t o ihe k a t i o k a l  a u t h a ^  i t i  o f  j1mdi4 b i l l ,  1980( j b  b e / a s  i n t r o d u c e d  i n  l  k  s a b h a )1 p a g e  3, i n  thc^ m a r g i n a l  u f c a d x n g  c l a u s e  8 , -f o r  " i n v a l i i a t e ' r e a d  " i n v a l i d a t e "2   p a g t -  h , a g a i n s t  l i n e  3 j  ,  i n  t h e  ; n a r g i n a l  c l t a t i o n , -f o r  " 1  o f  1 9 8 ^  '' r e a d  " 1  o f  189^  "3  p a g e  5, l i n e  33 , -f o r  " c o r p o r a t i o n  o f "  r e a d  " c o r p o r a t i o n  o r "  h  p a g e  7 ,  1 - in e  36, -f o r  " a n y  o f f i c e r  o r  a n y  e m p - l d y e e "  r e a d  " o f ' i c e r  o r  e m p l o y e e "5   p a g e  8 , l i n e  2 , -f o r  " a n y  o f f i c e r  o r  a n y  e n ^ j l o y e e "  r e a d  " o f f i c e r  o r  e m p l o y e e "  p a g e  10, l i n e  16, -a f t e r               " s u b - s e c t i o n                                         ( 1 ) "  i n s e r t                                                                  ' b r                                                                          s u b - s e c t i o n                                                                                                  ( 3 ) "7                p a g e  16                                        l i n e  11, -a f t e r               " e x p e n d i t u r e "                                             i n s e r t                                                            " i n c u r r e d "k e w  d e l h i ;i j o y e n b e r  1^ 1 9 8 5k a r t i k a  10, "1910 ( 3 ^  ^ ^ ) the national highw ays authority of india mtt 1988 arrangement of clauses chapter i pseliminary c la u ses | i1 short title, extent and commencement2 definitions- chafiter ii t he n a tio n a l h ig h w ay s authoiccnr o r imdia3 constitution of the authorityj4- t erm  of office and conditions o f service of members5 disqualifications for appointm ent as member 6 eugibihty of m em ber for reappointment7 m eetings8 vacancy in the a uthority not to invalidate proceedings9- a ppointm ent of officers, consultants and other employees of the a uthority10 a uthority to act on business principles^ chapter mp r o per ty a n d  co n tra c ts11 pow er of the c entral governm ent to vest or entrust any nationalhighw ay in the a uthority )12 transfer of assets and liabilities of the central government to thea uthority '13 compulsory acquisition of land for the authority14 contracts by the authority15 mode of executing contracts on behalf of the authority chapter ivf u n c t io n s o f t h e authorny16 functions of the authority clavsb17 g rants and loans by th e c entral gotaniniant 18 f und of th e a uthority19 budgets20 investm ent of funds-21 b orrow ing pow ers of the a uthority22 a nnual report23 accounts and audit,24 a nnual rep o rt and auditor's report to be laid before p arliam en t chapter vi miscbjansous25 d elegation of powers26 a uthentication of orders and other instn u n en ts of the a u & o ri^  27 em ployees of th e a uthority to be public servants 2s protection of action taken in good faith29 p ow er of the a uthority to undertake certain works30 pow er to enter31 p ow er of the c entral g overnm ent to tem porarily divest the a uthority of th e m anagem ent of any national h i^ w a y 32 p ow er of th e c entral g overnm ent to supersede the a uthority33 p ow er of th e c entral g overnm ent to issue directions34 pow er of the c entral g overnm ent to m ake rules 35 pow er of the a uthority to m ake regulations36 pow er to rem ove difflcuities^37 rules and regulations to be laid before parliam ent t h l national highw ays authority o f india bill, 1988 a billto provide for the constit-ution of cm authority for the development, maintenance and management of national highways and for matters connected therewith or incidental theretobe it enacted by parliam ent in the thirty-ninth year of the republic ef india as follow s:—i chapter i p reliminaky5 !• (1) this act m ay be called the national highways a uthority cf india ^^ct> 1988 title,(2) it extends to the whole of indiaextent and(3) it shall come into force on such date as the central government com^ncementm ay, by notification in the official gazette, appoint102 in this act, unless the context otherwise requires,— deflnitions,(o) "a uthority" m eans the national highways a uthority of india constituted under section 3;(b) "c hairm an" means the chairman of the authority;(c) "«mployee'' m eans a person in the full-tim e service of the j 5 authority?(d) "m em ber" m eans a m em ber of the a uthority appointed vmder section 3 and includes the chairm an;(e) "national highw ay" m eans any highw ay for the tim e being t declared as a national highw ay under section 2 of the n ational h igh­w ays act, 1956; 5(f) "prescribed" m eans prescribed by rules m ade under this act;(g) "regulations" m eans regulations m ade by the a uthority xmder this act;(h) w ords and expressions used herein and not defined but defined in th e n ational h ighw ays act, 1956 shall have the m eanings jq assigned to them  in th at act ch a pter ii t he n ational h icshways authohrry of indiaconstitu­tion of the authority3 (i) w ith effect from  such date as the c entral g overnm ent may» by notification in the official g azette, appoint in this behalf, there shall 15 be constituted for th e porposes of this a ct an a uthority to be called the n ational h ighw ays a uthority of