Amendment status not verified — confirm the current text below against the official source.
Classification of Panchayat Development Blocks.- For the purpose of sanctioning grants to Panchayat Union Council, the Government may classify Panchayat Development Blocks in such manner as they may deem fit once in every five years and it shall be open to the Government to sanction grants at varying rates for the different classes of Panchayat Development Blocks. It shall also be open to the Government to revise the classification of Panchayat Development Blocks once in every five year. 1[181-A. Deposit of fund of Panchayat.- Any Panchayat having surplus fund shall, with the prior approval of the Inspector, deposit such surplus fund in any of the financial institutions specified by the Government: Provided that no such deposit shall be made when there is need to utilise this fund for administration or development work during the next twelve months. 181-B. Grant or loan for scheme or project.- (1) The Government may make grant or loan to a Panchayat for the execution of specific scheme, project, programme or plan relating to any of the matters administered by such Panchayat subject to such terms and conditions as may be prescribed. (2) Such Panchayat shall utilize such grant or loan only for the purpose for which such grant or loan is given. (3) The provisions of the Local Authorities Loans Act, 1914 (Central Act IX of 1914), shall apply in respect of the loan given by the Government under this section. 181-C. Raising of loan by Panchayat.- Every Panchayat shall be competent to raise loan in full or in part from any Financial Institution or agency or bank for any of the following purposes, subject to the conditions imposed by the Government in this behalf, namely:- (a) to carry out any of the works connected with the improvement and development of infrastructure in Panchayat areas; (b) to carry out relief works at the time of natural calamities; (c) to undertake any measure in connection with, or ancillary to the above purposes; and (d) to carry out any of its other statutory functions. 181-D. Procedure for inter-panchayats lending.- (1) Any Panchayat may raise loan from any other Panchayat and any Panchayat may sanction loan to another Panchayat to carry out any of its statutory functions or for the creation of capital assets or income generating assets, with the prior sanction of the Inspector. (2) The procedure for the receipt, utilization and repayment of the loan under this section and Section 181-C shall be subject to such terms and conditions, as may be agreed upon by the Financial Institution or agency or bank or lending Panchayat, as the case may be, 90 and the borrowing Panchayat. Every Panchayat shall maintain in respect of the loan, such books of accounts, as may be prescribed. (3) Every Panchayat shall utilize the loan only for the purposes for which such loans are borrowed.]