Administration Manual - B.E.S.T. Undertaking.

127
1) Immovable Property 8,61,08,765
2) Stores and Works-in-Progress 65,50,000
3) Goodwill (with the Bus Section) 60,00,000
___________
Total : Rs. 9,86,58,765
___________
This amount was raised mainly through a loan and the BEST Company was
paid in installments as under :
Rs.
Upto 31.3.1948 5,35,00,000
Upto 31.3.1949 1,00,00,000
Upto 1.4.1950 3,51,58,765
__________
Total : Rs. 9,86,58,765
________
Under the Award of the Arbitrator, an interest at 4 percent was to be charged
on unpaid amount from the 7 th August 1948 to the 31 st March 1950. The total interest
came to Rs. 23,19,516. The goodwill of Rs. 60,00,000 was written off by instalments,
out of the year’s surpluses. The last instalment of Rs. 3,54,000 was written off in
1970.
2. Applicability of various section of MMC Act for functioning of Accounts
Department:
Section 60(D) - Appointment of Chief Accounts Officer
Section 106 - With the previous sanction of State Government, Corporation can
borrow funds. Therefore the borrowing powers are vested in
Municipal Corporation.
Section 109(A) - The investment of Sinking Fund.
109(dd) - Maximum loan liability is three times the ratable value of
premises in Greater Mumbai assessable to Property Tax
Section 109(AA)- Annual Examination of Sinking Fund