india(2) the a uthority shall be a body corporate by the nam e aforesaid having perpetual succession and a common seal, w ith power, subject to the provisions of th^s act, to acquire, hold and dispose of property, both movable and im m ovable, and to contract and shall by the said nam e sue and be sued(3) the a uthority shall consist of -(i) a chairm an;(ii) not m ore than five full-tim e m em bers; and25(iii) not m ore than four part-tim e m em bers, to be appointed by th e c entral g overnm ent by notification in th e official g azette4 the term  of ofbce and other conditions of service of the m em bers shall be such as m ay be prescribed 30term ofofllceandconditionsofservice of raerabers5 a person shall be disqualified for being appointed as a m em ber if h e —(a) has been convicted and sentenced to im prisonm ent for an offence, w hich, in  the opinion of th e c entral governm ent, involves m oral turpitude; or ^5disquali­ficationsforappoint­ ment as member(b) is an im discharged insolvent; or(c) is of xmsound m ind and stands so declared by a com petent c ourt; or(d) has been rem oved or dismissed from  the service of the gov­ernm ent or a corporation owned or controlled by the governm ent; or 40(e) has, in the opini®n of th« c entral governm ent, such financial or other interest in the a uthority as is likely to affect prejudicially the discharge by him  of his functions as a member6 subject to the other tm n s  and conditions of service as may be pres- eligibility 5 cribed, any person ceasing to be a m em ber shall be eligible for reappointof m ent as such membermemberfor reappoint­mentmeetings7 (i) the a uthority shall m eet a t such tim es and places and shall observe such rules of procedure in regard to the transaction of business at its m eetings, including the quorum  thereat, as mny be provided by iq regulations^'(2) if for any reason the chairm an is unable to attend any m eeting of the a uthority an|y other m em ber chosen by the m em bers present at the m eeting shall preside a t the meeting(3) all questions which come up before any m eeting of the a uthority15 shall be decided by a m ajority of yotes of the m em bers present and voting, and in ttie event of an equality of votes, the chairm an, or in his absence, the person presiding, shall have and exercise a second or casting vote8 no act or proceeding of the a uthority shall be invalidated m erely by reason of—20 (a) any vacancy in, or any defect in the constitution of, thea uthority; or ^ vacancy in the authority not to invaldate proceed­ings(b) any defect in the appointm ent of a person acting as a m em ber of the a uthority; or(c) any irregularity in the procedure adopted by the a uthority not affecting the m erits of the case9 (1) for the purpose of discharging its functions, the a uthority shall appoint such num ber of officers and other employees as it m ay consider necessary on such term s and conditions as m ay be laid down by the regulations !30 (2) the a uthority m ay appoint, from tim e to time, any person asadviser or consultant as it m ay consider necessary, on such term s and conditions as maiy be la id ^ o w n  by the regulations iappoint­ment of officers, consul­tants and other employees of the authority10 in the discharge of its functions under this act, the a uthority shall act, so far as may be, on business principles-authority to act on business principles chapter iii^5 p roperty and contracts11, the central g overnm ent may, from  tim e to time, by notification, in the official gazette, vest in, or entrust to, the a uthority, such nationcl highw ay or ^ y  stretch thereof as m ay be specified in such notificationpower of the central govern­ment to vest or entrust anynational highway ix> the authoritv12- (1) o n and from  the d ate of publication of the notification under section 11,— ^transfer of assets and liabilities of the central govenudmc to the authority(a) all debts, obligations and liabilities incurred, all contracts entered into and all m atters and things engaged to be dons by, w ith, or for, the c entral g overnm ent im m ediately before such date for 5 or in connection w ith the purposes of any national highw ay or any stretch thereof vested in, or entrusted to, the a uthority under th at section, shall be deem ed to have been incurred, entered into and engaged to be done by, w ith, or for, the a uthority;(b ) all notn-recurring expenditure incurred by or for the central government for or in cannection with the purpdses of any national highway or any stretch thereof, so vested in, or entrusted to, the authority, up to such date and declared to be capital expenditure by the central government shall, subject to such terms and conditions as may be prescribed, be treated as capital provided by the central 15 govenmient to the authority ^ <(c) all sums of m oney due to the c entral gk)vemment in re­lation to any national highw ay or any stretch thereof, so vested in, or entrusted to, the a uthority im m ediately before such date shall be deem ed to be due tc the a uthority; 2o(d) >all suits and other legal proceedings instituted or which could have been instituted by or against the c entral g overnm ent im m ediately before such date for any m atter in relation to such national highw ay or anty stretch thereof m ay be continued or insti­tu ted  by o r against the a uthority ' 25(2) if any dispute arises as to w hich of the assets, rights or liabilities of the c