Maharashtra Finance Commission (Miscellaneous Provision) Act, 1994
Maharashtra Act No. 23 of 1994
LEGISLATIVE HISTORY 6
(a) have special knowledge of the finances and accounts of Government; or
(b) have had wide experience in financial matters and in administration; or
(c) have special knowledge and experience about the local self Government in urban area; or
(d) have special knowledge and experience about the local self Government in rural area:Provided that one of the members shall be a person who is holding or has held the post not lower in rank than that of [an officer in Junior Administrative Grade in Indian Administrative Service or an Officer in equivalent grade] and he shall be the Member-Secretary of the Commission. 5. Personal interest to disqualify Chairman and Members. - Before appointing a person to be the Chairman or a Member of the Commission, the Governor shall satisfy himself that person will have no such financial or other interest as is likely to affect prejudicially his functions as the Chairman or a Member of the Commission; and the Governor shall also satisfy himself from time to time with respect to every member of the Commission that he has no such interest and any person who is, or whom the Governor proposes to appoint to be, the Chairman or a Member of the Commission shall, whenever required by the Governor so to do, furnish to him such information as the Governor considers necessary for the performance by him of his duties under this section. 6. Disqualification for being Chairman or Member of Commission. - A person shall be disqualified for being appointed as, or for being as the Chairman or a Member of the Commission-
(a) if he is of unsound mind [and stands so declared by a competent court];
(b) if he is an undercharged insolvent;
(c) if he has been convicted of an offence involving moral turpitude;
(d) if he has such financial or other interest as is likely to affect prejudicially his functions as the Chairman or a Member of the Commission.7. Term of office of Chairman and Members and eligibility for reappointment. - The Chairman and every Member of the Commission shall hold office for such period as may be specified in the order of the Governor appointing him, but shall be eligible for reappointment: Provided that, he may, at any time, by writing under his hand addressed to the Governor, resign his office. 8. Conditions of service and salaries and allowances of the Chairman and Members. - The Chairman and the Members of the Commission shall render whole time or part time service to the Commission as the Governor may, in each case, specify; and there shall be paid to the Chairman and the Members of the Commission such fees or salary and such allowances as the State Government may, by order, from time to time, determine. 9. Procedure and powers of the Commission. - (1) The Commission shall determine their procedure and in the performance of their functions shall have all the powers of a civil court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:-
(a) Summoning and enforcing the attendance of witnesses;
(b) Requiring the production of any document; and
(c) Requisitioning any public record from any court or office.(2) The Commission shall have power to require any person to furnish information on such point or matters as, in the opinion of the Commission, may be useful or relevant to any matter under the consideration of the Commission and any person so required shall, notwithstanding anything contained in any other law for the time being in force, be deemed to be legally bound to furnish such information within the meaning of section 176 of the Indian Penal Code. (3) The Commission shall be deemed to be a civil court for the purposes of sub-section (1) of section 345 and of section 346 of the Code of Criminal Procedure, 1973 Explanation. - For the purposes of enforcing the attendance of witnesses, the local limits of the Commission's jurisdiction shall be the limits of the State of Maharashtra.
Mantralya, Bombay 400032, dated 23rd April, 1994SFC-1094/CR-22/Arthabal. - The following order made by the Governor of Maharashtra is published for general information:-
OrderIn pursuance of the provisions of Article 243-I, read with Article- 243-Y of the Constitution of India and the Maharashtra Finance Commission (Miscellaneous Provisions) Act, 1994, the Government of Maharashtra is pleased to constitute the First Maharashtra Finance Commission consisting of Shri Shantaram G. Gholap as the Chairman and Shri. R. C. Sinha, I. A. S. as the Member-Secretary. Three other members will be appointed separately. 2. The Member-Secretary shall render whole time service while the Chairman and other Members will render part-time service on the Commission. 3. The Chairman and the other Members shall hold office from the date on which they respectively assume office up to the 31st day of October, 1995. 4. The Commission shall make recommendations relating to the following matters:-
(a) The distribution between the State, the Panchayats and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State which may be divided amongst them under Part IX and Part IX-A of the Constitution and the allocation between the Panchayarts and the Municipalities at all levels of their respective shares of such proceeds;
(b)The determination of the taxes, duties, tolls and, fees which may be assigned to, or appropriated by the Panchayats or, as the case may be the Municipalities;
(c) The principles which should govern the grants-in-aid to the Panchayats or, as the case may be, the Municipalities from the Consolidated Fund of the State.5. In making its recommendations, the Commission shall have regard, among other consideration to -
(a) the projected gap between the Revenue Receipts and the revenue expenditures (Non-Plan or Non-Developmental or both) of the Panchayats and the Municipalities in the State for five years from 1st April, 1996 on the basis of their levels of taxation likely to be reached in 1994-95.
(b) the measures and the extent to which the Panchayats and Municipalities have exploited the available and the potential sources of revenue and the manner and extent to which their revenue gap can be reduced by such measures;
(c) the principles of financial assistance from the State Government to the Panchayats and the Municipalities as may be determined by the Commission taking into account the provisions of clauses (a) and (b) above.In making its recommendations on the various matters aforesaid, the Commission shall adopt the population figures of 1991 Census, where population is regarded as a factor for determination of devolutions of taxes and duties and grants-in-aid:
(d) the outstanding debt position as on 31st March, 1994 of the Panchayats and the Municipalities and specify;
(i) the principles and the procedures to regulate the borrowing power of the Panchayats and the Municipalities; and
(ii) the steps needed to contain the debt liabilities taking into account their resource position.
(e) the resources of the State Government and the demands thereon, in particular, on account of expenditure on Civil administration, Police, Social and Economic Service, Debt servicing and all other committed expenditures or liabilities and Non-Plan Revenue Expenditure;
(f) the maintenance and upkeep of the capital assets of the Panchayat and the Municipalities, and work out the norms for their adequate maintenance with due regard to their resource position and introduce measures for mobilising resources locally to meet these liabilities;
(g) the need for ensuring reasonable returns on investments made, if any, by the Panchayats and the Municipalities, as the case my be, in irrigation projects, transport undertakings, pipe water supply schemes, borewell programmes and other activities of commercial nature, if any.6. The Commission may make recommendations about introducing a scheme for Calamity Relief and considering the need to have a Calamity Relief Fund on the lines of the Calamity Relief Fund Scheme recommended by the Ninth Finance Commission.