Section 24 of The Airports Authority of India Act, 1994
- (1)The Authority shall have its own fund and all receipts of the Authority shall be credited thereto and all payments of the Authority shall be made therefrom.
- (2)The Authority shall have power, subject to the provisions of this Act, to spend such sums as it thinks fit to cover all administrative expenses of the Authority and on objects or for purposes authorised by this Act and such sums shall be treated as expenditure out of the fund of the Authority.
- (3)All moneys standing at the credit of the Authority which cannot immediately be applied as provided in sub-section (2), shall be--
- (a)deposited in the State Bank of India or any such Scheduled bank or banks or other public financial institutions subject to such conditions as may, from time to time, be specified by the Central Government; and
- (b)invested in the securities of the Central Government or in such manner as may be prescribed. Explanation-- In this sub-section, "Scheduled bank" has the same meaning as in clause (e) of section of the Reserve Bank of India Act, 1934 (2 of 1934).
Summary
- The Authority has its own dedicated fund where all the money it collects must be deposited.
- Every payment the Authority makes has to come directly out of this fund.
- The Authority can use this money to pay for its everyday administrative costs and for any other activities allowed by the law.
- If the Authority has leftover money that it does not need to spend right away, it must deposit that money into the State Bank of India, another Scheduled bank, or a public financial institution.
- The Authority can also invest its spare money in Central Government securities or in other approved ways.
Practical examples
FAQ
1. Where does the Authority put the money it earns from airport fees?
All receipts must be credited to the Authority's own official fund.
2. What can the Authority spend its money on?
It can spend money on its administrative expenses and on any objects or purposes authorized by the Act.
3. What happens if the Authority has money sitting in its fund that it does not need to use right now?
It must deposit the extra money in a bank like the State Bank of India, a Scheduled bank, a public financial institution, or invest it in Central Government securities.
4. What defines a "Scheduled bank" for the Authority's deposits?
It has the same meaning as defined in the Reserve Bank of India Act, 1934.
Test yourself
Q1.Under Section 24 of The Airports Authority of India Act, 1994, what must the Authority do with money standing at its credit that cannot be applied immediately?
Q2.According to Section 24 of The Airports Authority of India Act, 1994, which law defines the term Scheduled bank for the purposes of depositing the Authority's funds?
Q3.Under Section 24 of The Airports Authority of India Act, 1994, how are the administrative expenses of the Authority handled?
Q4.Section 24 of The Airports Authority of India Act, 1994 requires all payments to be made from the Authority's fund. If the Authority uses this fund for daily expenses, how does Section 25 dictate what happens to the profit left at the end of the year?