entral g overnm ent have been transferred to the a uthority, such dispute shall be decided by the c entral g overnm ent13 a ny land required b|y the a uthority for discharging its functions under this a ct shall be deemed to be land needed for a public purpose and 3q such land m ay be acquired for the a uthority under the provisions of the l and a cquisition act, 1894 or of any other corresponding law  for the tim e being in forcegompul-boryacquisition of land for the authoritycontractsby the authority14 subject to the provisions of section 15, the a uthority shall be com petent to enter into and perform  any contract necessary for the dis- 35 charge of its fim ctions under this act 15 (1) every contract shall, on behalf of the a uthority, be m ade by the c hairm an or such other m em ber or such officer of the a uthority as m ay be generally or specially em pow ered in this behalf by the a utho­rity and such contracts or classes of contracts as may be specified in the 4q regulations shall be sealed w ith the common seal of the a uthority: 1mode ofexecutingcontractson behalfof the authorityprovided th at no contract exceeding such value or am ount as the c entral g overnm ent m ay pres-cribe in this behalf shall be m ade unless it has been previously approved by th at governm ent:provided fu rth er th at no contract for the acquisition or sale of imm ovable property or for the lease of any such propertfy for a term  ex­ceeding th irty  years and no other contract exceeding such value or am oim t as the c entral g overnm ent m ay prescribe in this behalf shall be m ade unless it has been previously approved by th at governm ent(2) subject to the provisions of sub-sectiqin (j), th e form  and m an­ner in w hich any co n tract d iall be m ade under this act shall be such as m ay be provided by regulations(3) no contract w hich is not in accordance w ith the provisiong of s this a ct and th e regulations shall be binding on the a uthority chapter iv f unctions op the a uthorityfunctions of the auttiority16 (1) subject to the rules m ade by th e c entral g overnm ent in this behalf, it shall be th e function of the a uthority to develop, m aintain and 10 m anage the national highw ays and any other highways vested in, or en­trusted to, it by th e g overnm ent(2 ) w ithout prejudice to the generality of the provisions contained in sub-section (i), th e a uthority may, for the discharge of its functions—(a) survey, develop, m aintain and m anage highw ays vested in, or entrusted to, it;15(b) construct offices or workshops and establish and m aintain hotels, motels, restaurants and rest-room s at or near th e highw ays vested in, or entrusted to, it;(c) construct residential buildings and townships for its em ­ployees;20(d) regulate and control the plying of vehicles on the highway vested in, or entrusted to, it for the proper managememt thereof;25(e) develop and provide consultancy and construction services in india and abroad and carry on research activities in relation to the developm ent, m aintenance and m anagem ent of highways or any facilities thereat;(f) provide such facilities and am enities for the users of th e highw ays vested in, or entrusted to, it as are, in  the opinion of th e  a uthority, necessary for the sm ooth flow of traffic on such highways;30(g) form  one or m ore companies, under the companies act, 1956 to fu rth er the efficient discharge of the functions imposed on it by this act;(h) engage, or entrust any of its functions to, any corporation of body corporate owned or controlled by the g overnm ent;35(i) advise the c entral g overnm ent on m atters relating t(» highways;(j) assist, on such term s and cond|itions as m ay be m utually ag­reed upon, any state g overnm ent in the form ulation and imptem entation of schemes for highw ay developm ent;40(k) collect fees on behalf of th e c entral g overnm ent for services or benefits rendered under section 7 of the national highways act, 1956, as am ended from  tim e to time, and such, other fees on behalf of the s tate g overnm ents on such term s and conditions as m ay be , specified by such state governm ents; and(i) take all such steps as m ay be necessary or convenient for, or m ay be incidental to, th e exercise of any pow er or the discharge of any function conferred or im posed on it by this a ct(5) n othing contained in this section shall be construed as—(o) authorising th e disregard by the a uthority of any law  for the tim e being in force; or(b) authorising any person to institute any proceeding in res­pect of a duty or liability to w hich th e a uthority or its officers or other employees w ould not otherw ise be subject under this act chapter v f inance, accounts and audit17 t he c entral g overnm ent m ay, after due appropriation m ade by parliam ent by law  in this b eh a lf provide to the a uthority grants and loans of such sums of m oney as th a t g overnm ent m ay consider necessarygrants and loans by the central govemment18 (1) t here shall be constituted a fund to be called th e n ational j 5 highways a uthority of india fund and th ere shall be credited thereto—fund of the authority(a) any grant or aid i'eceived by the a uthority;(b) any loan taken by the a uthority or any borrow ings m ade by it;(c) any other sums received by the a uthority20(2) the fund shall be utilised for m eeting-(a) expenses of the a uthority in the discharge of its functions having regard to th e