(1) Every contract shall be made on behalf of the Board by the Chairman:
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Provided that,-
(a) no contract involving an expenditure exceeding 1[two lakhs]1 rupees shall be made except with the previous sanction of the Government;
1. Substituted by Act 19 of 1984 w.e.f. 21.4.1984.
(b) (i) no contract involving an expenditure exceeding 1[fifty thousand]1 rupees but not exceeding 1[two lakhs]1 rupees shall, subject to clause (a), be made without the previous sanction of the Board;
(ii) no estimate or tender involving an expenditure of 1[two lakhs]1 rupees or more, shall, subject to clause (a), be sanctioned or accepted without the previous sanction of the Board.
1. Substituted by Act 19 of 1984 w.e.f. 21.4.1984.
(2) Sub-section (1) shall apply to every variation or abandonment of a contract or estimate.
(3) Every contract made by the Chairman shall, subject to the approval of the Board, be entered into in such manner and form as may be prescribed.
(4) Any contract not made and executed as provided in this section and the rules made thereunder shall not be binding on the Board.