(i) The fund shall vest in the Government.
(ii) The administration of Fund shall vest in the Secretary to the Government, Local Self Government Department, Rajasthan, who shall have his seat at Jaipur.
(iii) The Fund shall be utilized as specified and for the purposes detailed below :-
(a) When a Municipality desires amount from the Fund for development of any area in its jurisdiction, it shall frame a scheme and submit the same to the Government to provide the amount from the Fund for the purpose of the scheme.
(b) After examining the scheme, if the same is found in order, the Government may sanction the amount of the scheme to be withdrawn from the fund in two equal instalments. The first instalment shall be provided to the Municipality, by the Collector, soon after the scheme is sanctioned and second instalment shall be released by the Collector concerned, after receipt of the Certificate from the Executive Officer to the effect that the amount of first instalment has actually been utilized on the Development of the area for which scheme is sanctioned.
(c) No Municipality will be paid more than the amount deposited in the fund. The Executive Officer shall on the close of each month send a certificate to the Collector concerned showing the total amount received on account of sale proceeds of the land and the amount deposited by him in the fund.
[(d) The funds shall normally be utilised for development works of the Municipalities. In exceptional cases and on specific recommendation of the Collector, the funds may be used for grant of loan to the Municipality for payment of outstanding wages of employees and other pressing liabilities. Such loan shall be repaid by the Municipality in suitable number of instalments prescribed by the Government.]