purposes for w hich such grants, loans or borrow ings are received and for m atters connected therew ith or incidental thereto; ' 25(b) salary, allowances, other remimeraition and facilities pro­vided to the m em bers, officers and other employees of the a uthority;(c) expenses on objects and for purposes authorised by this act■udget19 the a uthority shall prepare in such form  an i a t such tim e in each financial year as m ay be prescribed, its budget for the n ext financial year, showing the estim ated receipts and expenditure of the a uthority and forw ard the same to the c entral g overnm ent20 the a uthority m ay invest its funds (including any reserve fimd) in the securities of the c entral grovemment or in such other m anner as m ay be prescribed 35invest­ment f fundsborrowing powers of the authority,21 (1) the a uthority may, w ith the consent of the c entral g overn­m ent or in accordance w ith the term s of any general or special authority given to it by the c entral g overnm ent, borrow  m oney from  any source by the issue of bonds, debentures or such other instrum ents as it m ay deem  fit for discharging all or amy of its functions under this act(2) subject to such lim its as the c entral g overnm ent may, from  tim e to tim e, lay down, the a uthority m ay borrow  tem porarily by way of overdraft or otherw ise, such am ounts as it may require for discharging its functions under this act ,5 (3) the central government may guarantee in such manner as itthinks fit the repayment of the principal and the payment of interest thereon with respect to the borrowings made by the authority under sub­section (i)annualreport22 the a uthority shall prepare, in such form and at such tim e in each10 financial year as m ay be prescribed, its annual report, giving a full ac­count of its activities during the previous financial year, and subm it a copy thereof to the c entral g overnm entaccounls andaudit23 the accounts of the a uthority shall be m aintained and audited in such m anner as may, in consultation w ith the com ptroller and a uditor g eneral of india, be prescribed and the a uthority shall furnish, to the c entral governm ent, before such date as m ay be prescribed, its audited copy of accounts together w ith the auditor's report thereon24 t he c entral g overnm ent shall cause the annual report and audi­to r's report to be laid, as soon as may be after they are received, before20 each house of parliam entannualreport andauditor's report to be laid before parlia­ment chapter vi m iscellaneousdelega­tion of powers25 the a uthority may, by general or special order in writing, dele­gate to the chairm an or any other m em ber or to any officer of the au- 25 thority, subject to such conditions and limitations, if any, as m ay be specified in the order, such of its powers and functions under this act (except its powers under section 3&) as it m ay deem necessary26 a ll orders, decisions and other instrum ents of the a uthority shall be authenticated by the signature of the chairm an or any other mem- 30 ber or any officer of the a uthority authorised by it in this behalfauthenti­cation of orders and other instru­ments of the authority27 all m embers, officers and employees of the a uthority shall, when acting or purporting to act in pursuance of the provisions of this act or of any rule or regulation made thereunder, be deemed to be public servants w ithin the m eaning of section 21 of the indian p enal codeemployees of the authority to be public servants35 28 (1) no suit, prosecution or other legal proceeding shall lieagainst the a uthority or any m em ber or any officer or any employee of the a uthority for anything w hich is in good faith done or intended protec­tion of action taken in good faithto be done under this act or the rules or regulations m ade thereunder(2) no suit, prosecution or other legal proceeding shall lie' agdinst th^ a uthority or any m em ber or any officer or any em ployee of the a uthority for any dam age caused or likely to be caused by anything w hich is in good faith done or intended to be done under this a ct or the rules or regulations m ade thereunder 529 the a uthority m ay undertake to carry out on behalf of the gov­ernm ent, or any local authority any w orks or services or any clasb of w orks or services on such term s and conditions as m ay be agreed upon betw een the a uthority and the g overnm ent or local authority concernedpower of the authority to under­take certain workfpower to enter30 subject to any regulations m ade in this behalf any person, gene- 10 rally or specially authorised by th e a uthority in this behalf, m ay, w henever it is necessary so to do for any of the purposes of this act, at all reasonable times, enter upon any land or premises, and—(a) m ake any inspection, survey, m easurem ent, valuation or enquiry 15(b) take levels; (c) dig or bore into sub-soil;(d) set out boundaries and intended lines of w ork;(e) m ark such levels, boundaries and lines by placing m arks and cutting trenches; or i 20(f) do such other acts or things as m ay be prescribed;provided th at no such person shall enter any boundary or any enclosed court or garden attached to a dw elling house (except w ith the consent of the occupier thereof) w ithout previously giving such occupier at least tw enty-four hours' notice in w riting of his intention to do so 2531 (1) if, at any time, the c entral g overnm ent is of opinion th at