(1) The Hotel Authority may create such posts and appoint such staff as it may think fit for the exercise of its powers and discharge of its duties under this Act:
Provided that prior approval of the Government shall be necessary for—
(i) creation of any post, the maximum of the pay scale of which exceeds Rs. 1500.00 per month and
(ii) any revision of scales of pay and allowances.
(2) Every expenditure incurred by the Hotel Authority, including the expenditure incurred by it for meeting the salaries and allowances of the staff employed by it, shall be defrayed out of the Fund of the Hotel Authority.
(3) The Hotel Authority shall obtain prior approval of the Government before undertaking any project involving capital expenditure exceeding rupees five lakhs.
11. Subject to such rules as may be made by the State Government in this behalf, the Hotel Authority shall be responsible for—
(a) the general superintendence, drection, control and management of the affairs and business of the company,
(b) the formulation, subject to the approval of the State Government, of plans for the development of the company and the execution of such plans.