Panchayat:Repo18/vol2-page0283


8. Inquiries to be made on applications.- The Government or the authority authorised under Rule 6, shall cause such inquiry as they think fit to be made into the statements contained in the application made, under Rule 6 or 7 as the case may be. Such enquiry may be conducted through such persons as the Government or the authority may authorise or with reference to such records as they may deem fit.

9. Rejection of application etc.- If it appears to the Government or the authority authorised under Rule 6, as the case may be, that the money ought not to be borrowed or that the payment of interest on the money expended or to be expended on any work or for any of the purposes, to which such funds might be by law applied, shall not be guaranteed, it shall reject the application.

10. Removed

11. Disposal of application.- The Government or the authority authorised under Rule 6, as the case may be, after conducting the enduiry referred to in Rule 8 either
(i) reject the application, or
(ii) grant the loan or sanction the raising of the loan as the case may be, or
(iii) permit the local authority to guarantee the payment of interest under Section 5 of the Act.
Provided that no application shall be rejected under this rule without giving the Local authority an opportunity to show cause against the action proposed to be taken.)

11A deleted

12. Power of Government to grant urgent loans.- Where a local authority in its application desires the immediate grant, or sanction to the raising of a loan on the ground that funds are urgently needed for any of the purposes mentioned in sub-section (1) of Section 3 of the Act, the Government or the authority authorised under rule 6 as the case may be, if it is satisfied that the loan is urgently needed for any purpose, may, notwithstanding anything contained in Rules 8 and 11 after such inquiry, if any, as it thinks fit to make, grant, or sanction the raising of, such loan at any time after the receipt of the application.

13. Conditions relating to non-Government loans.- The Government or the authority authorised under Rule 6 shall not permit the raising of a non-Government loan unless it is satisfied that the local authority will be able to repay the loan together with interest in time from the proceeds from the work to be executed with the proposed loan.

14. Inspection of works etc.- it shall be lawful for the Government or for such officers as they may authorise, to inspect or to cause the inspection or any work carried out under contract in respect of which the payment of interest is guaranteed by a local authority either severally or in conjunction with any other local authority under Section 5 of the Act and every person in charge of the execution of the Work shall be bound to afford such facilities as the inspecting officers may require for the purpose of inspection of the work.

(2) The person or the corporate body with whom any such contract for the work is made, shall keep Such accounts in respect of the Work as the Government or such inspecting officers may require and all Such accounts shall be made available to the Government or the inspecting officers for inspection if so called for.

15. Grant of Government Loans.- (1) If the Government grant a loan to a local authority under Rule 11, the local authority shall be required to execute an agreement in the form given in Appendix Illin favour of the Government and the loan shall be granted subject to such conditions as the Government may specify.
(2) Every grant of a Government loan shall be subject to the conditions that

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