(1) The District Collector shall maintain a Fund called the "River Management Fund" from which all expenses towards management of the Kadavu or river bank shall be met.
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(2) Every Local Authority having a Kadavu or river bank shall contribute fifty per cent of the amount collected by the sale of sand towards the River Management Fund maintained by the District Collector:
Provided that the cost of collection of sand and the Royalty paid shall not be included in the amount of collection.
Explanation.— For the purpose of this sub-section, "cost of collection" shall include the maintenance charges and the cost of erection of concrete pillars in the Kadavu.
(3) The Department of Mining and Geology shall ensure that no pass is issued to the Local Authority without settling the accounts as provided in sub-section (5).
(4) Every pass issued by the Department of Mining and Geology shall contain the signature of the authorized officer of that Department and his seal, which shall be countersigned by 1[the Secretary of the local authority concerned and an officer of the Revenue Department as may be, officially nominated by the District Collector, for each Panchayath in that District] before starting the sand removal operation.
(5) The amount payable towards contribution to fund by a Local Authority shall be paid by means of cheque or demand draft to the District Collector or an officer authorised by him in this behalf, who shall countersign it in token of having received it. The account shall be settled before the 10th day of the succeeding month by remitting the balance amount due for payment.
1.Substituted by Act 15 of 2013 (w.e.f 25-11-2012).
21 1[(6) The amount required for defraying the expenditure towards management of the kadavu or riverbank under sub-section (1), shall be appropriated from the Fund in the manner and for such purposes as may be prescribed.]