3. Constitution of the Authority.—(1) With effect from such date as the Central Government may,
by notification in the Official Gazette, appoint in this behalf, there shall be constituted for the purposes of
this Act an Authority to be called the National Highways Authority of India.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a
common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property,
both movable and immovable, and to contract and shall by the said name sue and be sued.
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[(3) The Authority shall consist of—
(a) a Chairman;
(b) not more than six full-time members; and
(c) not more than six part-time members,
to be appointed by the Central Government by notification in the Official Gazette:
1. 15th June, 1989, vide notification No. S.O. 451(E), dated 15th June, 1989, see Gazette of India, Extraordinary, Part II,
sec. 3(ii).
2. Subs. by Act 19 of 2013, s. 2, for sub-section 3 (w.e.f. 10-9-2013).
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Provided that the Central Government shall, while appointing the part-time members, ensure that at
least two of them are non-Government professionals having knowledge or experience in financial
management, transportation planning or any other relevant discipline.]
4. Term of office and conditions of service of members.—The term of office and other conditions
of service of the members shall be such as may be prescribed.
5. Disqualifications for appointment as member.—A person shall be disqualified for being
appointed as a member if he—
(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the
Central Government, involves moral turpitude; or
(b) is an undischarged insolvent; or
(c) is of unsound mind and stands so declared by a competent Court; or
(d) has been removed or dismissed from the service of the Government or a Corporation owned
or controlled by the Government; or
(e) has, in the opinion of the Central Government, such financial or other interest in the Authority
as is likely to affect prejudicially the discharge by him of his functions as a member.
6. Eligibility of member for reappointment.—Subject to the other terms and conditions of service
as may be prescribed, any person ceasing to be a member shall be eligible for reappointment as such
member.
7. Meetings.—(1) The Authority shall meet at such times and places and shall observe such rules of
procedure in regard to the transaction of business at its meetings, including the quorum thereat, as may be
provided by regulations.
(2) If for any reason the Chairman is unable to attend any meeting of the Authority any other member
chosen by the members present at the meeting shall preside at the meeting.
(3) All questions which come up before any meeting of the Authority shall be decided by a majority
of votes of the members present and voting, and in the event of an equality of votes, the Chairman, or in
his absence the person presiding, shall have and exercise a second or casting vote.
8. Vacancy in the Authority not to invalidate proceedings.—No act or proceeding of the Authority
shall be invalidated merely by reason of—
(a) any vacancy in, or any defect in the constitution of, the Authority; or
(b) any defect in the appointment of a person acting as a member of the Authority; or
(c) any irregularity in the procedure adopted by the Authority not affecting the merits of the case.
9. Appointment of officers, consultants and other employees of the Authority.—(1) For the
purpose of discharging its functions, the Authority shall appoint such number of officers and other
employees as it may consider necessary on such terms and conditions as may be laid down by the
regulations.
(2) The Authority may appoint, from time to time, any person as adviser or consultant as it may
consider necessary, on such terms and conditions as may be laid down by the regulations.
10. Authority to act on business principles.—In the discharge of its functions under this Act, the
Authority shall act, so far as may be, on business principles.