 the road transport corporations (amendment) bill, 1959(as intloj)ucbd in lo~ sabha on 27ti1 april, 1959) tile road transport corporations (amendment) bill, 1959 "(as introduced in lok sabha) a  billfurther to amend the road transport corporations act, 1950 be it enacted by parliament in the tenth year of the republic of indis as follows:-1 this act may be called the road transport corporations short title, (amendment) act, 1959 of 1950 5 2 section 6 of the road transport corporations act, 1950 (herein- amen~llt after referred to as the principal act) shall be re-numbered as sub- of sectloll 6 section (1) thereof and after the sub-section as so re-numbered, the following sub-section shall be inserted, namely:-"(2) nothing in clause (d) of sub-section (1) shall be deemed 10 to disqualify the chief executive officer or general manager of a corporation for being chosen as, or for being, a member thereof" 3 in clause (c) of section 12 of the principal act, after the words amendment "general manager", the words "or any other officer of the corpora- of section 12 15 tion" shall be inserted 4 in sub-section (1) of section 19 of the principal act, after amendment clause (c), the following clauses shall be inserted, namely:-ofsectioll 19· "(d) to authorise the issue of passes to its employees and other persons either free of cost or at concessional rates and on 20 such conditions as it may deem fit to impose; (e) to authorise the grant of refund in respect of unused tickets and concessional passes" aaed4ment 5 section 26 of the principal act shall be re-numbered as sub-flectlon 26 section (1) thereof and after sub-section (1) as so re-numbered, the following sub-section shall be inserted, namely: -5 "(2) with the previous approval of the state government and the central government, a corporation may also borrow money in the open market for the purpose of meeting any expenditure of a capital nature" ~~ent 6 in section 30 of the principal act, for the words "and the ie vi liicuon 30 balance shall be made over to the state government for the purpose of road development", the following shall be substituted, namely:-"and out of the balance such amount as may, with the previous approwl of the state government and the central government, be specified in this behalf by the corporation, may !5 be utilised for financing the expansion progranunes of the corporation and the remainder, if any, shall be made over to the state government for the purpose of road development" :rm~~; 7 in sub-section (3) of section 32 of the principal act, for the words "a corporation may sanction", the words "subject to such 20 conditions and restrictions as may be specified in this behalf by the state government, a corporation may sanction" shall be substituted ~!::~:,i: 8 for section 33 of the principal act, the following section shall be bubstituted, namely:-account add aacht 1c33 (1) the corporation shall maintain proper accounts 25 and other records iqjld prepare an annual statement of accounts including the profit and loss account and the balance sheet in such form as may be prescribed by the state government in consultation with the comptroller and auditor-general of india 30 (2) the accounts of a corporation shall be audited annually by the comptroller and auditor-general of india or his nominee and any expenditure incurred by him in connection with such audit shall be payable by the corporation to the comptroller and auditor-general of india 35 (3) the comptroller and auditor-general of india and any person appointed by him in connection with the audit of the accounts of a corporation shall have the same rights, privileges and authority in connection with such audit as the comptroller and auditor-general of india has in connection with the audit of the government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the corporation 5 10 (4) the accounts of the corporation as certified by the comptroller and auditor-general of india or any person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the state government; and that government shall cause the same to be laid before the legislature of the state" 9 in section 35 of the principal act, after sub-section (2), the am~nl of ilectlon 35  following sub-section shall be inserted, namely:-"(3) the state government shall cause the annual report is referred to in sub-section (2) to be laid before the legislature of the state" 10 in section 37 of the principal act, after sub-section (2), the :t::=~ following sub-section shall be inserted, namely:-"(3) every notification issued under this section together 20 with a report on the circumstances leading to its issue shall be laid before the legislature of the stete, as soon as may be, after it is issued" 11 section 41 of the principal act shall be omitted 12 in sub-section (2) of section 44 of the principal act,-amendment (a) for clause (j), the following clause shall be substituted, ofaectlod44 2s namely:-"(j) the form in which the annual statement of bccounts shall be prepared;"; and (b) clause (k) shall be omitted io 1 in sub-section (2) of section 45 of the principal act, after "pwn4mmt clause ( c), the following clauses shall be inserted, namely: _ of lootioa 45 "(d) the issue of passes to the employees of the corporauu and other persons under section 19; (e) the grant of refund in respect of unused tickets and 35 concessional passes under section 19"  statement of objects and reasonsthe road transport corporations act, 1950 (64 of 1950) was enacted to enable the state governments to set up road transport corporations with the object of providing an efficient, adequate, economical and co-ordinated system of road transport services certain difficulties bave been experienced by the corporations set up under this act in the efficient discharge of their functions the bill aims at removing these difficulties 2 some of the important amendments proposed in the bill are as follows:-(i) in view of the all round expanding economy of the country, road transport corporations like other organisations require additional capital for their development projects since the state and central governments are not always in a position to meet the increased financial requirements