Section 29 of The Road Transport Corporations Act, 1950
Provision for depreciation and reserve and other funds.
- (1)A Corporation shall make such provisions for depreciation and for reserve and other funds as the State Government may, from time to time, direct.
- (2)The management of the said 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 by the Corporation: Provided that no fund shall be utilised for any purpose other than that for which it was created without the previous approval of the State Government.
Summary
- This section requires a transport corporation to set aside money for the wearing out of equipment and for savings.
- The State Government gives the directions on how much money must be put into these specific funds.
- The corporation is responsible for the daily management and application of the money in these funds.
- No saved money can be used for a different purpose than intended unless the State Government agrees first.
- This rule ensures that money meant for fixing buses is not spent on unrelated projects without high level approval.
Practical examples
FAQ
1. Who decides the amount to be set aside for depreciation under Section 29 of the Road Transport Corporations Act, 1950?
Under Section 29 of the Road Transport Corporations Act, 1950, the State Government provides directions on the amount to be set aside for depreciation and reserves.
2. Can a corporation spend its reserve funds however it wants under the Road Transport Corporations Act?
No, Section 29 of the Road Transport Corporations Act, 1950, says that funds cannot be used for any purpose other than the one they were created for without State Government approval.
3. Who manages the daily application of reserve funds in the Road Transport Corporations Act?
According to Section 29 of the Road Transport Corporations Act, 1950, the corporation itself determines the management and application of these funds.
4. What is a depreciation fund under the Road Transport Corporations Act?
A depreciation fund, mentioned in Section 29 of the Road Transport Corporations Act, 1950, is money set aside to account for the wearing out or loss in value of the corporation's assets over time.
Test yourself
1.Under Section 29 of the Road Transport Corporations Act, 1950, whose approval is needed to use a fund for a purpose other than its original one?
2.According to Section 29 of the Road Transport Corporations Act, 1950, who determines the management of depreciation funds?
3.Under Section 29 of the Road Transport Corporations Act, 1950, how is the amount for depreciation determined?
4.Which of the following is true regarding reserve funds under Section 29 of the Road Transport Corporations Act, 1950?