  public  body  or  a  Corporation  or
a  society  or  other  body,  if  the  document  is  addressed  to  the  Secretary,  Treasurer  or
other  head  officer  of  that  body,  Corporation  or  society  at  its  principal  office,  and  is
either—

(i)  sent  under  a  certificate  of  posting  or  by  registered  post;  or

(ii)  left  at  that  office;

(d) in any other case, if the document is addressed to the person to be served and,—

(i)  is  given  or  tendered  to  him  ;  or

(ii) if such person cannot be found, is affixed on some conspicuous part of his
last  known  place  of  residence  or  business  or  is  given  or  tendered  to  some  adult
member  of  his  family  or  is  affixed  on  some  consipicuous  part  of  the  land  or
building  to  which  it  relates;  or

(iii)  is  sent  under  a  certificate  of  posting  or  by  registered  post  to  that  person.

(2)  Any  document  which  is  required  or  authorised  to  be  served  on  the  owner  or
occupier of any land or building may be addressed “the owner” or “the occupier” as
the  case  may  be,  of  that  land  or  building  (naming  that  land  or  building),  name  or
description,  and  shall  be  deemed  to  be  duly  served—

(a) if the document so addressed is sent or delivered in accordance with clause

(d)  of  sub-section  (1);  or

(b)  if  the  document  so  addressed  or  a  copy  thereof  so  addressed  is  given  or
tender to some person on the land or building or, where there is no person on the
land or building to whom it can be delivered, is affixed to some conspicuous part
of  the  land  or  building.

(3)  Where  a  document  is  served  on  the  firm  in  accordance  with  this  section,  the

document  shall  be  deemed  to  be  served  on  each  partner.

(4)  For  the  purpose  of  enabling  any  document  to  be  served  on  the  owner  of  any
property,  the  occupier  (if  any)  of  the  property  may  be  required  by  notice  in  writing
by  the  State  Government  or  the  Corporation,  as  the  case  may  be,  to  state  the  name
and  address  of  the  owner  thereof.

56. Every public notice given under this Act or any rule or regulation made thereunder
shall be in writting and under the signature of the officer concerned and shall be widely
made known in the locality or in the farms or estates to be affected thereby by affixing
copies  thereof  in  conspicuous  public  places,  within  the  said  locality  or  the  said  farms
or  estates,  or  by  publishing  the  same  by  beat  of  drum  or  by  any  other  means  that  the
officer  may  think  fit.

Public  notice
how  to  be
made  known.

57. Where any notice, order or other document issued or made under this Act or any
rule or regulation made thereunder requires anything to be done for the doing of which
no time is fixed in this Act or the rule or regulation, the notice, order or other document
shall  specify  a  reasonable  period  of  time  for  doing  the  same  or  complying  therewith.

Notice  period
for  perfor-
mance.

58. (1)  If  the  State  Government  is  of  the  opinion  that  the  Corporation  has  made  a
default in  the performance  of any  duty or  obligation imposed  or cast  on it  by or  under
this  Act  the  State  Government  may  fix,  a  period  for  the  performance  of  that  duty  or
obligaiton  and  give  notice  to  the  Corporation  accordingly.

Default  in
performance
of  duty.

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

19

Act, 1996

(2) If, the Corporation fails or neglects to perform such duty or obligation within the
period  so  fixed  for  its  performance,  it  shall  be  lawful  for  the  State  Government,  to
supersede  and  reconstitute  the  Corporation  as  it  deems  fit.

(3)  After  the  supersession  of  the  Corporation  and  until  it  is  reconstituted,  in  the
manner  laid  down  in  Chapter  II,  the  powers,  duties  and  functions  of  the  Corporation
under this Act shall be carried on by the State Government or by such officer or officers
or body of officers as the State Government may appoint for this purpose, from time to
time.

(4) All property vested in the Corporation shall, during the period of such supersession,

vest  in  the  State  Government.

59. (1)  Where  an  offence  under  this  Act  has  been  committed  by  a  company,  every
person who, at the time the offence was committed, was in charge of, and was responsible
to, the company for the conduct of the business of the company, as well as the company,
shall  be deemed  to  be  guilty of  the  offence  and shall  be  liable  to be  proceeded  against
and  punished  accordingly;

Provided  that,  nothing  contained  in  this  sub-section  shall  render  any  such  person
liable  to  any  punishment  if  he  proves  that  the  offence  was  committed  without  his
knowledge or that he had exercised all due diligence to prevent the commission of such
offence.