of these corporations, section 26 of the act is being amended so as to authorise the corporations to borrow money in open market for meeting expenditure of a capital nature also (ii) section 30 of the act is being amended to enable the corporations to utilize their profits also for financing their expansion programmes with the approval of the central and state governments , (iii) under section 33, the accounts of a corporation are to be audited by an auditor appointed by the state government there is no obligation on the part of the state governments to get their accounts audited by the comptroller and auditor-general of india since the central government has financial interest in the corporations set up under the act, it is considered qesirable that the accounts of the corporations are qudited by the comptroller and auditor-general section 33 is being suitably amended to achieve this object raj bahadur nzw damj the 22nd april, 1959  (no 64 of 1950)'"                       '"                                             '"                                                                    '"                                                                                          '"                                                                                                                 '"                                         chapter ii road transport corporations '"                          '"                                                    '"                                                                              '"                                                                                                        '"                                                                                                                                 '"     12 a corporation may, from time to time, by resolution passed po~r to lip- t            ti                                                                                               ~~ a a mee ng-                                                                                              mitteea anel                                                                                               delegate            (a) appoint committees of its members                                                                         for performing functions      such functions as may be specified in the resolution;      (b) delegate to any such committee or to the chairman or vice-chairman, subject to such conditions and limitations, if any, as may be specified in the resolution, such of its powers and duties as it may think fit;      (c) authorise                           the chief                                           executive                                                           officer or                                                                           general manager, subject to such conditions and limitations, if any, as may be specified in the resolution to exercise such powers and perform such duties as it may deem necessary for the efficient day to day administration of its business '"                           '"                                                     '"                                                                                '"                                                                                                          '"                                   chapter iv  finance, accounts and audit'" '" '" '" '" 30 after making provision for payment of interest and dividend disposal of under section 28 and for depreciation, reserve and other funds under net profits section 29, a corporation may utilize such percentage of its net annual profits as may be specified in this behalf by the state govenunent for the provision of amenities to the passengers using the road transport services, welfare of labour employed by the corporation and for such other purposes as may be prescribed with the previous approval of the central government, and the balance shall be made over to the state government for the purpose of road development      bwlget 32 accounts and audit      (3) a corporation may sanction any re-appropriation within the grant from one head of the expenditure to another or from a provision made for one scheme to that in respect of another subject to the condition that the aggregate budget grant is not exceeded     33 (1) eevery corporation shall cause to be maintained such books of account and other books in relation to its accounts in such form and in such manner as may be prescribed (2) the accounts of a corporation shall be audited by the auditor appointed by the state government at such times and in such manner as may be prescribed (3) as soon as the accounts of a corporation have been audited, the corporation shall send a copy thereof together with a copy of the report of the auditor thereon to the central government and the state government - -   chapter v miscellaneous - - - - ~&::'d 41 (1) a corporation shall be deemed to be a local authority to be a local within the meaning of the motor vehicles act, 1939 " of 1939· authority :;;,ct provi-(2) the state government may, by notification in the official thi:"~:, gazette, exempt the motor vehicles of a corporation from the operadllks tion of the provisions of chapter viii of the motor vehicles act, 1939: "of 1939 provided that no such notification shall be issued unless a fund has been established and is maintained by the corporation in accordance with the rules made in that behalf under this act for meeting any liability arising out of the use of any vehicle of the corporation which the corporation or any person in the employment of the corporation may 'incur to third parties  - - -  "- (1) - - - - (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of tlui following matters, namely:-- - - - - - (j) the forms and the manner in which the account of the corporation shall be maintained; (k) the time at which, and the manner in which, the accounts of the corporation shall be audited; - - - - "  a billfurther to amend the road transport corporations act, 1950 (shri raj bahadur, minister oj state in the ministry of transport and communications) 