(1) The Chief Engineer of the Authority (hereinafter referred to in this Chapter as the Chief Engineer) may, on behalf of the Authority, sanction any estimates, call for tenders or enter into any contract or agreement the value or amount whereof shall not exceed ten lakhs of rupees in such manner and form as according to the law for the time being in force would bind him, if such contract or agreement were on his own behalf; and every such contract or agreement shall be reported to the Authority at its next meeting.
(2) The Authority may sanction any estimate, call for tenders or enter into any contract or agreement the value or amount whereof exceeds ten lakhs of rupees but does not exceed fifty lakhs of rupees; and where the value or amount of any estimate, contract or agreement exceeds fifty lakhs of rupees the same shall not be entered into except with the previous sanction of the Government.
(3) Every contract or agreement on behalf of the Authority other than a contract or agreement referred to in sub-section (1) shall be in writing and shall be signed by the Chief Engineer and sealed with the common seal of the Authority.
(4) The common seal of the authority shall be in the custody of the Chief Engineer who shall personally affix the seal to any contract or instrument.
(5) The acceptance of any tender shall be subject to such rules as may be prescribed.
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(6) A contract not made or executed as provided in this section and the rules made thereunder shall be null and void and shall not be binding on the Authority.