(1) The following amount shall constitute the Fund :-
(i) Total amount of receipts on account of sale of land by allotment or by public auction or by regularisation of old possessions/encroachments or otherwise transfer on lease hold basis or outright sale;
(ii) Total amount of receipts on account of sale of Sawai Chak (Bila Nam) lands converted into abadi after making payment of capitalized value of such land if disposed of by allotment or by public auction on lease hold basis or otherwise transfer;
(iii) Total amount of receipts on account of sale of Colony land, if transferred to the Municipality by the Government, if disposed of by allotment or by public auction on lease hold basis or outright sale or otherwise transfer;
(iv) Other charges as directed by the Government.
(2) The Collector concerned of the District will ensure the opening of an account for each Municipality in his jurisdiction with a Bank doing treasury business in Rajasthan or with the Post Office Saving Bank designated as 'Municipal Development Fund' or in Government Treasury or sub-treasury as personal Deposit Account.
(3) The Executive Officer shall deposit the amount of sale proceeds of the land as specified in clause (1) above in the fund either on the same day or by the next working day at the most.
Executive Officer shall be responsible to ensure that all the amount of sale proceeds of the land to be deposited in this fund has fully been deposited within the stipulated time.
(4) The account of the fund shall be operated under the order of Collector of the district concerned.
(5) The amount shall be withdrawn from the fund only on the basis of sanction issued in this behalf by the Government and not otherwise in any case.