in the public interest it is necessary or expedient so to do, it m ay, by ordex, dixect the a uthority to entrust the developm ent, m aintenance or m anage­m ent of any national highw ay or a part thereof w ith effect from  such date and for such period and to such person as m ay be specified in the order 3q and the a uthority shall be bound to comply w ith such directionpower of the central govern, ment to tempora­rily divest the authority of the manage­ment of any national highway(2) w here developm ent, m aintenance or m anagem ent of any national highw ay or part thereof is entrusted to any person specified under sub­section (1) (hereafter in this section referred to as the authorised person), the a uthority shall cease to exercise and discharge all its pow ers 35 and functions under this act in relation to such national highw ay or part thereof and such powers and functions shall be exercised and discharged by the authorised person in accordance w ith the instructions, if any, w hich the central governm ent may give to the authorised person from  tim e to tim e: i 40pro\dded th at no such power or function as m ay be specified by the central g overnm ent by a general or special order shall be exercised or discharged by the authorised person except w ith the previous sanction of the c entral governm ent(3) the c entral goyernm ent m ay reduce or extend the period m entioned in sub-section (i) as it considers necessary(4) during the operation of an order made under sub-section (2), it shall iae com petent for the c entral g overnm ent to issue, from  tim e to tim e, such directions to the a uthority as are necessary to enable the authorised person to exercise the powers and discharge the functions of 5 th e a uthority under this act in relation to the national highw ay or part thereof, the m anagem ent of which has been entrusted to him  and in parti­cular, to transfer any sum of money from the fund of the a uthority to tiie authorised person for the m anagem ent of the national highw ay or p art thereof and every such direction shall be complied w ith by the10 authority ' !(5) on the cesser of operation of any order made under sub-section(1) in relation to any national highw ay or part thereof, the authorised person shall cease to exercise and perform  the powers and functions of the a uthority under this act in relation to such national highw ay or15 p art thereof and the a uthority shall continue to exercise and perform such pow ers and functions in accordance w ith the provisions of this act(6) on the cesser of operation of any order made under sub-section(1) in  relation to any national highw ay or part thereof, the authorised person shall hand over to the a uthority any property (including any sum20 of m oney or other asset) rem aining w ith him  in connection w ith the m anagem ent of such national highw ay or pai^t thereof32 (2) if, at any time, the c entral g overnm ent is of opinion—(a) th at on account of a grave em ergency the a uthority is u n ­able to discharge the functions and duties imposed on it by or under25 the provisions of this act; or power of the central govern­ment to super­sede the autho­rity(b) th at the a uthority has persistently m ade default in com­plying w ith any direction issued by the c entral g overnm ent under this a ct or in the discharge of the functions and duties imposed on it by or under the provisions of this act; or30 (c) th at circum stances exist which render it necessary in thepublic in terest go to do, the c entral g overnm ent may, by natification in the official gazette, supersede the a uthority for such period, not exceeding one year, as m ay be specified in the notification:35 provided th at before issuing a notification under this sub-section for the reasons m entioned in clause (l>), the c entral g overnm ent shall give a reasonable opportunity to the a uthority to show cause w hy it should not be superseded and shall consider the explanations and objections, if any, of the a uthority40 (2) upon^the publication of a notificationsuperseding the a uthority,—under sub-section (1)(a) all the m em bers shall, as from  the date of supersession, vacate their offices as such;45(b) all the powers, functions and duties which may, or under the provisions of this act, be exercised or discharged by or on be­half of the a uthority, shall, until the a uthority is reconstituted xmder sub-section (3), be exercised and discharged by such persoi) or persons as the c entral g overnm ent m ay direct;(c) all property ov^ned qt controlled by the a uthority shall, u ntil the a uthority is reconstituted under sub-section (3), vest in the c entral g overnm ent\3) on the expiration of the period of supersession specified in the notification issued under sub-section (1), th e c entral g overnm ent m ay— 5(a) extend the period of supersession for such fu rth er term , not exceeding one year, as it m ay consider necessary; or(b) reconstitute the a uthority by fresh appointm ent and in such a case, any person who vacated office under clause (a) of sub­section (2) shall not be deem ed disqualified for appointm ent:provided th at the c entral g overnm ent may, at any tim e before the expiration of the period of supersession w hether as originally specified under sub-section (1) or as extended under this sub-section, take action under clause (b) of this sub-section(4) the c entral g overnm ent shall cause a notification issued under 