9. Powers of Central Government to administer the Fund.—(1)
5
[The Central Government
shall have the power to administer the Fund and shall—
1. Section 7 renumbered as sub-section (1) thereof by Act 13 of 2018, s. 206 (w.e.f. 1-4-2018).
2. Subs. by s. 206, ibid., for clauses (iv) and (v) (w.e.f. 1-4-2018).
3. Ins. by s. 206, ibid (w.e.f.1-4-2018).
4. Subs. by s. 206, ibid., for heading “MANAGEMENT OF CENTRAL ROAD FUND” (w.e.f. 1-4-2018).
5. Subs. by s. 206, ibid, for section 9 (w.e.f. 1-4-2018).
5
(a) take such decisions regarding investment on projects of roads and other infrastructure
as it considers necessary;
(b) take such measures as may be necessary to raise funds for the development and
maintenance of roads and other infrastructure.]
10. Functions of the Central Government.—1
[(1)] The Central Government shall be responsible for
the—
(i) administration and management of the share of Fund allocated to the development and
maintenance of the 2
[roads and other infrastructure];
(ii) co-ordination and complete and timely utilisation of all sums allocated out of the Fund;
3
* * * * *
4
[(iv) formulation of criteria for allocation of funds for development and maintenance of State road
projects including the projects of inter-State and economic importance;]
5
* * * * *
(vi) formulation of the criteria for allocation of the funds for development and maintenance of
national highways and other infrastructure projects;]
6
* * * * *
7
* * * * *
8
[(2) Notwithstanding anything contained in clause (viii) of sub-section (1), the Central Government
shall, with effect from the 1st day of March, 2005, allocate fifty paise from the amount of rupee two as
amended by sections 119 and 120 of the Finance Act, 2005 as the additional duty of customs and the
additional duty of excise on petrol, levied under sub-section (1) of section 103 and sub-section (1) of
section 111, as the case may be, of the Finance (No. 2) Act, 1998 (21 of 1998) and the additional duty of
customs and the additional duty of excise on high speed diesel oil levied under sub-section (1) of section
116 and sub-section (1) of section 133, as the case may be, of the Finance Act, 1999 (27 of 1999),
exclusively for the development and maintenance of national highways.]
11. Administration of States’ share of the Fund.—9
[(1) The share of the Fund to be spent on
development and maintenance of State roads, based on the criteria formulated under clause (iv) of
sub-section (1) of section 10, shall be allocated in such manner as may be finalised by the Committee
referred to in section 7A].
(2) The portion of the Fund allocated for expenditure in the various States and Union territories shall
be retained by the Central Government until it is actually required for expenditure.
(3) If in the opinion of the Central Government, the Government of any State or the administration of
any Union territory has at any time—
(a) failed to take such steps as the Central Government may recommend for the regulation and
control of motor vehicles within the State or the Union territory; or
1. Section 10 numbered as sub-section (1) thereof by 18 of 2005, s. 121 (w.e.f. 13-5-2005).
2. Subs. by Act 13 of 2018, s. 206, for “national highways” (w.e.f. 1-4-2018).
3. Clause (iii) omitted by s. 206, ibid. (w.e.f. 1-4-2018).
4. Subs. by Act 23 of 2019, s. 186, for clause (iv) (w.e.f. 1-8-2019).
5. Clause (v) omitted by s. 186, ibid. (w.e.f. 1-8-2019).
6. Clause (vii) omitted by s. 186, ibid. (w.e.f. 1-8-2019).
7. Clause (viii) omitted by Act 13 of 2018, s. 206 (w.e.f. 1-4-2018).
7. Ins. by Act 18 of 2005, s. 121 (w. e. f. 13-5-2005).
9. Subs. by Act 23 of 2019, s. 187, for sub-section (1) (w.e.f. 1-8-2019).
6
(b) delayed without reasonable cause the application of any portion of the Fund allocated or reallocated, as the case may be, for expenditure within the State or Union territory,
the Central Government may resume the whole or part of any sums which it may have at that time held
for expenditure in that State or the Union territory.
(4) All sums resumed by the Central Government from the account of any State Government or
Union territory administration as aforesaid shall be re-allocated between the credit accounts of the
defaulting and other State Governments and Union territory administrations in the ratio of the main
allocation for the financial year preceding the year in which the re-allocation is made.
(5) The balance to the credit of the Fund in respect of any allocation shall not lapse at the end of the
financial year.
12. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette,
make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing powers, such rules may
provide for all or any of the following matters, namely:—
(a) specify 1
[the type of projects] in respect of which the funds may be disbursed under section 7;
(b) the manner in which the accounts shall be maintained and the annual statement of accounts
may be prepared including the profit and loss account and the balance-sheet under sub-section (1) of
section 8;
2
* * * * * 3
***;
(d) any other matter for which rule is to be made, or may be, prescribed.
13. Rules made under this Act to be laid before Parliament.—Every rule made under this Act
shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session,
for a total period of thirty days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following the session or the successive
sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that
the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule.
14. Provisions relating to existing Central 4
[Road and Infrastructure Fund].—With effect from
the appointed day the Central Road Fund governed by the Parliamentary Resolution dated the 13th May,
1988 (hereafter referred to in this section as the existing Fund) shall be deemed to be the Fund established
under this Act and,—
(a) all schemes relating to development and maintenance of national 5
[highways, State roads and
other infrastructure] sanctioned under the existing Fund in so far as such schemes are relatable to the
schemes under this Act, shall be deemed to be the schemes sanctioned under this Act;
(b) all funds accrued under the existing Fund including assets and liabilities shall be transferred to
the Fund established under this Act.
15. Repeal and saving.—(1) The Central Road Fund Ordinance, 2000 (Ord. 5 of 2000) is hereby
repealed.
1. Subs. by Act 13 of 2018, s. 206, for “the projects” (w.e.f. 1-4-2018)
2. Clause (c) omitted by Act 23 of 2019, s. 188 (w.e.f. 1-8-2019).
3. The words and figures “under section 10” omitted by Act 13 of 2018, s. 206 (w.e.f. 1-4-2018).
4. Subs. by s. 206, ibid., for “road Fund” (w.e.f. 1-4-2018).
5. Subs. by s. 206, ibid, for “highways and State roads” (w.e.f. 1-4-2018).
7
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be
deemed to have been done or taken under the corresponding provisions of this Act.