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  where  an  offence  under
this  Act  has  been  committed  by  a  company,  and  it  is  proved  that  the  offence  has  been
committed  with  the  consent  or  connivance  of,  or  is  attributable  to  any  neglect  on  the
part  of,  any  director,  manager,  secretary  or other  officer  of  the  company  such  director,
manager, secretary or other officer shall also be deemed to be guilty of that offence and
shall  be  liable  to  be  proceeded  against  and  punished  accordingly.

Explanation.—For  the  purposes  of  this  section,—
(a)  “company”  means  a  body  corporate  and  includes  a  firm,  association  or  persons

or  body  of  individuals  whether  incorporated  or  not,  and

(b) “director”, in relation to a firm, means a partner in the firm, and in relation to any
association of persons or body of individuals, means any member controlling the affairs
thereof.

60. Unless  otherwise  expressly  provided,  no  Court  shall  take  cognisance  of  any
offence relating to property belonging to, or vested by or under this Act in the Corporation,
punishable under this Act except on the complaint of, or upon information received from
the  Corporation  or  some  person  authorised  by  the  Corporation  by  general  or  special
order  in  this  behalf.

61. (1)  The  Corporation  or  any  person  authorised  by  the  Corporation  by  general  or
special order in this behalf may, either before or after the institution of the proceedings,
compound  any  offence  made  punishable  by  or  under  this  Act.

(2)  Where  an  offence  has  been  compounded  the  offender  if  in  custody  shall  be
discharged  and  no  further  proceedings  shall  be  taken  against  him  in  respect  of  the
offence  compounded.

62. Any  person  who  obstructs  the  entry  of  a  person  authorised  under  section  53  to
enter into or upon any land or building or molests such person after such entry or who
obstructs  the  lawful  exercise  by  him  of  any  power  conferrd  by  or  under  this  Act  shall,
on  conviction,  be  punished  with  imprisonment  for  a  term  which  may  extend  to  six
months,  or  with  fine  which  may  extend  to  one  thousand  rupees,  or  with  both.

Offences  by
companies.

Authorities
for  prosecu-
tion.

Compound-
ing  of
offences  by
Corporation.

Penalty  for
obstruction.

20

Maharashtra Krishna Valley Development Corporation [1996 : Mah. XV

Act, 1996

63. The  Corporation  may,  with  the  previous  approval  of  the  State  Government
delegate  any  of  its  powers  under  this  Act  to  any  officer  of  the  State  Government  or  to
any of its officers and to permit them to re-delegate specific powers to their subordinates,
by  general  or  special  order  in  this  behalf.

Delegation
of  powers  of
Corporation.

64. No  suit,  prosecution  or  other  legal  proceedings  shall  lie  against  any  person  for
anything which  is in  good faith  done or  intended to  be done  under this  Act or  rules or
regulations  made  thereunder.

XLV
o f
1860.

65. The  Chairman, 1[the  three  Vice-Chairman],  Members,  Executive  Director  and
officers and servants on deputation or of the Corporation, as the case may be, shall, while
acting or purporting to act in pursuance of any of the provisions of this Act or rules or
regulations  made  thereunder,  be  deemed  to  be  public  servants  within  the  meaning  of
section  21  of  the  Indian  Penal  Code.

66. The provisions of this Act shall have effect notwithstanding anything inconsistant

therewith  contained  in  any  other  law.

67. (1) The State Government may, by notification in the Official Gazette, make rules

to  carry  out  the  purposes  of  this  Act.

(2)  All  rules  made  under  this  Act  shall  be  subject  to  the  condition  of  previous

publicaiton.