15 sub-section (1) and a full report of any action taken under this section and the circum stances leading to such action to be l£iid before both houses of p arliam ent as soon as m ay be33 (1) w ithout prejudice to the other provisions of this act, the a uthority shall, in the discharge of its functions and duties im der this 20 act, be bound by such directions on questions of policy as the c entral g overnm ent m ay give to it in w riting from  tim e to timepower of the central govern­ment to issue directions(2 ) the decision of the c entral g overnm ent w hether a question is one of policy or not shall be final34 (1) the c entral g overnm ent may, by notification in the official 25 gazette, m ake rules for carrying out the provisions of this a c t(2) in particular, and w ithout prejudice to the generality of the fore­going power, such rules may provide for—power of the central govern­ment to make rulei(a) the term  of office and other conditions qf service of the m em bers; 30(b) the powers and duties of the c hairm an and of the m em bers;(c) the term s and conditions subject to w hich the non­recurring expenditure incurred by or for the c entral g overnm ent for or in connection w ith the purposes of any national highw ay shall be treated as capital provided by the c entral g overnm ent to the 35 a uthority under clause (b) of sub-section (1) of section 12;(d) the value or am ount required to be prescribed under sub­section (1) of section 15;(e) the form  in which and the tim e w ithin which the a uthority shall prepare its budget under section 19 and its annual report under section 22;(f) the m anner in w hich the a uthority may invest its funds under section 20;(g) the m anner in w hich the accounts of the a uthority shall be m aintained and audited and the date before which the audited copy of the accounts together w ith the auditor's report thereon shall be furnished to the c entral governm ent under section 23;(h) the conditions and restrictions w ith respect to the exercise of the power to enter ^ander section 30 and the m atters referred to in clause (f) of th at section; and(i) any other m atter w^ 'ch is required to be, or prescribedmay be,10 35 (1) the a uthority may, by notification in the official gazette, m ake regulations not inconsistent w ith this act and the rules made thereunder to caxry out the provisions of this actpower of the authority to make regulations(2) in particular, and w ithout prejudice to the generality of the fore­going power, such regulations m ay provide for all or any of the follow- 15 ing m atters, nam ely: —(a) the tim es and places of the m eetings of the a uthority and the procedure to be followed for the transaction of business at such m eetings;20(b) the term s and conditions of service, m ethod of recruitm ent and the rem uneration of officers and other employees appointed by the a uthority;(c) the form  and m anner in which a contract or class of con­tracts m ay be m ade by the a uthority and the contracts or classes of contracts which are to be sealed w ith the common seal of the authority;25(d) the m atm er of preventing obstructions on the national highways for their norm al functioning;(c) the m anner of prohibiting the parking or w aiting of any vehicle or carriage on the national highw ay except at places specified by the a uthority; r30(f) the m anner of prohibiting or restricting access to any part of the national highway;(g) the m anner of regulating or restricting advertisem ents on and around national highways; and35(h) generally for the' efficient and m anagem ent of the national highwaysproper m aintenance and36 (1) if any difficulty arises in giving effect to the provisions of this po^gr to act, the central g overnm ent may, by notification in the official gazette, remove m ake order not inconsistent withi th^provisions of this act as may appear difficulties, to it to be necessary or expedient for the removal of the difficulty:40provided that no such order shall be made after the expiration of two years from the commencement of this act(2) every order m ade under this section shall be laid, as soon as may be after it is made, before each house of parliam entrules and regu­lations to be laid before parlia­ment37 ^very ru le  and every regulation m ade under this a ct shall be laid, as soon as m ay be after it is made, before each house of parlia-j m ent, w hile it is in session, for a total period of th irty  days w hich m ay be com prised in one session or in tw o or m ore si'ccessive sessions, and if,' before the expiry of the session im m ediately following the session or 5 the successive sessions aforesaid, both houses agree in m aking any modification in the rule or regulation or both houses agree th at the ru le o r regulation should not be m ade, the rule or regulation shall th ere­after have effect only in such modified form  or be of no effect, as th e case m ay be; so, how ever, that any such modification or annulm ent shall 10 be w ithout prejudice to the validity of anything previously done under th a t rule or regulation ' j t he developm ent and m aintenance of national highw ays is fully flraanced by th« c entral g overnm ent as this function comes w ithin entry 33 of the union list of the seventh schedule to the constitution further, section 5 of the n ational highways act, 1956 provides th at the c entral g overnm ent m ay direct th at any function in relation to the developm ent