(a) Moneys receive by the Planning Authorities shall be kept in any Nationalised Bank or State Co-Operative bank under two sets of accounts called as Local Planning Authorities Planning and Development FundAccount-I and Local Planning Authorities Planning and Development Fund Account-II (hereinafter called “ the Fund Account” and “Fund Account-II” respectively).
(b) The moneys shall be appropriated in line with the Budget proposals after approval of the budget by the competent authority and with specific orders, wherever necessary, on each action, as the case may be.
(c) The Fund Account-I shall embody all financial transactions of receipts and payments of the Local Planning Authority under the provisions of sections 66 and 67 of the Act. The Fund Account-I shall not deal with the credits and debits per-taining to the Integrated Urban Development Programme and other special schemes funded by the State or Central Governments.
(d)(i) The financial tranctions of receipts and payments in respect of Integrated Urban Development Programme and other special schemes funded by the State or Central Governments shall be kept in Fund Account-II.
(ii) The Planning Authority shall obtain the orders of Director releasing the amounts from the Fund Account-II and no cheque shall be presented at the Bank by the Member Secretary in respect of Fund Account-II without the orders of the Director. In such cases, it shall be the duty and responsibility of the Local Planning Authority to get orders from the Director sufficiently early and in appropriate firm.
(iii) Wherever order are issued by the Director relasing Fund from the Planning Authorities Fund Account-II for the specified items of work, or works, such expenditure shall be incurred for such purpose by the Member Secretary without any reference to the Planning Authority
(iv) All receipts pertaining to the Intergrated Urban Development Programme and other schemes financed through Planning Authorities Fund Account-II shall be credited to the Planning Authorities Fund Account-II only.
(v) The Director is competent to order diversion of Funds from Fund Account-II to Fund Account-I