Section 21 of The Faridabad Development Corporation Act, 1956
- (1)The Corporation shall make such provision for depreciation and for reserve and other funds as the Central Government may from time to time direct.
- (2)The management of these funds, the sums to be carried from time to time to the credit thereof and the application of the moneys comprised therein shall be determined in accordance with such directions as the Central Government may from time to time issue.
Summary
- The Corporation must set aside money for depreciation, which is the loss of value of its assets over time.
- The Corporation must also establish reserve funds and any other funds as required.
- The Central Government has the authority to direct the Corporation on how and when to make these provisions.
- The Central Government determines how these funds are managed, how much money is credited to them, and how the money is spent.
Practical examples
FAQ
1. Who decides how much money the Corporation must put into its depreciation and reserve funds?
The Central Government directs the Corporation from time to time on these provisions.
2. Can the Corporation spend its reserve funds on any project it likes without asking?
No. The application and management of these funds must be done in accordance with the directions issued by the Central Government.
Test yourself
Q1.Under Section 21 of The Faridabad Development Corporation Act, 1956, who has the power to direct the Corporation to make provision for depreciation and reserve funds?
Q2.Under Section 21 of The Faridabad Development Corporation Act, 1956, how is the management of the reserve and depreciation funds determined?
Q3.Under Section 21 of The Faridabad Development Corporation Act, 1956, who decides the specific sums that must be carried to the credit of the reserve funds?
Q4.Under Section 21 of The Faridabad Development Corporation Act, 1956, the application of the moneys in the depreciation and reserve funds is controlled by whom?