or m aintenance of national highw ays shall also be exercisable, among! others, by any officer or authority subordinate to the c entral government u nder this provision, the function of execution of th© field activities inclu­ding survey, investigations and preparation of projects on m tio n al high­ways have been delegated to the respective state governments, the c entral g overnm ent retaining the activities pertaining to planning, approval of design and estim ates, m onitoring, etc this system  is commonly know n as the 'agency system ' since the s tate governments are paid 'agency charges' incurred by them  on works executed on the national highway system2 though the 'agency system ' of execution of national highway works by the state public w orks d epartm ents has been functioning for a period of about 40 years, difficulties have been experienced from tim e to time3 since the c entral g overnm ent have no direct adm inistrative control over the executive agency, there have been instances w hen the central g overnm ent had to rem ain helpless in case a state governm ent over­looked the acts of omission or commission on the part of its staff engaged in the construction and m aintenance of national highways this has resulted in anomalous situations w here the c entral governm ent, being constitutionally responsible for the developm ent and m aintenance of national highways had to defend actions of state governmennts in various forum s, including parliam ent similarly, the c entre generally has no role in fixation and operation of even m ajor contracts, arbitration cases, paym ent of com pensation to contractors, etc-, over and above the original contract am ounts and other item s resulting in direct financial commit­m ent of central funds4 u nder the circumstances, the only alternative is for the centre to take over developm ent and m aintenance of the national highway system through the creation of an autonomous national highways authority- it is proposed th a t this a uthority should take over, in a phased manner, the functions presently being perform ed by the state public works d epartm ents !5 the m ain functions of the a uthority would be to develop and m aintain national highw ays whose m anagem ent and operation is vested in the central governm entsome of the salient features of the bill are: —(0) the a uthority, w hich w ill be a functional body, w ill consist of a c hairm an and not m ore than five full-tim e m em bers to be appointed b|y the c entral g overnm ent the c entral g overnm ent m ay also appoint not m ore than four part-tim e m em bers;(b) the c entral g overnm ent is being em pow ered to vest in, or entrust to, the a uthority such national highw ays or any stretch th ere­ of, as are vested a t present in th a t g overnm ent im der section 4 of the n ational h ighw ays act, 1956;(c) any land required by the a uthority for discharging its func­tions w ill be deem ed to be land needed for a public purpose and such land m ay be acquired for the a uthority under the provisions of th e l and a cquisition act, 1894 or any corresponding law  for the tim e being in force; i(d) the a uthority w ill have pow ers to enter into and perform  any contract up to a certain value w hich will be prescribed by the c entral g overnm ent;(e) the c entral gk)vernment w ill provide funds to the a utho­rity  for the discharge of its functions;(f) the a uthority w ill be responsible for the developm ent, m ain­tenance and m anagem ent of th e national higliways w hich are vested in it by the c entral g overnm ent;(g) the a uthority w ill construct offices, w orkshops and residen­tial buildings for its employees and construct way-side am enities near the national highw ays vested in it;(h) the a uthority will, on behalf of the g overnm ent, be em ­pow ered to couect fees for services or bemefits rendered by it under section 7 of the n ational h ighways act, 1956;(1) for the proper m anagem ent of highw ays, the a uthority w ill regulate and control the plying of vehicles on the highw ays vested in it;(j) w ith the approval of the c entral g overnm ent, the a uthority w ill raise funds through the floating of bonds, issue of debentures, etcthe biu seeks to achieve the above objectsnew d elh i; r a jesh  pilo tthe 27th october, 1988clause 3 of the bill provides for the constitution of a national high­ways a uthority of india clause 4 provides for th e term  of office other conditions of service of m em bers of the a uthority, clause 9 provides for appointm ent of oiiicers, advisers and consultants for assisting th e a uthority clause 12(1) (b) provides that the non-recurring expendi­ ture incurred by or for the c entral g overnm ent for or in connection w ith the purposes of any national highway or any stretch thereof vested in the a uthority be treated as capital provided by the central g overnm ent to the a uthority clause 13 provides for compulsory acquisi­tion of land required by the a uthority under the provisions of the land acquisition act, 1894, or of any other corresponding law  for the time being in force clavise 18 provides for the constitution of the n ational higiivvays a uthority of india fund, w hich w ill consist of any grant or aid received by the a uthority, any loan taken by the a uthority, or any borrow ings m ade by it and any other sums received by the a uthority clause 23 of the bill provides th at the accounts of the a uthority shall