(3) Every rule made under this Act shall be laid, as soon as may be, after it is made,
before each House of the State Legislature, while it is in session for a total peiod of thirty
days, which may be comprised in one session or in two successive sessions, and if, before
expiry  of  the  session  in  which  it  is  so  laid  or  the  session  immediately  following,  both
the Houses  agree in making any  modification in the rule  or both the Houses  agree that
the  rule  should  not  be  made,  and  notify  their  decision  to  that  effect  in  the Official
Gazette, the  rule  shall,  from  the  date  of  publication  of  such  decision  in  the Official
Gazette, have effect only in such modified form or be of no effect, as the case may be,
so  however  that,  any  such  modification  or  annulment  shall  be  without  prejudice  to  the
validity  of  anything  previously  done  or  omitted  to  be  done  under  that  rule.

68. The Corporation may, with the previous approval of the State Government, make
regulations consistent  with this Act  and the rules  made thereunder for  all or any  of the
matters to be provided under this Act by regulations and generally for all other matters
for  which  provision  is,  in  the  opinion of  the  Corporation,  necessary  for  the  exercise  of
its  powers  and  the  discharge  of  its  functions  under  this  Act.

Protection  of
action  taken
in  good
faith.

Chairman,
Vice-
Chairman,
Executive
Director,
Members
and  Officers,
etc.  to  be
public
servants.

Effect  of
provisions
inconsistant
with  other
laws.

Power  to
make  rules.

Power  to
make
regulations.

69. If any doubt or difficulty arises in giving effect to the provisions of this Act the
State Government may, by order, make provision or give such direction, not inconsistant
with the provisions of this Act, as may appear to it to be necessary or expedient for the
removal  of  the  doubt  or  difficulty  :

Power  to
remove
doubts  and
difficulties.

Provided that, no such order shall be made after the expiry of a period of two years

from  the  date  of  commencement  of  this  Act.

1. These  words  were  substituted  for  the  words  “Vice-Chairman”  by  Mah.  10  of  1997,  s.  4.

1996 : Mah. XV] Maharashtra Krishna Valley Development Corporation

21

Act, 1996

Dissolution
of  Corpora-
tion.

70. 1[(1)  Where  the  State  Government  is  satisfied  that  the  purposes  for  which  the
Corporation  was  established  under  this  Act  have  been  substantially  achieved  so  as  to
render the continued existence of the Corporation in the opinion of the State Government
unnecesary,  the  Government  may,  by  notification  in  the Official  Gazette, declare  that
the Corporation shall be dissolved with effect from such date as may be specified in the
notification, and the Corporation shall be deemed to be dissolved accordingly, and upon
such dissolution all the members and office bearers of the Corporation shall vacate their
respective  offices].

(2)  From  the  said  date—

(a)  all  properties,  funds  and  dues  which  are  vested  in,  or  realisable  by,  the

Corporation  shall  vest  in,  or  be  realisable  by,  the  State  Government;

(b) all liabilities which are enforceable against the Corporation shall be enforceable

against  the  State  Government.

71. (1)  The  Maharashtra  Krishna  Valley  Development  Corporation  Ordinance,  1996

is  hereby  repealed.

(2)  Notwithstanding  such  repeal,  anything  done  or  any  action  taken  (including  any
notification issued or nomination, appointment or rules made) under the said Ordinance
shall  be  deemed  to  have  been  done,  taken,  issued  or  made,  as  the  case  may  be,  under
the  corresponding  provisions  of  this  Act.

1. Sub-section  (1)  was  substituted  for  the  original  by  Mah.  11  of  1997  s.  5.

Mah.
Ord.
III  of
1996.

Repeal  of
Mah.  Ord.
III  of  1996
and  saving.

H  22-2,475  Bks.-10.2012.

PRINTED  AT  THE  GOVERNMENT  PRESS,  KOLHAPUR

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 THE  MANAGER

GOVERNMENT  PRESS AND  BOOK  DEPOT
Civil  Lines,  NAGPUR-440  001.
Phone-(0712)  2562615

 THE  SUPERVISOR
GOVERNMENT  BOOK  DEPOT
Shaha  Ganj,  Near  Gandhi  Chowk,  AURANGABAD.
Phone-(0240)  2331525

 THE  MANAGER

GOVERNMENT PRESS AND STATIONERY STORES
Tarabai  Park,  KOLHAPUR-416 003.
Phone-(0230)  2650395,  2650402

AND  THE  RECOGNISED  BOOK  SELLERS

