(1) There shall be established and set apart a separate fund to be called "the Development Fund" and an Authority shall separately show the same in its budget.
(2) All moneys received by the Authority as development charge together with interest thereon, if any, under this Chapter shall be credited to the Development Fund.
[(3) The money credited from time to time, to the said Fund, shall be utilized only for the purposes of acquisition and development of any land reserved for any of the public purposes specified in any plan or scheme under this Act and for providing public amenities in the area under the jurisdiction of the said Authority and maintenance and improvment thereof.]
[Provided that, the additional amount levied and collected as a result of increase in the development charge in accordance with the provisions of sub-section (2-1A) of section 124B, shall be applied, subject to the directions issued by the State Government, from time to time, only for the purposes of one or more Vital Urban Transport Projects, within the meaning of the said sub-section.]
(4) Surplus moneys at the credit of the said Fund, which cannot immediateiy or at an early date be applied for the purposes aforesaid, shall, from time to time, be deposited by the Authority in the bank.
Explanation.- For the purposes of this sub-section, the expression "bank" means,-
(i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(ii) a subsidiary bank as defined in the State Bank of India (Subsidiary Bank) Act, 1959 (38 of 1959) ;
(iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) ;
(iv) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934)or being such a bank as may be approved by the State Government.