be m aintained and audited in such m anner as m ay be prescribed in consultation w ith the com ptroller and a uditor g eneral of india2 a t present, the task of developm ent and m aintenance of national highw ays is entrusted to the respective state governm ents on an agency basis and m atters relating to planning, approval of designs and estimates, allocation of funds, m onitoring and other policy m atters are the responsi­bility of the m inistry of surface t ransport in the c entral governm ent it is proposed to take over in a phased m anner, the functions which are being perform ed by the state g overnm ents on behalf of the central gov­ernm ent and entrust them  to the n ational highways a uthority of india- the entire capital cost for the developm ent of national highways £ts w ell as the cost of their m aintenance w ill be borne by the c entral g overnm ent, as a t present d uring the year 1988-89, there is a budget provision of rs 37460 crores for the developm ental w orks of national highw ays and rs 11750 crores for the m aintenance of these h i^ w a y s  some of the moneys presently allocated for th e development, m ain­tenance, etc, of national highways will be transferred to the a uthority as and w hen the need arises?j tjie state governm ents who have been perform ing ihe task of daytiiday m anagem ent of national highw ays are being paid 'agency charges' at the rate of 9 per cent, of the worlv costs by the c entral governm ent from their plan resources e ntrusting of the functions to the national h ighw ays a uthority will not thus result in any additional recurring expenditure and it will be w ithin the 'agency charges' being paid to the state governments4 some budgetary support for capital expenditure tow ards office space, furniture, transport, etc, w ill have to be provided5 sub-clause (3) of clause 21 of the bill provides for the guarantees by the c entral g overnm ent on the repaym ent of the principal and the paym ent of interest in respect of the borrowings m ade by the authority under sub-clause (1) of that clause the ultim ate liability arising out of such guarantees, if any, cannot be estim ated at this stage6 the bill, if enacted and brought into operation, will not involve a'ly other rccurring or non-recurring expenditureclause 34 of the bill em pow ers the c entral g overnm ent to m ake rules for carrying out th e provisions thereof the various m atters in relation to w hich rules m ay be m ade have been detailed in  sub-clause (2) of th at clause t hese m atters, inter alia, relate to the term  of office and other conditions of service of the m em bers of the a uthority includ­ing its c hairm an; the pow ers and duties of the c hairm an and m em bers of the a athority; the value or am ount of the con­tracts w hich the a uthority can enter inco w ithout the previous approval of the c entral g overnm ent; the term s and conditions subject to w hich non-recurring expenditure by or for the c entral g overnm ent for or in connection w ith the purposes of any national highw ay shall be treated as capital provided by the c entral g overnm ent to the a uthority; th e form  in  w hich and the tim e w ithin w hich the a uthority m ay prepare its budget and annual report; the m anner in w hich the aocounts of the a uthority shall be m aintained and audited, etc2 clause 35 of th e bill em powers the a uthority to m ake regulations, not inconsistent w ith the a ct and th e rules m ade thereunder, for carry­ing out th e provisions thereof the various m atters in relation to which th e a uthority m ay m ake regulations have been detailed in  sub-clause (2) of th a t clause these m atters, inter alia, relate to the tim es and places of th e m eetings of the a uthority and the procedure to be follow ed for th e transaction of business at such m eetings; th e term s and conditions of service, th e m ethod of recruitm ent and th e rem uneration of officers and other em ployees appointed by the a uthority; the form  and m anner in  w hich contracts or classes of contracts are to be sealed w ith th e common seal of the a uthority; the m anner of preventing obstructions: on the national highw ays; the m anner of prohibiting the parking or w aiting of any vehicle or carriage on national highw ays except at places specified by the a uthority; the m anner of regulating or restricting advertisem ents on and around the highw ays etc3 clause 36 of the bill em powers the c entral g overnm ent to make, by notification in the official gazette, an order, not incon^stent w ith the provisions of the act, as may appear to it to be necessary or expedient for the rem oval of the difficulty w hich m ay arise in giving effect to the provisions of the act it also provides th at no such order shall be m ade after the expiry of tw o years from  the com m encem ent of the act and th a t every such order shall be laid before each house of parliam ent,, 4 the m atters in relation to which rules or regulations m ay be m ade are m atters of adm inistrative detail and procedure and it is difficult to provide for the same in the bill itself the delegation of legislative ^o'i«rer'is,;t>berefore, of a norm al character a billto provide for the constitution of an a uthority for the developm ent, m aintenance and m anagem ent of national highw ays and for m atters connected therew ith or incidental thereto(sfiri rajesh pilot, minister of state of the m inistry of surface transport)