1[(1) The share of the Fund to be spent on development and maintenance of roads shall be allocated in such manner as may be decided by the Committee referred to in section 7A].
(2) The portion of the Fund allocated for expenditure in the various States and Union territories shall be retained by the Central Government until it is actually required for expenditure.
(3) If in the opinion of the Central Government, the Government of any State or the administration of any Union territory has at any time--
(a) failed to take such steps as the Central Government may recommend for the regulation and control of motor vehicles within the State or the Union territory; or
(b) delayed without reasonable cause the application of any portion of the Fund allocated or reallocated, as the case may be, for expenditure within the State or Union territory, the Central Government may resume the whole or part of any sums which it may have at that time held for expenditure in that State or the Union territory.
(4) All sums resumed by the Central Government from the account of any State Government or Union territory administration as aforesaid shall be re-allocated between the credit accounts of the defaulting and other State Governments and Union territory administrations in the ratio of the main allocation for the financial year preceding the year in which the re-allocation is made.
(5) The balance to the credit of the Fund in respect of any allocation shall not lapse at the end of the financial year.
(2) The portion of the Fund allocated for expenditure in the various States and Union territories shall be retained by the Central Government until it is actually required for expenditure.
(3) If in the opinion of the Central Government, the Government of any State or the administration of any Union territory has at any time--
(a) failed to take such steps as the Central Government may recommend for the regulation and control of motor vehicles within the State or the Union territory; or
(b) delayed without reasonable cause the application of any portion of the Fund allocated or reallocated, as the case may be, for expenditure within the State or Union territory, the Central Government may resume the whole or part of any sums which it may have at that time held for expenditure in that State or the Union territory.
(4) All sums resumed by the Central Government from the account of any State Government or Union territory administration as aforesaid shall be re-allocated between the credit accounts of the defaulting and other State Governments and Union territory administrations in the ratio of the main allocation for the financial year preceding the year in which the re-allocation is made.
(5) The balance to the credit of the Fund in respect of any allocation shall not lapse at the end of the financial year.
Source footnotes
1. Subs. by Act 13 of 2018, s. 206, for sub-section (1) (w.e.f. 1-4-2018). .आगे पढ़ें / Continue reading
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 3 · Levy and collection of cess.Section 4 · Crediting of cess to Consolidated Fund of India.Section 5 · Grants and loans by the Central Government.Section 6 · Establishment of Central Road and Infrastructure Fund.Section 7 · Utilisation of the Fund.Section 7A · Apportionment of share of fund by Committee.India Code, Government of India. Text fetched 18 Oct 2026. Source metadata reports last modification: 2019-11-29. Check the linked official text and subsequent notifications when applying a provision.